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978 1119244288

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bgloss.indd 312 11/26/2015 7:40:39 PM


Managing and Using Information Systems


A STRATEGIC APPROACH


Sixth Edition


Keri E. Pearlson KP Partners


Carol S. Saunders W.A. Franke College of Business Northern Arizona University Dr. Theo and Friedl Schoeller Research Center for Business and Society


Dennis F. Galletta Katz Graduate School of Business University of Pittsburgh, Pittsburgh, PA


ffirs.indd 1 12/1/2015 12:34:39 PM


VICE PRESIDENT & DIRECTOR George Hoffman EXECUTIVE EDITOR Lise Johnson DEVELOPMENT EDITOR Jennifer Manias ASSOCIATE DEVELOPMENT EDITOR Kyla Buckingham SENIOR PRODUCT DESIGNER Allison Morris MARKET SOLUTIONS ASSISTANT Amanda Dallas SENIOR DIRECTOR Don Fowley PROJECT MANAGER Gladys Soto PROJECT SPECIALIST Nichole Urban PROJECT ASSISTANT Anna Melhorn EXECUTIVE MARKETING MANAGER Christopher DeJohn ASSISTANT MARKETING MANAGER Puja Katariwala ASSOCIATE DIRECTOR Kevin Holm SENIOR CONTENT SPECIALIST Nicole Repasky PRODUCTION EDITOR Loganathan Kandan


This book was set in 10/12 Times Roman by SPi Global and printed and bound by Courier Kendallville.


This book is printed on acid free paper.


Founded in 1807, John Wiley & Sons, Inc. has been a valued source of knowledge and understanding for more than 200 years, helping people around the world meet their needs and fulfill their aspirations. Our company is built on a foundation of principles that include responsibility to the communities we serve and where we live and work. In 2008, we launched a Corporate Citizenship Initiative, a global effort to address the environmental, social, economic, and ethical challenges we face in our business. Among the issues we are addressing are carbon impact, paper specifications and procurement, ethical conduct within our business and among our vendors, and community and charitable support. For more information, please visit our website: www.wiley.com/go/citizenship.


Copyright © 2016, 2013, 2010, 2006, 2004, 2001 John Wiley & Sons, Inc. All rights reserved. No part of this publication may be repro- duced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per‐copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923 (Web site: www.copyright.com). Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030‐5774, (201) 748‐6011, fax (201) 748‐6008, or online at: www. wiley.com/go/permissions.


Evaluation copies are provided to qualified academics and professionals for review purposes only, for use in their courses during the next academic year. These copies are licensed and may not be sold or transferred to a third party. Upon completion of the review period, please return the evaluation copy to Wiley. Return instructions and a free of charge return shipping label are available at: www.wiley.com/go/ returnlabel. If you have chosen to adopt this textbook for use in your course, please accept this book as your complimentary desk copy. Outside of the United States, please contact your local sales representative.


ISBN: 978-1-119-24428-8 (BRV) ISBN: 978-1-119-24807-1 (EVALC)


Library of Congress Cataloging-in-Publication Data Names: Pearlson, Keri E. | Saunders, Carol S. | Galletta, Dennis F. Title: Managing and using information systems: a strategic approach / Keri E. Pearlson, Carol S. Saunders, Dennis F. Galletta. Description: 6th edition. | Hoboken, NJ : John Wiley & Sons, Inc., [2015] | Includes index. Identifiers: LCCN 2015041210 (print) | LCCN 2015041579 (ebook) | ISBN 9781119244288 (loose-leaf : alk. paper) | ISBN 9781119255208 (pdf) | ISBN 9781119255246 (epub) Subjects: LCSH: Knowledge management. | Information technology—Management. | Management information systems. | Electronic commerce. Classification: LCC HD30.2 .P4 2015 (print) | LCC HD30.2 (ebook) | DDC 658.4/038011—dc23 LC record available at http://lccn.loc.gov/2015041210


Printing identification and country of origin will either be included on this page and/or the end of the book. In addition, if the ISBN on this page and the back cover do not match, the ISBN on the back cover should be considered the correct ISBN.


Printed in the United States of America


10 9 8 7 6 5 4 3 2 1


ffirs.indd 2 12/1/2015 12:34:39 PM


http://www.wiley.com/go/citizenship

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To Yale & Hana


To Rusty, Russell, Janel & Kristin


To Carole, Christy, Lauren, Matt, Gracie, and Jacob


ffirs.indd 3 12/1/2015 12:34:39 PM


iv


Information technology and business are becoming inextricably interwoven. I don ’ t think anybody can talk meaningfully about one without the talking about the other.


Bill Gates Microsoft 1


I ’ m not hiring MBA students for the technology you learn while in school, but for your ability to learn about, use and subsequently manage new technologies when you get out .


IT Executive Federal Express 2


Give me a fi sh and I eat for a day; teach me to fi sh and I eat for a lifetime .


Proverb


Managers do not have the luxury of abdicating participation in decisions regarding information systems (IS). Managers who choose to do so risk limiting their future business options. IS are at the heart of virtually every business interaction, process, and decision, especially when the vast penetration of the Web over the last 20 years is considered. Mobile and social technologies have brought IS to an entirely new level within fi rms and between individuals in their personal lives. Managers who let someone else make decisions about their IS are letting someone else make decisions about the very foundation of their business. This is a textbook about managing and using information written for current and future managers as a way to introduce the broader implications of the impact of IS.


The goal of this book is to assist managers in becoming knowledgeable participants in IS decisions. Becoming a knowledgeable participant means learning the basics and feeling comfortable enough to ask questions. It does not mean having all the answers or having a deep understanding of all the technologies out in the world today. No text will provide managers everything they need to know to make important IS decisions. Some texts instruct on the basic technical background of IS. Others discuss applications and their life cycles. Some take a comprehensive view of the management information systems (MIS) fi eld and offer readers snapshots of current systems along with chapters describing how those technologies are designed, used, and integrated into business life.


This book takes a different approach. It is intended to provide the reader a foundation of basic concepts relevant to using and managing information. This text is not intended to provide a comprehensive treatment on any one aspect of MIS, for certainly each aspect is itself a topic of many books. This text is not intended to provide readers enough technological knowledge to make them MIS experts. It is not intended to be a source of discussion of any particular technology. This text is written to help managers begin to form a point of view of how IS will help or hinder their organizations and create opportunities for them.


The idea for this text grew out of discussions with colleagues in the MIS area. Many faculties use a series of case studies, trade and popular press readings, and Web sites to teach their MIS courses. Others simply rely on one of the classic texts, which include dozens of pages of diagrams, frameworks, and technologies. The initial idea for this text emerged from a core MIS course taught at the business school at the University of Texas at Austin. That course was considered an “appetizer” course—a brief introduction into the world of MIS for MBA students. The course had two main topics: using information and managing information. At the time, there was no text like this


Preface


1 Bill Gates, Business @ the Speed of Thought. New York: Warner Books, Inc. 1999. 2 Source: Private conversation with one of the authors.


fpref.indd 4 11/27/2015 4:21:12 PM


vPreface


one; hence, students had to purchase thick reading packets made up of articles and case studies to provide them the basic concepts. The course was structured to provide general MBA students enough knowledge of the MIS field so that they could recognize opportunities to use the rapidly changing technologies available to them. The course was an appetizer to the menu of specialty courses, each of which went much more deeply into the various topics. But completion of the appetizer course meant that students were able to feel comfortable listening to, contributing to, and ultimately participating in IS decisions.

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