Principles of Business Information Systems

Preface xvii. Approach of the Text xvii. Goals of this Text xviii. Changes to the International Edition xxi. Structure of the Text xxiii. About the Authors xxv. Acknowledgements xxv. Supplements xxvii. MIS Companion CD-Rom xxvii. ExamView Testbank and Test Generator xxvii. Companion Website xxviii. Walkthrough Tour xxx. Part 1 Overview. 1. An Introduction to Information Systems 3. Principles 3 Learning Objectives 3 Why Learn About Information Systems? 4 What Is an Information System? 4 What Is a System? 4 What Is Information? 6 What Is an Information System? 6 The Characteristics of Valuable Information 7 Manual and Computerized Information Systems 8 Business Information Systems 11 Information Systems @ Work: Speeding Up Insurance Claims with New Information Systems 12 Electronic and Mobile Commerce 13 Enterprise Systems: Transaction Processing Systems and Enterprise Resource Planning 15 Information and Decision Support Systems 15 Knowledge Management, Artificial Intelligence, Expert Systems, and Virtual Reality 18 Systems Development 19 Systems Investigation and Analysis 20 Systems Design, Implementation, and Maintenance and Review 21 Information Systems in Society, Business, and Industry 21 Ethical and Societal Issues: Snipermail Executive Serves Hard Time 22 Security, Privacy, and Ethical Issues in Information Systems and the Internet 23 Computer and Information Systems Literacy 23 Information Systems in the Functional Areas of Business 24 Information Systems in Industry 24 Global Challenges in Information Systems 25 Summary 26 Self-Assessment Test 28 Review Questions 28 Discussion Questions 29 Web Exercises 29 Case One: Shroff International Travel Care Opens Door to Philippines 29 Case Two: Nissan"s 180-Degree Turn with Parts Distribution 30 Case Three: Discovery Communications Digs Out of Mountains of Documents 31 Notes 32 2. Information Systems in Organizations 33. Principles 33 Learning Objectives 33 Why Learn About Information Systems in Organizations? 34 An Introduction to Organizations 34 Organizational Structures 36 Organizational Change 39 Ethical and Societal Issues: Royal Mail Collects Vehicle Telemetry 41 Reengineering and Continuous Improvement 41 User Satisfaction and Technology Acceptance 43 Information Systems @ Work: Wimbledon on the Web 43 The Applications Portfolio 44 Success Factors 45 Competitive Advantage 45 Factors that Lead Firms to Seek Competitive Advantage 46 Evaluating IS 47 Productivity 47 Return on Investment and the Value of Information Systems 47 Careers in Information Systems 48 Operations 49 Systems Development 50 Support 50 Information Service Units 50 Typical IS Titles and Functions 51 Summary 52 Self-Assessment Test 53 Review Questions 54 Discussion Questions 54 Web Exercises 54 Case One: Hitwise and Web Data 54 Case Two: Innocent Drinks Stays in Touch 55 Case Three: Itochu Kenzai Uses IS to Reduce Organizational Waste 56 Notes 57 World Views Case: High Performance Computing in South Africa: Computing in Support of African Development 58 World Views Case: The Importance of Collaboration and Trust in Virtual Organizations Part 2 Information Technology Concepts 63. 3. Hardware: Input, Processing, and Output Devices 65. Principles 65 Learning Objectives 65 Why Learn About Hardware? 66 Hardware 66 Hardware Components 67 Processing and Memory Devices: Power, Speed, and Capacity 69 Processing Characteristics and Functions 69 Main Memory Characteristics and Functions 71 Multiprocessing 73 Parallel Computing 73 Secondary Storage 74 Access Methods 75 Devices 75 Ethical and Societal Issues: Backup Storage Media and Identity Theft 79 Enterprise Storage Options 80 Input and Output Devices 82 Characteristics and Functionality 82 Input Devices 83 Output Devices 89 Information Systems @ Work: Wireless Communication at House of Fraser 93 Types of Computer Systems, Selection, and Upgrading 94 Types of Computer Systems 94 Selecting and Upgrading Computer Systems 97 Summary 99 Self-Assessment Test 100 Review Questions 101 Discussion Questions 101 Web Exercises 101 Case One: British Airways Donates Old PCs 102 Case Two: Printing and Paper Waste 102 Case Three: Oyster Card Eases Commute 103 4. Software: Systems and Application Software 105. Principles 105 Learning Objectives 105 Why Learn About Software? 106 An Overview of Software 106 Systems Software 106 Operating Systems 106 Current Operating Systems 110 Workgroup Operating Systems 112 Enterprise Operating Systems 113 Mobile Operating Systems 113 Information Systems @ Work: Gas Natural: Improving Customer Service with Mobile Software 115 Utility Programs 116 Middleware 118 Application Software 119 Overview of Application Software 119 Personal Application Software 121 Programming Languages 126 The Evolution of Programming Languages 127 Software Issues and Trends 129 Software Bugs 129 Copyrights and Licences 130 Open-Source Software 130 Ethical and Societal Issues: Weighing the Benefits of Open Source 131 Shareware, Freeware, and Public Domain Software 132 Software Upgrades 132 Global Software Support 132 Summary 133 Self-Assessment Test 135 Review Questions 135 Discussion Questions 136 Web Exercises 136 Case One: Open Source in South Africa 136 Case Two: El-Al Adopts Software Solution for Scheduling Complexity 137 Case Three: DreamWorks SKJ Goes Completely Open Source 138 Notes 139 5. Organizing and Storing Data 141. Principles 141 Learning Objectives 141 Why Learn About Organizing Data? 142 Data Management and Data Modelling 142 Relationships Between Tables 144 Designing Relational Databases 145 Database Management Systems 149 Creating and Modifying the Database 149 Storing and Retrieving Data 150 Manipulating Data and Generating Reports 151 Database Administration 154 Selecting a Database Management System 154 Using Databases with Other Software 155 Database Applications 155 Linking Databases to the Internet 155 Data Warehouses and Data Mining 156 Ethical and Societal Issues: Google: Protecting User Data from the Government 157 Information Systems @ Work: Combating Spam E-mails 161 Distributed Databases 162 Online Analytical Processing (OLAP) 163 Visual, Audio, and Other Database Systems 164 Object-Oriented and Object-Relational Database Management Systems 165 Summary 166 Self-Assessment Test 167 Review Questions 167 Discussion Questions 168 Web Exercises 168 Case One: Databases and Web pages 168 Case Two: HandWriting Recognition with Nearest Neighbour 169 Case Three: Blackboard and WebCT 171 Notes 172 6. Computer Networks 173. Principles 173 Learning Objectives 173 Why Learn About Computer Networks? 174 Telecommunications 174 Channel Bandwidth 175 Guided Transmission Media Types 175 Wireless Transmission Media Types 178 Telecommunications Hardware 181 Networks and Distributed Processing 182 Network Types 182 Ethical and Societal Issues: Sharing Workstations at Sisters of Mercy Health System Distributed Processing 188 Client/Server Systems 188 Communications Protocols and Hardware 189 Communications Software 191 The Internet 192 How the Internet Works 193 Internet Applications 195 The World Wide Web 195 Information Systems @ Work: E-Petitions and the U.K. Government 199 E-mail 203 Telnet and FTP 203 Intranets and Extranets 203 Summary 205 Self-Assessment Test 207 Review Questions 208 Discussion Questions 208 Web Exercises 208 Case One: Delivering People 209 Case Two: Firwood Paints on the Web 210 Case Three: FUJI Market Switches to Web-Based Ordering System 211 Notes 213 World Views Case: Australian Film Studio Benefits from Broadband Networks...and Location 214 World Views Case: Virtual Learning Environment Provides Instruction Flexibility 217 Part 3. Business Information Systems 221. 7. Operational Systems 223. Principles 223 Learning Objectives 223 Why Learn About Operational Systems? 224 An Overview of Enterprise Systems: Transaction Processing Systems and Enterprise Resource Planning 224 Traditional Transaction Processing Methods and Objectives 225 Transaction Processing Activities 228 Information Systems @ Work: Retailers Turn to Smart Carts 230 Traditional Transaction Processing Applications 231 Order Processing Systems 231 Purchasing Systems 233 Accounting Systems 234 Electronic and Mobile Commerce 234 Electronic Commerce 234 Mobile Commerce 237 Ethical and Societal Issues: Mobile Banking in South Africa 238 Enterprise Resource Planning, Supply Chain Management, and Customer Relationship Management 238 Advantages of ERP 240 Disadvantages of ERP Systems 241 Production and Supply Chain Management 242 Customer Relationship Management and Sales Ordering 243 Financial and Managerial Accounting 246 Hosted Software Model for Enterprise Software 247 International Issues Associated with Operational Systems 247 Different Languages and Cultures 247 Disparities in Information System Infrastructure 248 Varying Laws and Customs Rules 248 Multiple Currencies 248 Summary 249 Self-Assessment Test 250 Review Questions 251 Discussion Questions 251 Web Exercises 251 Case One: Nike Empowers Customers with Online Customization 252 Case Two: Japanese Mobile Music Service Provides Peek Into M-Commerce Future 253 Case Three: Pico Electronics Develops TPS to Support Rapid-Fire Transactions 254 Notes 255 8. Management Information and Decision Support Systems 257. Principles 257 Learning Objectives 257 Why Learn About Management Information Systems and Decision Support Systems? 258 Decision Making and Problem Solving 258 Programmed versus Non-programmed Decisions 259 Optimization, Satisficing, and Heuristic Approaches 260 Sense and Respond 261 An Overview of Management Information Systems 261 Inputs to a Management Information System 262 Outputs of a Management Information System 263 Characteristics of a Management Information System 267 Functional MIS 267 Financial Management Information Systems 267 Manufacturing Management Information Systems 270 Marketing Management Information Systems 272 Human Resource Management Information Systems 274 Geographic Information Systems 277 Decision Support Systems 277 Characteristics of a Decision Support System 277 Capabilities of a Decision Support System 279 A Comparison of DSS and MIS 280 Components of a Decision Support System 280 Information Systems @ Work: Decision Support Systems in Retail Outlets 282 Group Support Systems 284 Ethical and Societal Issues: SOCA and Decision Support 285 Characteristics of a GSS that Enhance Decision Making 286 Executive Support Systems 287 Capabilities of Executive Support Systems 288 Summary 289 Self-Assessment Test 291 Review Questions 292 Discussion Questions 292 Web Exercises 292 Case One: French Perfume Company Relies on Management Information Systems to Unify Employees 293 Case Two: Transit New Zealand Reroutes Information to Avoid Traffic Jams 294 Case Three: Water Management in Africa 9. Knowledge Management and Specialized Information Systems 297. Principles 297 Learning Objectives 297 Why Learn About Knowledge Management and Specialized Information Systems? 298 Knowledge Management Systems 298 Overview of Knowledge Management Systems 298 Obtaining, Storing, Sharing, and Using Knowledge 299 Technology to Support Knowledge Management 300 Artificial Intelligence 302 The Nature of Intelligence 302 The Difference Between Natural and Artificial Intelligence 304 Information Systems @ Work: Call Centers Use Artificial Intelligence to Improve Service to Customers 305 The Major Branches of Artificial Intelligence 306 Ethical and Societal Issues: Online Matchmaker eHarmony 313 Expert Systems 313 When to Use Expert Systems 314 Components of Expert Systems 315 Virtual Reality 321 Interface Devices 322 Forms of Virtual Reality 323 Virtual Reality Applications 323 Summary 324 Self-Assessment Test 325 Review Questions 326 Discussion Questions 326 Web Exercises 327 Case One: Global Building Supply Leader Gets the Recipe Right Every Time with Artificial Intelligence 327 Case Two: BMW Drives Virtual Prototypes 328 Case Three: Neural Network Predicts Movie Success 329 Notes 331 10. Pervasive Computing 333. Principles 333 Learning Objectives 333 Why Learn About Pervasive Computing? 334 Introduction 334 Wi-Fi Hotspots 335 Mobile Devices 336 Pocket PC 336 Wearable Technology 338 Ethical and Societal Issues: Sousveillance 342 Information Systems @ Work: Loggings Legacy 343 E-Money 344 Tangible Media 346 Personal Robotics 348 Virtual Pets 350 Computer Supported Cooperative Work 352 Videoconferencing 353 Messaging 354 Interactive Whiteboards 355 Wikis 355 MMOGs 355 Blogs and Podcasts 356 Other Applications of Electronic and Mobile Commerce 357 Retail and Wholesale 357 Manufacturing 358 Marketing 359 Investment and Finance 360 Auctions 361 Anywhere, Anytime Applications of Mobile Commerce 361 Advantages of Electronic and Mobile Commerce 362 Summary 362 Self-Assessment Test 364 Review Questions 364 Discussion Questions 364 Web Exercises 365 Case One: Volunteers Create Vast Encyclopaedia 365 Case Two: Businesses Go in World 366 Case Three: Google Continues to Strive to Manage the Earths Information 366 Notes 368 World Views Case: Kulula.com: The Trials and Tribulations of a South African Online Airline 369 World Views Case: How to do business in Second Life 372 Part 4. Systems Development. 11. Systems Analysis 377. Principles 377 Learning Objectives 377 Why Learn About Systems Analysis? 378 An Overview of Systems Development 378 Participants in Systems Development 378 Information Systems Planning and Aligning Organization and IS Goals 380 Establishing Objectives for Systems Development 382 Systems Development Lifecycles 384 The Traditional Systems Development Lifecycle 384 Prototyping 386 Information Systems @ Work: Australia"s Maroochy Shire Council Gains Control Over Information Overload 388 Rapid Application Development, Agile Development, Joint Application Development, and Other Systems Development Approaches 389 The End-User Systems Development Lifecycle 390 Outsourcing and On-Demand Computing 391 Factors Affecting System Development Success 392 Involvement 392 Degree of Change 392 Managing Change 393 Quality and Standards 393 Use of Project Management Tools 395 Use of Computer-Aided Software Engineering (CASE) Tools 397 Systems Investigation 398 Initiating Systems Investigation 398 Participants in Systems Investigation 399 Feasibility Analysis 399 The Systems Investigation Report 400 Ethical and Societal Issues: Identity Cards in the U.K. 401 Systems Analysis 401 General Considerations 402 Participants in Systems Analysis 402 Data Collection and Analysis 402 Requirements Analysis 408 Critical Success Factors 408 The IS Plan 408 Screen and Report Layout 408 Requirements Analysis Tools 409 Object-Oriented Systems Analysis 409 The Systems Analysis Report 410 Summary 411 Self-Assessment Test 413 Review Questions 414 Discussion Questions 414 Web Exercises 414 Case One: Applebee"s Simplifies Life for Managers while Improving Service to Customers 415 Case Two: German Dairy Products Manufacturer Upgrades Systems to Meet Organizational Goals 416 Case Three: Waeco Pacific Employees Work Together to Create New ERP System 417 Notes 419 12. Systems Design and Implementation 421. Principles 421 Learning Objectives 421 Why Learn About Systems Design and Implementation? 422 Systems Design 422 Interface Design and Controls 423 Design of System Security and Controls 425 Generating Systems Design Alternatives 428 Freezing Design Specifications 433 The Contract 433 The Design Report 433 Information Systems @ Work: Open Source Development Requires Non-Traditional Methods 434 Systems Implementation 435 Acquiring Hardware From an IS Vendor 436 Acquiring Software: Make or Buy? 436 Acquiring Database and Telecommunications Systems 439 User Preparation 439 IS Personnel: Hiring and Training 439 Site Preparation 440 Data Preparation 440 Installation 440 Testing 440 Ethical and Societal Issues: E-Voting in the U.K. 441 Start-Up 442 User Acceptance 443 Systems Operation and Maintenance 444 Reasons for Maintenance 444 Types of Maintenance 445 The Request for Maintenance Form 445 Performing Maintenance 446 The Financial Implications of Maintenance 446 The Relationship Between Maintenance and Design 447 Systems Review 447 Types of Review Procedures 448 Factors to Consider During Systems Review 448 System Performance Measurement 449 Summary 450 Self-Assessment Test 452 Review Questions 452 Discussion Questions 453 Web Exercises 453 Case One: Technology Development at Harrods 453 Case Two: Port of Brisbane Develops System to Tighten Security 455 Case Three: New Systems Allow Timex to Innovate Faster and with Less Risk 456 Notes 457 World Views Case: Brandon Trust Develops MIS Capability for Improved Operations and Services 458 World Views Case: Strategic Enterprise Management at International Manufacturing Corporation (IMC) 461 Part 5. Information Systems in Business and Society. 13. Security, Privacy, and Ethical Issues in Information Systems 467. Principles 467 Learning Objectives 467 Why Learn About Security, Privacy, and Ethical Issues in Information Systems? 468 Computer Waste and Mistakes 468 Preventing Computer-Related Waste and Mistakes 468 Information Systems @ Work: Scotch Spam 470 Computer Crime 471 Preventing Computer-Related Crime 479 Crime Prevention by the State 479 Crime Prevention by Organizations 479 Crime Prevention by Individuals 482 Using Intrusion Detection Software 482 Using Managed Security Service Providers (MSSPs) 482 Preventing Crime on the Internet 483 Privacy 483 Privacy and the Government 483 Privacy at Work 484 E-mail Privacy 484 Privacy and the Internet 484 Fairness in Information Use 485 Individual Efforts to Protect Privacy 486 The Work Environment 487 Health Concerns 487 Avoiding Health and Environmental Problems 488 Ethical and Societal Issues: Microsoft versus the EU 489 Ethical Issues in Information Systems 490 Summary 490 Self-Assessment Test 492 Review Questions 493 Discussion Questions 493 Web Exercises 493 Case One: Checking for Fraud in Online Gambling 494 Case Two: Johnson & Johnson Maintain Secure Global Connections 495 Case Three: Disgruntled Employee Plants Time Bomb in Get-Rich-Quick Scheme 496 Notes 497 World Views Case: Coping with a major IT security breach 498 World Views Case: Preparing IT Systems in the Public Sector for a Pandemic 500 Answers to Self-assessment Tests 503 Glossary 507 Index 519