INSTRUCTOR SOLUTION MANUAL for Using MIS, 12e David Kroenke, Randall Boyle

1. The Importance of MIS LEARNING OBJECTIVES Q1-1 Q1-2 Q1-3 Q1-4 Q1-5 Q1-6 Q1-7

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

How MIS will affect you?

What is MIS? How can you use the five-component model?

What is information?

What are necessary data characteristics?

2031?

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

• Q1-3 • • • Q1-4 • • • • • Q1-5 • • Q1-6

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 you?

How can you attain job security?

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

What is MIS? Components of an information system Management and use of information systems Achieving strategies How can you use the five-component model?

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

Definitions vary Where is information?

What are necessary data characteristics?

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• • • • • Q1-7

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Accurate Timely Relevant Just barely sufficient Worth its cost 2031?

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

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

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

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

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

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

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

Show the passwords for each.

There will be many correct answers to this question. For example, a passphrase for a university account may look something like, “I will graduate from state university before 2020 or bust!” This could yield a password that would look like “IwgfSUb42020ORB!” 4. Explain proper behavior when you are using your computer and you need to enter, for some valid reason, another person’s password.

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

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

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

SO WHAT? IOTrends 1. People often use the terms Web and Internet interchangeably, but they are not the same. Do your best to define each and identify exactly how they are different.

Student answers will vary but a good explanation can be found at the website https://www.geeksforgeeks.org/whats-difference-internetweb/#:~:text=The%20Internet%20is%20a%20global,on%20top%20of%20that%20in frastructure. It states: “The Internet is a global network of networks while the Web, also referred formally as World Wide Web (www) is collection of information which is accessed via the Internet. Another way to look at this difference is; the Internet is infrastructure while the Web is service on top of that infrastructure.”

2. The article talks about Web 1.0 and Web 2.0. You may be wondering if Web 2.0 is the end of the line. What do you think—will there be a Web 3.0, and if so, what would it entail?

Student responses will vary, but should cover some ideas and concepts that are not already part of Web 1.0 or Web 2.0 specifically.

3.

While IoT is clearly having an impact on businesses (e.g., tracking manufacturing using sensors in production lines) and cities (e.g., tracking traffic flows, lighting, public transportation), how has IoT impacted your life? Do you have any IoT devices in your apartment or home? If not, which IoT devices would you be interested in owning?

Student answers will vary, btu some devices could include Amazon Echo, Google Nest, and similar devices.

4. Do you think IoT devices feature the newest and most advanced security measures, or could there be potential security risks from using IoT devices?

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Student answers will vary, but should point out that often times upon release new products do not have all their security holes covered so users should be aware and proceed with caution.

COLLABORATION EXERCISE 1 This chapter discussed why collaboration is a key skill for maintaining job security. In this exercise, you will build a collaboration IS and then use that IS to answer the questions below in a collaborative fashion. You might want to read the four questions below before you build your IS. Until you answer question 1-5, you’ll have to make do with email or face-to-face meetings. Once you’ve answered that question, use your communication method to answer question 1-6. Once you’ve answered question 1-6, use your communication method and your content-sharing method to answer question 1-7. Then use the full IS to answer questions 1-8 and 1-9.

1-5 Build a communication method: a. Meet with your team and decide how you want to meet in the future.

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

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

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

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

Student answers will vary. Look for students to include procedures regarding meeting notifications, tardiness and missing meetings, and designating a team member to send out reminders. (LO: 2, Learning Outcome: Explain how I S can enhance systems of collaboration and teamwork, AACSB: Interpersonal Relations and Teamwork) 1-6 Build a content sharing method: a. Meet with your team and decide the types of content that you will be creating.

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

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

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

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

Student answers will vary. Look for students to include procedures regarding responding to requests to edit, timeliness of responses, and expectations for participating in content review. (LO: 2, Learning Outcome: Explain how I S can enhance systems of collaboration and teamwork, AACSB: Interpersonal Relations and Teamwork) 1-7 Build a task management system: a. Meet with your team and decide how you want to manage tasks. Determine the task data that you want to store on your task list.

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

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

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c. Implement the tool and server in step a.

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

Student answers will vary. Look for students to include procedures regarding task creation, task assignment, priority setting, check-out and check-in, and meeting deadlines. (LO: 2, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Interpersonal Relations and Teamwork) 1-8 Nonroutine skills: a. Define abstract reasoning and explain why it is an important skill for business professionals. Give three other examples of abstractions commonly used in business.

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

Being able to construct a model or representation of a complex situation through abstract reasoning is an important skill for business professionals, who frequently must make decisions under uncertain and highly complex situations. This is a highly marketable skill. Student answers will vary, but some examples of abstractions used in business include a list of items in inventory and their quantity on hand, project plans, budgets, and business process models. (LO: 2, Learning Outcome: Describe the components of an information system (IS), AACSB: Reflective Thinking) b. Define systems thinking and explain why it is an important skill for business professionals. Give three other examples of the use of systems thinking with regard to the consequences of Bell’s Law, Moore’s Law, or Metcalfe’s Law. Systems thinking involves identifying and modeling the components of a system and connecting the inputs and outputs among those components into a sensible whole, one that explains the phenomenon observed. This is an important skill because business people must be able to identify and understand the relationships among the elements involved in a complex situation. Regarding examples, student answers will vary. Bell’s Law, for example, states that digital devices will evolve so quickly that they will enable new platforms, programming environments, industries, networks, and information systems every 10 years. Right now, smartphones and tablet devices are predominant platforms for consumers, but how will that evolve and what does that mean for current smartphone/tablet providers? Will smart watches finally catch on, or some other “wearable” product? (LO: 2, Learning Outcome: Describe the components of an information system (I S), AACSB: Reflective Thinking) c. Define collaboration and explain why it is an important skill for business professionals. Is the work product of your team better than any one of you could have done separately? If not, your collaboration is ineffective. If that is the case,

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explain why.

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

Experimentation involves creating and testing promising new alternatives, consistent with available resources. In today’s demanding business environment, new ideas will be essential to success, and business people must overcome their fear of failure and pursue new approaches rationally. If any of the group members respond to a suggested process with the comment, “that will never work,” he may be reflecting his fear of failure. Unwillingness to try a new way of doing things may be an accurate assessment that the approach is unworkable, but it could also be an unwillingness to work in a new way. (LO: 2, Learning Outcome: Describe the components of an information system (I S), AACSB: Reflective Thinking) 1-9 Job security: a. State the text’s definition of job security.

The text defines job security as “a marketable skill and the courage to use it.” The text also argues that marketable skills are no longer specific task-related skills, but rather “strong nonroutine cognitive skills.” (LO: 2, Learning Outcome: Describe the components of an information system (I S), AACSB: Reflective Thinking) b. Evaluate the text’s definition of job security. Is it effective? If you think not, offer a better definition of job security.

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

Student answers will vary, but we hope that thinking about these dimensions will

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

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

CASE STUDY 1 Pluralsight Go to http://pluralsight.com and search for a course you might be interested in taking. What is attractive to you about online versus traditional training?

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

1-10.

1-11. What advice would you give executives at Pluralsight if they wanted to grow their

business? How could they increase revenues?

Pluralsight has traditionally focused on corporate training. Students might be more familiar with an academic environment and might suggest that Pluralsight establish programs with universities so that students could take courses to supplement their traditional coursework at a reduced rate. Possibly some companies could be lined up to help pay the subscription rate, since the students should be more able to provide needed skills to those companies when they graduate. (LO: 1, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytic Skills) 1-12. Why would corporate clients be interested in online technology training for their

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

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

Pluralsight is a training outsourcer and if their training quality is good, the company is much better off obtaining the training this way. (LO: 1, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytic Skills)

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1-13. Why is there a technology skills gap? Why do employers have the need for highly

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

It is difficult for a traditional college or university to include every type of technology skill in its curriculum, so graduates will not necessarily know every type of technology an employer requires. In addition, skills required evolve quickly and employees need to be updated and retrained on new technologies. (LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytic Skills) 1-14. How might a traditional university benefit from a partnership with Pluralsight? Why

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

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

Colleges and universities that do offer focused skills training might find this partnership a little threatening if students preferred the Pluralsight online courses to the traditional university offerings. (LO: 1, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking) 1-15. Suppose you were considering buying stock in Pluralsight. What types of threats

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

Like any company today, there are constant competitive threats. An example of a threat that could disrupt Pluralsight is the rapid growth of cloud computing. A major cloud computing provider, such as Amazon, could launch a skills training business geared toward all its cloud computing environments and tools that would be far superior to Pluralsight’s. Pluralsight could defend against this by establishing a partnership with Amazon to provide Amazon’s cloud computing skills training. (L O: 1, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking)

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Strategy and Information Systems

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

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

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

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

Q2-5 Explain how business processes generate value.

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

Q2-7 Explain how information systems provide competitive advantages.

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

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

Q2-2 What five forces determine industry structure?

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

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

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

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

Q2-7 How do information systems provide competitive advantages?

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

• How does this system create a competitive advantage?

Q2-8 2031?

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SECURITY GUIDE Critical Ransom 1. Do you think criminals will actually decrypt your data if you pay them the ransom?

Student answers will vary. Explain to them that it generally is common for them to follow through with decrypting the data, because if they do not, they lose any future leverage to get paid by companies if history shows they do not follow through with their end of the arrangement.

2. If you are 100 percent certain that paying the ransom for your data will result in it being decrypted, should you do it? Explain.

Student answers will vary. Point out that many security professionals feel strongly that companies should never cave to these ransoms and pay them as it encourages them to further carry out these types of attacks. Look for some justification on how it might make sense for specific instances depending on that company’s situation as it relates to backups and ways around it as well as how much they can tolerate potential downtime.

3. The article mentions that surveillance of and attacks against critical infrastructure are growing commonplace. Take a few minutes to search for the latest examples of these types of attacks against critical infrastructure organizations. (Refer to the CISA list in the article to help guide your search of relevant industries.)

Student responses will vary. They should pull from some researched/current examples at the time of response.

4. Can you think of any examples of known international cyberattacks that have succeeded in damaging their targets?

Student responses will vary. For a good look at current examples, direct students to https://www.csis.org/programs/strategic-technologies-program/significant-cyberincidents which keeps a running list of international cyberattacks.

SO WHAT? Amazon Everywhere 1. Some of the most innovative and powerful companies in the world are technology companies (e.g., Google, Facebook, Apple, Amazon, and Netflix). Out of the five companies on this list, could a case be made that Amazon should be considered the most powerful company of them all? Why?

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Students answers will vary. Some considerations for this could be that Amazon is more diverse in what its business is involved in with online retail, physical stores, cloud computing, streaming media, etc.

2. Can you think of any other technologies that employ sensor fusion, cameras, and computer vision?

Student answers will vary. Based on their responses, do some research to better understand how their proposals meet the requirement of this topic.

3. Can you think of any other industries that have been disrupted, or seen processes drastically changed, due to innovations in technology over the past 10-plus years?

Student answers will vary, but consider the streaming music/video industry. Just 10 years ago, downloadable digital music files were still quite commonplace through services such as iTunes whereas these have now been largely replaced by streaming services such as Spotify and Pandora.

4. Can you think of any emerging technologies that will disrupt, or change, processes in industries over the next 10-plus years?

Student answers will vary. Ensure whatever examples are provided are clearly explained or backed up with reference sources to the technology.

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

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

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

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

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

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

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

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

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

Customer contact recognizes interest areas and/or previous experience with activity.

Determine interest in activity, making suggestions.

Register customer for activity and arrange for reminder, transportation, etc.

Add cost to customer hotel bill. Assess customer satisfaction.

Record interest in future similar activities.

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

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

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

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

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

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

strategy? Justify your answer.

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

does that mean?

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

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

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

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

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

Student answers will vary, depending upon their personal experiences. We hope that they will mention several things at a minimum, including abstract reasoning, critical thinking, ability to engage fully in collaborative endeavors, willingness to experiment, and continuous engagement in process improvement. (LO: 1, Learning Outcome: Describe the components of an information system (IS), AACSB: Reflective Thinking Skills)

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2-8. What should UPS and FedEx be doing in response to Amazon’s interest in drone

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

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

Brick-and-mortar retailers can sell items via Amazon.com and gain access to the huge number of shoppers that use that site. They would have to do business following Amazon’s rules, however. Retailers might want to keep customers coming to their own websites 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) If a brick-and-mortar retailer were to use FBA, what business processes would it not need to develop? What costs would it save?

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

2-10.

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

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

2-11.

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

2-12.

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Business Intelligence Systems

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

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

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

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

Q3-6 Explain how AI and automation affect organizations.

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

Q3-9 Discuss the future of business intelligence systems in 2031.

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

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

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

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

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

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

• What is the role of knowledge management systems?

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

• What are the challenges of content management?

Q3-5 Why is artificial intelligence (AI) important?

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

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

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

• Machine learning o Using machine learning to automatically detect spam o Continuous intelligence • IBM’s Watson o How does Watson work? o The future for Watson Q3-9 2031?

SECURITY GUIDE Capital Data Breach 1. You have likely seen many TV shows or movies depicting hackers in futuristic looking rooms or in poorly lit basements breaking into high-security targets. Do you think these representations glorify criminal activity in a way that may entice people to engage in these activities?

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

2. One of the biggest assets that financial institutions have to secure is their reputation. If your bank or credit card company was the victim of a breach, would you have trepidation about continuing to use that financial institution? Would you switch to a competitor? What factors would inform your decision?

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

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3. The article introduces security fatigue as a phenomenon that occurs when a person is so tired or overwhelmed by information security information and/or controls that they give up and actually behave insecurely (either benignly or maliciously). Do you think there would be different thresholds of security fatigue within different types of organizations?

Student answers will vary. Responses should touch on the security fatigue concept that is mentioned, and should mention how the fatigue might be different based on the individual company’s rules and restrictions related to security and how they impact individual employees.

4. Think about the security controls that have been put in place by your university (or employer). Do you remember the contents of the security policy that is in place? Have you ever found yourself frustrated or tired of security communications or controls that you have encountered? Explain.

Student answers will vary based on their own experience.

SO WHAT? Continuous Intelligence 1. The article references volunteers who work countless hours for free to ensure that the Waze map system is up to date. This is an example of crowdsourcing. What are other examples of crowdsourcing you may have benefited from?

Student’s experience with crowdsourcing and examples will vary. Some examples can be found at https://www.planbox.com/4-companies-that-are-killing-it-withcrowdsourcing/ 2. Describe all of the different types of data streams that companies can compile to submit to a continuous intelligence platform for analysis.

Student answers will vary depending on the industry/company selected. Using the Waze example , these data streams include map editors, active reports by drivers, and passive monitoring by driver’s apps as they drive around.

3. How can continuous intelligence be used within the context of information security?

Continuous intelligence can be used within the context of information security by using artificial intelligence and machine learning to sift through massive data sets to identify patterns, relationships, and meaningful insights. This is critical for staying ahead of the changing landscape as it relates to security threats.

4. Can you identify any potential risks of an organization using a continuous intelligence platform?

There could be some technical complexities added which means potential new training and skills needed by organization employees. This type of system will also

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rely on systems and departments working in a more collaborative way, and definitely not in a silo type setup which is more common.

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

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

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

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

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

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

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

[5,2,5] – A customer with this rating is lower on Frequent; high on Recent and Money. This customer is a valuable customer so some effort needs to be expended to try and induce the customer to be a more frequent customer. A survey could help pinpoint the issues.

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

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

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

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

Big Data is characterized by data collections that have huge volume, have rapid velocity, and contain a great variety of data components. Students will think of various student-related Big Data applications at their universities. One example is the

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data that is associated with the university Learning Management System (LMS), such as BlackBoard or Canvas. There is a wealth of data of various types that describe student usage of the LMS. Exploration of this data could reveal insights into student usage patterns of various types and could help course designers evaluate the use and value of instructional media options and perhaps how they contribute to student performance. (LO: 3, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytic skills) 3-7. A robot named Vector made by Anki uses AI and neural networks to learn how

to interact with people and its environment. It uses natural language processing to understand commands spoken to it and search the Internet for answers to your questions. It can also recognize specific individuals, charge itself, and navigate its way around a room. Vector can see, hear, speak, and even feel using a variety of touch sensors. Describe how AI-powered toys like Vector could change how children play with toys. How might a good experience with Vector change people’s perceptions of robots?

The Vector toy can provide a positive image of robots since it can help children learn things through interactions. When parent see the benefits this provides to the education and interactions of their children, their own view of robots could become more favorable as a result. (LO: 7, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytic skills) 3-8. Thought leaders like Bill Gates, Elon Musk, and the late Stephen Hawking have

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

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

COLLABORATION EXERCISE 3 3-9. Describe how only remote collaboration might make accomplishing certain

types of work more difficult. Why might face-to-face collaboration be more effective for complex, ambiguous tasks?

While it would certainly vary by industry and by company, there are some things that are better suited for in person collaboration. Some things require hands-on

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approaches, particularly as it relates to hardware. There could be a process that needs to be learned by an IT technician as it relates to new server hardware that they will not be able to learn or understand as easily if trying to do it over a teleconference or similar approach. (LO: 3, Learning Outcome: Explain how information systems can be used to assist in decision making, AACSB: Analytic skills) 3-10. There are many benefits of working from home, but there are downsides as

well. Compare and contrast the benefits of remote work with the potential downsides. Consider impacts on the environment, organizational effectiveness, reductions in the cost of expensive office space, and so on.

Some benefits can include the reduced cost of employee expense of office space, employees potentially starting work earlier and finishing later due to the lack of a commute, and a potential increase in employee happiness. Some cons can include distractions in the home, less ways to monitors an employees work efforts, and less of an ability to hold quick in person chats and meetings. (LO: 1, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Information Technology) 3-11. Consider the proverb “out of sight, out of mind.” Discuss how working from

home may affect a person’s career progression. If the boss can’t see you, will your chances of a promotion be affected? If you’re not promoting yourself at work, will it be easy for contributions to be minimized or forgotten entirely?

Students may have different opinions on this. It is certainly possible to lose any edge in getting a promotion or having contributions recognized when working remotely from where your management is located. (LO: 1, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytic skills) 3-12. The COVID-19 lockdown of 2020 may have accelerated the eventual

evolution of the modern workplace. Some workers were already working from home. Outsourcing some types of work to remote locations had been going on for years. But the lockdown forced everyone who could to work from home.

Companies were forced to change their policies, workflows, and expectations.

The traditional 9-to-5 workday was gone. Flexible work hours were now available to everyone. Discuss the impact of working from home on employee working conditions. Will it be easier for employees to work two or even three jobs at once? Would more effective employees make more money? Why might companies be motivated to change compensation from a “per hour” model to a “productivity” model?

Without the ability to have constant eyes on employees, it is certainly fathomable that employees could be doing other work or jobs simultaneously from home. It would vary depending on roles and level of regular interactions with others, but this could make a new pay model more appropriate depending on the business and the individuals involved. (LO: 1, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytic skills) 3-13. From a security perspective remote collaboration may cause unforeseen

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problems. Discuss some of the potential information security concerns that may come from having employees work from home. Consider the management and backup of data, managing corporate computing devices, and data and privacy compliance.

There are already some instances where security was an issue with some of the remote telecommunication tools such as Zoom as evidenced during the start of the COVID-19 pandemic. These types of risks will continue to be a challenge as more people move to this model. Working from home puts a lot of trust in individual employees to follow not only common-sense practices, but also company policies as it relates to security and best practices. This will always be harder to manage with employees outside of the confines of the company offices. (LO: 1, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Ethical Understanding and Reasoning Abilities)

CASE STUDY 3 Hadoop the Cookie Cutter 3-14. Consider Yuan’s experience at Cisco Webex. Are you aware of any other tech

companies that started out because their founder was not allowed to do something with their former employer? If not, take a few minutes to look up the histories of various tech companies to find at least one example.

Student answers will vary. One example could be Steve Wozniak who was a cofounder of Apple. He worked for Hewlett Packard where he tried to share his own computer design but was repeatedly denied. (LO: 1, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytic skills) 3-15. Zoom has been criticized for opening up its platform for use by nonpaying

users (with some restrictions). Why would Zoom do this, and why would paying customers care?

Student answers will vary, but might include concerns over overall performance of the platform with many resources being used up by non-paying users as well as a lack of overall technical support available for paid users versus non-paying users. (LO: 3, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytic skills) 3-16. With the surge of Zoom users came a surge in scrutiny about the software’s

privacy and security. Why do you think Zoom developers built an insecure piece of software?

Student answers will vary, but one reason this tends to happen is that companies are so quick to try and catch a wave (as they were with the massive need for COVID-19) that products often get exposed for security holes and other

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vulnerabilities as they gain in popularity. (LO: 3, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Analytic skills) 3-17. What is your prediction for Zoom’s long-term success? Do you think users

will fall away as things normalize from COVID-19? Will competitors reveal better tools that steal market share? Explain your answer.

Student opinions will vary on this question. It is hard to say which way it will go but there is no doubt there will still be a large demand for their technology even if it falls away some. Competitors will likely emerge that take away some market share, but there is no way to predict if their tools will be better and how much market share they will obtain as a result. (LO: 3, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Ethical Understanding and Reasoning Abilities) Outcome: Compare and contrast different business intelligence systems, AACSB: Analytic skills) 3-18. Have you used Zoom and/or any of the competing videoconferencing

platforms offered by Facebook, Google, Microsoft, and so on? How are they similar? How are they different? Which platform is your favorite? Explain your preference.

Student opinions will vary on this question based on their own experience. (LO: 3, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Ethical Understanding and Reasoning Abilities) Outcome: Compare and contrast different business intelligence systems, AACSB: Analytic skills) 3-19. Despite an already solution-rich and competitive market for

videoconferencing platforms, Yuan saw an opportunity that turned into a billion-dollar company. Can you think of any markets today that may have many competitors and alternatives but products that are lacking?

Student opinions will vary on this question. (LO: 3, Learning Outcome: Compare and contrast different business intelligence systems, AACSB: Ethical Understanding and Reasoning Abilities)

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Hardware, Software, and Mobile Systems

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

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

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

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

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

Q4-6 Explain why mobile systems are increasingly important.

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

Q4-8 Speculate on the state of hardware, software, and mobile systems in 2031.

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

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

• Digital reality devices o Impact of digital reality devices • Autonomous vehicles o Self-driving vehicles make things easier o Self-driving vehicles make things cheaper o Self-driving vehicles will make things safer o Self-driving vehicles will disrupt businesses o Drones • Industrial robots o The case for robots • 3D printing • FinTech o Cryptocurrencies

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o Risks of cryptocurrencies o The future of cryptocurrencies Q4-3 What do business professionals need to know about software?

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

• What is firmware?

Q4-4 Is open source software a viable alternative?

• Why do programmers volunteer their services?

• How does open source work?

• So, is open source viable?

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

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

Q4-6 Why are mobile systems increasingly important?

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

• Advantages and disadvantages of employee use of mobile systems at work • Survey of organizational BYOD policy Q4-8 2031?

SECURITY GUIDE SECURITY GUIDE SECURITY GUIDE 1. CYBER-PHYSICAL ATTACKSIn the hypothetical scenario presented at the beginning of this article, it is reported that changes to the production specifications were altered by external hackers and malware. Is it possible that the production supervisor could have done it?

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It is certainly possible that the production supervisor could have done this, it is not likely it would be that easy to accidentally change a design in the process, nor would there be a likely motive for doing this.

2. The article mentions that the Stuxnet attack relied on compromising programmable logic controllers (PLCs). Do some online research and find out if PLCs are used for any other applications. Does this introduce risk to other types of organizations?

Student answers will vary, but should show and demonstrate evidence of research on PLCs to see what types of risks those could post to other types of organizations.

3. Why do you think phishing attacks have the success rates that they do? Do you think it is likely that you would be the target of a spear phishing attack?

Student answers will vary, btu should likely touch on the fact that users tend to be trustworthy of emails they receive if they appear to be legitimate. To the inexperienced user, they often would not realize what they have done until it is too late, and even then, they not be aware of what triggered an event.

4. What do you think would happen if a regional power outage was to occur in the northeastern United States for several months? How would the time of year impact the implications of a power outage of this scale?

Student answers will vary, but would include things such as concerns over hospitals and care of individuals. There would be likely an exodus out of the region for people moving to other parts of the country as survival on a modern scale would be hard to achieve with no way to keep things warm, electrical lighting, etc.

SO WHAT? New from CES 2020 1. Imagine you have partnered with a company to develop the next best gadget to be featured at an upcoming CES. What gadget would you create?

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

2. Take a few minutes to take inventory of all of your electronic devices. Next, identify the typical life span of each of these products. Estimate how many devices you might abandon over the span of 10 years. What sustainability score would you give yourself?

Student answers will vary on this, but should be justified based on the various facts illustrated in this section.

3. Sustainability becomes an even more important issue when considering e-waste at an organizational level (i.e., think how much e-waste is created by your local university, municipality, or hospital). How might cloud computing reduce e-waste?

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Student answers will vary, but should point to some of the many benefits over storing data and information in a digital space that keep information from having to be stored on more localized devices.

4. Phones are one of the devices that we replace most frequently. Brainstorm three different ways that a phone could be repurposed for something else instead of just being thrown away.

Student answers will vary but include being used as secondary screens on WiFi only.

They might also be sold for parts instead of being thrown away.

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

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

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

Students’ answers will vary widely depending on each institution’s approach to BYOD. As an example, this writer’s university has had in recent years a very restrictive policy on laptops—any laptop in use on campus that wanted access to the campus WiFi services had to be physically registered with the central Information Technology Services organization. Although this policy has been relaxed, it had the advantage of “forcing” each user to have certain malware protection installed. I believe that BYOD policies will have to continue to relax and accommodate a wide array of devices and respond to user demands. (LO: 7, Learning Outcome: Describe the major types of computer hardware and software used by companies, AACSB: Reflective Thinking Skills) 4-6. Read Q4-2, if you have not already done so. Critically evaluate the opinions of the

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

Student answers will vary widely depending on each student’s opinion on these issues. Although this is primarily an opinion question, challenge your students to support their opinion with reasoning and judgment. (LO: 7, Learning Outcome:

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Describe the major types of computer hardware and software used by companies, AACSB: Reflective Thinking Skills)

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

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

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

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

question 4-7.

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

applications you identified in question 4-7.

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

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

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

4-10.

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

4-11.

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

CASE STUDY 4 Peloton Have you had the chance to use a Peloton exercise machine? If not, go to www.onepeloton.com and take a look at its product lineup. Do its products interest you? Explain why or why not.

Student answers will vary. (LO: 1, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking Skills)

4-12.

Gamification (e.g., point scoring, competition, rules of play) has been used in a variety of contexts to motivate people to engage in a certain type of behavior. How do you think the developers of Peloton are using gamification to retain subscribers?

Student opinions on this will vary, but since sriders in aclass might be called out for achieving different milestones and acknowledged for various things, it provides a motivation and a connectedness even if not direct competition. (LO: 6, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking Skills)

4-13.

The article mentions that Peloton released a new treadmill exercise platform to accompany its stationary bike product. What recommendation would you give to the company to increase sales of both products, especially since they are so expensive?

Student answers will vary, but might include suggestions of bundling them together for a discount to entice them to use both. (LO: 5, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking Skills)

4-14.

Do you see any downsides for people using at-home fitness solutions? Be creative.

• Student answers will vary. Some potential downsides might be the loss of direct social interaction, abd possibly less motivation to work as hard since it is in the confines of one’s own home.

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

4-15.

While Peloton’s stationary bike and treadmill have been successful, companies need to continuously innovate to have long-term success (e.g., Apple didn’t just release the first iPhone and ride off into the sunset of permanent success). What types of innovations can Peloton pursue to ensure long-term revenue?

Students will have different opinions on this. Like companies such as Apple, it is

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important to continue to add new features that make new models and additions appealing and worthwhile. It is generally by design that features are left out until later versions to drive a continuous need for the latest product.

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

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

Explain the purpose of a database.

Define what a database is.

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

Explain how database applications make databases more useful.

Describe how data models are used for database development.

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

Discuss how eHermes can benefit from a database system.

Describe the prospects for data management in 2029.

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

What is the purpose of a database?

What is a database?

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

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

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

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

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

Q5-8 2031?

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SECURITY GUIDE Don’t Reuse that Password 1. Think about your own password reuse behavior. Do you reuse passwords for your own personal accounts? If so, has the scenario provided in this article changed your perception of password reuse so that you will avoid doing so in the future?

Student answers will vary. Their responses should likely point out the reasons for not reusing passwords since as the article points out, once one account that has a specific email account and password used is compromised, all other accounts can be easily compromised.

2. As a follow-up to question 1, have you ever had to create an account for an employer, and did you reuse a password for that account? If not, was it because you recognized the potential risk to your employer if one of your personal accounts was breached? Did this act as a deterrent that was not present for you to try to protect yourself ?

Student answers will vary. Look to see that their justifications tie to the content covered in the article as it relates to the risks involved here.

3. The article mentions keystroke analysis as a way to detect and ultimately prevent password reuse. How do you think that the evaluation of someone’s typing behavior could be used to identify password reuse?

Keystroke analysis would show patterns in the order of symbols and words used in the generation of passwords.

4. How does password reuse compare or contrast to physical use of the same key for every door that you have to open over the course of a week? Think about the implications of losing that one key that opens all of your physical doors.

Students will respond to this question differently but should touch on how it allows access to every location instead of potentially only compromising one location. A downside is that you also have to use so many keys which is the similar argument users will make about trying to remember multiple passwords.

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

As mentioned in the article, some students may be selective in what they store in the cloud, like photos and financial documents. However, other students may be

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confident in the protection of their privacy with cloud service providers and store everything in the cloud. A class discussion based on this question should seek to identify students who have opted not to store anything in the cloud. Try to encourage some of these students to share their concerns about cloud storage and identify how they are working to back up their data (if they are doing so at all).

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

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

3. The article mentions that some users may decide to manage their data “in house” rather than use cloud-based services and risk losing access to their data in the event of a denial-of-service (DoS) attack. Take a few minutes to research what a DoS attack is and how it could prevent users from accessing their data. Be prepared to explain this concept to another classmate or the class.

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

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

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

USING YOUR KNOWLEDGE

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5-4. a.

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

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

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

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

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

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

Acxiom offers solutions that are tailored to the following industries: o Automotive o Credit Card o Education o Government

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

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

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

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

Student answers may vary on this issue. Some may take the position that collecting data like Acxiom has done is perfectly fine in the name of free enterprise. Others may feel some concern about all of this data being aggregated with a high potential for misuse. (LO: 3, Learning Outcome: Discuss best practices for using and managing databases, AAC SB: Reflective Thinking Skills)

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i. Should there be laws that govern the types of data services that governmental agencies can buy from companies like Acxiom? Why or why not?

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

COLLABORATION EXERCISE 5 5-5.

• • • • • •

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

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

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

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

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

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

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

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

5-6.

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

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

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

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

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

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

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

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

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

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

5-7.

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

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

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

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

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

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

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

5-9.

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

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

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

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

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

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

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

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

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

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

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

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

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

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CASE STUDY 5 5-13. Why do you think so many companies are migrating to the cloud? Consider your own use of technology—do you benefit from any cloud technologies?

With the massive amounts of data now being accumulated by businesses, it is far easier to use a 3rd party management service than to try and manage all elements locally. It also provides for data redundancy. Students might mention that they use the cloud using products such as Google Drive, OneDrive, and also cloud technologies related to the data stored from their phone such as iCloud. (LO: 1, Learning Outcome: Discuss best practices for using and managing databases, AA CSB: Use of Information Technology) 5-14. Have you ever used a technology that summarizes/reports data in the form of a digital dashboard? What was the technology, and how did you use it to make a decision? Be ready to share your response with the class.

Student responses will vary. (LO: 1, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Use of Information Technology) 5-15. Go to the Customers page on the Datadog website. Take a look at one of the customer case studies available on that page. Be ready to share a brief synopsis with the rest of the class about how Datadog helped the company in the case study.

Student responses will vary but should show research as indicated.. (LO: 5, Learning Outcome: Discuss best practices for using and managing databases, AA CSB: Analytic Skills)

5-16. Do you think a university would benefit from using Datadog? How?

Student answers will vary, but will likely mention some of the benefits for the university in having a greater control over the data they are using and storing so that more informed decisions can be made from that information. (LO: 6, Learning Outcome: Discuss best practices for using and managing databases, AA CSB: Use of Information Technology)

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5-17. Based on Datadog’s long track record of growth and the other factors described in the last section of the article, how do you think the company will perform in the coming years in light of some of the potential risks?

Student answers will vary. They might reference the growing demand for cloud computing and management services, but also the risk of competitors and lack of new companies to continue at the same growth rate. (LO: 4, Learning Outcome: Discuss best practices for using and managing databases, AACSB: Analytic Skills)

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

The Cloud

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

Q6-2 Describe how organizations use the cloud.

Q6-3 Explain the network technology supporting the cloud.

Q6-4 Describe how the Internet works.

Q6-5 Explain how Web servers support the cloud.

Q6-6 Discuss how eHermes can use the cloud.

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

Q6-8 Discuss the prospects for use of the cloud in 2031.

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

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

• When does the cloud not make sense?

Q6-2 How do organizations use the cloud?

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

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

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Q6-4 How does the Internet work?

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

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

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

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

• Virtual private networks (VPN) o A typical VPN • Public versus private clouds • Using a hybrid cloud Q6-8 2031?

SECURITY GUIDE “insiders and submarines and cryptojacking, oh my!”

1. If you have abandoned physical storage drives and now use the cloud, do you think you should still keep an external drive with a backup of cloud files?

Students answers will vary depending on their individual experiences, but should acknowledge that when relying on the cloud you are giving up a level of control of your files

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2. Search the Internet for a map of undersea fiber lines—based on the number of lines that run into the geographic area where you were born, how likely do you think it would be that Internet connectivity could be disrupted long-term?

Student answers will vary, but should show evidence of research of where the lines are and in relation to where they were born.

3. Based on the various cloud computing risks identified in this article, do you now think differently about storing your own data in the cloud? Explain.

Student answers will vary depending on their own beliefs, but might mention the types of things they personally store in the cloud, how concerned they are about the indicated security risks, etc.

4. Do you think there are any other risks to undersea fiber lines besides military operations intended to damage them?

Student responses to this question will vary. They might mention natural degradation of the lines, wildlife and natural events, etc.

SO WHAT? Working @ Home 1. How did the COVID-19 pandemic influence the use of telecommuting? Do you think this will have a lasting impact on the percentage of workers who are able to work from home?

Telecommuting became the new normal as businesses needed to find ways to keep their employees safe and follow safety protocols. Businesses have had to change the way they look at telecommuting, particularly if they did not have a large presence in this area prior to the pandemic. It would be expected that most students would expect a higher use of telecommuting moving forward.

2. Is it possible that growing numbers of telecommuters could negatively impact Internet stability and speeds as more and more people work from home?

There is no doubt that as more and more users are on home networks, the internet service providers have to be sure they can provide the kind of bandwidth needed to at home users. The overall use of the Internet as a whole has increased because remote work has prompted more and more use of video calls.

3. Based on the benefits and challenges associated with telecommuting that are presented in this article, would you prefer a standard office format or working from home? Explain.

Student answers will vary based on their own job types and preference for work environments. They should back up their points with specific, logical reasons.

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Kroenke & Boyle - Using MIS 12th Ed - Instructor’s Manual 6-4

4. Have you ever taken an online course? If so, how did it differ from a standard classroom environment? What did you like and what did you dislike about online learning? How do you think these pros and cons would translate to working remotely versus working in a traditional office setting?

Again student answers will vary depending on their own experiences. If they have taken an online course, they might explain how the format was more independent and more asynchronous in the way communication was sometimes handled. They might mention that the benefits of working remotely is that it might allow more freedom to structure their day.

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

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

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

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

The major cloud service vendors employ thousands of highly trained, skilled specialists to create, manage, administer, and improve their cloud services. It is nearly impossible to imagine that the security they provide could be done better in a private internet managed by the IT department at eHermes. If security is paramount, eHermes should consider a Virtual Private Cloud, which is a subset of a public cloud with highly restricted, secure access. (LO: 6, Learning Outcome: Describe the major types of computer hardware and software used by companies, AACSB: Analytic Skills) 6-6. In five sentences or fewer, explain how the cloud will affect job prospects for you between now and 2031.

There will be fewer small companies providing information systems services to their

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

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

The cloud is a viable, inexpensive alternative to owning and managing computing resources, hence, our traditional business services will no longer be needed. (LO: 4, Learning Outcome: Learning Outcome: Describe the effects of e-commerce on the modern business world, AACSB: Reflective Thinking Skills) 6-8. Suppose your team owns and manages one of these ISVs. You learn that more and more of your clients are choosing SaaS cloud services like Google for email, rather than setting up local email servers. a. What, if anything, can you do to prevent the encroachment of SaaS on your business?

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

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

One option is to just abandon the work we have always done completely and find something else to do. However, companies will still need our technological expertise, only now they require help in dealing with the cloud environment. So, a second option is to modify our business model to provide consulting services to our previous customers. They will need help selecting the right cloud-based computing options and in building their databases on the cloud. A third option involves a training focus in which we offer training programs for small businesspeople in learning to use cloud-based resources in general and learning to

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use the specific systems obtained from the cloud vendors. (LO: 4, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking Skills) c. Which of the three responses identified in your answer to question 6-8b would you choose? Justify your choice.

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

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

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

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

(LO: 4, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking Skills) 6-9. Even if SaaS eliminates the need for email and other local servers, there will still remain viable services that you can provide. Name and describe those services.

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

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

The purpose of telemedicine is to extend the expertise of medical specialists to underserved locations. If we specialized in this field, we could help attract medical talent interested in this practice, train them on how to utilize the telemedicine capabilities, and recruit and train medical personnel in remote areas to participate in the telemedicine initiatives. (LO: 4, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking Skills)

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6-12. Given your answers to questions 6-7 through 6-11, would you rather be an existing ISV attempting to adapt to this new world or an entirely new company?

Compare and contrast the advantages and disadvantages of each alternative.

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

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

While the changes can be confusing and even frightening, business professionals should welcome the opportunities provided by new technological options and look to the future instead of trying to cling to the past. The information technology world is one of constant change and evolution. No company can assume their market will remain constant over time, no matter how large it is. (LO: 4, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking Skills)

CASE STUDY 6 Saleforce.com 6-14. Go to www.salesforce.com, and click on the “Try for Free” button. Fill in the required fields and start your free trial. This will take you to a test site full of data for a company named Acme. Click on the “Get to Know Essentials in 60 Seconds Flat” link on the right-hand side of the in-app help window. Click on the walk through the automated tour labeled “Track Your Leads” on the right-hand side of the in-app help window No specific answer; a task to be performed. a. Why would these dashboards be useful to a marketing or sales manager?

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

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

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

Creating a complex software product such as Salesforce requires a tremendous amount of initial capital. The software has to be conceived, built, tested, and a production environment created. The software must be sold to customers and those customers require support. The software must be continually enhanced with new features. All customers require stellar performance, so resources are continually needed to expand the infrastructure as customers are added. While the incremental costs of adding a customer is low, as more and more customers are added the system must scale up. Since the CRM software market is very competitive, Salesforce must keep its pricing attractive, although switching costs will make it less likely to lose customers once they have become SalesForce customers. (LO: 6, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytic Skills) 6-16. Why was it critical to choose the right team of people to get Salesforce.com off the ground? What types of skills would be necessary to create a CRM like Salesforce.com?

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

The tech giants operated at the time on a business model that involved selling licenses to software. It probably took a new business with a fresh point of view to demonstrate the potential of the SaaS model. (LO: 6, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytic Skills)

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6-18. What could be driving the tremendous growth in Salesforce.com’s stock price and revenue? Why do you think investors put such a high premium on Salesforce.com’s stock?

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

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

What other types of software might be good candidates for future expansion for Salesforce.com? Why? Students’ ideas about this will vary. Reasonable candidates might be employee relationship management systems and contractor relationship management systems.

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

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

Collaboration Information Systems

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

Q7-2 Describe three criteria for successful collaboration.

Q7-3 Explain the four primary purposes of collaboration.

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

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

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

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

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

Q7-9 Discuss your ideas on how we may collaborate in 2031.

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

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

Q7-2 What are three criteria for successful collaboration?

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

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

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

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

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

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

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

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

Q2-9 2031?

SECURITY GUIDE Exploiting Covid-19 1. Have you or someone you know become the victim of a phishing attack? What mechanisms did the attacker use to get the victim to fulfill the call to action? What was the outcome of the attack?

Student answers will vary. Example phishing attacks are often around emails sent that appear to look legitimate and trick a user into providing personal information that they should not.

2. One measure used to slow the infection rate of COVID- 19 was the order to shelter in place. This forced many workers to begin working from home. How does this new working format introduce security risks to organizations?

Student answers will vary. One of the key security risks overall is a lack of controls over the employees decisions while working from home. While some things can be

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secured, you are relying on employees that are not under closer visual oversight to make good decisions regarding company information and resources.

3. What can be done to help reduce some of the risks identified in your response to question 3?

Student answers will vary. The company should first and foremost have policies guiding what is acceptable use of company resources and access while working from home. Files and resources should also be secured, and use of a VPN is recommended for connecting into the company network.

4. If the dark Web is such a hotbed of criminal activity for hackers, why isn’t it shut down, or at least, why aren’t the criminals arrested and prosecuted?

The reason it is not shutdown as a whole is that not everything that happens there is illegal. AS for prosecuting criminals, the FBI and other law enforcement do shut down some elements of it, but tracking back to individuals can prove difficult.

SO WHAT? Zoombombing 1. Why do you think malicious individuals targeted Zoom? Do you see any parallels between Zoom and Windows?

Student answers will vary. Zoom provided an easy, and unsecured way of reaching many different individuals with whatever message or disruption that a malicious individual intended. Since it has such a large audience, it was a prime target just like the Windows operating system.

2. Are you aware of any other types of malicious digital activities that took place during the COVID-19 pandemic?

Student examples will vary but should include a reference to an article or something similar to show where the data came from. Many attacks included scams to obtain information using fake emails, notifications, etc.

3. Were you or anyone you know impacted by cybercrime or nefarious digital actors during the COVID-19 pandemic? What happened?

Student answers will vary.

4. Why are online criminal activities so difficult to prosecute?

It can be hard to locate an online criminal since many use specific browsers and VPN tools to mask their actual locations. It is made more challenging when it occurs over international borders since not every country has the same laws or even has a cooperative relationship in prosecuting individuals with other countries.

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7-4. This exercise requires you to experiment with Microsoft OneDrive. You will need two

Office IDs to complete this exercise. The easiest way to do it is to work with a classmate. If that is not possible, set up two Office accounts, using two different Outlook.com addresses. a. Go to www.onedrive.com and sign in with one of your accounts. Create a memo about collaboration tools using the Word Online. Save your memo. Share your document with the email in your second Office account. Sign out of your first account.

(If you have access to two computers situated close to each other, use both of them for this exercise. If you have two computers, do not sign out of your Office account. Perform step b and all actions for the second account on that second computer. If you are using two computers, ignore the instructions in the following steps to sign out of the Office accounts.)

No answer required; a task to be performed by the student. (LO: 6, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Information Technology) b. Open a new window in your browser. Access www.onedrive.com from that second window and sign in using your second Office account. Open the document that you shared in step a.

No answer required; a task to be performed by the student. (LO: 6, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Information Technology) c. Change the memo by adding a brief description of content management. Do not save the document yet. If you are using just one computer, sign out from your second account.

No answer required; a task to be performed by the student. (LO: 6, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Information Technology) d. Sign in on your first account. Attempt to open the memo and note what occurs.

Sign out of your first account and sign back in with your second account. Save the document. Now, sign out of your second account and sign back in with the first account. Now attempt to open the memo. (If you are using two computers, perform these same actions on the two different computers.)

No answer required; a task to be performed by the student. (LO: 6, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Information Technology) e. Sign in on your second account. Reopen the shared document. From the File menu save the document as a Word Document. Describe how OneDrive processed the changes to your document.

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AACSB: Information Technology)

COLLABORATION EXERCISE 7 7-5. Collaboration:

a. What is collaboration? Reread Q7-1 in this chapter, but do not confine yourselves to that discussion. Consider your own experience working in collaborative teams, and search the Web to identify other ideas about collaboration.

Student answers will vary based on individual experiences with teams. Their ideas on collaboration should focus on people working together to achieve a common goal, result, or work product. Feedback and iteration are involved so that the results of the collaborative effort are greater than could be produced by any of the individuals working alone. (LO: 1, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Reflective Thinking) b. What characteristics make for an effective team member? Review the survey of effective collaboration skills in Figure 7-1 and the guidelines for giving and receiving critical feedback and discuss them as a group. Do you agree with them?

Student answers will vary, depending on their team experiences. (LO: 1, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Reflective Thinking) c. What skills or feedback techniques would you add to this list? What conclusions can you, as a team, take from this survey? Would you change the rankings in Figure 7-1?

Student answers will vary, depending on their team experiences. (LO: 1, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Reflective Thinking) 7-6. Ineffective Collaboration:

a. What would you do with an ineffective team member? First, define an ineffective team member. Specify five or so characteristics of an ineffective team member.

Student answers will vary. The characteristics of an ineffective team member will include lack of interest and commitment, unwillingness to give or take criticism, unwillingness to listen, and indifference. (LO: 1, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Reflective Thinking) b. If your group has such a member, what action do you, as a group, believe should be taken?

Student answers will vary, depending on their team experiences. Students are typically not too tolerant of ineffective team members. However, due to the shortterm nature of most student teams, students are not always willing to boot ineffective team members off the team, preferring instead to just work around

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them. (LO: 1, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Reflective Thinking) c. In the business world, an ineffective team member can be fired. But in most academic environments, students can’t fail other students for being an ineffective team member. Explain how differences or similarities in business and academic environments may affect how you deal with an ineffective team member.

In general, student groups decide to work around an ineffective team member, realizing that the grade is the most important outcome and preferring to avoid conflict for the length of time the team exists. In business, teams may exist for long periods of time so teams are more likely to confront ineffective team members with the goal of getting them to change their behaviors. (LO: 1, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Reflective Thinking) 7-7. Effective Collaboration:

a. How do you know you are collaborating well with your group?

Student answers will vary. Characteristics of collaborative success center on the output of the group being superior to the output that could have been created by an individual working alone, including such things as being more productive, more creative, and generating more and better ideas. (LO: 1, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Reflective Thinking) b. When working with a group, how do you know whether you are effectively giving or receiving constructive criticism?

The best way is to assess whether the final outcome of the project has improved as a result of the exchange of constructive criticism. (LO: 1, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Reflective Thinking) c. Specify five or so characteristics that indicate collaborative success. How can you measure those characteristics?

There are a number of elements that indicate collaborative success. Depending on the purpose, we can verify that a decision was made, the problem was solved, or the project work product was produced. Closely tied to those verifiable outcomes, we can check to see that our time limits were met and the budget constraints were met. These are also measurable elements. Some teams want to work very efficiently and feel success if they produced an acceptable outcome while minimizing effort. In a student setting, the grade earned on the project is a measurable element that indicates collaborative success. Business teams are more long-lived than student teams, so business teams may also look at growth in team capabilities. Following the completion of a project, the team may self-assess progress made in developing more effective and efficient work processes. Finally, teams may self-assess whether the project experience has been meaningful and

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satisfying. Team members can be asked their opinions as to whether they felt the tasks performed were viewed to be important by the team, whether they felt they had been given the recognition they deserved for their work, and whether they felt a sense of belonging to the group. By reviewing the results of such a survey, the team can identify strengths and weaknesses of the team processes and potentially make changes to create a more satisfying and meaningful team experience. (LO: 2, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Relective Thinking) d. Briefly explain what your team likes and dislikes about using your new collaboration system.

Student answers will vary depending on the work done in parts 1-3 of this exercise. (LO: 1, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Information Technology) 7-8. Types of communication:

a. What types of communication (synchronous or asynchronous) does your team use most often?

Student answers will vary depending on individual team experience. (LO: 1, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Relective Thinking) b. Why do you choose to use that type of communication?

Student answers will vary depending on individual team experience. (LO: 1, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Relective Thinking) c. What factors influence your choice of collaboration tools?

Student answers will vary depending on individual team experience. (LO: 1, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Relective Thinking) d. Which tools do you use most often?

Student answers will vary depending on individual team experience. (LO: 1, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Relective Thinking) e. From your team experience, have virtual or face-to face tools proved to be more effective? Give an example of when a face-to-face meeting was more effective.

Give an example when a virtual meeting was more effective.

Student answers will vary depending on individual team experience. (LO: 1, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Relective Thinking)

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CASE STUDY 7 Airbnb 7-9. Airbnb launched its website and started renting rooms in 2008. But the Internet had

been widely used since 1995. Why did it take 13 years for someone to start a company like Airbnb? Were there technological, social, or economic factors that kept this concept from becoming successful before 2008? Why didn’t any of the existing large technology companies like Google, Apple, Microsoft, Amazon, or Facebook start a company like Airbnb?

The success of Airbnb’s launch in 2008 was enhanced by the economic downturn that was occurring at the time, especially in the real estate market. Many people who owned real estate were finding themselves “upside down,” owing more than their properties were worth, and frequently were struggling to meet their loan obligations.

The opportunity to bring in some much needed revenue through renting out space to travelers was immediately appealing. Also, due to the economic downturn, travelers were looking for budget-friendly places to stay. This convergence helped explain why the market was open to the Airbnb concept in 2008. Why the tech giants didn’t start a company such as Airbnb is explained by the fact that those companies were in completely different lines of business and were not in a position to recognize this trend. (LO: 4, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking) Many successful companies are started to fulfill a need. What need did Airbnb fill? Why weren’t hotels fulfilling this need? Are hotels and Airbnb fulfilling the same need, or are they offering different products for different needs? Would consumers use both traditional hotels and Airbnb for different purposes? Why? The need filled by Airbnb is based on homeowners who were cash-strapped and needing to generate revenue in order to keep their properties, and travelers who were looking for budget-friendly housing options. Hotels provide a predictable experience for a cost. Airbnb appealed to travelers with a sense of adventure and the potential for housing with more amenities (e.g., kitchens). Consumers definitely might use both types of housing options for different purposes. Airbnb is very popular for vacationers who want to stay in a more authentic local place, while hotels will always appeal to business travelers. (LO: 4, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking)

7-10.

Suppose you work for a large investing firm. Your boss asks you to determine the value of Airbnb as a company because he plans on buying stock in its upcoming initial public offering (IPO). a. How would you determine its value?

The market valuation of any new venture is a very difficult proposition. The valuation must be based on a careful analysis of the venture’s business model (ways to make money), the expected demand for the new venture’s products/services, and a cleareyed assessment of the quality of the venture’s management. (LO: 4, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage,

7-11.

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AACSB: Analytical Skills) b. Would you value Airbnb like a hotel chain, a tech startup, or another type of company?

Since Airbnb is based on an entirely new business model (collaborative consumption) it does not seem appropriate to slot it into an existing company category for valuation purposes. It involves aspects of the hotel industry, tech industry, and social media.

(LO: 4, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytical Skills) c. How would you determine Airbnb’s future growth potential? Could it expand into other markets? Which ones?

Since this is an opinion question, student answers will vary. By the time of Airbnb’s initial public offering, the company had already demonstrated the viability of its business model. Future growth estimates would be based on assessing sales projections in the initial venture (short-term housing) and prospects for expansion, such as short-term rental of vehicles. (LO: 4, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytical Skills) Describe some of the economic impacts of collaborative consumption. Do companies like Airbnb and Uber help economies or hurt them? Why? Since this is an opinion question, student answers will vary. Owners of property are benefitted by generating revenue from their properties. Travelers receive a satisfying housing experience and directly compensate the property owners. Hotels do lose out on the revenue that could have been derived from these travelers. In some cases, travelers may take trips that otherwise would not have occurred because of the experience and value offered through Airbnb (larger properties can accommodate larger groups/families at a much more affordable cost). (LO: 4, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking)

7-12.

What are some other markets that could benefit from collaborative consumption?

What might hinder these new markets from being profitable?

Since this is an opinion question, student answers will vary. As mentioned in 7-11 c., short-term vehicle rental could be an extension of collaborative consumption. A vehicle owner is not using a vehicle and offers it to another consumer for short-term use. One of the restraining factors in this new market is the complications of insurance and liability involved with the use of a vehicle. (LO: 4, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking)

7-13.

Why are customer reviews and ratings so important to hosts offering rooms on Airbnb? Why would reviews be more important to a smaller host compared to a large 200-room hotel? Would feedback be important to all collaborative consumption industries? Why? Since this is an opinion question, student answers will vary. Reviews and feedback

7-14.

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are critical for hosts to market their properties. While photos of the property are important, potential guests will value more subjective insights from people who have stayed in the property and can speak to more subtle aspects of its features and location. These types of reviews are an essential aspect of collaborative consumption industries because trust needs to be established between the parties involved, and reviews help strengthen the chance for trust to develop. Hotels do not require this person-to-person trust as they provide a predictable experience. (LO: 4, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking) Collaborative consumption utilizes idle resources. Could this same principle be applied to the human labor market? How? What impact might this have on the workforce? Airbnb doesn’t own any hotels, yet it is the largest accommodation provider in the world. Could the largest organizations in the world have no employees? How? In a sense, any time an organization hires an independent third party to perform work, it is using collaborative consumption. There are examples of this model in segments of the labor market, such as Angie’s List that helps homeowners find people to perform home repair and maintenance work, or Wag that helps dog owners find dog walkers. So far, in labor markets, we have more narrow niches rather than one huge comprehensive marketplace. If these narrow niches were brought together under one umbrella, then we could have enormous organizations with no employees. Companies could organize themselves to consist of only contracted workers for all roles and not have any “permanent” employees. (LO: 4, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Reflective Thinking)

7-15.

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8 Processes, Organizations, and Information Systems LEARNING OBJECTIVES Q8-1 Q8-2 Q8-3 Q8-4 Q8-5 Q8-6

Describe the basic types of processes.

Explain how information systems can improve process quality.

Explain how information systems eliminate the problems of information silos.

Describe how CRM, ERP, and EAI support enterprise processes.

List the elements of an ERP system.

Explain the challenges of implementing and upgrading enterprise information systems.

Q8-7 Describe how inter-enterprise IS solve the problems of enterprise silos.

Q8-8 Discuss prospects and challenges for enterprise systems in 2031.

CHAPTER OUTLINE Q8-1 What are the basic types of processes?

• How do structured processes differ from dynamic processes?

• How do processes vary by organizational scope? o Workgroup processes o Enterprise processes o Inter-enterprise processes Q8-2 How can information systems improve process quality?

• How can processes be improved? o Change the process structure o Change process resources o Change both process structure and process resources • How can information systems improve process quality? o Performing an activity o Augmenting a human performing an activity o Controlling data quality process flow Q8-3 How do information systems eliminate the problems of information silos?

• What are the problems of information silos?

• How do organizations solve the problems of information silos?

• An enterprise system for patient discharge Q8-4 How do CRM, ERP, and EAI support enterprise processes?

• The need for business process engineering • Emergence of enterprise application solutions • Customer relationship management (CRM) • Enterprise resource planning (ERP) • Enterprise application integration (EAI)

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Q8-5 • • • • • • • Q8-6 • • • • • Q8-7 Q8-8

8-2

What are the elements of an ERP system?

Hardware ERP application programs ERP databases Business process procedures Training and consulting Industry-specific solutions Which companies are the major ERP vendors?

What are the challenges of implementing and upgrading enterprise information systems?

Collaborative management Requirements gaps Transition problems Employee resistance New technology How do inter-enterprise IS solve the problems of enterprise silos?

2031?

SECURITY GUIDE ERP Vulnerabilities 1. Is it possible that companies could just keep using legacy systems to avoid the cost, risk, and security vulnerabilities associated with ERP systems?

Student answers will vary, but should consider that legacy systems also come with their own set of risks. They are often no longer supported and therefore have their own security issues. Also, while there might be an initial cost savings, the efficiency of the newer ERP systems will bring costs down over time if implemented correctly.

2. Employees are cited as one of the pain points in an ERP system deployment. Why do you think this is? Don’t you think workers would be excited or motivated by the opportunity to use a multimillion-dollar piece of software?

Employees overall are resistant to change, and therefore are not overly receptive to large changes. They also require new training when switching systems which introduces more potential negative feelings and challenges.

3. The article mentions that many companies have to alter the functionality of offthe-shelf ERP solutions to match their business processes. What do you think companies operating in unique market niches use if a platform like SAP would likely not mesh well with their business processes?

In cases where there is not a good solution out there, they often have to pay for the development of a custom system or develop their own system internally to meet their business needs.

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4. Think about the passwords that you use to access various sites and accounts. How

many different passwords do you use? Do you reuse any of your passwords? Are any of your reused passwords also used for critical accounts like banking or healthcare? Have you ever reused a personal password for a work account? What are the risks of these practices?

Student answers will vary, but many will likely indicate that they use the same passwords across many platforms both work and personal related.

SO WHAT? Wearables in the Workplace 1. If you were the employee in the hypothetical scenario presented at the beginning of this article, would you opt in or opt out of the wearables program? Explain.

Student responses will vary. Each student will answer this based on how strongly they feel about being tracked in this way versus potentially more opportunities for advancement.

2. If you were the manager in the hypothetical scenario presented at the beginning of this article, would you be interested in accessing wearables data and thus support the wearables program? Explain.

Student responses will vary. Many looking at it from a management perspective might be more inclined to be for this type of program if it will help them make more informed decisions.

3. Do your responses to questions 1 and 2 align or differ? Why do you think this is the case? If they differ, does this change how you would answer either question?

A lot of student will likely state they are not interested in wearing these devices as an employee but might be for it as a manager. This is where it is interesting to read how those thoughts align and how they justify their answers.

4. If you could test out one of the new technologies outlined in this article, which one would it be? Explain.

This is an opinion question; students’ responses will vary.

USING YOUR KNOWLEDGE 8-4. Google or Bing each of the top five ERP vendors discussed in Q8-5. In what ways

have their product offerings changed since this text was written? Do those vendors have new products? Have they made important acquisitions? Have they been acquired? Have any new companies made important inroads into their market share?

Student answers will vary depending on when this exercise is performed. A review of ERP trends at the end of 2018 found several notable items:

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An increasing interest in ERP SaaS and cloud-based ERP continues eroding the market share of Tier I ERP vendors such as SAP and Oracle, especially among small and mid-size customers.

• Best-of-breed solutions will continue to chip away at single-system ERP software. With more companies moving away from big, single-system ERP deployments, there will be a continuing opportunity for niche and best-of-breed E RP systems to capture market share. Larger ERP vendors will continue to provide more niche solutions to counter the advent of these smaller cloud providers.

Vendors like Oracle and Infor, with their best-of-breed solution focus, will be better positioned to respond to customer demand of this type. In addition, look for this trend to continue driving merger and acquisition activity as more ERP vendors look for industry solutions to augment their core ERP systems.

• ERP vendors continue to expand analytics capabilities as an essential component of their product offerings.

(LO: 8, Learning Outcome: Describe the uses of enterprise systems and enterprise resource planning, AAC SB: Analytical skills) 8-5. Using the knowledge gained from Chapters 4 and 6, how do you think mobile systems

and the cloud will affect ERP solutions? Explain how mobile ERP might benefit the types of personnel discussed in the bicycle manufacturing example from Q8-4.

There is no doubt that ERP solutions will be affected by mobile systems and the cloud. ERP vendors are challenged at this time because their systems are built on very complex, non-cloud-based architectures. These systems will not be easy to change, but ERP customers are going to start demanding some of the benefits of cloud systems and access to ERP systems via mobile devices. Any of the roles discussed in Q8-4 could benefit from mobile ERP, especially the salesperson role. E RP vendors are currently investing billions of dollars in acquiring companies with knowledge/solutions in mobile and cloud-based computing. (LO: 8, Learning Outcome: Describe the uses of enterprise systems and enterprise resource planning, A ACSB: Analytical skills)

COLLABORATION EXERCISE 8 The County Planning Office 8-6. Explain why the processes in Figures 8-21 and 8-22 are classified as enterprise

processes rather than as departmental processes. Why are these processes not interorganizational processes?

These processes span the entire enterprise including several different departments, but do not span separate organizations. Therefore they are considered enterprise systems, not departmental and not interorganizational. (LO: 1, Learning Outcome: Describe the uses of enterprise systems and enterprise resource planning, AACSB: Analytical skills) 8-7. Using Figure 8-8 as an example, redraw Figure 8-21 using an enterprise information

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system that processes a shared database. Explain the advantages of this system over the paper-based system in Figure 8-21.

The process is sequential and each stage can take quite a bit of time. With the old system, there is no way to know where an application is in the process, and finding an application sitting in someone’s inbox could be difficult. With the new system, it will be easy to track the application and know its status, plus it can be routed to the correct next step immediately. (LO: 5, Learning Outcome: Describe the uses of enterprise systems and enterprise resource planning, AACSB: Analytical skills) 8-8. Using Figure 8-10 as an example, redraw Figure 8-22 using an enterprise

information system that processes a shared database. Explain the advantages of this system over the paper-based system in Figure 8-22.

The advantage of this system over the paper-based system is that there is no expense

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to copy the application and send copies to each department for review. The departments can work simultaneously and can also see the results of the other departments’ analyses that are recorded in the centralized database. (LO: 5, Learning Outcome: Describe the uses of enterprise systems and enterprise resource planning, A ACSB: Analytical skills) 8-9. Assuming that the county has just changed from the system in Figure 8-21 to the one

in Figure 8-22, which of your answers in questions 8-7 and 8-8 do you think is better? Justify your answer.

The ability to work simultaneously and also to have access to the results of the other department’s work tips the balance in favor of the solution in question 3. This workflow should be more efficient and effective than that shown in question 2. (LO: 5, Learning Outcome: Describe the uses of enterprise systems and enterprise resource planning, AACSB: Analytical skills) Assume your team is in charge of the implementation of the system you recommend in your answer to question 8-9. Describe how each of the five challenges discussed in Q8-6 pertain to this implementation. Explain how your team will deal with those challenges.

• Collaborative management – There is no single manager of the process so all of the departments have to coordinate to complete the process. Disputes will have to be resolved with a collaborative process, which probably does not currently exist.

• Requirements gaps – An enterprise software solution will probably not fit the needs of this system exactly, so the organization usually must adapt to the software’s processes.

• Transition problems – Changing to the new system will be challenging to the organization and will cause some disruption in productivity.

• Employee resistance – The employee’s natural resistance to change and fear of change must be overcome through leadership and training.

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

(LO: 6, Learning Outcome: Describe the uses of enterprise systems and enterprise resource planning, AAC SB: Analytical skills)

8-10.

CASE STUDY 8 Uber If you were given $25,000 to invest in a single stock right now, would you consider investing in Uber? Explain your decision.

Student answers will vary. (LO: 7, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytical skills)

8-11.

One of the biggest headlines about Uber over the past decade has focused on disgruntled taxi drivers in a number of metropolitan areas who have rioted and fought for government regulations to keep Uber drivers out of their city. Why would

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taxi drivers react so harshly? Couldn’t they just become an Uber driver?

Student answers will vary, but might touch on the costs that many of these taxi drivers have already incurred for their licenses that they would not be able to recoup. They may also not be as keen to the newer model of working from an app with less control over their work. (LO: 7, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytical skills) The article mentions “uberization” as the trend for new companies to develop apps that help link the consumer of a good or service with the seller. Take a few minutes to brainstorm a market that has yet to see this uberization but that would likely benefit from it.

Student answers will vary on this but should be explained in a way that fits the “Uber” model of linking a consumer to a seller of a good or service. (LO: 7, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytical skills)

8-13.

Uber is just one example of a company that has generated growth in the “gig economy” (simply put, an area of work in which jobs are freelance and not permanent). Think of some pros and cons of working in the gig economy versus holding a traditional permanent position at a company. Explain your answer.

Student responses will vary. Some pros might be that you have more control over your hours and specifics of the work you do. This model also allows the individual to take on work from multiple employers and is less likely to ever be fully unemployed should one job go away. Some cons are that you are generally more expendable and can be let go quickly. These positions also do not typically come with any benefits outside of the pay for work done. (LO: 7, Learning Outcome: Describe different methods of managing IS security, AACSB: Analytical skills)

8-14.

Would you prefer taking an Uber operated by a driver or riding in a self-driving Uber vehicle? Think about the pros and cons of each platform. Explain your answer.

Student answers will vary. Some may like the automated vehicle in that they do not have to interact with another person and provides for a no contact kind of experience. Others may prefer the safety and personal feeling of having a human driver for this experience. (LO: 7, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytical skills)

8-15.

The COVID-19 pandemic disrupted or impacted virtually every industry. While the pandemic had a negative impact on ridership, how do you think it will impact Uber’s initiative to develop self-driving cars?

Student answers will vary. Answers might be based on how they feel things will be different as the pandemic continues and as we move out of it and what the new normal look like in society. (LO: 7, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytical skills)

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Social Media Information Systems

LEARNING OBJECTIVES Q9-1 Define a social media information system (SMIS).

Q9-2 Explain how SMIS advance organizational strategy.

Q9-3 Explain how SMIS increase social capital.

Q9-4 Describe how (some) companies earn revenue from social media.

Q9-5 Explain how organizations develop an effective SMIS. Q9-6 Describe an enterprise social network (ESN).

Q9-7 Explain how organizations can address SMIS security concerns.

Q9-8 Discuss social media issues in 2031.

CHAPTER OUTLINE Q9-1 What is a social media information system (SMIS)?

• Three SMIS roles o Social media providers o Users o Communities • SMIS components o Hardware o Software o Data o Procedures o People Q9-2 How do SMIS advance organizational strategy?

• Social media and the sales and marketing activity • Social media and customer service • Social media and inbound and outbound logistics • Social media and manufacturing and operations • Social media and human resources Q9-3 How do SMIS increase social capital?

• What is the value of social capital?

• How do social networks add value to businesses?

• Using social networking to increase the number of relationships • Using social networks to increase the strength of relationships • Using social networks to connect to those with more resources

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Q9-4 How do (some) companies earn revenue from social media?

• You are the product • Revenue models for social media o Advertising o Freemium • Does mobility reduce online ad revenue? o Geofencing Q9-5 How do organizations develop an effective SMIS? • Step 1: Define your goals • Step 2: Identify success metrics • Step 3: Identify the target audience • Step 4: Define your value • Step 5: Make personal connections • Step 6: Gather and analyze data Q9-6 What is an enterprise social network (ESN)?

• Enterprise 2.0 • Changing communication • Deploying successful enterprise social networks Q9-7 How can organizations address SMIS security concerns?

• Managing the risk of employee communication • Managing the risk of inappropriate content o Problems from external sources o Responding to social networking problems o Internal risks from social media Q9-8 2031?

SECURITY GUIDE Digital Throne of Lies 1. Take an inventory of your text messages or emails for the past day. How many times do you even marginally misrepresent the truth? Does your own track record support the observation that most people regularly engage in some form of deception?

Student answers will vary based on their own experiences.

2. The article reports that the human deception detection accuracy rate is right around 50 percent. The studies used to calculate this statistic are largely based on participants who were college students or average citizens. Do you think law enforcement or government/military personnel would have higher accuracy rates?

Student opinions will vary, but it might be considered more likely due to detection tools that these individuals would have higher success rates overall.

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3. Are you guilty of using impression management tactics on your own social media accounts? Or have you found yourself impacted by the possible impression management tactics of others? Overall, does the information in this article make you want to reduce your use of social media or abandon it altogether?

Student answers and opinion will vary, but should be based on the information included in the article and how it impacted their opinions and thoughts on the topic.

4. You have probably heard of the polygraph machine—a device designed to measure physiological responses of interviewees while they are being asked a number of questions to identify if deception is present. While these devices cannot be employed in our online interactions, do you think new types of technologies to identify deception are being developed?

Student answers will vary, but the logical answer would be yes they are. Given that the use of online technologies and ways to deceive in this space are growing with each passing day, it is likely that technologies used to detect such things are also expanding.

SO WHAT? Evolving Social Media 1. Consider and answer the questions introduced in the beginning of the article.

When did you create your first social media account? Which platform did you choose, and why did you choose that one specifically? Was your choice motivated by the platform that your friends were using (you were pulled in), or were you motivated by finding a platform that certain people were not members of, like your parents (you were pushed out)?

Student answers will vary, and they will have different platforms they have chosen with different reasons as to why they chose that platform over others.

2. How often do you engage with social media? As you read the article and learned about the emerging technologies that may be used as a part of future social media experiences, how did you feel? Are you excited at the prospect of augmented reality and wearables, or are you concerned that these technologies may be too intrusive or will be tiring as you can constantly be connected?

Student answers will again vary. Some students might be fine with the idea of being connected more often and the data that is gathered being used to build profiles on them, whereas others might think it goes too far in terms of privacy and having the ability to disconnect from the technology at times.

3. The article mentions that younger generations are starting to plateau in their use of social media—what do you think is driving this trend? Are you a part of this trend?

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Student answers will vary, but might make note that there is too much oversaturation with the ever growing list of platforms and that was once “new” and “groundbreaking” has just become the norm and therefore less exciting for many new users.

4. Do you think there are any adverse effects of social media use? Have you ever noticed any of these effects in your own life?

Student responses to this question will vary. Some adverse effects might be a bit of a disconnect with reality. Heavy users of social media sometimes live in their online bubbles and can’t pull themselves away. Students might point to some examples in their own loves where they got pulled in to social media in a way that was disruptive.

USING YOUR KNOWLEDGE 9-4. Visit www.intel.com/content/www/us/en/legal/intel-social-media-guidelines.html.

Explain why Intel’s social media guidelines might accomplish one or more of the common social media strategic goals listed in Figure 9-10.

The guideline on Disclosure will support the social media goals of brand awareness and user engagement. Intel employees are asked to disclose and be transparent about their affiliation with Intel. Such disclosure can be very positive since Intel affiliations are clear and readers will value such transparency. The guideline on Protect Intel also supports the social media goals of brand awareness and user engagement. By not slamming Intel or Intel’s competitors, readers will appreciate the high standards followed by Intel employees and will value their posts and contributions.

(LO: 6, Learning Outcome: Discuss the ethical and social issues raised by the use of information systems, AACSB: Ethical Understanding and Reasoning Abilities) 9-5. Visit www.socialmediatoday.com/content/social-media-employee-policy-examples-

over-100-organizations. Find an organization with a very restricted employee SM policy. Name the organization and explain why you find that policy restrictive. Does that policy cause you to feel positive, negative, or neutral about that company?

Explain.

Student responses will vary depending upon the company selected. A good example of an SM policy that is full of “don’t” messages is that of Baker & Daniels. Baker & Daniels is a law firm and is therefore very careful to define appropriate and inappropriate use of SM communications. This policy is a good example of “what not to do” with social media. (LO: 6, Learning Outcome: Discuss the ethical and social issues raised by the use of information systems, AACSB: Ethical Understanding and Reasoning Abilities)

COLLABORATION EXERCISE 9 9-6. Compare the tech companies’ P/E ratios to the traditional companies’ P/E ratios.

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a high P/E is bad.) Some don’t even have a P/E ratio because they didn’t turn a profit. As a group, list the reasons why the tech companies have such high P/E ratios.

Are the prices of these companies’ stocks justified given the earnings? Why? Student responses will vary – a task to be performed. Generally, tech companies plow earnings back into the company to build the technical infrastructure that is the foundation for future growth. These investments are depreciated over time and therefore reduce earnings. The high prices of the tech companies’ stocks are based on the market’s perceptions that future earnings will be very positive. (LO: 2, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Analytic Skills) 9-7. Identify public tech stocks you believe are undervalued (not limited to this list).

Design an investment portfolio consisting solely of tech stocks that you believe will be profitable. Justify your decision with regard to risk and return on those stocks.

Student responses will vary – a task to be performed. (LO: 2, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Analytic Skills) 9-8. Create a free online portfolio of these stocks (i.e., via Yahoo! Finance) and track its

progress. Report on its performance.

Student responses will vary – a task to be performed. (LO: 3, Learning Outcome: Explain how IS can enhance systems of collaboration and teamwork, AACSB: Analytic Skills) 9-9. Could overvalued tech stocks lead to a dot-com 2.0 crash like the original dot-com

crash in 1999–2001? Discuss why this may or may not happen. Summarize your discussion in a couple of paragraphs.

Student opinions may vary. Point out that the first dot-com crash occurred because so much capital had gone in to new business ventures that did not have a well-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: Analytic Skills)

CASE STUDY 9 Why is growing the number of users such an important metric for social media companies? How does Metcalfe’s Law relate to the profitability of social media companies?

The number of users of a social media site directly contributes to the value of that social media site. Metcalf’s Law states that the social network’s value is directly related to the number of connected users. Therefore, the more users the higher the value of the social network. (LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytic Skills)

9-10.

9-11.

Most social media companies rely on ad revenue as their main source of income.

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What are other ways that LinkedIn generates income? Why is it important for a company to have multiple ways of generating income?

LinkedIn offers specialized accounts dedicated to job recruiting as an additional revenue stream. It is important to have a diverse set of revenue streams so that if one stream “dries up” due to competitive pressure, others will still exist. (LO: 4, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytic Skills) Why do recruiters and job seekers like LinkedIn? Explain why an employer may dislike LinkedIn. Is there a strategic disadvantage to having your employees list detailed profiles on LinkedIn? Recruiters and job seekers like LinkedIn because of the extensive number of connections that are found. Employers may dislike LinkedIn because it makes it too easy for its employees to look for new opportunities. There is a strategic disadvantage to having your employees list detailed profiles on LinkedIn because those employees may find themselves receiving very desirable job offers. (LO: 3, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytic Skills)

9-12.

LinkedIn targets a specific demographic: working professionals. They tend to be older and better educated. Why might advertisers be more interested in this group over others?

Advertisers are attracted to audiences who have the resources to purchase the advertised goods and services. An older and more educated audience presumably controls more resources than a young, uneducated audience. (LO: 4, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytic Skills)

9-13.

Microsoft creates software focused on supporting businesses. LinkedIn focuses on creating a platform for business professionals. Does the acquisition of LinkedIn make sense? What type of synergies could come from integrating products from these two companies?

The synergies discussed in the article involve more seamless integration of the two company’s products, which will add value to LinkedIn and to Microsoft.

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

9-14.

How would the integration of LinkedIn into the Microsoft Office Suite be beneficial?

If LinkedIn is successfully integrated across the Office Suite, LinkedIn will have greater reach and more frequent contact with end users. Consequently, that could lead to rapid growth of its userbase and its profitability.(LO: 2, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytic Skills)

9-15.

How would enabling draft résumés in Microsoft Word to update connected LinkedIn profiles be beneficial?

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Simplifying the process makes it easier for users to create and keep their profiles updated and makes it more likely users will post profiles in the first place. (LO: 2, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytic Skills) Suppose you are advising Microsoft about future acquisitions. Which company would you recommend as a good acquisition? Why? Student answers will vary. Look for students to recognize the variety of uses of social media sites and to link the organization’s particular value chain activities to its social media presences. (LO: 2, Learning Outcome: Explain how IS can be used to gain and sustain competitive advantage, AACSB: Analytic Skills)

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Information Systems Security

LEARNING OBJECTIVES Q10-1 Describe the goal of information systems security.

Q10-2 Explain the size of the computer security problem.

Q10-3 Explain how individuals should respond to security threats.

Q10-4 Describe how organizations should respond to security threats.

Q10-5 Describe how technical safeguards protect against security threats.

Q10-6 Describe how data safeguards protect against security threats.

Q10-7 Describe how human safeguards protect against security threats.

Q10-8 Discuss how organizations should respond to security incidents.

Q10-9 Discuss information security concerns in 2031.

CHAPTER OUTLINE Q10-1 What is the goal of information systems security?

• The IS security threat/loss scenario • What are the sources of threats? o Human error o Computer crime o Natural events and disasters • What types of security loss exist? o Unauthorized data disclosure o Incorrect data modification o Faulty service o Denial of service o Loss of infrastructure • Goal of information systems security Q10-2 How big is the computer security problem?

Q10-3 How should you respond to security threats?

Q10-4 How should organizations respond to security threats?

• Security Policy • Risk Management Q10-5 How can technical safeguards protect against security threats?

• Identification and authentication o Smart cards o Biometric authentication

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• • • •

Single sign-on for multiple systems Encryption Firewalls Malware protection o Malware safeguards • Design for secure applications Q10-6 How can data safeguards protect against security threats?

• Legal safeguards for data Q10-7 How can human safeguards protect against security threats?

• Human safeguards for employees o Position definitions o Hiring and screening o Dissemination and enforcement o Termination • Human safeguards for nonemployee personnel • Account administration o Account management o Password management o Help-desk policies • Systems procedures • Security monitoring Q10-8 How should organizations respond to security incidents?

Q10-9 2031?

SECURITY GUIDE Using Tech to Mitigate Covid-19 Risks 1. The list presented in the article entails a number of solutions that would require data collection from employees. Do you think employers have a right to collect these types of data?

Student answers will vary. Some might indicate that employers have the right to know general information in these cases to help protect other employees and their business. Others might think that it is not appropriate for employers to ask questions about an individual’s health, even at a high level.

2. When a person or an organization is granted power, it can often be difficult for this power to be relinquished. If organizations put a number of monitoring and surveillance mechanisms in place to track employees so risk can be identified/mitigated, do you think employers will readily curtail these activities once the threat from the pandemic has subsided?

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Students’ answers will vary. Some might feel that businesses will do this as a temporary measure only and others might point to the argument that it is typically harder to remove policies and security measures once they are in place.

3. Can you think of any other innovations not listed in the article that companies could use to try to mitigate the risks introduced by employees who may have the virus and be contagious?

Student answers will vary but should be backed up with solid support of researched information found in other locations and some information about the effectiveness of those approaches.

4. The comparison of information security to a digital castle has been used for many years. However, the landscape of technology has changed drastically with the mass proliferation of laptops, mobile devices, wearables, and so on. Do you think the digital castle model still holds true today? Why or why not?

Students’ opinions will vary. Some might still believe this is relevant, but others might point out that the amount of varying devices that now transport this digital data make it less secure and harder to compare to a castle which ensures everything is protected behind this digital castle. This was easier when all digital information was contained and accessed within the company’s walls.

SO WHAT? New from Black Hat 2019 1. What are the implications of deepfake videos for the world of politics, finance, or national security?

The implications in these areas can be devastating since it could be impossible to know what is real and what is fake as it relates to what these political figures are saying and doing. Individuals are already easily swayed with content they take in on a daily basis, so if the content looks remotely legitimate, they will form opinions quickly on this. This could pose similar problems related to national security and in the world of finance for the same reasons.

2. Do you think it is illegal to create and post a deepfake video?

Student opinions will vary, but the reality is that it has been hard to enforce any laws on this to this point, with free speech at the basis for the defense of these videos. One example individuals might point to is California’s attempt to make this illegal but without much success to this point in enforcing it.

3. What is your position on the adoption of IoT devices considering their tendency to have poor security controls? Are they worth the risk?

Student answers will vary here depending on their own tolerance for security risk versus the convenience that they feel these individual devices provide.

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4. If you could go to either Black Hat or Def Con, what topic area would be of most interest to you (technical security, behavioral security, hacking IoT devices, etc.)?

Explain.

Answers to this question will vary, but should include a specific area and answers as to why.

COLLABORATION EXERCISE 10 10-4.Search the Web for the term computer crime and any related terms. Identify what you and your teammates think are the five most serious recent examples. Consider no crime that occurred more than 6 months ago. For each crime, summarize the loss that occurred and the circumstances surrounding the loss, and identify safeguards that were not in place or were ineffective in preventing the crime.

Students will find various examples of computer crimes that will change over time. A good source of current examples is the US Department of Justice’s Computer Crime and Intellectual Property section’s Web site. A page with current press releases is available. Two current examples include: • “Russian Hacker Sentenced To 12 Years In Prison For Involvement In Massive Network Intrusions At U.S. Financial Institutions, Brokerage Firms, A Major News Publication, And Other Companies. ” January 7, 2021.

• “Hospital Researcher Sentenced to Prison for Conspiring to Steal Trade Secrets, Sell Them in China.” February 1, 2021.

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 Accenture surveys cited in Q10-2. a. For each source, explain the methodology used and explain the strengths and weaknesses of that methodology.

Students will find various sources of computer crime statistics that will change over time. Two current examples include: • A number of statistical reports on cybercrime can be found at: https://www.statista.com/markets/424/topic/1065/cyber-crime/ • The Internet Crime Complaint Center Web site provides annual reports (https://www.ic3.gov/media/annualreports.aspx) that detail a variety of Internet crime statistics. The iC3 is a partnership between the FBI and the National White Collar Crime Center which is supported through the Bureau of Justice Assistance. These statistics are based on complaints filed with the iC3 and therefore only reflect actual complaints of cybercrime. (LO: 2, Learning Outcome: Describe different methods of managing IS security, AACSB: Analytic Skills)

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b. Compare the data in the two new sources to that in Q10-2 and describe differences.

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

Student responses will vary depending upon the sources found by each team. (LO: 2, Learning Outcome: Describe different methods of managing IS security, AACSB: Analytic Skills) 10-6.Go to www.accenture.com/us-en/insights/security/costcybercrime-study and download the Cost of Cyber Crime Study (or a more recent report if one is available). a. Summarize the survey with regard to safeguards and other measures that organizations use.

The most common spending for security controls is in security intelligence and threat sharing, automation, AI and machine learning, and advanced perimeter controls. (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 report indicates the following as the best ways to unlock cybersecurity value: prioritize protecting people-based attacks, invest to limit information loss and business disruption, and target technologies that reduce rising costs. (LO: 2, Learning Outcome: Describe different methods of managing IS security, AACSB: Analytic Skills) c. Does your team agree with the conclusions in the study? Explain your answer.

Student responses may vary. (LO: 2, Learning Outcome: Describe different methods of managing IS security, AACSB: Analytic Skills) 10-7.Suppose that you are asked by your boss for a summary of what your organization should do with regard to computer security. Using the knowledge gained in this chapter and your answer to the questions 10-4 through 10-6, 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

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Student responses will vary. Look for the following important takeaway messages from this exercise: • The median average cost of computer crime is increasing.

• Malicious insiders are an increasingly serious security threat.

• Data loss is the principal cost of computer crime.

• Survey respondents believe mobile device data is a significant security vulnerability.

• Security safeguards work.

(LO: 2, Learning Outcome: Describe different methods of managing IS security, AACSB: Analytic Skills)

CASE STUDY 10 CrowdStrike 10-8.What lessons did the Sony Pictures hack teach the world about cyberwarfare?

That even governments will go after private enterprises in a way that can compromise and damage their reputations and that all businesses should look to protect themselves properly from these types of attacks. (LO: 5, Learning Outcome: Describe different methods of managing IS security, AACSB: Analytic Skills) 10-9.What advice would you give executives at CrowdStrike if they wanted to grow their business? How could they increase revenues?

Student answers will vary, but might include ensuring they keep their reputation solid as that will directly impact their ability to obtain future contracts. (LO: 5, Learning Outcome: Describe different methods of managing IS security, AACSB: Analytic Skills) 10-10. Why does CrowdStrike’s appointment to the Forbes list of best places to work point to long-term success for the company?

These types of appointments demonstrate consistency in best practices related to the way a business is run. (LO: 5, Learning Outcome: Describe different methods of managing IS security, AACSB: Analytic Skills) 10-11. What is CrowdStrike’s current stock price? How has CrowdStrike’s stock been performing over the past year? What might be driving CrowdStrike’s valuation?

Also, do an Internet search to see if CrowdStrike has been involved in any political or government investigations recently. Is there any relationship between these two searches?

Stock price value will vary, but as of this writing is $242.10/share. One year prior it was at $65.31/share. Other elements of the question will also vary depending on current news/incidents related to the company (LO: 5, Learning Outcome: Describe different methods of managing IS security, AACSB: Analytic Skills)

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10-12. The article closes by pointing out the risks of getting involved with politics, foreign affairs, and so on. If you were an executive at CrowdStrike, would you recommend avoiding involvement in these types of investigations moving forward?

Student answers will vary, but might point to how getting involved in political investigations or foreign affairs can be perceived negatively by people who do not share the same political beliefs related to the side the investigation is being completed on. (LO: 5, Learning Outcome: Describe different methods of managing IS security, AACSB: Analytic Skills) 10-13. How might CrowdStrike be affected in a cyberwar? Would it be affected if a traditional kinetic war broke out? Explain your answer.

Student answers will vary. If a company such as CrowdStrike was effectively breached or attacked through cyberwarfare it would be exceptionally damaging to the business since they are a company that is considered to be an expert in identifying combatting this sort of behavior. If they cannot protect their own business, their reputation could be significantly damaged. (LO: 5, Learning Outcome: Describe different methods of managing IS security, AACSB: Analytic Skills) 10-14. How might an increase in the quantity and size of data breaches affect CrowdStrike’s revenue?

On the surface, it would seem that this would provide more opportunities for business for the company, however, it also could be up against more and more competition for business as additional companies enter the market space with greater demand. (LO: 5, Learning Outcome: Describe different methods of managing IS security, AACSB: Analytic Skills)

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11 Information Systems Management LEARNING OBJECTIVES Q11-1 Describe the functions and organization of the IS department.

Q11-2 Explain how organizations plan the use of IS. Q11-3 Explain the advantages and disadvantages of outsourcing.

Q11-4 Describe your users’ rights and responsibilities regarding the IS organization.

Q11-5 Discuss the future of information systems management in 2031.

CHAPTER OUTLINE Q11-1 What are the functions and organization of the IS department?

• How is the IS department organized?

• Security officers • What IS-related job positions exist?

Q11-2 How do organizations plan the use of IS? • Align information systems with organizational strategy • Communicate IS issues to the executive group • Develop priorities and enforce them within the IS department • Sponsor the steering committee Q11-3 What are the advantages and disadvantages of outsourcing?

• Outsourcing information systems o Management advantages o Cost reduction o Risk reduction • International outsourcing • What are the outsourcing alternatives?

• What are the risks of outsourcing? o Loss of control o Benefits outweighed by long-term costs o No easy exit Q11-4 What are your user rights and responsibilities?

• Your user rights • Your user responsibilities Q11-5 2031?

SECURITY GUIDE Carrot or Stick? Neither.

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1. You may not have realized that your university has a security policy that guides how students, faculty, and staff can use technological resources. Are you familiar with this policy and what it entails? If not, track down your university’s policy and read it carefully. Is there anything in the policy that surprises you?

Student answers will vary based on their own personal experiences.

2. Where do you think security education, training, and awareness (SETA) ranked on the list of 17 factors that can lead to security policy compliance?

Student answers will once again vary.

3. What role do you think managers and higher-level organizational leaders play in promoting compliance and thereby a secure organizational culture?

Student answers will vary, but should likely make note that employees tend to follow their manager’s lead when it comes to taking things such as security seriously. If the culture is not set at the top on down, it will be less likely that employees lower down will take these matters as seriously.

4. Refer back to question 1. If you were not familiar with your university’s policy, why do you think this is the case? What recommendations would you give your university’s chief information officer (CIO) to help him or her promote awareness of policies in students as to create a more secure university culture?

Students might point out that they were not aware because the university did not actively promote them or require students to read and acknowledge them. You might suggest that they put specific policies in place and distribute them out as acceptable use policies that students must read and agree to follow. Responses will vary.

SO WHAT? Poor Data Management at Facebook 1. To what extent are social media platforms an important part of your daily interactions? Do you use a certain social media platform because your family or friends use it? Why do you think this is the case?

Student responses will vary depending upon their own social media usage patterns.

The network effect is well known, however, meaning that people chose to use Web sites with more users who will provide them value.

2. Are you one of the 87 million Facebook users who had their data shared with Cambridge Analytica? If so, did this situation bother you? Why or why not?

Student responses will vary depending on their involvement with Facebook, the Cambridge Analytica scandal, and general attitude toward privacy.

3. During Mark Zuckerberg’s hearings on Capitol Hill, it became clear that many politicians have minimal knowledge about how Facebook operates as a business.

How does this present challenges for the creation of regulations that may be put in place to ensure that Facebook and other tech companies properly manage user data?

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Lack of knowledge about the tech industry on the part of legislators is a serious issue.

We cannot expect appropriate, useful legislation from legislators who do not understand the environment, and we certainly don’t want legislation to be passed that does not correctly understand that environment.

4. Why would Facebook offer a pay option? Would it be worth it to you to pay a monthly fee to access Facebook and know that your personal data would be protected? Why or why not?

Student answers will vary since this is an opinion question. It may be worth pointing out that a $7 monthly fee is a small price to pay for personal data privacy protection, even for cash-strapped students.

COLLABORATION EXERCISE 11 11-4. Search the Internet to determine the power requirements for typical computing and office equipment. Consider laptop computers, desktop computers, CRT monitors, LCD monitors, and printers. For this exercise, ignore server computers. As you search, be aware that a watt is a measure of electrical power.

It is watts that the green computing movement wants to reduce.

A Google or Bing search for “computer energy usage calculator” will find a number of useful tools. A good link is: http://www.cosn.org/GreenComputing, 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 Skills) 11-5. Estimate the number of each type of device in use at your campus. Use your university’s website to determine the number of colleges, departments, faculty, staff, and students. Make assumptions about the number of computers, copiers, 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 Skills)

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

This spreadsheet uses the energy consumption estimates from the Columbia University Energy Usage spreadsheet in question 11-4. The number of each type of device has been inserted and the total energy consumption for each type of device is computed. The total kWh, cost, pounds of CO 2 , and miles driven are computed.

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

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The following spreadsheet compares the assumed inventory of computing devices in three scenarios—(A) on 24/7 with no power management (sleep mode); (B) on only during work hours with no power management; and (C) on only during work hours with power management. The savings between A and C range from 70 to 80 percent.

(LO: 1, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytic Skills) 11-8. Computers that are automatically updated by the IS Department with software upgrades and patches cannot be allowed to go into sleep mode because if they are sleeping, they will not be able to receive the upgrade. Hence, some universities prohibit sleep mode on university computers (sleep mode is never used on servers, by the way). Determine the cost, in watts, of such a policy.

Student answers will vary depending on the assumptions made for each university. For the assumptions made in question 11-7, the cost of no sleep mode allowed (in watts) is 341,056 (see Scenario A in spreadsheet above). This value is the total watts consumed by desktop and laptop computers on campus; printers were not included. (LO: 1, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytic Skills) 11-9. Calculate the monthly cost, in watts, if: a. All user computers run full time night and day Monthly cost in watts: 341,056 / 12 = 28421.3 (Scenario A above)

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(LO: 1, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytic Skills) b. All user computers run full time during work hours and in sleep mode during offhours.

Monthly cost in watts: 137,426 / 12 = 11,452.1 (Scenario B above) (LO: 1, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytic Skills) c. All user computers are shut off during 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 Skills) 11-10. Given your answers to items 11-4 through 11-9, is computer power management during off-hours a significant concern? In comparison to the other costs of running a university, does this issue really matter? Discuss this question among your group and explain your answer.

The analysis shown in the previous sections of this exercise clearly suggests that there are considerable cost savings to be gained from proper power management.

In today’s environment of tight budgets, the cost savings arguments should be compelling. In addition, the spreadsheets in items 11-4, 11-6, and 11-7 show clear reductions in CO 2 emissions with careful power management practices. Those who are concerned about the state of our environment will be impressed with those figures. If nothing else, the public relations value of those savings could work to benefit the university’s image. (LO: 1, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, A ACSB: Analytic Skills)

CASE STUDY 11 Slack 11-11. Have you tried Slack? If so, think about your experience. If not, take a few minutes to install Slack and check it out for yourself. (At a minimum, take a few minutes to browse the Slack website.) In either case, consider why it has become so popular. Be ready to share your thoughts with the class.

Student answers will vary depending on their own experience.

(LO: 2, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytic Skills) 11-12. Despite its wild success and growing demand, Slack continues to offer a freemium model (i.e., people can use the software for free and then pay if they want

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advanced features, extended access, or enterprise functionality). With an extensive customer base, why wouldn’t Slack do away with this model and charge everyone who wants to use the platform?

Student answers may vary. Some considerations are that companies find that by allowing users some features for free, many will eventually decide they need more advanced features and will gladly pay for them since they have experience with the overall platform already. By keeping potential paying customers in your orbit with the free offerings, it is easier to have this happen than trying to pull them in separately.

Other students might indicate that some of the users who are currently using the free services will pay for the paid version so they are missing out on revenue opportunities by not just using a fully paid model.

(LO: 3, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytic Skills) 11-13. Why would a company want to spend money on Slack when users likely already have access to Microsoft Office solutions and/or Google Docs? Wouldn’t these provide enough collaboration opportunities?

Student responses to this question will vary. Students might point to some of the specific differences between what those platforms offer versus Slack.

(LO: 3, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytic Skills) 11-14. Most tech companies choose to follow a conventional initial public offering (IPO) process; Slack chose a direct listing. Do some research about the differences between these two processes—why do you think Slack chose the route that it did?

Student answers will vary. Should show evidence of research and backed up by what they have found in their searches.

(LO: 3, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytic Skills) 11-15. In light of the challenges that may lie ahead for Slack, what recommendations would you give executives on how to continue the company’s success?

Student responses to this question will vary. Students might point out that it is best to continue to innovate and adjust their model as they go to meet the demands and needs of users.

(LO: 3, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytic Skills)

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12 Information Systems Development LEARNING OBJECTIVES Q12-1 Explain how business processes, IS, and applications are developed.

Q12-2 Describe how organizations use business process management (B PM).

Q12-3 Describe how business process modeling notation (BPMN) is used to model processes.

Q12-4 Describe the phases in the systems development life cycle (S DLC).

Q12-5 Explain the keys for successful SDLC projects.

Q12-6 Explain how scrum can overcome the problems of the SDLC. Q12-7 Describe the state of process and systems development in 2031.

CHAPTER OUTLINE Q12-1 How are business processes, IS, and applications developed?

• How do business processes, information systems, and applications differ and relate?

• Which development processes are used for which?

Q12-2 How do organizations use business process management (BPM)?

• Why do processes need management? o Improve process quality o Change in technology o Change in business fundamentals • What are BPM activities?

Q12-3 How is business process modeling notation (BPMN) used to model processes?

• Need for standard business processing notation • Documenting the as-is business order process Q12-4 What are the phases in the systems development life cycle (SDLC)?

• Define the system o Define system goals and scope o Assess feasibility o Form a project team • Determine requirements o Sources of requirements o Role of a prototype o Approve requirements • Design system components • System implementation o Testing o System conversion • Maintain system Q12-5 What are the keys for successful SDLC projects?

• Create a work breakdown structure

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• Estimate time and costs • Create a project plan • Adjust plan via trade-offs • Manage development challenges Q12-6 How can scrum overcome the problems of the SDLC? • What are the principles of agile development methodologies?

• What is the scrum process? o Scrum essentials o When are we done?

• How do requirements drive the scrum process? o Creating requirements tasks o Scheduling tasks o Committing to finish tasks o Hocus-pocus?

Q12-7 2031?

SECURITY GUIDE IoT and Mirai 1. Take a few minutes to think about your home network and your connected devices.

How many IoT devices do you have? Have you created new credentials for each of them to ensure that they are not vulnerable? How might attackers gain access to these devices?

It’s very unlikely that a student would notice if a file was copied from their computer.

It’s possible that they could have turned on security logging for computer access.

Some operating systems (like Windows) do have this feature. Others may not. Then the student would have to check the logs regularly for unauthorized access. It’s possible that the student may remember the exact time he was out of the dorm and notice the intrusion. That, of course, assumes that the student locks his or her computer each time they walk away from it. Many people don’t lock their computers when they walk away from them because they assume they are in a safe place.

2. Think about your daily interactions with technology. Think of three other examples demonstrating the tradeoff between security and convenience (besides the use of a long password as described in the article).

For the same reasons listed in the question above, without turning on security logging and checking logs regularly it’s nearly impossible to detect this type of intrusion. In this case the student might have an intrusion detection system, or a data loss prevention (DLP) system running to catch these types of unauthorized actions, but this is very unlikely.

3. Why would IoT devices make good targets for attackers?

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The only overt security feature of many IoT devices is the username and password needed to access/manage the settings for the device. However, users often neglect to create new credentials when setting up devices, which can create serious vulnerabilities. In fact, because owners often neglect to create new passwords for their devices, hackers have identified IoT devices as prime targets.

4. The hackers were able to avoid jail time for their actions. Do you think their direct disruption of numerous sites and companies’ digital operations should have resulted in more serious penalties? How should the legal system apply penalties for the creation of malware that will continue to live on in spite of the hackers being caught and maybe even feeling sorry for their actions?

This is an opinion question so student responses will vary. This is another example of a situation in which the legal system needs to catch up with the technological environment we have today.

SO WHAT? Speed Into the Future with 5G 1. Many news articles about deploying 5G infrastructures refer to it as a race. Do you think countries stand to “win” or “lose” depending on how quickly they are able to roll out 5G capabilities? Explain. Student answers will vary. They might indicate such elements that the countries that have this technology in place sooner will have the door opened for other advanced technologies than other nations.

This could allow for more business and development opportunities in those other areas.

2. Not only is 5G expected to provide incredible new capabilities on its own, but it is also expected to act as a magnifier that helps other emerging technologies become even more powerful. How do you think 5G could feed the power of artificial intelligence?

Since more and more newer technologies including artificial intelligence need a lot of bandwidth to run optimally, having these networks in place will allow for more and more development in this area. These types of technologies will likely grow at an exponential rate.

3. Think of three more examples of industries or processes that will benefit from the higher speeds and lower latencies offered by 5G. Responses will vary by student; examples should be backed up with specifics and research to be considered as a good fit/example.

4. How do you think 5G could be used to improve information security?

Student answers will vary. Responses might indicate how having better access to connectivity and faster speeds will allow for more robust systems in all areas of the

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business. This can help with both information security and physical security of facilities.

USING YOUR KNOWLEDGE 12-4. Choose an important project type in a business discipline of interest to you. In accounting it could be an audit; in marketing it could be a plan for using social media; in operations, it could be a project of opening a new warehouse. Choose a major activity that is important and that you find interesting. Compare and contrast the use of a process such as the SDLC to using a process such as scrum for your project. Which process would you recommend? Justify your recommendation.

Student answers will vary depending on the activity selected. Look for the comparisons to show that the SDLC is more rigidly planned and is expected to proceed in a fairly structured way through the phases, with each phase producing output that is input into the next phase. In the scrum approach, the project would be approached more incrementally, with small chunks of the project being selected and completed in a work cycle. Work cycles will repeat until the project is complete or out of time/money. You will probably find that the more structured the activity is that the student selected (such as an audit), the more comfortably the SDLC could be used, but the more unstructured (and new) the project, such as a social media plan, the better the fit with scrum. (LO: 6, Learning Outcome: Compare and contrast different methods for developing information systems, AA CSB: Analytic Skills) 12-5. Reread the opening vignette in Chapter 11. Explain how Emily and Jose could use a scrum process for managing Kiaan. Describe how doing so would reduce the risk of failure.

The issue that arises in Chapter 11 is the lack of experience Emily and Jose have with using Kiaan as the outsourced developer for the full-blown version of the system for iMed. The use of scrum with its short work cycles and emphasis on completing a working product in each cycle could help reduce Emily’s and Jose’s uncertainty in the overall process. At the end of each cycle, they would have a product that captures at least some of the overall project requirements, so they would see project progress clearly. Greg would feel more comfortable in paying Kiaan’s firm for the progress that has been made. The long-distance relationship will be more manageable with an incremental approach as used with scrum. (LO: 6, Learning Outcome: Compare and contrast different methods for developing information systems, AACSB: Analytic Skills)

COLLABORATION EXERCISE 12 In your answers to 12-6 and 12-7, use Microsoft Visio and BPMN templates to construct your diagram. If you don’t have those templates, use the cross-functional and basic

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flowchart templates. If you do not have access to Visio, use PowerPoint instead.

12-6. Create a process diagram for Alternative 1, using Figure 12-8 as a guide. Each company will need to have a role for determining its available properties and sending emails to the other companies that describe them. They will also need to have a role for receiving emails and a role for renting properties to customers.

Assume the companies have from three to five agents who can fulfill these roles.

Create a role for the email system if you think it is appropriate. Specify roles, activities, repositories, and data flows.

(LO: 3, Learning Outcome: Discuss the role of information systems in supporting business processes, A AC SB: Analytic Skills) 12-7. Create a process diagram for Alternative 2, using Figure 12-8 as a guide. Each company will need to have a role for determining its available properties and adding them to the reservation database. They will also need a role for renting properties that accesses the shared database. Assume the companies have from three to five agents who can fulfill these roles. Create a role for the property database application. Specify roles, activities, repositories, and data flows.

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(LO: 3, Learning Outcome: Discuss the role of information systems in supporting business processes, A AC SB: Analytic Skills) 12-8. Compare and contrast your answers in questions 12-6 and 12-7. Which is likely to be more effective in generating rental income? Which is likely to be more expensive to develop? Which is likely to be more expensive to operate?

Option 1 will be relatively simple to create. The main emphasis will be agreeing on the business processes that will be used to facilitate the inter-enterprise communication that will accomplish the goals of the alliance. Because this process relies on email, there is much inefficiency, including the fact that emails are easily ignored or response to them is delayed.

Option 2 will be more complex to create and will require an investment by the partners to fund both its development and on-going operation. It will be far more efficient and should provide more rental revenue due to the improved quality of information and the speed in which it is available. This system will be more expensive to operate because the database needs to be maintained and data backed up. (LO: 3, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytic Skills) 12-9. If you were a consultant to Baker, Barker, and Bickel, which alternative would you recommend? Justify your recommendation.

The partners need to determine if the value generated by Option 2 will justify its cost. I recommend that they obtain proposals on developing Option 2. Once an approximate cost is determined, they can evaluate whether this cost appears to be justified or whether they should just go slow at the beginning and develop the Copyright © 2022 Pearson Education, Inc.

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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 shared-database system probably would. (LO: 3, Learning Outcome: Discuss the role of information systems in supporting business processes, AACSB: Analytic Skills)

CASE STUDY 12 When Will We Learn?

12-10. Describe three reasons why cases like this will remain relevant 40 years from now. Describe three developments that could make these cases obsolete. Which will pertain? Will such cases be relevant 40 years from now? Justify your opinion.

Three reasons why this case will be relevant 40 years from now: Failure to learn from past mistakes; assuming advances in technology will eliminate the need to understand what we need; failure to understand the complexity of developing ISs. Three developments that could make the case obsolete: Models of success (like AccessCT) are used to guide projects so that success becomes the standard outcome, not the exception; businesspeople take an active role in IS and apply best practices to IS development rather than letting IS development be “someone else’s problem”; businesspeople recognize that we must know and understand requirements clearly before attempting to build anything, particularly something as nebulous as an IS. Student opinions will vary as to which scenario will play out. (LO: 5, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AAC SB: Analytic Skills) 12-11. Read the Executive Summary of the First Data report located at http://portlandtribune.com/documents/artdocs/00003481205618.pdf. Applying your knowledge about the SDLC, describe what you think are the three major reasons that Cover Oregon failed.

The Executive Summary provides a good overview of challenges and difficulties encountered on this project. One of the strongest messages found in this material was the lack of a single point of authority for the project. There were numerous examples of contradictory decisions and teams working at cross purposes. Many good project management practices were ignored. Budget limitations prevented some of the needed contributors from participating (e.g., a systems integrator).

The lack of management oversight is also a strong theme that emerged. (LO: 5, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytic Skills) 12-12. Three vendors had been considered as outside contractors to develop Cover Oregon, but two of them bowed out of the competition. Describe three reasons that they may have done so.

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The conflicts between the user agency (Cover Oregon) and the developer agency (Oregon Health Administration) may have been obvious. The shifting requirements could have been troublesome. The warnings from the QA organization were undoubtedly red flags. The lack of funding could have made them turn and run. (LO: 5, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Analytic Skills) 12-13. The project was known to be in trouble, but it seemed to have a life of its own.

Ying Kwong, a technology analyst at Oregon’s Department of Administrative Services, said in May 2013 that the Cover Oregon project reminded him of the science fiction movie The Blob: “You simply don't know how to shoot this beast, because it does not have a known anatomy with the normal vital organs that make it tick.” Had you been a senior manager at Cover Oregon, what would you have done when the problems became apparent?

In a highly political environment like this, it is perhaps understandable that no one was able to stop this project. For many people employed in government agencies, it is better to stay out of the limelight and hope the blame falls somewhere else when the hatchet finally falls. Potentially, a senior manager could have joined forces with a reputable journalist who could have “blown the whistle” on the project and gotten the public’s attention before the disaster (and waste of resources) was fully realized. (LO: 5, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AAC SB: Reflective Thinking Skills) 12-14. In a June 2014 survey, a majority of Oregonians held Governor Kitzhaber responsible. But in 2015 Kitzhaber was reelected to a historic fourth term.

Unfortunately, a month later he resigned amid an unrelated influence-peddling scandal. Bruce Goldberg, former head of OHA and acting head of Cover Oregon, was fired on March 18, 2014, but continued to draw a full salary until July 18.

Given these results, does it seem likely that anyone will bear the consequences for these mistakes? Consider who that might be.

It does not sound like anyone has learned any lessons from this debacle. The people bearing the consequences are the citizens of Oregon for the wasted resources and a healthcare exchange that (possibly) is of lower quality than they deserve.

(LO: 5, Learning Outcome: Discuss best practices for selecting, evaluating, and managing information systems projects, AACSB: Reflective Thinking Skills)

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