Portada Management information systems

MODULE I FOUNDATION CONCEPTS

Chapter 1 Foundations of Information Systems in Business ....37

Section I: Foundation Concepts: Information Systems in Business ....38
The Real World of Information Systems ....38
- What Is an Information System? ....38
Real World Case 1: eCourier, Cablecom, and Bryan Cave: Delivering Value through Business Intelligence ....39
The Fundamental Roles of IS in Business ....42
Trends in Information Systems ....44
The Role of e-Business in Business ....46
Types of Information Systems ....47
- Operations Support Systems ....47
- Management Support Systems ....48
- Other Classifications of Information Systems ....49
Managerial Challenges of Information Technology ....50
- Success and Failure with IT ....51
- Developing IS Solutions ....52
- Challenges and Ethics of IT ....54
- Challenges of IT Careers $$
- The IS Function ....58
Section II: Foundation Concepts: The Components of Information Systems ....60
System Concepts: A Foundation ....60
- What Is a System? ....60
Real World Case 2: The New York Times and Boston Scientific: Two Different Ways of Innovating with Information Technology ....61
- Feedback and Control ....63
- Other System Characteristics ....63
Components of Information Systems ....65
Information System Resources ....66
- People Resources ....66
- Hardware Resources ....66
- Software Resources ....67
- Data Resources ....67
- Network Resources ....68
Information System Activities ....69
- Input of Data Resources ....69
- Processing of Duta into Information ....69
- Output of Information Products ....69
- Storage of Data Resources ....70
- Control of System Performance ....70
Recognizing Information Systems ....70
Real World Case 3: Sew What? Inc.: The Role of Information Technology in Small Business Success ....75
Real World Case 4: JetBlue and the Veterans Administration: The Critical Importance of IT Processes ....77

Chapter 2 Competing with Information Technology ....79

Section I: Fundamentals of Strategic Advantage ....80
Strategic IT ....80
Competitive Strategy Concepts ....80
- Competitive Forces and Strategies ....80
Real World Case 1: How to Win Friends and Influence Business People: Quantify IT Risks and Value ....81
Strategic Uses of Information Technology ....84
- Other Strategic Initiatives ....84
Building a Customer-Focused Business ....88
The Value Chain and Strategic IS ....90
- Value Chain Examples ....90
Section II: Using Information Technology for Strategic Advantage ....92
Strategic Uses of IT ....92
Reengineering Business Processes ....92
- The Role of Information Technology ....92
Real World Case 2: For Companies Both Big and Small: Running a Business on Smartphones ....93
Becoming an Agile Company ....96
Creating a Virtual Company ....98
- Virtual Company Strategies ....98
Building a Knowledge-Creating Company ....100
Knowledge Management Systems ....100
Real World Case 3: Wachovia and Others: Trading Securities at the Speed of Light ....106
Real World Case 4: IT Leaders: Reinventing IT as a Strategic Business Partner ....108

MODULE II INFORMATION TECHNOLOGIES

Chapter 3 Computer Hardware ....111

Section I: Computer Systems: End User and Enterprise Computing ....112
Introduction ....112
A Brief History of Computer Hardware ....112
Real World Case 1: AstraZeneca, UnitedHealth, and Others: IT Asset Munagement – Do You Know What You’ve Got? ....113
Types of Computer Systems ....116
Microcomputer Systems ....117
- Computer Terminals ....119
- Network Computers ....120
- Information Appliances ....120
Midrange Systems ....121
Mainframe Computer Systems ....123
- Supercomputer Systems ....124
- The Next Wave of Computing ....126
Technical Note: The Computer System Concept ....126
- Computer Processing Speeds ....128
Moore’s Law: Where Do We Go from Here? ....128
Section II: Computer Peripherals: Input, Output, and Storage Technologies ....131
Peripherals ....131
Input Technologies ....131
- Pointing Devices ....131
Real World Case 2: IT in Health Care: Voice Recognition Tools Make Rounds at Hospitals ....132
- Pen-Based Computing ....134
- Speech Recognition Systems 13S
- Optical Scanning ....137
- Other Input Technologies ....139
Output Technologies ....139
- Video Output ....140
- Printed Output ....140
Storage Trade-Offs ....141
- Computer Storage Fundamentals ....142
- Direct and Sequential Access ....143
Semiconductor Memory ....144
Magnetic Disks ....146
- Types of Magnetic Disks ....146
- RAID Storage ....147
Magnetic Tape ....147
Optical Disks ....147
- Business Applications ....149
Radio Frequency Identification ....149
- RFID Privacy Issues ....150
Predictions for the Future ....152
Real World Case 3: IBM, Wachovia, and PayPal: Grid Computing Makes It Easier and Cheaper ....158
Real World Case 4: Apple, Microsoft, IBM, and Others: The Touch Screen Comes of Age ....160

Chapter 4 Computer Software ....163

Section I: Application Software: End-User Applications ....164
Introduction to Software ....164
What Is Sopwarel ....164
Types of Software ....164
Application Software for End Users ....164
Real World Case 1: GE, H.B. Fuller Co., and Others: Successful Implementations of Software-as-a-Service ....165
Business Application Software ....168
Software Suites and Integrated Packages ....169
Web Browsers and More ....170
Electronic Mail, Instant Messaging, and Weblogs ....171
Word Processing and Desktop Publishing ....172
Electronic Spreadsheets ....173
Presentation Graphics ....174
Personal Information Managers ....175
Groupware ....175
Software Alternatives ....177
- Application Service Providers ....177
- Cloud Computing ....179
- Software Licensing ....179
Section II: System Software: Computer System Management ....181
System Software Overview ....181
- Overview ....181
Operating Systems ....181
- Operating System Functions ....181
Real World Case 2: U.S. Department of Defense: Enlisting Open-Source Applications ....182
- Microsoft Windows ....185
- UNIX ....187
- Linux ....187
- Open-Source Software ....187
- OpenOffice.org 3 ....188
- Mac OS X ....188
- Application Virtualization ....189
Other System Management Programs ....190
Programming Languages ....191
- Machine Languages ....191
- Assembler Languages ....192
- High-Level Languages ....192
- Fourth-Generation Languages ....193
- Object-Oriented Languages ....194
Web Languages and Services ....195
- HTML ....195
- XML ....196
- Java and .NET ....198
- Web Services ....199
Programming Software ....201
- Language Translator Programs ....201
- Programming Tools ....201
Real World Case 3: Wolf Peak International: Failure and Success in Application Software for the Small-to-Medium Enterprise ....207
Real World Case 4: Power Distribution and Law Enforcement: Reaping the Benefits of Sharing Data through XML ....209

Chapter 5 Data Resource Management ....211

Section I: Technical Foundations of Database Management ....212
Database Management ....212
Fundamental Data Concepts ....212
- Character ....212
- Field ....212
- Record ....212
Real World Case 1: Beyond Street Smarts: Data-Driven Crime Fighting ....213
- File ....215
- Database ....215
Database Structures ....217
- Hierarchical Structure ....218
- Network Structure ....218
- Relational Structure ....218
- Relational Operations ....219
- Multidimensional Structure ....219
- Object-Oriented Structure ....219
- Evaluation of Database Structures ....221
Database Development ....222
- Data Planning and Database Design ....223
Section II: Managing Data Resources ....227
Data Resource Management ....227
Types of Databases ....227
- Operational Databases ....227
- Distributed Databases ....227
Real World Case 2: Duke University Health System, Beth Israel Deaconess Medical Center, and Others: Medical IT Is Getting Personal ....228
- External Databases ....231
- Hypermedia Databases ....231
Data Warehouses and Data Mining ....233
- Data Mining ....234
Traditional File Processing ....236
- Problems of File Processing ....237
The Database Management Approach ....238
- Database Management System ....238
- Database Interrogation ....240
- Database Maintenance ....242
- Application Development ....242
Real World Case 3: Cogent Communications, Intel, and Others: Mergers Go More Smoothly When Your Data Are Ready ....247
Real World Case 4: Applebee’s, Travelocity, and Others: Data Mining for Business Decisions ....249

Chapter 6 Telecommunications and Networks ....251

Section I: The Networked Enterprise ....252
The Networked Enterprise ....252
The Concept of a Network ....252
- Metcalfe’s Law ....252
Real World Case 1: DLA Piper, PepsiCo, and Others: Telepresence Is Finally Coming of Age ....253
Trends in Telecommunications ....255
- Industry Trends ....255
- Technology Trends ....256
- Business Application Trends ....257
- Internet2 ....257
The Business Value of Telecommunications Networks ....258
The Internet Revolution ....259
- Internet Service Providers ....259
- Internet Applications ....260
- Business Use of the Internet ....262
- The Business Value of the Internet ....262
The Role of Intranets ....263
- The Business Value of Intranets ....263
The Role of Extranets ....266
Section II: Telecommunications Network Alternatives ....269
Telecommunications Alternatives ....269
A Telecommunications Network Model ....269
Real World Case 2: Brain Saving Technologies, Inc. and the T-Health Institute: Medicine through Videoconferencing ....270
Types of Telecommunications Networks ....272
- Wide Area Networks ....272
- Metropolitan Area Networks ....272
- Local Area Networks ....273
- Virtual Private Networks ....273
- Client/Server Networks ....276
- Network Computing ....276
- Peer-to-Peer Networks ....276
Digital and Analog Signals ....278
Telecommunications Media ....279
Wired Technologies ....280
- Twisted-Pair Wire ....280
- Coaxial Cable ....280
- Fiber Optics ....280
- The Problem of “The Last Mile” ....280
Wireless Technologies ....281
- Terrestrial Microwave ....281
- Communications Satellites ....281
- Cellular and PCS Systems ....282
- Wireless LANs ....283
- Bluetooth ....283
- The Wireless Web ....283
Telecommunications Processors ....285
- Modems ....285
- Inter-Network Processors ....286
- Multiplexers ....286
Telecommunications Software ....287
- Network Management ....287
Network Topologies ....288
Network Architectures and Protocols ....289
- Protocols ....289
- Network Architectures ....289
- The OSI Model ....289
- The Internet’s TCP/IP ....291
- Voice over IP Z....92
Bandwidth Alternatives ....294
Switching Alternatives ....294
Network Interoperability ....295
Real World Case 3: Metric b Multistandard Components Corp.: The Business Value of a Secure Self-Managed Network for a Small-to-Medium Business ....300
Real World Case 4: Starbucks and Others: The Future of Public Wi-Fi ....302

MODULE III BUSINESS APPLICATIONS

Chapter 7 e-Business Systems ....305

Section I: e-Business Systems ....306
Introduction ....306
Cross-Functional Enterprise Applications ....306
- Enterprise Application Architecture ....306
Real World Case 1: Toyota Europe, Campbell Soup Company, Sony Pictures, and W.W. Grainger. Making the Case for Enterprise Architects ....307
Enterprise Application Integration ....310
Transaction Processing Systems ....312
- The Transaction Processing Cycle ....314
Enterprise Collaboration Systems ....315
Tools for Enterprise Collaboration 31 ....5
Section IL Functional Business Systems ....318
Introduction ....318
- IT in Business ....318
Marketing Systems ....318
- Interactive Marketing ....318
Real World Case 2: Nationwide Insurance: Unified Financial Reporting and “One Version of the Truth” ....319
- Targeted Marketing ....322
- Sales Force Automation ....323
Manufacturing Systems ....325
- Computer-Integrated Manufacturing ....325
Human Resource Systems ....326
- HRM and the Internet ....327
- HRM and Corporate Intranets ....327
Accounting Systems ....329
- Online Accounting Systems ....329
Financial Management Systems ....331
Real World Case 3: Cisco Systems: Telepresence and the Future of Collaboration ....336
Real World Case 4: OHSU, Sony, Novartis, and Others: Strategic Information Systems – It’s HR’s Turn ....338

Chapter 8 Enterprise Business Systems ....341

Section I: Getting All the Geese Lined Up: Managing at the Enterprise Level ....342
Customer Relationship Management: The Business Focus ....343
Introduction ....343
What Is CRM? ....343
- Contact and Account Management ....343
- Sales ....343
Real World Case I: Dow Corning and DirecTV: CRM Goes Mobile ....344
- Marketing and Fulfillment ....346
- Customer Service and Support ....346
- Retention and Loyalty Program ....346
The Three Phases of CRM ....348
Benefits and Challenges of CRM ....349
- CRM Failures 3S....0
Trends in CRM ....351
Section II: Enterprise Resource Planning: The Business Backbone ....354
Introduction ....354
What Is ERP? ....354
Real World Case 2: Kennametal, Haworth, Dana Holding, and Others: ERPs Get a Second Lease on Life ....355
Benefits and Challenges of ERP ....358
- The Costs of ERP ....358
- Causes of ERP Failures ....360
Trends in ERP ....361
Section III: Supply Chain Management: The Business Network ....364
Introduction ....364
What Is SCM? ....364
Real World Case 3: Cisco Systems, Black & Decker, and O’Reilly Auto Parts: Adapting Supply Chains to Tough Times ....365
- Electronic Data Interchange ....365
The Role of SCM ....369
Benefits and Challenges of SCM ....372
Trends in SCM ....374
Real World Case 4: NetSuite Inc., Berlin Packaging, Churchill Downs, and Others: The Secret to CRM Is in the Data ....380

Chapter 9 e-Commerce Systems ....383

Section I: e-Commerce Fundamentals ....384
Introduction to e-Commerce ....384
The Scope of e-Commerce ....384
- e-Commerce Technologies ....384
Real World Case 1: Sony, 1-S00-Fhrwerr, Starbucks, and Others: Social Networks, Mobile Phones, and the Future of Shopping ....385
- Categories of e-Commerce ....388
Essential e-Commerce Processes ....389
- Access Control and Security ....390
- Profiling and Personalizing ....390
- Search Management ....390
- Content and Catalog Management ....390
- Workflow Management ....392
- Event Notipcation ....393
- Collaboration und Trading ....393
Electronic Payment Processes ....394
- Web Payment Processes ....394
- Electronic Funds Transfer ....394
- Secure Electronic Payments ....395
Section II: e-Commerce Applications and Issues ....396
- e-Commerce Trends ....396
Business-to-Consumer e-Commerce ....396
Real World Case 2: LinkedIn, Umbria, Mattel, and Others: Driving the “Buzz” on the Web ....397
- e-Commerce Success Factors ....399
Web Store Requirements ....403
- Developing a Web Store ....403
- Getting Customers to Find You ....404
- Serving Your Customers 40S
- Managing a Web Store ....406
Business-to-Business e-Commerce ....407
e-Commerce Marketplaces ....408
Clicks and Bricks in e-Commerce ....410
- e-Commerce Integration ....410
- Other Clicks-and-Bricks Strategies ....412
- e-Commerce Channel Choices ....413
Real World Case 3: Entellium, Digg, Peerflix, Zappos, and Jigsaw: Success for Second Movers in e-Commerce ....419
Real World Case 4: KitchenAid and the Royal Bank of Canada: Do You Let Your Brand Go Online All by Itself? ....421

Chapter 10 Supporting Decision Making ....423

Section I: Decision Support in Business 424 Introduction ....424
- Information, Decisions, and Management ....424
- Information Quality ....424
Real World Case 1: Valero Energy, Elkay Manufacturing, J&J and Overstock.com: The Move Toward Fact-Based Decision Making ....425
- Decision Structure ....428
Decision Support Trends ....428
Decision Support Systems ....431
- Example ....432
- DSS Components ....432
Management Information Systems ....434
- Management Reporting Alternatives ....434
Online Analytical Processing ....435
- OLAP Examples ....436
- Geographic Information and Data Visualization Systems ....439
Using Design Support Systems ....441
- What-If Analysis ....441
- Sensitivity Analysis ....442
- Goal-Seeling Analysis ....443
- Optimization Analysis ....443
- Data Mining for Decision Support ....444
Executive Information Systems ....446
- Features of an EIS ....446
Enterprise Portals and Decision Support ....448
- Enterprise Information Portals ....448
Knowledge Management Systems ....450
Section II: Artificial Intelligence Technologies in Business ....452
Business and AI ....452
An Overview of Artificial Intelligence ....452
Real World Case 2: Kimberly-Clark Corp.: Shopping for Virtual Products in Virtual Stores ....453
- The Domains of Artificial Intelligence ....455
Expert Systems ....458
- Components of an Expert System ....458
- Expert System Applications ....459
- Benefits of Expert Systems ....460
- Limitations of Expert Systems ....460
Developing Expert Systems ....462
- Knowledge Engineering ....463
Neural Networks ....464
Fuzzy Logic Systems ....465
- Fuzzy Logic in Business ....466
Genetic Algorithms ....466
Virtual Reality ....468
- VR Applications ....468
Intelligent Agents ....470
Real World Case 3: Goodyear, JEA, OSUMC, and Monsanto: Cool Technologies Driving Competitive Advantage ....476
Real World Case 4: Hillman Group, Avnet, and Quaker Chemical: Process Transformation through Business Intelligence Deployments ....478

MODULE IV DEVELOPMENT PROCESSES

Chapter 11 Developing Business/IT Strategies ....481

Section I: Planning Fundamentals ....482
Introduction ....482
Organizational Planning ....482
The Scenario Approach ....482
Real World Case 1: IT Leaders: IT/Business Alignment Takes on a Whole New Meaning ....483
Planning for Competitive Advantage ....487
- SWOT Analysis ....487
Business Models and Planning ....489
Business/IT Architecture Planning ....491
- Information Technology Architecture ....492
- Balanced Scorecard ....492
Identifying Business/IT Strategies ....493
Business Application Planning ....495
- Business/IT Architecture Planning ....497
Section II: Implementation Challenges ....498
Implementation ....498
Implementing Information Technology ....498
End-User Resistance and Involvement ....498
Real World Case 2: Centene, Flowserve, and Shaw Industries: Relationships, Collaboration, and Project Success ....499
Change Management ....504
- A Change Management Process ....506
Real World Case 3: Forrester, NMSU, Exante Financial Services, and Others: Getting Real about Strategic Planning ....511
Real World Case 4: Blue Cross and Blue Shield, and Others: Understanding the Science behind Change ....513

Chapter 12 Developing Business/IT Solutions ....515

Section I: Developing Business Systems ....516
IS Development ....516
The Systems Approach ....516
- Systems Thinking ....516
Real World Case 1: Microsoft, SiCortex, and Others: How Virtualization Helps Software Developers ....517
Systems Analysis and Design ....519
The Systems Development Life Cycle 519 Starting the Systems Development Process ....519
- Feasibility Studies ....520
- Operational Feasibility ....520
- Economic Feasibility ....520
- Technical Feasibility ....522
- Human Factors Feasibility ....523
- Legal/Political Feasibility ....523
Systems Analysis ....523
- Organizational Analysis ....524
- Analysis of the Present System ....524
- Logical Analysis ....525
- Functional Requirements Analysis and Determination ....526
Systems Design ....526
- Prototyping ....527
- The Prototyping Process ....527
- User Interface Design ....529
- System Specifications ....531
End-User Development ....531
- Focus on IS Activities ....531
- Doing End-User Development ....532
Technical Note: Overview of Object-Oriented Analysis and Design ....534
Section II: Implementing Business Systems ....537
Implementation ....537
Implementing New Systems ....537
Real World Case 2: JetBlue Airways, WestJet Airlines, and Others: The Difficult Path to Software Upgrades ....538
Project Management ....541
- What Is a Project? ....541
- The Process of Project Management ....541
Evaluating Hardware, Software, and Services ....543
- Hardware Evaluation Factors ....544
- Software Evaluation Factors ....545
- Evaluating IS Services ....545
Other Implementation Activities ....546
- Testing ....546
- Data Conversion ....546
- Documentation ....547
- Training ....548
- System Conversion Strategies ....548
- Direct Conversion ....548
- Parallel Conversion ....549
- Pilot Conversion ....549
- Phased Conversion ....550
- Postimplementation Activities ....550
- Systems Maintenance ....550
- Postimplementation Review ....550
Real World Case 3: PayPal: Going Global All Languages at a Time ....556
Real World Case 4: Queen’s Medical Center, National Public Radio, Worldspam, and Others: Your IT Project Has Been Backlogged ....558

MODULE V MANAGEMENT CHALLENGES

Chapter 13 Security and Ethical Challenges ....561

Section I: Security, Ethical, and Societal Challenges of IT ....562
Introduction ....562
- Business/IT Security, Ethics, and Society ....562
Ethical Responsibility of Business Professionals ....562
- Business Ethics ....562
Real World Case 1: Texas Health Resources and Intel: Ethics, IT, and Compliance ....563
- Technology Ethics ....565
- Ethical Guidelines ....566
Computer Crime ....568
- Hacking and Cracking ....569
- Cyber-Theft ....570
- Cyberterrorism ....571
- Unauthorized Use at Work ....573
- Software Piracy ....574
- Theft of Intellectual Property ....575
- Computer Viruses and Worms ....576
- Adware and Spyware ....578
Privacy Issues ....580
- Privacy on the Internet ....581
- Computer Matching ....582
- Privacy Laws ....582
- Computer Libel and Censorship ....584
The Current State of Cyber Law ....584
Other Challenges ....585
- Employment Challenges ....585
- Computer Monitoring ....585
- Challenges in Working Conditions ....586
- Challenges of Individuality ....586
Health Issues ....587
- Ergonomics ....587
Societal Solutions ....587
Section II: Security Management of Information Technology ....589
Introduction ....589
Tools of Security Management ....589
Real World Case 2: Wyoming Medical Center, Los Angeles County, and Raymond James: Endpoint Security Gets Complicated ....590
Inter-Networked Security Defenses ....592
- Encryption ....593
- Firewalls ....594
- Denial of Service Attacks ....595
- E-mail Monitoring ....597
- Virus Defenses ....597
Other Security Measures ....599
- Security Codes ....599
- Backup Files ....599
- Security Monitors ....600
- Biometric Security ....600
- Computer Failure Controls ....601
- Fault-Tolerant Systems ....601
- Disaster Recovery ....603
System Controls and Audits ....603
- Information System Controls ....603
- Auditing IT Security ....604
Real World Case 3: Ethics, Moral Dilemmas, and Tough Decisions: The Many Challenges of Working in IT ....609
Real World Case 4: Raymond James Financial, BCD Travel, Houston Texans, and Others: Worrying about What Goes Out, Not What Comes In ....611

Chapter 14 Enterprise and Global Management of Information Technology ....613

Section I: Managing Information Technology ....614
Business and IT ....614
Managing Information Technology ....614
Real World Case 1: Reinventing IT at BP ....615
Business/IT Planning ....617
- Information Technology Architecture ....618
Managing the IT Function ....619
Organizing IT ....620
- Managing Application Development ....620
- Managing IS Operations ....621
- IT Staff Planning ....622
- The CIO und Other IT Executives ....622
- Technology Management ....623
- Managing User Services ....623
Outsourcing and Offshoring IT and IS ....624
- Outsourcing ....624
- Offshoring ....625
- Trends in Outsourcing and Offshoring ....626
Failures in IT Management ....627
Management Involvement ....628
- IT Governance ....628
Section II: Managing Global IT ....632
The International Dimension ....632
Global IT Management ....632
Real World Case 2: Cadbury, Forrester Research, A.T. Kearney, and Others: IT Leaders Face New Challenges in a Globalized World ....633
Cultural, Political, and Geoeconomic Challenges ....635
Global Business/IT Strategies ....637
Global Business/IT Applications ....638
Global IT Platforms ....640
- The Internet as a Global IT Platform ....641
Global Data Access Issues ....642
- Internet Access Issues ....644
Global Systems Development ....645
- Systems Development Strategies ....645
Real World Case 3: Toyota, Procter & Gamble, Hess Corporation, and Others: Retiring CIOs and the Need for Succession ....651
Real World Case 4: Reinsurance Group of America and Fonterra: Going for Unified Global Operations ....653

Review Quiz Answers ....655

Selected References ....659

Glossary for Business Professionals ....669

Name Index ....689

Company Index ....692

Subject Index ....696

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