Management Information Systems, 6th Effy Oz (1)
Sixth Edition EFFY OZ
The Pennsylvania State University, Great Valley
Management Information Systems, Sixth Edition
by Effy Oz
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To Narda, Sahar, Adi, Noam, Ron, Jess, and Lily and in memory of my sister, Miry Herzog
BRIEF CONTENTS
PART ONE
THE INFORMATION AGE
Chapter 1 Business Information Systems: An Overview 5 Chapter 2 Strategic Uses of Information Systems 39 Chapter 3 Business Functions and Supply Chains 75
PART TWO INFORMATION TECHNOLOGY 115
Chapter 4 Business Hardware 119 Chapter 5 Business Software 157 Chapter 6 Business Networks and Telecommunications 193
Chapter 7 Databases and Data Warehouses 231
PART THREE WEB-ENABLED COMMERCE 265
Chapter 8 The Web-Enabled Enterprise 268 Chapter 9 Challenges of Global Information Systems 312
PART FOUR DECISION SUPPORT AND BUSINESS INTELLIGENCE 337
Chapter 10 Decision Support and Expert Systems 340 Chapter 11 Business Intelligence and Knowledge Management 376
PART FIVE PLANNING, ACQUISITION, AND CONTROLS 405
Chapter 12 Systems Planning and Development 409 Chapter 13 Choices in Systems Acquisition 443 Chapter 14 Risks, Security, and Disaster Recovery 473
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BRIEF CONTENTS
TABLE OF CONTENTS
PART ONE THE INFORMATION AGE 1 Case I: Gardeners+ 1
Chapter 1 Business Information Systems: An Overview 5 Gardeners+: Business Systems and Information 6 Does Information Technology Matter? 7 The Power of Digital Systems 7 The Purpose of Information Systems 8
Why You Should Be Well-Versed in Information Systems 9 Data, Information, and Information Systems 9
Data vs. Information 9 Data Manipulation 9 Generating Information 10 Information in Context 11 What Is a System? 11 Information and Managers 13 The Benefits of Human-Computer Synergy 14 Information Systems in Organizations 14
The Four Stages of Processing 16 Computer Equipment for Information Systems 17
From Recording Transactions to Providing Expertise: Types of Information Systems
Transaction Processing Systems 18 Supply Chain Management Systems 18 Customer Relationship Management Systems 19 Business Intelligence Systems 20 Decision Support and Expert Systems 20 Geographic Information Systems 21
Information Systems in Business Functions
Accounting 22 Finance 22 Marketing 22 Human Resources 23
Web-Empowered Enterprises
Careers in Information Systems
Help Desk Technician 24
Ethical & Societal Issues: The Downside 25 Systems Analyst 26 Database Administrator 26 Network Administrator 28 System Administrator 28 Webmaster 29 Chief Security Officer 29 Chief Information Officer and Chief Technology Officer 29
Summary 31
Gardeners+ Revisited 32 Key Terms 33 Review Questions 33 Discussion Questions 34
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Applying Concepts
Hands-On Activities
Team Activities
From Ideas to Application: Real Cases
Chapter 2 Strategic Uses of Information Systems
Gardeners+: Using Information Strategically
Strategy and Strategic Moves
Achieving a Competitive Advantage
Initiative #1: Reduce Costs 44
Why You Should Understand the Notion of Strategic
45 Initiative #2: Raise Barriers to Market Entrants 45 Initiative #3: Establish High Switching Costs 46 Initiative #4: Create New Products or Services 46 Initiative #5: Differentiate Products or Services 48 Initiative #6: Enhance Products or Services 49 Initiative #7: Establish Alliances 50 Initiative #8: Lock in Suppliers or Buyers 53
Information Systems
Creating and Maintaining Strategic Information Systems
Creating an SIS 54 Reengineering and Organizational Change 55 Competitive Advantage as a Moving Target 56
JetBlue: A Success Story
Massive Automation 58 Away from Tradition 59 Enhanced Service 59 Impressive Performance 60 Late Mover Advantage 60
Ethical & Societal Issues: Size Matters
Ford on the Web: A Failure Story
The Ideas 62 Hitting the Wall 63
The Retreat 63
The Bleeding Edge 63 Summary 65 Gardeners+ Revisited 66 Key Terms 66 Review Questions 67 Discussion Questions 67 Applying Concepts 68 Hands-On Activities 69 Team Activities 69 From Ideas to Application: Real Cases 70
Chapter 3 Business Functions and Supply Chains 75 Gardeners+: Continued Growth and Specialization 76 Effectiveness and Efficiency 77
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Accounting
Why You Should Know About Business Functions
and Supply Chains
Finance
Cash Management 81 Investment Analysis and Service 82
Supply Chain Management
Material Requirements Planning and Purchasing 86 Manufacturing Resource Planning 87 Monitoring and Control 87 Shipping 88 RFID in SCM 90
Customer Relationship Management
Market Research 92 Targeted Marketing 92 Customer Service 95 Salesforce Automation 95
Human Resource Management
Employee Record Management 96 Promotion and Recruitment 96 Training 98 Evaluation 98
Compensation and Benefits Management 99 Ethical & Societal Issues: Consumer Privacy 100
Supply Chain Management Systems 101 The Importance of Trust 102
The Musical Chairs of Inventory 103
Collaborative Logistics 104 Enterprise Resource Planning 104
Challenges and Disadvantages of ERP Systems 105 Providing the Missing Reengineering 106
Summary 107 Gardeners+ Revisited 108 Key Terms 108 Review Questions 109 Discussion Questions 109 Applying Concepts 110 Hands-On Activity 110 Team Activities 111
From Ideas to Application: Real Cases 112
PART TWO
INFORMATION TECHNOLOGY 115
Case II: QuickBiz Messengers 115
Chapter 4
Business Hardware 119 QuickBiz Messengers: Hardware Streamlines Processes 120
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Computer Hardware Components
Why You Should Understand Information Systems Hardware
Classification of Computers
Supercomputers 123 Mainframe Computers 124 Midrange Computers 125 Microcomputers 125 Computers on the Go: Notebook, Handheld, and Tablet Computers 125 Converging Technologies 126
A Peek Inside the Computer
The Central Processing Unit 128 Computer Power 129
Input Devices
Keyboard 130 Mouse, Trackball, and Trackpad 131 Touch Screen 131 Source Data Input Devices 132 Imaging 133 Speech Recognition 134
Output Devices
Monitors 135 Printers 136
Storage Media
Modes of Access 137 Magnetic Tapes 137 Magnetic Disks 138 Optical Discs 139 Optical Tape 140 Flash Memory 140 DAS, NAS, and SAN 141
Ethical & Societal Issues: Computers May Be Hazardous
142 Business Considerations in Evaluating Storage Media 143
to Your Health
Considerations in Purchasing Hardware
Scalability and Updating Hardware 146
Summary
QuickBiz Messengers Revisited
Key Terms
Review Questions
Discussion Questions
Applying Concepts
Hands-On Activities
Team Activities
From Ideas to Application: Real Cases
Chapter 5
Business Software
QuickBiz Messengers: Software Steers a Path to Stability 158
Software: Instructions to the Hardware
159 Programming Languages and Software Development Tools
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Why You Should Be Software Savvy
Visual Programming 162 Object-Oriented Programming 163
Language Translation: Compilers and Interpreters
Application Software
Office Productivity Applications 167 Hypermedia and Multimedia 169 Mashups 170 Web Site Design Tools 171 Groupware 171 Virtual Reality 172 3-D Geographic Software 173
System Software
Operating Systems 174 Other System Software 178
Open Source Software
Software Licensing
Considerations for Packaged Software
Ethical & Societal Issues: Software Piracy
QuickBiz Messengers Revisited
Key Terms
Review Questions
Discussion Questions
Applying Concepts
Hands-On Activities
Team Activities
From Ideas to Application: Real Cases
Chapter 6
Business Networks and Telecommunications
QuickBiz Messengers: Communication Is Key
Telecommunications in Business
Telecommunications in Daily Use
Cellular Phones 197 Videoconferencing 197 Wireless Payments and Warehousing 198
Why You Should Understand Telecommunications
Peer-to-Peer File Sharing 198 Web-Empowered Commerce 199
Bandwidth and Media
Bandwidth 199 Media 200
Networks
Types of Networks 203 PANs 204 Networking Hardware 205 Virtual Private Networks 205 Switching Techniques 206
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Protocols
TCP/IP 207 Ethernet 208 Wireless Protocols 208 Generations in Mobile Communications 212
Internet Networking Services
Cable 214 Digital Subscriber Line (DSL) 214 T1 and T3 Lines 215 Satellite 215 Fixed Wireless 216 Fiber to the Premises 216 Optical Carrier 216 Broadband Over Power Lines (BPL) 217
The Future of Networking Technologies
Broadband Telephony 217
Ethical & Societal Issues: Telecommuting: Pros and Cons
Radio Frequency Identification 220 Converging Technologies 222
Summary
QuickBiz Messengers Revisited
Key Terms
Review Questions
Discussion Questions
Applying Concepts
Hands-On Activities
Team Activities
From Ideas to Application: Real Cases
Chapter 7
Databases and Data Warehouses
QuickBiz Messengers: The Value and Uses of Databases
Managing Digital Data
Why You Should Know About Data Management
The Traditional File Approach 234 The Database Approach 235
Database Models
The Relational Model 239 The Object-Oriented Model 241
Relational Operations
Structured Query Language 243 The Schema and Metadata 244
Data Modeling
Databases on the Web
Data Warehousing
Ethical & Societal Issues: Every Move You Make
From Database to Data Warehouse 250 Phases in Data Warehousing 251
QuickBiz Messengers Revisited
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TABLE OF CONTENTS
Key Terms
Review Questions
Discussion Questions
Applying Concepts
Hands-On Activities
Team Activities
From Ideas to Application: Real Cases
PART THREE
WEB-ENABLED COMMERCE
Case III: It Fits Outfits
Chapter 8
The Web-Enabled Enterprise
It Fits Outfits: Setting Up Operations on the Internet
Web Business: Growing and Changing
Web Technologies: A Review
HTTP 271
Why You Should Know More About Web-Enabled Business
HTML and XML 272 File Transfer 273 RSS 273 Blogs 274 Wikis 274 Podcasting 275 Instant Messaging 275 Cookies 276 Proprietary Technologies 278
Web-Enabled Business
B2B Trading 278 B2C Trading 283
Ethical & Societal Issues: Online Annoyances and Worse
Supply Chains on the Web
Options in Establishing a Web Site
Owning and Maintaining a Server 294 Using a Hosting Service 294 Considerations in Selecting a Web Host 296 More than Meets the Eye 299
Rules for Successful Web-Based Business
Target the Right Customers 300
Capture the Customer’s Total Experience 300
Personalize the Service 300 Shorten the Business Cycle 300 Let Customers Help Themselves 301 Be Proactive and De-Commoditize 301
E-Commerce Is Every Commerce 301
Summary 302
It Fits Outfits Revisited 303 Key Terms 303 Review Questions 304
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Discussion Questions
Applying Concepts
Hands-On Activities
Team Activities
From Ideas to Application: Real Cases
Chapter 9 Challenges of Global Information Systems
It Fits Outfits: Expanding Gloabally
Multinational Organizations
The Web and International Commerce
Think Globally, Act Locally 317
Why You Should Learn About Challenges of Global ISs
Challenges of Global Information Systems
Technological Challenges 318 Regulations and Tariffs 319 Differences in Payment Mechanisms 320 Language Differences 320 Cultural Differences 321 Conflicting Economic, Scientific, and Security Interests 321 Political Challenges 323 Different Standards 324 Legal Barriers 325
Ethical & Societal Issues: Legal Jurisdictions in Cyberspace
Different Time Zones 329
Summary
It Fits Outfits Revisited
Key Terms
Review Questions
Discussion Questions
Applying Concepts
Hands-On Activities
Team Activities
From Ideas to Application: Real Cases
PART FOUR DECISION SUPPORT AND BUSINESS INTELLIGENCE
Case IV: DeBoer Farms
Chapter 10
Decision Support and Expert Systems
DeBoer Farms: Farming Technology for Information
Decision Support
The Decision-Making Process
Structured and Unstructured Problems
Why You Should Be Familiar with Decision Aids
Decision Support Systems
The Data Management Module 346 The Model Management Module 347 The Dialog Module 349
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Sensitivity Analysis 350 Decision Support Systems in Action 351
Ethical & Societal Issues: Decisions by Machines
Expert Systems
Expert Systems in Action 360
Group Decision Support Systems
Geographic Information Systems
DeBoer Farms Revisited
Key Terms
Review Questions
Discussion Questions
Applying Concepts
Hands-On Activities
Team Activities
From Ideas to Application: Real Cases
Chapter 11 Business Intelligence and Knowledge Management
DeBoer Farms: Harvesting Technology’s Benefits
Data Mining and Online Analysis
Data Mining 379
Why You Should Learn About BI and KM Tools
Online Analytical Processing 382 More Customer Intelligence 387 Dashboards 389
Knowledge Management
Capturing and Sorting Organizational Knowledge 391 Employee Knowledge Networks 392
Ethical & Societal Issues: Knowledge and Globalization
Knowledge from the Web 394 Autocategorization 396
Summary 397 DeBoer Farms Revisited 398
Key Terms 398 Review Questions 398 Discussion Questions 399 Applying Concepts 400 Hands-On Activities 400 Team Activities 400
From Ideas to Application: Real Cases 401
PART FIVE
PLANNING, ACQUISITION, AND CONTROLS 405
Case V: Worldwide Host 405
Chapter 12
Systems Planning and Development 409
Worldwide Host: A Vision for the Future 410
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Planning Information Systems
Steps in Planning Information Systems 411 Why You Should Understand the Principles of
414 The Benefits of Standardization in Planning 414 From Planning to Development 415
Systems Development
The Systems Development Life Cycle
Analysis 416 Design 420 Implementation 423 Support 425
Agile Methods
When to Use Agile Methods 428 When Not to Use Agile Methods 428
Project Planning and Management Tools
Systems Integration
Ethical & Societal Issues: Should IS Professionals Be Certified?
Worldwide Host Revisited
Key Terms
Review Questions
Discussion Questions
Applying Concepts
Hands-On Activities
Team Activities
From Ideas to Application: Real Cases
Chapter 13
Choices in Systems Acquisition
Worldwide Host: Tapping Others’ Expertise
Options and Priorities
Outsourcing
446 Outsourcing Custom-Designed Applications 446 Why You Should Understand Alternative Avenues for
the Acquisition of Information Systems
Outsourcing IT Services 448 Advantages of Outsourcing IT Services 451 Risks of Outsourcing IT Services 451
Licensing Applications
Software Licensing Benefits 454 Software Licensing Risks 454
Steps in Licensing Ready-Made Software 455 Software as a Service 457
Caveat Emptor 459
User Application Development
Managing User-Developed Applications 460 Advantages and Risks 461
Ethical & Societal Issues: Computer Use Policies for Employees 463 Summary
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Key Terms 466 Review Questions 466 Discussion Questions 467 Applying Concepts 468 Hands-On Activities 468 Team Activities 469
From Ideas to Application: Real Cases 470
Chapter 14 Risks, Security, and Disaster Recovery 473 Worldwide Host: Battling Back from Attacks 474
Goals of Information Security 475 Why You Should Understand Risks, Security, and Disaster
Recovery Planning 476 Risks to Information Systems 476
Risks to Hardware 476 Risks to Data and Applications 477
Risks to Online Operations
Denial of Service 484 Computer Hijacking 484
Controls 485 Application Reliability and Data Entry Controls 485 Backup 485 Access Controls 486 Atomic Transactions 488 Audit Trail 489
Security Measures 489
Firewalls and Proxy Servers 490 Authentication and Encryption 491 The Downside of Security Measures 498
Ethical & Societal Issues: Terrorism and PATRIOTism
Recovery Measures
The Business Recovery Plan 500 Recovery Planning and Hot Site Providers 502
The Economics of Information Security
How Much Security Is Enough Security? 503 Calculating Downtime 503
Summary
Worldwide Host Revisited
Key Terms
Review Questions
Discussion Questions
Applying Concepts
Hands-On Activities
Team Activities
From Ideas to Application: Real Cases
Glossary 515 Subject Index 531 Name & Company Index 559
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PREFACE
The goal of Management Information Systems, Sixth Edition is to provide a real-world understanding of information systems (ISs) for business and computer science students. Like its predecessor, this Sixth Edition provides students with a firm foundation in business-related information technology (IT) on which they can build successful careers regardless of the particular fields they choose. They may find themselves formulating strategic plans in executive suites, optimizing operations in
businesses or on factory floors, fine-tuning plans for their own entrepreneurial ventures, designing ISs to optimize their organization’s operations, working as consultants, augmenting business activities on the Web, or creating valuable new information products in any number of industries.
This Sixth Edition is organized in fourteen chapters that contain the most important topics for business students.The fundamental principle guiding this book is that ISs are everywhere in busi- ness. Information systems are pervasive because information is the single most powerful resource
in every business function in every industry. Knowledge of IT is not always explicitly stated as a job requirement, but it is an essential element of success in virtually any position. Not everyone
in business needs to have all the technical skills of an IT professional, but everyone needs a deep- enough understanding of the subject to know how to use IT in his or her profession. This is espe-
cially so in the increasingly digital and networked business world.
Management Information Systems provides students with the proper balance of technical infor- mation and real-world applications. No matter what field they undertake, students will enter the business world knowing how to get information to work for them. They will know enough about IT to work productively with IT specialists, and they will know enough about business applica- tions to get information systems to support their work in the best way possible.
APPROACH
Part Cases Show IS Principles in Action
In this edition Part Cases were carefully updated to integrate all the IT principles that arise in busi- ness, to give students an opportunity to view IS issues in action, and to solve business problems related to IT just as they arise in the real world. The cases are built around companies that range in size from the entrepreneurial start-up to the multimillion-dollar corporate giant, reflecting a wide variety of industries. These cases were created to show students how the full range of busi- ness functions operate within virtually every business setting. The Part Cases are integrated into the text in four ways:
• The Case: Each part of the text (made up of between two and four chapters) opens with the Part Case: the story of a business, including the business’s IS challenges, the charac- ters involved, and the issues. Everyone in business knows that almost every business problem has a human element; this aspect of managing IT-related challenges is realisti- cally represented in each case.
• The Business Challenge: The presentation of each case is immediately followed by a succinct statement of the business challenge of the case and the ways the information in each chapter in the case will help the reader meet that challenge.
• Case Installments: Each chapter opens with an installment of the Part Case that focuses and expands on an aspect of the original story that relates most closely to the chapter content.
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• Case Revisited Sections: Each chapter ends with a Case Revisited section, which includes a concise summary of the challenge in the case installment; a section called What Would You Do?, a series of questions that asks the readers to play a role in the case and decide how they would handle a variety of challenges inherent in the case; and New Perspectives , a series of questions that introduces a wide variety of “what ifs” reaching beyond the original scope of the case and again asking the students to play dif- ferent roles to meet business challenges.
Emphasis on the Real World
Management Information Systems is not afraid to warn about the limitations of ISs. The text also explains the great potential of many information technologies, which many organizations have not yet unleashed. Of course, this book includes chapters and features that provide a thorough, concise —and refreshingly clear—grounding in the technology of information systems, because all professionals in successful organizations are involved in making decisions about hardware, soft- ware, and telecommunications. But, through current, detail-rich, real-world case studies through- out the book, and a dedication to qualifying each presentation with the real-world factors that may affect business, this book stays close to the workplace in its presentation.
Attention to New Business Practices and Trends
Large parts of the text are devoted to discussing innovative uses of information technology and its benefits and risks. Contemporary concepts such as supply chain management systems, data warehousing, business intelligence systems, knowledge management, Web-based electronic data interchange, and software as a service are explained in plain, easy-to-understand language.
Illustration of the Importance of Each Subject to One’s Career
Business students often do not understand why they have to learn about information technology. The reason many students are frustrated with introductory MIS courses is that they do not fully understand how information technology works or why it is important for them to understand it. One of the primary goals of this book is for its entire presentation to make the answers to these questions apparent. First, all subjects are explained so clearly that even the least technically oriented student can understand them. Technology is never explained for technology’s sake, but to immediately demonstrate how it supports businesses. For instance, networking, database management, and Web technologies (Chapters 6 through 8), which are often confusing topics, are presented with clear, concise, and vivid descriptions to paint a picture of technology at work. In addition, each chapter includes a feature titled Why You Should, which explains to students how being well- versed in that chapter’s aspect of IT is important to their careers.
Emphasis on Ethical Thinking
The book puts a great emphasis on some of the questionable and controversial uses of information technology, with special treatment provided in the Ethical & Societal Issues boxes. The students
are required to weigh the positive and negative impacts of technology and to convincingly argue their own positions on important issues such as privacy, free speech, and professional conduct.
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Emphasis on Critical Thinking Critical thinking is used throughout the text as well as in the book’s many features. For instance, the students are put in the midst of a business dilemma relating to the running case of each chap- ter and required to answer What Would You Do? questions. The questions motivate students to evaluate many aspects of each situation and to repeatedly consider how quickly IT evolves. Similarly, many of the Discussion Questions at the end of chapters call for their evaluation and judgment.
ADDITIONAL EMPHASES IN THE SIXTH EDITION
Building on the success of the Fifth Edition, Management Information Systems, Sixth Edition includes
a uniquely effective combination of features.
Updated and New Part and Chapter Case Studies
This Sixth Edition highlights again the well-received, powerful pedagogical tool: five
Part Cases
that clearly incorporate a wide array of real-world events and challenges that dramatize how infor- mation technology is integrated into everyday business.
Strong Foundation in Strategic ISs in Business Functions
In addition to a complete chapter on strategic uses of ISs (Chapter 2), strategic thinking is an underlying theme throughout the book. Current examples are used to illustrate how information systems can give businesses a strategic advantage.
Up-to-date Coverage of Web Technologies and Web-Enabled Commerce
Reflecting the use of Web technologies in so many business activities, the book integrates the topic seamlessly throughout the text, just as it has become integrated into business in general. But the text goes beyond the well-worn discussions of the topic (and the handful of sites everyone knows about) to tell the students what works about e- commerce and what doesn’t work.
Thorough Discussion of Supply Chain Management Systems
As SCM systems are becoming pervasive in the business world, supply chains and their manage- ment are discussed both in a dedicated chapter (Chapter 3) and throughout the text. Related tech- nologies, such as RFID, are clearly explained. In text and diagrams, the importance of these sys- tems is underscored.
Current Real-world Examples Reflect a Wide Variety of Businesses
The text incorporates more applications, cases, and projects in the full range of business functions
and industries throughout the book. The cases at the end of the chapter, in the From Ideas to
Application: Real Cases sections, have been carefully selected to include critical thinking ques- tions to guide students to apply what they have learned. Most of these cases are new to this edi-
tion and others have been updated and reflect current technology and trends. In addition, for strong pedagogical reinforcement, examples are embedded throughout the book.
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Coverage of Global Issues
Globalization has become an important issue both economically and technologically. An entire chapter, Chapter 9, is devoted to discussing challenges to global information systems, from legal discrepancies through cultural issues to time zone issues. The chapter also discusses how the chal- lenges can be met successfully. This topic receives little coverage in similar textbooks. The breadth and depth of coverage of challenges to global uses of IT in this book has been enthusiastically received by adopters.
New Aspects of Ethical and Societal Issues
The coverage of Ethical & Societal Issues in Management Information Systems builds on the strong foundation started in the first five editions. However, new issues have emerged, such as phishing and offshoring, which are discussed in this edition. This is a powerful feature provided by an author who is internationally recognized as a researcher in the field of IT Ethics.
New Student Assignments for Reinforcement of Material
This Sixth Edition continues to provide a large selection of assignments at the ends of chapters, mainly assignments that require the use of relevant software and the Web. Many of these assign- ments, including Applying Concepts, Hands-On Activities, and Team Activities, have been updated for the this Edition. Responding to instructors’ recommendations, more assign- ments require research involving the Web. In addition to the hands-on exercises in each chapter, students and instructors will find a host of additional new hands-on work available at the Student Companion Web site, which is discussed later in this Preface.
More Points of Interest Responding to instructors’ enthusiastic reception of Points of Interest, we added a wealth of
new sidebar statistics, anecdotes, and short stories that add an interesting and entertaining aspect to the main chapter text. Except for a few entries, all are new in this edition.
ASSESSMENT OPTIONS FOR INSTRUCTORS
To further enhance student learning, Course Technology offers SAM (Skills Assessment Manager), the worldwide leader in online assessment and proven to be the most effective tool to assess and train students in Microsoft Office tasks, Computer Concepts, Windows, the Internet, and more. SAM is a hands-on, simulated computer assessment and training tool that gives students the feel- ing of working live in the computer application.
Want More? SAM 2007
Inject a wider breadth of applications, as well as additional Excel, Access, and Computer Concepts coverage into your MIS course with SAM 2007! Visit http://samcentral.course.com to learn more.
Please contact your Course Technology Sales Representative for more information regarding these assessment options.
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PREFACE STUDENT COMPANION WEB SITE
We have created an exciting online companion for students to utilize as they work through the Sixth Edition of Management Information Systems. In the back of this text you will find a key code
that provides full access to a robust Web site, located at www.course.com/mis/mis6. This Web resource includes the following features:
PowerPoint Slides Direct access is offered to the book’s PowerPoint presentations, which cover the key points from each chapter. These presentations are a useful study tool.
Videos
Twelve topical video clips, linked to chapters throughout the book, can be found on this Web site. Questions to accompany the respective video clips are featured on the Student Companion Web site. These exercises reinforce the concepts taught and provide the students with more critical thinking opportunities.
Glossary of Key Terms
Students can view a PDF file of the glossary from the book.
Part Case Resources from the Sixth Edition
Gain access to a multitude of online resources tied to the five Part Opening Cases which have been updated from the previous edition.
Sixth Edition Part Case Projects
Unique hands-on projects associated with the five Part Cases have been created to allow for first- hand participation in the businesses introduced in each Part. For each Part Case, there is a selection of hands-on projects that asks the user to become a “character” in the cases and perform small tasks to help meet business needs. The solution files for these activities are available to instructors at www.course.com, via the password-protected Instructor Downloads page for this textbook.
“Bike Guys” Business Cases For more examples of MIS concepts in action, we have supplied the popular “Bike Guys” cases from the Third Edition of the text.
Further Case Offerings
Course Technology now offers cases from Harvard Business School Publishing and other leading case-writing institutions. Create the ideal casebook for your course by selecting cases, adding your own materials, and combining it with our best-selling Course Technology titles. For further infor- mation, please contact your instructor.
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Additional business articles and cases are offered through InfoTrac, the popular Journal Database, made up of more than 15 million full-text articles from over 5000 scholarly and popu- lar periodicals. Please speak with your instructor about accessing this database.
Additional Content
Here you will find the following additional material: • Organizing Information Technology Resources • Measurement Units
Test Yourself on MIS
Brand new quizzes, created specifically for this site, allow users to test themselves on the content of each chapter and immediately see what answers were answered right and wrong. For each ques- tion answered incorrectly, users are provided with the correct answer and the page in the text where that information is covered. Special testing software randomly compiles a selection of ques- tions from a large database, so students can take quizzes multiple times on a given chapter, with some new questions each time.
Additional Exercises
Also created just for this Student Companion Web site, a selection of exercises asks users to apply what they have learned in each chapter and further explore various software tools. The solution files for these activities are also available to instructors at www.course.com.
Useful Web Links
Access a repository of links to the home pages of the primary Web sites relative to each chapter for further research.
INSTRUCTOR’S PACKAGE
Management Information Systems, Sixth Edition, includes teaching tools to support instructors in the classroom. The ancillaries that accompany the textbook include an Instructor’s Manual, Solutions, Test Banks and Test Engine, Distance Learning content, PowerPoint presentations, and Figure Fil es. This textbook is one of the few accompanied by an Instructor’s Manual written by the text author, ensuring compatibility with the textbook in content, pedagogy, and philosophy. All teaching tools available with this book are provided to the instructor on a single CD-ROM and also available on the Web at www.course.com.
The Instructor’s Manual
The text author has created this manual to provide materials to help instructors make their classes informative and interesting. The manual offers several approaches to teaching the material, with sample syllabi and comments on different components. It also suggests alternative course outlines and ideas for term projects. For each chapter, the manual includes teaching tips, useful Web sites,
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and answers to the Review Questions, Discussion Questions, and Thinking about the Case ques- tions. Having an Instructor’s Manual created by the text author is particularly valuable, as the author is most familiar with the topical and pedagogical approach of the text.
Solutions
We provide instructors with solutions to Review Questions and Discussion Questions as well as for quantitative hands-on work in each chapter. If appropriate, we will also provide solution files for various activities. Solutions may also be found on the Course Technology Web site at www.course.com. The solutions are password protected.
ExamView®
This objective-based test generator lets the instructor create paper, LAN, or Web-based tests from test banks designed specifically for this Course Technology text. Instructors can use the QuickTest Wizard to create tests in fewer than five minutes by taking advantage of Course Technology’s question banks —or create customized exams.
PowerPoint Presentations
Microsoft PowerPoint slides are included for each chapter. Instructors might use the slides in a variety of ways, including as teaching aids during classroom presentations or as printed handouts for classroom distribution. Instructors can add their own slides for additional topics introduced to the class.
Figure Files
Figure files allow instructors to create their own presentations using figures taken directly from the text.
Distance Learning Content
Course Technology, the premiere innovator in management information systems publishing, is proud to present online courses in WebCT and Blackboard.
• Blackboard and WebCT Level 1 Online Content. If you use Blackboard or WebCT, the test bank for this textbook is available at no cost in a simple, ready-to-use format. Go to www.course.com and search for this textbook to download the test bank.
• Blackboard and WebCT Level 2 Online Content. Blackboard Level 2 and WebCT Level 2 are also available for Management Information Systems. Level 2 offers course management and access to a Web site that is fully populated with content for this book.
For more information on how to bring distance learning to your course, instructors should contact their Course Technology sales representative.
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PREFACE ORGANIZATION
Management Information Systems, Sixth Edition is organized into five parts, followed by a glossary and an index. It includes the following major elements.
Part One: The Information Age Part One of the book includ es three chapters. Chapter 1, “Business Information Systems: An Overview,” provides an overview of information technology (IT) and information systems (ISs)
and a framework for discussions in subsequent chapters. Chapter 2, “Strategic Uses of Information Systems,” discusses organizational strategy and ways in which ISs can be used to meet strategic goals. Chapter 3, “Business Functions and Supply Chains,” provides a detailed discussion of busi- ness functions, supply chains, and the systems that support management of supply chains in var- ious industries. Together, these three chapters address the essence of all overarching ideas that are discussed at greater depth in subsequent chapters.
Part Two: Information Technology
To understand how ISs enhance managerial practices, one must be well versed in the technical principles of information technology, which are covered in Part Two. Chapters 4, “Business Hardware,” 5, “Business Software,” and 6, “Business Networks and Telecommunications,” provide
a concise treatment of state-of-the-art hardware, software, and networking technologies in business. Chapter 7, “Databases and Data Warehouses,” covers database management systems and data warehousing, which provide the technical foundation for a discussion of business intelligence and knowledge management in Chapter 11.
Part Three: Web-Enabled Commerce Part Three is devoted to networked businesses and their use of the Internet. Chapter 8, “The Web- enabled Enterprise,” is fully devoted to a thorough discussion of relevant Web technologies for
business operations. Chapter 9, “Challenges of Global Information Systems,” highlights cultural and other challenges organizations face in planning and using the Web and international infor- mation systems.
Part Four: Decision Support and Business Intelligence
Part Four provides a view of state-of-the-art decision support and expert systems in Chapter 10 and business intelligence in Chapter 11. Electronic decision aids have been integrated into other systems in recent years, but understanding of their fundamentals is important. Business intelli- gence applications, such as data mining and online analytical processing, are essential tools in a growing number of businesses. Plenty of examples are provided to demonstrate their power.
Part Five: Planning, Acquisition, and Controls
Part Five is devoted to planning, acquisition, and controls of information systems to ensure their successful and timely development and implementation, as well as their security. Chapter 12, “Systems Planning and Development,” discusses how professionals plan information systems. It
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details traditional and agile methods of software development. Chapter 13, “Choices in Systems Acquisition,” presents alternative acquisition methods to in-house development: outsourcing, purchased applications, end-user systems development, and software as a service. Chapter 14, “Risks, Security, and Disaster Recovery,” discusses the risks that information systems face and ways to minimize them, as well as approaches to recovering from disasters.
NEW FEATURES OF THIS EDITION
We listened carefully to our adopters, potential adopters, and reviewers in planning and writing this Sixth Edition of Management Information Systems. We kept the number and organization of chapters the same as in the previous edition to suit optimal coverage, pedagogy, and allow for flexibile term management. The major changes and improvements in this edition are:
• More brief, real-life examples within the text of chapters • Updated and extended coverage of the latest technologies and trends in MIS, including
information security • New Point of Interest boxes throughout
• All-new end-of-chapter case studies • New or revised end-of-chapter exercises • A wealth of online, video, and lab resources to accompany the text
Some instructors would like students to consider careers in IT. Therefore, the discussion of IT careers was moved to Chapter 1, “Business Information Systems: An Overview.” This allows the students to learn what IT professionals do early on.
Supply chain management (SCM) systems and customer relationship management (CRM) sys- tems have become important staples in businesses. Therefore, they are now introduced early in Chapter 1, thoroughly explained in Chapter 3, “Business Functions and Supply Chains,” and dis- cussed widely throughout the text in various contexts. While we still discuss information systems by business function in Chapter 3, a large part of the chapter is devoted to enterprise applications such as SCM, CRM, and ERP systems.
Chapter 4, “Business Hardware,” now includes shorter discussions of the innards of comput- ers and extensive discussions on external memory devices and networked storage technologies such as SAN and NAS.
In Chapter 5, “Business Software,” the discussion of programming language generations was significantly cut to make room for more important discussions of software that all students will encounter in most organizations. The growing trend of using open source software is extensively discussed and no longer focuses only on Linux. The students are exposed to a plethora of open source applications.
Chapter 6, “Business Networks and Telecommunications,” no longer includes discussions of modulation and demodulation, and the technical aspect has been toned down. Most of the chap- ter now focuses on the use of various networking technologies in business. A new section covers the latest wireless technologies, as this is the future of networking in communities, businesses, and homes. A detailed discussion of RFID technologies is included to provide the technical foun- dation for further discussion of current and future application of this technology in business.
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The major Web technologies are discussed and demonstrated in Chapter 8, “The Web-Enabled Enterprise.” The entire chapter was rewritten to reflect new technologies. The section on alterna- tives in establishing commercial Web sites reflects the latest array of hosting options. Chapter 9, “Challenges of Global Information Systems,” is devoted to illuminating the challenges and effi- ciencies of managing business information systems on a global scale.
Many current examples of decision support systems and artificial intelligence are provided in Chapter 10, “Decision Support and Expert Systems.” Chapter 11, “Business Intelligence and Knowledge Management,” combines discussions that were included in different chapters in earlier editions. The concept of employee knowledge networks is explained and demonstrated in examples. Chapter 12, “Systems Planning and Development,” discusses the traditional “waterfall” approaches such as the systems development life cycle, but also devotes a thorough discussion to agile methods, which have become so popular among software developers.
Chapter 13, “Choices in Systems Acquisition,” discusses alternatives to in-house software
development, such as Software as a Service.
Security and disaster recovery are discussed in Chapter 14, “Risks, Security, and Disaster Recovery,” with more attention to increasingly severe risks, such as phishing. Discussion of threats to privacy were updated to address new technologies such as RFID tags.
Except for very few entries, all the Point of Interest box features are new. All Ethical & Societal Issues discussions have been updated.
Nearly all of the end-of-chapter Real Cases are new. As in previous editions, all are real-world examples reported in a wide range of major business and technology journals. About 90 percent of all the examples given in chapter discussions are new and recent. The only examples that are older than 2 years are those that are classic stories of strategic use of IT. Thus, the pedagogy of this edition is significantly enhanced.
ACKNOWLEDGMENTS
This book is the fruit of a great concerted effort. A project such as this could not be successful with- out the contribution of many people. I would first like to thank my colleagues in the business and IT fields whose ideas and opinions over all these years have helped me understand the educational needs of our students. I also recognize the indirect contribution of the many students I have taught. Their comments helped me understand the points that need extra emphasis or a different presentation to make subjects that are potentially overwhelming clearer and more interesting.
Many thanks go to Kate Hennessy for being so enthusiastic about this project. She was always there for me with advice and encouragement. Kate exerted much energy when heading this project. Her active guidance and constant involvement made an immense contribution to this edition. Kate also handled the smooth coordination of the instructor’s package, Web materials, and more. Aimee Poirier, the production editor, shepherded the book through production, managing the process in a very orderly and timely manner. The design and art managers at GEX Publishing Services made sure the text and photos were visually appealing, and the team of artists there skill- fully rendered our ideas. Abby Reip ensured that the text concepts were supported with photos. She was knowledgeable and agile. I applaud all of them.
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Deb Kaufmann, the developmental editor, has demonstrated again her excellent skills and high integrity. It was wonderful to work with an editor who excels not only in improving style and organization but who is also so knowledgeable in the subject matter. Her broad perspective while still attending to the details were essential ingredients supporting my work.
My thanks also to Dr. Carlos Ferran and Dr. Ricardo Salim for their help in updating the opening cases for this edition.
Reviewers are the most important aides to any writer, let alone one who prepares a text for college students. I would like to thank the reviewers who carefully read every chapter of this edition and/or reviewed the revision proposal for this edition:
Mary Astone, Troy State University Efrem Mallach, University of Massachusetts, Dartmouth
John Moreno, Golden Gate University
G. Shankaranarayanan, Boston University Elizabeth Sigman, Georgetown University Howard Sundwall, West Chester University