I Information Systems in the Digital Age 1
1 Business Information Systems in Your Career 2
Chapter-Opening Case: Major League Baseball Hits a Home Run with Information Systems 3
1.1 The Role of Information Systems in Business Today 6
1.2 Perspectives on Information Systems and Information Technology 10
1.3 It Isn't Simply Technology: The Role of People and Organizations 12
1.4 Understanding Information Systems: A Business Problem-Solving Approach 17
1.5 Information Systems and Your Career 22
Learning Tracks 30
Summary 31
Key Terms 32
Review Questions 32
Discussion Questions 32
Application Software Exercise: Database Exercise: Converting Data into Useful Information 33
Dirt Bikes U.S.A.: Preparing a Management Overview of the Company 33
Building Internet Skills: Analyzing Shipping Costs 33
Video Case 34
Teamwork: Analyzing a Business System 34
Business Problem-Solving Case: Can the Music Industry Change Its Tune? 34
2 E-Business: How Businesses Use Information Systems 38
Chapter-Opening Case: Information Systems Help Kia Solve Its Quality Problems 39
2.1 Components of a Business 42
2.2 Types of Business Information Systems 46
2.3 Systems That Span the Enterprise 57
2.4 The Information Systems Function in Business 64
Learning Tracks 67
Summary 68
Key Terms 69
Review Questions 69
Discussion Questions 70
Application Software Exercise: Spreadsheet Exercise: Improving Supply Chain Management 70
Dirt Bikes U.S.A.: Analyzing Financial Performance 70
Building Internet Skills: Planning Transportation Logistics 71
Video Case 71
Teamwork: Describing Management Decisions and Systems 71
Business Problem-Solving Case: Can Information Systems Help Danaher Work Leaner? 71
3 Achieving Competitive Advantage with Information Systems 74
Chapter-Opening Case: Amazon.com: An Internet Giant Fine-Tunes Its Strategy 75
3.1 Using Information Systems to Achieve Competitive Advantage 78
3.2 Competing on a Global Scale 92
3.3 Competing on Quality and Design 94
3.4 Competing on Business Processes 97
Learning Tracks 100
Summary 100
Key Terms 101
Review Questions 101
Discussion Questions 101
Application Software Exercise: Database Exercise: Using a Database for Strategic Business Development 101
Dirt Bikes U.S.A.: Performing a Competitive Analysis for Dirt Bikes 102
Building Internet Skills: Configuring and Pricing an Automobile 102
Video Case 103
Teamwork: Identifying Opportunities for Strategic Information Systems 103
Business Problem-Solving Case: Can Blockbuster Stand Up to Netflix? 103
II Information Technology Infrastructure 107
4 IT Infrastructure: Hardware and Software 108
Chapter-Opening Case: DreamWorks Animation Turns to Technology for Production Support 109
4.1 IT Infrastructure: Computer Hardware 112
4.2 IT Infrastructure: Computer Software 121
4.3 Managing Hardware and Software Technology 135
Learning Tracks 139
Summary 140
Key Terms 141
Review Questions 142
Discussion Questions 142
Application Software Exercise: Spreadsheet Exercise: Evaluating Computer Hardware and Software Options 142
Dirt Bikes U.S.A.: Analyzing the Total Cost of Ownership (TCO) of Desktop Software Assets 143
Building Internet Skills: Planning and Budgeting for a Sales Conference 144
Video Case 144
Teamwork: Evaluating Server Operating Systems 144
Business Problem-Solving Case: JP Morgan Chase Shifts IT Outsourcing into Reverse 145
5 Foundations of Business Intelligence: Databases and Information Management 148
Chapter-Opening Case: Seven-Eleven Stores Ask the Customer by Asking the Data 149
5.1 The Database Approach to Data Management 152
5.2 Database Management Systems 157
5.3 Using Databases to Improve Business Performance and Decision Making 162
5.4 Managing Data Resources 169
Learning Tracks 172
Summary 172
Key Terms 173
Review Questions 173
Discussion Questions 173
Application Software Exercise: Database Exercise: Building a Relational Database for a Small Business 174
Dirt Bikes U.S.A.: Redesigning the Customer Database 174
Building Internet Skills: Searching Online Databases 175
Video Case 175
Teamwork: Identifying Entities and Attributes in an Online Database 175
Business Problem-Solving Case: The FBI Abandons Its Virtual Case System 175
6 Telecommunications, the Internet, and Wireless Technology 178
Chapter-Opening Case: Dartmouth: An Old College Becomes a New Networking Innovator 179
6.1 Telecommunications and Networking in Today's Business World 182
6.2 Communications Networks 187
6.3 The Internet 193
6.4 The Wireless Revolution 205
Learning Tracks 215
Summary 215
Key Terms 218
Review Questions 218
Discussion Questions 219
Application Software Exercise: Spreadsheet Exercise: Comparing Wireless Services 219
Dirt Bikes U.S.A.: Using Internet Tools to Increase Efficiency and Productivity 219
Building Internet Skills: Using Web Search Engines for Business Research 220
Video Case 220
Teamwork: Comparing Mobile Internet Access Systems 220
Business Problem-Solving Case: Google Takes on the World 220
7 Securing Information Systems 224
Chapter-Opening Case: Phishing: A Costly New Sport for Internet Users 225
7.1 System Vulnerability and Abuse 228
7.2 Business Value of Security and Control 238
7.3 Establishing a Framework for Security and Control 240
7.4 Technologies and Tools for Security 245
Learning Tracks 252
Summary 252
Key Terms 253
Review Questions 253
Discussion Questions 254
Application Software Exercise: Spreadsheet Exercise: Performing a Security Risk Assessment 254
Dirt Bikes U.S.A.: Developing a Disaster Recovery Plan 255
Building Internet Skills: Evaluating Security Outsourcing Services 255
Video Case 255
Teamwork: Evaluating Security Software Tools 255
Business Problem-Solving Case: MasterCard and CardSystems: The Worst Data Theft Ever? 256
III Key System Applications for the Digital Age 259
8 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications 260
Chapter-Opening Case: Whirlpool Fixes Its Supply Chain 261
8.1 Enterprise Systems 264
8.2 Supply Chain Management Systems 266
8.3 Customer Relationship Management Systems 274
8.4 Enterprise Applications: New Opportunities and Challenges 282
Challenges and Opportunities 282
Learning Tracks 283
Summary 283
Key Terms 284
Review Questions 285
Discussion Questions 285
Application Software Exercise: Database Exercise: Managing Customer Service Requests 285
Dirt Bikes U.S.A.: Identifying Supply Chain Management Solutions 286
Building Internet Skills: Evaluating Supply Chain Management Services 286
Video Case 287
Teamwork: Analyzing Enterprise Application Vendors 287
Business Problem-Solving Case: Philip Morris International's Supply Chain Dilemma 287
9 E-Commerce: Digital Markets, Digital Goods 290
Chapter-Opening Case: Gap Remodels Its Web Sites 291
9.1 Electronic Commerce and the Internet 294
9.2 Electronic Commerce 303
9.3 M-Commerce 310
9.4 Electronic Commerce Payment Systems 314
Learning Tracks 318
Summary 318
Key Terms 320
Review Questions 320
Discussion Questions 321
Application Software Exercise: Spreadsheet Exercise: Analyzing a Dot-Com Business 321
Dirt Bikes U.S.A.: Developing an E-Commerce Strategy 321
Building Internet Skills: Comparing Online Storefront Hosting Services 322
Video Case 322
Teamwork: Performing a Competitive Analysis of E-Commerce Sites 322
Business Problem-Solving Case: Can eBay Keep It Up? 322
10 Improving Decision Making and Managing Knowledge 326
Chapter-Opening Case: Procter & Gamble Restructures Its Supply Chain 327
10.1 Decision Making and Information Systems 330
10.2 Systems for Decision Support 333
10.3 Intelligent Systems for Decision Support 341
10.4 Systems for Managing Knowledge 349
Learning Tracks 356
Summary 356
Key Terms 358
Review Questions 359
Discussion Questions 359
Application Software Exercise: Spreadsheet Exercise: Performing Break-Even Analysis and Sensitivity Analysis 359
Dirt Bikes U.S.A.: Analyzing the Impact of Component Price Changes 360
Building Internet Skills: Using Intelligent Agents for Comparison Shopping 361
Video Case 361
Teamwork: Rating Knowledge Network Systems 362
Business Problem-Solving Case: Can Information Systems Make Your Doctor Better? 362
IV Building and Managing Systems 365
11 Building Information Systems 366
Chapter-Opening Case: A New Ordering System for Girl Scout Cookies 367
11.1 Problem Solving and Systems Development 370
11.2 Understanding the Business Value of Systems and Managing Change 375
11.3 Alternative Systems-Building Approaches 384
11.4 Modeling and Designing Systems: Structured and Object-Oriented Methodologies 390
Learning Tracks 393
Summary 393
Key Terms 395
Review Questions 395
Discussion Questions 396
Application Software Exercise: Database Exercise: Designing a Customer System for Auto Sales 396
Dirt Bikes U.S.A.: Designing an Employee Training and Skills Tracking System 397
Building Internet Skills: Analyzing Web Site Design and Information Requirements 397
Video Case 397
Teamwork: Analyzing Web Site Requirements 397
Business Problem-Solving Case: Comair's Crew Scheduling System Breaks Down 398
12 Ethical and Social Issues in Information Systems 400
Chapter-Opening Case: Does Location Tracking Threaten Privacy? 401
12.1 Understanding Ethical and Social Issues Related to Systems 403
12.2 Ethics in an Information Society 408
12.3 The Moral Dimensions of Information Systems 411
Learning Tracks 426
Summary 426
Key Terms 427
Review Questions 427
Discussion Questions 428
Application Software Exercise: Word Processing and Web Page Development Tool Exercise: Creating a Simple Web Site 428
Dirt Bikes U.S.A.: Developing a Web Site Privacy Policy 428
Building Internet Skills: Using Internet Newsgroups for Online Market Research 429
Video Case 429
Teamwork: Developing a Corporate Ethics Code 429
Business Problem-Solving Case: Should We Trust ChoicePoint with Our Personal Data? 429
Your Digital Portfolio 433
Glossary 1
References 1
Indexes 1
Photo and Screen Shot Credits 1