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Management Information Systems

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Brief Contents

PART ONE Organizations, Management, and the Networked Enterprise 29

Chapter 1 Information Systems in Global Business Today 30 Chapter 2 Global E-business and Collaboration 68 Chapter 3 Information Systems, Organizations, and Strategy 106 Chapter 4 Ethical and Social Issues in Information Systems 150

PART TWO Information Technology Infrastructure 191 Chapter 5 IT Infrastructure and Emerging Technologies 192 Chapter 6 Foundations of Business Intelligence: Databases and Information

Management 238

Chapter 7 Telecommunications, the Internet, and Wireless Technology 276 Chapter 8 Securing Information Systems 320

PART THREE Key System Applications for the Digital Age 363 Chapter 9 Achieving Operational Excellence and Customer Intimacy: Enterprise

Applications 364

Chapter 10 E-commerce: Digital Markets, Digital Goods 398 Chapter 11 Managing Knowledge 444 Chapter 12 Enhancing Decision Making 480

PART FOUR Building and Managing Systems 513 Chapter 13 Building Information Systems 514 Chapter 14 Managing Projects 554 Chapter 15 Managing Global Systems 588

Glossary 619 Indexes 631

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Complete Contents

PART ONE Organizations, Management, and the Networked Enterprise 29

Chapter 1 Information Systems in Global Business Today 30 Opening Case: Rugby Football Union Tries Big Data 31 1-1 How are information systems transforming business, and why are they so

essential for running and managing a business today? 33 How Information Systems Are Transforming Business 34 • What's New in Management Information Systems? 35

Interactive Session: Management The Mobile Pocket Office 37 Globalization Challenges and Opportunities: A Flattened World 39 • The Emerging Digital Firm 40 • Strategic Business Objectives of Information Systems 41

1-2 What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations? 44 What Is an Information System? 44 • Dimensions of Information Systems 46

Interactive Session: Technology Digital Transformation of Healthcare at Singapore's JurongHealth Services 51

It Isn't Just Technology: A Business Perspective on Information Systems 52 • Complementary Assets: Organizational Capital and the Right Business Model 54

1-3 What academic disciplines are used to study information systems, and how does each contribute to an understanding of information systems? 56 Technical Approach 56 • Behavioral Approach 57 • Approach of This Text: Sociotechnical Systems 58

Review Summary 59 • Key Terms 60 • Review Questions 60 • Discussion Questions 61

Hands-On MIS Projects 61 Collaboration and Teamwork Project 62 Case Study: Are Farms Becoming Digital Firms? 62 References: 66

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Chapter 2 Global E-business and Collaboration 68 Opening Case: Enterprise Social Networking Helps ABB Innovate and Grow 69 2-1 What are business processes? How are they related to information

systems? 71 Business Processes 71 • How Information Technology Improves Business Processes 73

2-2 How do systems serve the different management groups in a business, and how do systems that link the enterprise improve organizational performance? 74 Systems for Different Management Groups 74 • Systems for Linking the Enterprise 79

Interactive Session: Organizations New Systems Help Plan International Manage Its Human Resources 80

E-business, E-commerce, and E-government 84

2-3 Why are systems for collaboration and social business so important, and what technologies do they use? 85 What Is Collaboration? 85 • What Is Social Business? 86 • Business Benefits of Collaboration and Social Business 87 • Building a Collaborative Culture and Business Processes 87 • Tools and Technologies for Collaboration and Social Business 89

Interactive Session: Technology Collaborating the Glasscubes Way 91 2-4 What is the role of the information systems function in a business? 95

The Information Systems Department 96 • Organizing the Information Systems Function 97

Review Summary 98 • Key Terms 99 • Review Questions 99 • Discussion Questions 100

Hands-On MIS Projects 100 Collaboration and Teamwork Project 101 Case Study: Social Business: Full Speed Ahead or Proceed with Caution? 101 References: 104

Chapter 3 Information Systems, Organizations, and Strategy 106 Opening Case: Tate & Lyle Devise a Global IT Strategy 107 3-1 Which features of organizations do managers need to know about to

build and use information systems successfully? 109 What Is an Organization? 110 • Features of Organizations 112

3-2 What is the impact of information systems on organizations? 117 Economic Impacts 117 • Organizational and Behavioral Impacts 118

Interactive Session: Management Can Technology Replace Managers? 120 The Internet and Organizations 122 • Implications for the Design and Understanding of Information Systems 122

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3-3 How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network economics help companies develop competitive strategies using information systems? 123 Porter's Competitive Forces Model 123 • Information System Strategies for Dealing with Competitive Forces 125 • The Internet's Impact on Competitive Advantage 128 • The Business Value Chain Model 129

Interactive Session: Technology Smart Products, Smart Companies 130 Synergies, Core Competencies, and Network-Based Strategies 134

3-4 What are the challenges posed by strategic information systems, and how should they be addressed? 138 Sustaining Competitive Advantage 138 • Aligning IT with Business Objectives 139 • Managing Strategic Transitions 140

Review Summary 140 • Key Terms 141 • Review Questions 141 • Discussion Questions 142

Hands-On MIS Projects 142 Collaboration and Teamwork Project 143 Case Study: Deutsche Bank: The Cost of Legacy Systems 144 References: 147

Chapter 4 Ethical and Social Issues in Information Systems 150 Opening Case: The Dark Side of Big Data 151 4-1 What ethical, social, and political issues are raised by information

systems? 153 A Model for Thinking About Ethical, Social, and Political Issues 155 • Five Moral Dimensions of the Information Age 156 • Key Technology Trends that Raise Ethical Issues 156

4-2 What specific principles for conduct can be used to guide ethical decisions? 158 Basic Concepts: Responsibility, Accountability, and Liability 159 • Ethical Analysis 160 • Candidate Ethical Principles 160 • Professional Codes of Conduct 161 • Some Real-World Ethical Dilemmas 161

4-3 Why do contemporary information systems technology and the Internet pose challenges to the protection of individual privacy and intellectual property? 162 Information Rights: Privacy and Freedom in the Internet Age 162 • Property Rights: Intellectual Property 169

4-4 How have information systems affected laws for establishing accountability and liability and the quality of everyday life? 172 Computer-Related Liability Problems 173 • System Quality: Data Quality and System Errors 174 • Quality of Life: Equity, Access, and Boundaries 174

Interactive Session: Technology Monitoring in the Workplace 178 Health Risks: RSI, CVS, and Cognitive Decline 180

Interactive Session: Organizations Are We Relying Too Much on Computers to Think for Us? 181

Review Summary 183 • Key Terms 184 • Review Questions 184 • Discussion Questions 185

Hands-On MIS Projects 185

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Collaboration and Teamwork Project 186 Case Study: Facebook Privacy: What Privacy? 186 References: 190

PART TWO Information Technology Infrastructure 191

Chapter 5 IT Infrastructure and Emerging Technologies 192 Opening Case: EasyJet Flies High with Cloud Computing 193 5-1 What is IT infrastructure, and what are the stages and drivers of IT

infrastructure evolution? 195 Defining IT Infrastructure 195 • Evolution of IT Infrastructure 197 • Technology Drivers of Infrastructure Evolution 201

5-2 What are the components of IT infrastructure? 206 Computer Hardware Platforms 207 • Operating System Platforms 208 • Enterprise Software Applications 208 • Data Management and Storage 209 • Networking/Telecommunications Platforms 209 • Internet Platforms 209 • Consulting and System Integration Services 210

5-3 What are the current trends in computer hardware platforms? 210 The Mobile Digital Platform 210

Interactive Session: Technology Wearable Computers Change How We Work 211 Consumerization of IT and BYOD 212 • Quantum Computing 213 • Virtualization 213 • Cloud Computing 213

Interactive Session: Organizations Glory Finds Solutions in the Cloud 216 Green Computing 219 • High-Performance and Power-Saving Processors 220

5-4 What are the current computer software platforms and trends? 220 Linux and Open Source Software 220 • Software for the Web: Java, HTML, and HTML5 221 • Web Services and Service-Oriented Architecture 222 • Software Outsourcing and Cloud Services 224

5-5 What are the challenges of managing IT infrastructure and management solutions? 226 Dealing with Platform and Infrastructure Change 226 • Management and Governance 227 • Making Wise Infrastructure Investments 227

Review Summary 230 • Key Terms 231 • Review Questions 232 • Discussion Questions 232

Hands-On MIS Projects 232 Collaboration and Teamwork Project 233 Case Study: BYOD: Business Opportunity or Big Headache? 234 References: 237

Chapter 6 Foundations of Business Intelligence: Databases and Information Management 238 Opening Case: BAE Systems 239 6-1 What are the problems of managing data resources in a traditional file

environment? 241

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File Organization Terms and Concepts 242 • Problems with the Traditional File Environment 243

6-2 What are the major capabilities of database management systems (DBMS), and why is a relational DBMS so powerful? 245 Database Management Systems 245 • Capabilities of Database Management Systems 248 • Designing Databases 250 • Non-relational Databases and Databases in the Cloud 253

6-3 What are the principal tools and technologies for accessing information from databases to improve business performance and decision making? 254 The Challenge of Big Data 254 • Business Intelligence Infrastructure 255

Interactive Session: Organizations Data-Driven Crime Fighting Goes Global 256

Analytical Tools: Relationships, Patterns, Trends 260 • Databases and the Web 263

6-4 Why are information policy, data administration, and data quality assurance essential for managing the firm's data resources? 264 Establishing an Information Policy 264 • Ensuring Data Quality 265

Interactive Session: Management Societe Generale Builds an Intelligent System to Manage Information Flow 267

Review Summary 268 • Key Terms 269 • Review Questions 270 • Discussion Questions 270

Hands-On MIS Projects 270 Collaboration and Teamwork Project 272 Case Study: Lego's Enterprise Software Spurs Growth 272 References: 275

Chapter 7 Telecommunications, the Internet, and Wireless Technology 276 Opening Case: Wireless Technology Makes Dundee Precious Metals Good as

Gold 277

7-1 What are the principal components of telecommunications networks and key networking technologies? 279 Networking and Communication Trends 279 • What is a Computer Network? 280 • Key Digital Networking Technologies 282

7-2 What are the different types of networks? 285 Signals: Digital Versus Analog 285 • Types of Networks 285 • Transmission Media and Transmission Speed 287

7-3 How do the Internet and Internet technology work, and how do they support communication and e-business? 287 What is the Internet? 288 • Internet Addressing and Architecture 288

Interactive Session: Organizations The Battle over Net Neutrality 291 Internet Services and Communication Tools 293

Interactive Session: Management Monitoring Employees on Networks: Unethical or Good Business? 296

The Web 298

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7-4 What are the principal technologies and standards for wireless networking, communication, and Internet access? 306 Cellular Systems 306 • Wireless Computer Networks and Internet Access 307 • RFID and Wireless Sensor Networks 309

Review Summary 312 • Key Terms 313 • Review Questions 314 • Discussion Questions 314

Hands-On MIS Projects 314 Collaboration and Teamwork Project 315 Case Study: RFID Propels the Angkasa Library Management System 316 References: 319

Chapter 8 Securing Information Systems 320 Opening Case: Hackers Attack Singapore's Telecom Infrastructure 321 8-1 Why are information systems vulnerable to destruction, error, and

abuse? 323 Why Systems are Vulnerable 323 • Malicious Software: Viruses, Worms, Trojan Horses, and Spyware 326 • Hackers and Computer Crime 329 • Internal Threats: Employees 333 • Software Vulnerability 334

8-2 What is the business value of security and control? 335 Legal and Regulatory Requirements for Electronic Records Management 335 • Electronic Evidence and Computer Forensics 336

8-3 What are the components of an organizational framework for security and control? 337 Information Systems Controls 337 • Risk Assessment 338

Interactive Session: Organizations Stuxnet and the Changing Face of Cyberwarfare 339

Security Policy 341 • Disaster Recovery Planning and Business Continuity Planning 342 • The Role of Auditing 343

8-4 What are the most important tools and technologies for safeguarding information resources? 343 Identity Management and Authentication 344 • Firewalls, Intrusion Detection Systems, and Antivirus Software 346 • Securing Wireless Networks 348 • Encryption and Public Key Infrastructure 348 • Ensuring System Availability 350 • Security Issues for Cloud Computing and the Mobile Digital Platform 351 • Ensuring Software Quality 352

Interactive Session: Technology BYOD: A Security Nightmare? 353 Review Summary 354 • Key Terms 355 • Review Questions 356 • Discussion

Questions 357 Hands-On MIS Projects 357 Collaboration and Teamwork Project 358 Case Study: Information Security Threats and Policies in Europe 358 References: 361

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PART THREE Key System Applications for the Digital Age 363

Chapter 9 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications 364 Opening Case: Alimentation Couche-Tard Competes Using Enterprise Systems

365

9-1 How do enterprise systems help businesses achieve operational excellence? 367 What are Enterprise Systems? 368 • Enterprise Software 369 • Business Value of Enterprise Systems 370

9-2 How do supply chain management systems coordinate planning, production, and logistics with suppliers? 371 The Supply Chain 371 • Information Systems and Supply Chain Management 372 • Supply Chain Management Software 373 • Global Supply Chains and the Internet 375 • Business Value of Supply Chain Management Systems 376

9-3 How do customer relationship management systems help firms achieve customer intimacy? 377 What is Customer Relationship Management? 377

Interactive Session: Management Unilever Unifies Globally with Enhanced ERP 378

Customer Relationship Management Software 381 • Operational and Analytical CRM 383

Interactive Session: Organizations DP World Takes Port Management to the Next Level with RFID 385

Business Value of Customer Relationship Management Systems 387

9-4 What are the challenges that enterprise applications pose, and how are enterprise applications taking advantage of new technologies? 387 Enterprise Application Challenges 387 • Next-Generation Enterprise Applications 388

Review Summary 390 • Key Terms 391 • Review Questions 391 • Discussion Questions 392

Hands-On MIS Projects 392 Collaboration and Teamwork Project 393 Case Study: Customer Relationship Management Helps Celcom Become Number

One 394

References: 397

Chapter 10 E-commerce: Digital Markets, Digital Goods 398 Opening Case: Uber Storms Europe: Europe Strikes Back 399 10-1 What are the unique features of e-commerce, digital markets, and digital

goods? 401

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E-commerce Today 402 • The New E-commerce: Social, Mobile, Local 403 • Why E-commerce is Different 405 • Key Concepts in E-commerce: Digital Markets and Digital Goods in a Global Marketplace 408

10-2 What are the principal e-commerce business and revenue models? 412 Types of E-commerce 412 • E-commerce Business Models 412 • E-commerce Revenue Models 415

10-3 How has e-commerce transformed marketing? 417 Behavioral Targeting 418 • Social E-Commerce and Social Network Marketing 422

Interactive Session: Technology Getting Social with Customers 424 10-4 How has e-commerce affected business-to-business transactions? 426

Electronic Data Interchange (EDI) 426 • New Ways of B2B Buying and Selling 427

10-5 What is the role of m-commerce in business, and what are the most important m-commerce applications? 429 Location-Based Services and Applications 430

Interactive Session: Organizations Can Instacart Deliver? 431 Other Mobile Commerce Services 433

10-6 What issues must be addressed when building an e-commerce presence? 433 Develop an E-Commerce Presence Map 434 • Develop a Timeline: Milestones 435

Review Summary 435 • Key Terms 436 • Review Questions 437 • Discussion Questions 437

Hands-On MIS Projects 437 Collaboration and Teamwork Project 438 Case Study: Walmart and Amazon Duke It Out for E-commerce Supremacy 439 References: 442

Chapter 11 Managing Knowledge 444 Opening Case: Fiat: Real Time Management with Business Intelligence 445 11-1 What is the role of knowledge management systems in business? 447

Important Dimensions of Knowledge 448 • The Knowledge Management Value Chain 449 • Types of Knowledge Management Systems 452

11-2 What types of systems are used for enterprise-wide knowledgge management, and how do they provide value for businesses? 453 Enterprise Content Management Systems 453

Interactive Session: Organizations ECM in the Cloud Empowers New Zealand Department of Conservation 454

Locating and Sharing Expertise 456 • Learning Management Systems 456

11-3 What are the major types of knowledge work systems, and how do they provide value for firms? 457 Knowledge Workers and Knowledge Work 457 • Requirements of Knowledge Work Systems 457 • Examples of Knowledge Work Systems 458

11-4 What are the business benefits of using intelligent techniques for knowledge management? 460

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Capturing Knowledge: Expert Systems 460

Interactive Session: Technology Will Robots Replace People in Manufacturing? 461

Organizational Intelligence: Case-Based Reasoning 464 • Fuzzy Logic Systems 465 • Machine Learning 467 • Intelligent Agents 470 • Hybrid AI Systems 471

Review Summary 472 • Key Terms 473 • Review Questions 473 • Discussion Questions 474

Hands-On MIS Projects 474 Collaboration and Teamwork Project 475 Case Study: Knowledge Management and Collaboration at Tata Consulting

Services 475

References: 479

Chapter 12 Enhancing Decision Making 480 Opening Case: Roche: Managing Diabetes with Big Data and Mobile Apps 481 12-1 What are the different types of decisions, and how does the decision-

making process work? 483 Business Value of Improved Decision Making 483 • Types of Decisions 483 • The Decision-Making Process 485

12-2 How do information systems support the activities of managers and management decision making? 486 Managerial Roles 486 • Real-World Decision Making 488 • High-Velocity Automated Decision Making 489

12-3 How do business intelligence and business analytics support decision making? 490 What is Business Intelligence? 490 • The Business Intelligence Environment 491 • Business Intelligence and Analytics Capabilities 492

Interactive Session: Technology Singapore Sports Institute Uses Analytics for SEA Games 495

Management Strategies for Developing BI and BA Capabilities 497

Interactive Session: Management Britain's National Health Service Jettisons Choose and Book System 498

12-4 How do different decision-making constituencies in an organization use business intelligence, and what is the role of information systems in helping people working in a group make decisions more efficiently? 500 Decision Support for Operational And Middle Management 500 • Decision Support for Senior Management: Balanced Scorecard and Enterprise Performance Management Methods 503 • Group Decision-Support Systems (GDSS) 504

Review Summary 505 • Key Terms 506 • Review Questions 506 • Discussion Questions 507

Hands-On MIS Projects 507 Collaboration and Teamwork Project 507 Case Study: GE Bets on the Internet of Things and Big Data Analytics 508 References: 512

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PART FOUR Building and Managing Systems 513

Chapter 13 Building Information Systems 514 Opening Case: Angostura Builds a Mobile Sales System 515 13-1 How does building new systems produce organizational change? 517

Systems Development and Organizational Change 517 • Business Process Redesign 519

13-2 What are the core activities in the systems development process? 522 Systems Analysis 523 • Systems Design 524 • Completing the Systems Development Process 525

13-3 What are the principal methodologies for modeling and designing systems? 528 Structured Methodologies 528 • Object-Oriented Development 530 • Computer-Aided Software Engineering 532

13-4 What are alternative methods for building information systems? 532 Traditional Systems Life Cycle 533 • Prototyping 534 • End-User Development 535 • Application Software Packages, Software Services, and Outsourcing 536

Interactive Session: Organizations Fujitsu Selects a SaaS Solution to Simplify the Sales Process 537

13-5 What are new approaches for system building in the digital firm era? 540 Rapid Application Development (RAD), Agile Development, and DevOps 541 • Component-Based Development and Web Services 542 • Mobile Application Development: Designing for A Multiscreen World 542

Interactive Session: Technology Developing Mobile Apps: What's Different 544 Review Summary 545 • Key Terms 547 • Review Questions 547 • Discussion

Questions 548 Hands-On MIS Projects 548 Collaboration and Teamwork Project 549 Case Study: ConAgra's Recipe for a Better Human Resources System 550 References: 553

Chapter 14 Managing Projects 554 Opening Case: Intuit Counts on Project Management 555 14-1 What are the objectives of project management, and why is it so

essential in developing information systems? 557 Runaway Projects and System Failure 557 • Project Management Objectives 558

14-2 What methods can be used for selecting and evaluating information systems projects and aligning them with the firm's business goals? 559 Management Structure for Information Systems Projects 559 • Linking Systems Projects to The Business Plan 560 • Information Requirements and Key Performance Indicators 562 • Portfolio Analysis 562 • Scoring Models 563

14-3 How can firms assess the business value of information systems? 564 Information System Costs and Benefits 564 • Capital Budgeting for Information Systems 565 • Limitations of Financial Models 566

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14-4 What are the principal risk factors in information systems projects, and how can they be managed? 566 Dimensions of Project Risk 566 • Change Management and the Concept of Implementation 567

Interactive Session: Management Can the National Health Service Go Paperless? 568

Controlling Risk Factors 571

Interactive Session: Technology Hilti AG: Putting Things Together with New Project Management Tools 575

Designing for the Organization 577 • Project Management Software Tools 577

Review Summary 578 • Key Terms 579 • Review Questions 579 • Discussion Questions 580

Hands-On MIS Projects 580 Collaboration and Teamwork Project 581 Case Study: A Shaky Start for Healthcare.gov 581 References: 585

Chapter 15 Managing Global Systems 588 Opening Case: The Bel Group: Laughing All the Way to Success 589 15-1 What major factors are driving the internationalization of business? 591

Developing an International Information Systems Architecture 592 • The Global Environment: Business Drivers and Challenges 593 • State of the Art 596

15-2 What are the alternative strategies for developing global businesses? 597 Global Strategies and Business Organization 597 • Global Systems to Fit the Strategy 598 • Reorganizing the Business 599

15-3 What are the challenges posed by global information systems and management solutions for these challenges? 600 A Typical Scenario: Disorganization on a Global Scale 600 • Global Systems Strategy 601 • The Management Solution: Implementation 603

15-4 What are the issues and technical alternatives to be considered when developing international information systems? 604 Computing Platforms and Systems Integration 605 • Connectivity 605