Experiencing MIS PEARSON

Transcription

1 Experiencing MIS PEARSON Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo

2 CONTENTS To the Student xxi About the Author xxii Part This Could Happen to You 1 MIS and You CHAPTER 1: THE IMPORTANCE OF MIS 3 This Could Happen to You 4 1. Why Is Introduction to MIS the Most Important Class in the Business School? 5 What are Cost-Effective Business Applications of Facebook and Twitter or Whatever Will Soon Appear? 6 How Can I Attain Job Security? 6 How Can Intro to MIS Help You Learn Nonroutine Skills? 7 Jobs 8 What Is the Bottom Line? 9 2. What Is an Information System? What Is MIS? 10 Experiencing MIS InClass Exercise 1: Information Systems and Online Dating 11 Management and Use of Information Systems 12 Achieving Strategies Why is the Difference Between Information Technology and Information Systems Important to You? What is Your Role in IS Security? 14 Strong Passwords 14 Password Etiquette 15 How Does the Knowledge in This Chapter Help You? 15 Ethics Guide: Ethics of Information from Misdirected Data 16 Guide: Five-Component Careers 18 Case Study 1: The Amazon of Innovation 22 CHAPTER 2: BUSINESS PROCESSES, INFORMATION SYSTEMS, AND INFORMATION 25 This Could Happen to You Why Does the GearUpTeam Need to Understand Business Processes? What Is a Business Process? 27 How GearUp Works 27 The Existing GearUp Process How Can Information Systems Improve Process Quality? 30 What Is Process Quality? 30 Using Information Systems to Improve Process Quality What Is Information? 33 Definitions Vary 33 Where Is Information? 34 Experiencing MIS InClass Exercise 2: How Much Is a Quarter Worth? What Data Characteristics Are Necessary for Quality Information? 36 Accurate 36 Timely 36 Relevant 37 Just Barely Sufficient 37 Worth Its Cost 37 How Does the Knowledge in This Chapter Help You? 37 Ethics Guide: Egocentric Versus EmpatheticThinking 38 Guide: Understanding Perspectives and Points of View 40 Case Study 2: Fulfillment by Amazon (FBA) 45 CHAPTER 3: ORGANIZATIONAL STRATEGY, INFORMATION SYSTEMS, AND COMPETITIVE ADVANTAGE 47 This Could Happen to You How Does Organizational Strategy Determine Information Systems Requirements? What Five Forces Determine Industry Structure? What Is Competitive Strategy? How Does Competitive Strategy Determine Value Chain Structure? 52 Primary Activities in the Value Chain 53 Support Activities in the Value Chain 54 Value Chain Linkages How Do Value Chains Determine Business Processes and Information Systems? How Do Information Systems Provide Competitive Advantages? 56 Competitive Advantage via Products 56 XII

3 Experiencing MIS InClass Exercise 3: Competitive Strategy Overthe'Web 57 Competitive Advantage via Business Processes 57 How Does.an Actual Company Use IS to Create Competitive Advantages? 58 How Does This System Create a Competitive Advantage? 61 How Does the Knowledge in This Chapter Help You? 61 Ethics Guide: Yikes! Bikes 62 Guide: Your Personal Competitive Advantage 64 Case Study 3: BOSU Balance Trainer 69 Part \JZJ- Information Technology This Could Happen to You 71 CHAPTER 4: HARDWARE AND SOFTWARE 73 This Could Happen to You What Do Business Professionals Need to Know About Computer Hardware? 75 Basic Components 75 Computer Data 76 In Fewer than 300 Words, How Does a Computer Work? 77 Why Does a Business Professional Care How a Computer Works? 78 What Is the Difference Between a Client and a Server? What Do Business Professionals Need to Know About Operating Systems Software? 80 What Are the Major Operating Systems? 81 Virtualization What Do Business Professionals Need to Know About Applications Software? 85 How Do Organizations Acquire Application Software? 88 What Is Firmware? Is Open Source Software a Viable Alternative? 89 Why Do Programmers Volunteer Their Services? 90 How Does Open Source Work? 90 Experiencing MIS InClass Exercise 4: Place Your Bets Now! 91 So, Is Open Source Viable? 93 How Does the Knowledge in This Chapter Help You? 93 Ethics Guide: "Because It's Where the Money Is..." 94 Guide: Keeping Up to Speed 96 Case Study 4: The Apple of Your i 101 CHAPTER 5: DATABASE PROCESSING 105 This Could Happen to You What Is the Purpose of a Database? What Is a Database? 108 Relationships Among Rows 108 Metadata What Is a Database Management System (DBMS)? 111 Experiencing MIS InClass Exercise 5: How Much Is a Database Worth? How Do Database Applications Make Databases More Useful? 115 What Are Forms, Reports, and Queries? 116 Why Are Database Application Programs Needed? 116 Multi-User Processing 117 Enterprise DBMS Versus Personal DBMS What Is a NoSQL DBMS? 118 Will NoSQL Replace Relational DBMS Products? 119 NoSQL's Impact on the DBMS Product Market 119 How Does the Knowledge in This Chapter Help You? 119 Ethics Guide: Nobody Said I Shouldn't 120 Guide: No,Thanks, I'll Use a Spreadsheet 122 Case Study 5: Fail Away with Dynamo, Bigtable, and Cassandra 127 CHAPTER 6: DATA COMMUNICATION AND THE CLOUD 129 This Could Happen to You What Is a Computer Network? What Are the Components of a LAN? 132 A Typical SOHO LAN 132 Connecting to the Internet 134 Experiencing MIS InClass Exercise 6: Opening Pandora's Box 136 XIII

4 XIV Contents 3. What Are the Fundamental Concepts You Should Know About the Internet? 137 An Internet Example 137 The TCP/IP Protocol Architecture 138 Application-Layer Protocols 138 TCP and IP Protocols 139 IP Addressing 14,0 Virtual Private Network What Processing Occurs on a Typical Web Server? 143 " Three-Tier Architecture 144 Hypertext Markup Language (HTML) Why Is the Cloud the Future for Most Organizations? 147 What Is the Cloud? 147 Why Is the Cloud Preferred to In-House Hosting? 148 Why Now? 148 How Can Organizations Use the Cloud? 150 How Does the Knowledge in This Chapter Help You? 151 Ethics Guide: You Said What? About Me? In Class? 152 Guide: Thinking Exponentially Is Not Possible, but Case Study 6: Turbulent Air in Those Azure Clouds 158 Part 3 Using IS for Competitive Advantage This Could Happen to You 161 CHAPTER 7: ORGANIZATIONS AND INFORMATION SYSTEMS 163 This Could Happen to You How Do Information Systems Vary by Scope? 165 Personal Information Systems 165 Workgroup Information Systems 165 Enterprise Information Systems 166 Inter-enterprise Information Systems How Do Enterprise Systems Solve the Problems of Information Silos? 166 What Are the Problems of Information Silos? 167 How Do Organizations Solve the Problems of Information Silos? 169 An Enterprise System for Patient Discharge 169 Business Process Reengineering How Do CRM, ERP, and EAI Support Enterprise Systems? 171 Customer Relationship Management (CRM) 171 Experiencing MIS InClass Exercise 7: Choosing a CRM Product 173 Enterprise Resource Planning (ERP) 174 Enterprise Application Integration (EAI) 175 What Are the Challenges When Implementing New Enterprise Systems? How Do Inter-enterprise IS Solve the Problems of Enterprise Silos? 177 How Does the Knowledge in This Chapter Help You? 179 Ethics Guide: Dialing for Dollars 180 Guide:The Flavor-of-the-Month Club 182 Case Study 7: Using the PRIDE Database 187 CHAPTER 8: SOCIAL MEDIA INFORMATION SYSTEMS 191 This Could Happen to You What Is a Social Media Information System (SMIS)? 193 Three SMIS Roles 193 SMIS Components How Do SMIS Advance Organizational Strategy? 198 Social Media and the Sales and Marketing Activity 199 Social Media and Customer Service 200 Social Media and Inbound and Outbound Logistics 201 Social Media and Manufacturing and Operations 201 Social Media and Human Resources How Do SMIS Increase Social Capital? 202 What Is the Value of Social Capital? 203 How Do Social Networks Add Value to Businesses? 203 Using Social Networking to Increase the Number of Relationships 204 Experiencing MIS InClass Exercise 8: Computing Your Social Capital 205 Using Social Networks to Increase the Strength of Relationships 206 Connecting to Those with More Assets How Can Organizations Manage the Risks of Social Media? 207 Managing the Risk of Employee Communication 207 Managing the Risk of User-Generated Content Where Is Social Media Taking Us? 210 How Does the Knowledge in This Chapter Help You? 211 Ethics Guide: Hiding the Truth? 212 Guide: Social Recruiting 214 Case Study 8: Sedona Social 218

5 Contents XV CHAPTER 9: BUSINESS INTELLIGENCE SYSTEMS 221 This Could Happen to You How Do Organizations Use Business Intelligence (Bl) Systems? What Are the Three Primary Activities in the Bl Process? 224 Using Business Intelligence for Problem Solving at GearUp 225 Acquire Data 225 Analyze Data 226 Publish Results How Do Organizations Use Data Warehouses and Data Marts to Acquire Data? '230 Problems with Operational Data 231 Data Warehouses versus Data Marts What Are Three Techniques for Processing Bl Data? 234 Reporting Analysis 234 Data Mining Analysis 235 Unsupervised Data Mining 235 Supervised Data Mining 235 BigData 236 MapReduce 236 Hadoop 236 Experiencing MIS InClass Exercise 9: What Wonder Have We Wrought? What Are the Alternatives for Publishing Bl? 239 Characteristics of Bl Publishing Alternatives 239 What Are the Two Functions of a Bl Server? 240 How Does the Knowledge in This Chapter Help You? 241 Ethics Guide: Data Mining in the Real World 242 Guide: Semantic Security 244 Case Study 9: Hadoop the Cookie Cutter 248 Scheduling and Budgeting Difficulties 257 Changing Technology 257 Diseconomies of Scale 258 Is It Really So Bleak? What Are the Five Phases of the SDLC? How Is System Definition Accomplished? 260 Define System Goals and Scope 260 Assess Feasibility 260 Form a Project Team What Is the Users' Role in the Requirements Phase? 262 Determine Requirements 262 Experiencing MIS InClass Exercise 10: Garden Tracker 263 Approve Requirements 264 Role of a Prototype How Are the Five Components Designed? 264 Hardware Design 264 Software Design 265 Database Design 265 Procedure Design 265 Design of Job Descriptions How Is an Information System Implemented? 266 System Testing 267 System Conversion What Are the Tasks for System Maintenance? What Are Some of the Problems with the SDLC? 270 The SDLC Waterfall 270 Requirements Documentation Difficulty 270 Scheduling and Budgeting Difficulties 271 How Does the Knowledge in This Chapter Help You? 271 Ethics Guide: Estimation Ethics 272 Guide:The Real Estimation Process 274 Case Study 10: The Cost of PRIDE? 279 Part 4 Information Systems Management This Could Happen to You 251 CHAPTER 10: INFORMATION SYSTEMS DEVELOPMENT 253 This Could Happen to You What Is Systems Development? Why Is Systems Development Difficult and Risky? 255 The Difficulty of Requirements Determination 256 Changes in Requirements 257 CHAPTER 11: INFORMATION SYSTEMS MANAGEMENT 281 This Could Happen to You What Are the Functions and Organization of the IS Department? 283 How Is the IS Department Organized? 284 What IS-Related Job Positions Exist? How do Organizations Plan the Use of IS? 287 Align Information Systems with Organizational Strategy 287 Communicate IS Issues to the Executive Group 287 Develop Priorities and Enforce Them Within the IS Department 288 Sponsor the Steering Committee 288

6 XVI Contents 3. What Are the Advantages and Disadvantages of Outsourcing? 288 Experiencing MIS InClass Exercise 11: Setting up the PRIDE Systems IS Department 289 Outsourcing Information Systems 289 International Outsourcing 291 What Are the Outsourcing Alternatives? 291 What Are the Risks of Outsourcing? What are Your User Rights and Responsibilities? 295 Your User Rights 295 Your User Responsibilities 296 How Does the Knowledge in This Chapter Help You? 297 Ethics Guide: Using the Corporate Computer 298 Guide: Is Outsourcing Fool's Gold? 300 Case Study 11: iapp$$$$ 4 U 304 CHAPTER 12: INFORMATION SECURITY MANAGEMENT 307 This Could Happen to You What Is the Goal of Information Systems Security? 309 The IS Security Threat/Loss Scenario 309 What Are the Sources of Threats? 310 What Types of Security Loss Exist? 311 Goal of Information Systems Security How Big Is the Computer Security Problem? How Should You Respond to Security Threats? How Should Organizations Respond to Security Threats? 317 Experiencing MIS InClass Exercise 12: Phishingfor Credit Cards, Identifying Numbers, Bank Accounts How Can Technical Safeguards Protect Against Security Threats? 319 Identification and Authentication 319 Single Sign-on for Multiple Systems 320 Encryption 320 Firewalls 322 Malware Protection 323 Design for Secure Applications How Can Data Safeguards Protect Against Security Threats? How Can Human Safeguards Protect Against Security Threats? 325 Human Safeguards for Employees 325 Account Administration 327. Systems Procedures 329 Security Monitoring How Should Organizations Respond to Security Incidents? 330 How Does the Knowledge in This Chapter Help You? 331 Ethics Guide: Metasecurity 332 Guide:The Final, Final Word 334 Case Study 12: Moore's Law, One More Time CHAPTER EXTENSIONS CHIASFTER EXTEWSBOW 11: SYSTEMS FOB DECDSflOWl DVOADCDINIG, PROBLEiVS SOLVING, AWB PROJECT DV8ANAGESVIEWT 34H 1. What Are the Two Key Characteristics of Collaboration? 341 Importance of Effective Critical Feedback 342 Guidelines for Giving and Receiving Critical Feedback 343 Warning! What Are Three Criteria for Successful Collaboration? 344 Successful Outcome 344 Growth in Team Capability 344 Meaningful and Satisfying Experience What Are the Four Primary Purposes of Collaboration? 345 Becoming Informed 346 Decision Making 346 Problem Solving 347 Project Management What Are the Components and Functions of a Collaboration Information System? 350 The Five Collaboration System Components 350 Primary Functions: Communication and Content Sharing 350

7 Chapter Extensions XVII CHAPTER EXTEIMI SYSTEMS FOR STUDEWT PROJECTS What Are the is Requirements for Student Project Collaborations? 354 Required Features 354 Nice-to-Have Features 355 Collaboration Tool Characteristics How Can you Use Collaboration Tools to Improve Team Communication? How can you Use Collaboration Tools to Share Content? 359 Shared Content with No Control 359 ' Shared Content with Version Management 360 Shared Content with Version Control How Can You Use Collaboration Tools for Project Planning and Management? Which Collaboration Information System Is Right for YourTeam? 365 The Minimal Collaboration Tool Set 365 The Good Collaboration Tool Set 365 The Comprehensive Collaboration Tool Set 366 Choosing the Set for Your Team 366 Don't Forget Procedures and People! 368 CHAPTER EXTEWSOOIM 3: iwtroductoow TO SVDOCROSOFT EXCEL What Is a Spreadsheet? How Do you Get Started with Excel? How Can you Enter Data? 374 Key in the Data 374 Let Excel Add the Data Using a Pattern How Can you Insert and Delete Rows and Columns and ChangeTheir Size? How Can you Format Data? How Can you Create a (Simple) Formula? How Can you Print Results? 385 CHAPTER EXTEWSOOW 4: DATABASE DESIGN Who Will Volunteer? How Are Database Application Systems Developed? What Are the Components of the Entity-Relationship Data Model? 390 Entities 391 Relationships How Is a Data Model Transformed into a Database Design? 394 Normalization 394 Representing Relationships What Is the Users' Role? Who Will Volunteer? (Continued) 399 CHAPTER EXTEWSOOM 5: USflWG MlflCROSOFT ACCESS How Do You Create Tables? 404 Starting Access 405 Creating Tables How Do you Create Relationships? How Do you Create a Data Entry Form? How Do you Create Queries Using the Query Design Tool? How Do you Create a Report? 418 CHAPTER EXTEWSOOW : USOMG EXCEL AND ACCESS TOGETHER Why Use Excel and Access Together? What Is Import/Export? 423 Import/Export of Text Data 424 Import/Export of Excel and Access Data How Can You Create Charts with Excel? 427 Creating a Pie Chart 427 Creating a Column Chart How Can You Create GroupTotals in Access? How Can You Use Excel to Graph Access Data? How Can You Use Access to Report Excel Data? How Can You Combine Excel and Access to Analyze Data? 443 CHAPTER EXTEM8 SYSTEJVBS 1. What Are Mobile Systems? Why Are Mobile Systems Important? 450 Hardware 451 Software 452 Data 452

8 XVIII Chapter Extensions Procedures 453 People How Do Native and Browser-based Mobile Applications Compare? 454 ' Developing Native Mobile Applications 454 Developing Thin-client Mobile Applications 455 Which Is Better? What Characterizes Quality Mobile User Experiences? 458 Feature Content 458 Use Context-Sensitive Chrome 459 Provide Animation and Lively Behavior 459 Design to Scale and Share 460 Use the Cloud 461, 5. What Are the Challenges of Personal Mobile Devices at Work? 462 Advantages and Disadvantages of Employee Use of Mobile Systems at Work 463 Survey of Organizational BYOD Policy 463 CHAPTER EXTEWS0 6\3 8: 1. What Is the Difference between a Functional IS and a Functional Application? 468 Creating Functional Information Systems 468 An Example of a Functional Application What Are the Functions of Sales and Marketing Applications? What Are the Functions of Operations Applications? What Are the Functions of Manufacturing Applications? 472 Inventory Applications 472 Manufacturing Planning Applications 473 Manufacturing Scheduling Applications 474 Manufacturing Operations 475 t 5. What Are the Functions of Human Resources Applications? What Are the Functions of Accounting Applications? 476 CHAPTER EXTEMS EWTERPROSE RE (ERP) SYSTEMS 1. What Is the Purpose of ERP Systems? What Are the Elements of an ERP Solution? 482 ERP Application Programs 482 ERP Databases 483 Business Process Procedures 483 Training and Consulting How Are ERP Systems Implemented? What Types of Organizations Use ERP? 486 ERP by Industry Type 486 ERP by Organization Size 486 International ERP How do the Major ERP Vendors Compare? 487 ERP Vendor Market Ranking 488 ERP Products 489 ERP in the Cloud 490 CHAPTER EXTEWS 1. What Are Typical Inter-Enterprise Processes? What Is a Supply Chain? What Factors Affect Supply Chain Performance? : SUPPLY 4. How Does Supply Chain Profitability Differ from Organizational Profitability? What Is the Bullwhip Effect? How Do Information Systems Affect Supply Chain Performance? 499 CHAPTER EXTEWSOOW 11: HYPER-SOCOAL ORGAWQ2AT0OMI MlAWAGEiVOEWT What Are the Characteristics of a Hyper-Social Organization? 505 Consumers Become Humans 506 Market Segments Become Tribes 506 Channels Become Networks 507 Structure and Control Become Messy 507 How Can Social Media Information Systems (SMIS) Foster Hyper-Social Organizations? What Are the Benefits of Knowledge Management? What Are Expert Systems? What Are Content Management Systems? 511 What Are the Challenges of Content Management? 512 What are Content Management Application Alternatives? 512

9 Chapter Extensions XIX 5. How Do Hyper-Social Organizations Manage Knowledge? 514 Hyper-Social KM Alternative Media 514 Resistance to Hyper-Social Knowledge Sharing 515 CHAPTER EXTEWSiOW 12: DATABASEfiVflARQCETflMG What Is a Database Marketing Opportunity? How Does RFM Analysis Classify Customers? How Does Market-Basket Analysis Identify Cross-Selling Opportunities? How Do Decision Trees Identify Market Segments? 521 A Decision Tree for Student Performance 521 A Decision Tree for Loan Evaluation 523 CHAPTER EXTEWS 13: AMD LAP How Do Reporting Systems Enable People to Create Information? What Are the Components and Characteristics of Reporting Systems? 530 Report Type 531 Report Media 532 Report Mode How Are Reports Authored, Managed, and Delivered? 533 Report Authoring 533 Report Management 534 Report Delivery How Are OLAP Reports Dynamic? 534 CHAPTER EXTEWSOOIM 14: GEOGRAPHOC OWFORMIATBOIMI SYSTEMS (GDS) What Are the Components of a Geographic Information System? 540 Hardware 541 Software 541 Data 542 Procedures 543 People How Are GIS Maps Constructed? 544 Raster Versus Vector Maps 544 Mapping the Earth 546 Where Is It? How Do Organizations Use GIS? 548 How Do Organizations Use GIS on Their Web Sites? 548 Using GIS for Asset Tracking 551 Using GIS for Business Intelligence How Do Maps Deceive? 553 Map Bias 554 Problems with Choropleth Maps 554 Modifiable Areal Unit Problem 556 CHAPTER EXTEMSDOW 15: SYSTEMS DEVELOPM1EWT PROJECT Why Is Formalized Project Management Necessary? What Are the Trade-offs in Requirements, Cost, and Time? What Are the Dimensions of Project Management? How Does a Work Breakdown Structure Drive Project Management? What Is the Biggest Challenge for Planning a Systems Development Project? What Are the Biggest Challenges for Managing a Systems Development Project? What Is the Single Most Important Task for Users on a Systems Development Project? 569 CHAPTER EXTEWS DEVELOPS EWT : AGILE 1. Why Is the SDLC Losing Credibility? What Are the Principles of Agile Development Methodologies? What Is the Scrum Process? 575 Scrum Essentials 575 When Are We Done? 576 Key Role How Do Requirements Drive the Scrum Process? 577 Creating Requirements Tasks 578 Scheduling Tasks 578 Committing to Finish Tasks 579 Hocus-Pocus? 579

10 XX Chapter Extensions CHAPTER EXTEMSflOW BUSflWESS PROCESS 9EE 17: 1. Why Do Organizations Need to Manage Business Processes? 582 A Sample Ordering Business Process 582 Why Does This Process Need Management? What Are the. Stages of Business Process Management (BPM)? How Do Business Processes and Information Systems Relate? Which Comes First, Business Processes or Information Systems? 587, Business Processes First 588 Information System First 588 Another Factor: Off-the-Shelf Software 589 And the Answer Is How is BPM Practiced in the Real World? 590 Defining the Process Problem 590 Designing the New Process 591 Create Process Components 592 Implement New Processes 593 CHAPTER EXTEMS 1. How Does the Global Economy Affect Organizations and Processes? 596 How Does the Global Economy Change the Competitive Environment? 597 How Does the Global Economy Change Competitive Strategy? 597 How Does the Global Economy Change Value Chains and Business Processes? What Are the Characteristics of International IS Components? 598 What's Required to Localize Software? 599 What Are the Problems and Issues of Global Databases? What Are the Challenges of International Enterprise Applications? 600 Advantages of Functional Systems 601 Problems of Inherent Processes How Do Inter-enterprise IS Facilitate Globalization? 601 How Do Global Information Systems Affect Supply Chain Profitability? 602 What Is the Economic Effect of Global Manufacturing? 602 How Does Social Media Affect International Business? What Are the Challenges of International IS Management? 603 Why Is International Information Systems Development More Challenging? 603 What Are the Challenges of International Project Management? 605 What Are the Challenges of International IT Management? 606 How Does the International Dimension Affect Computer Security Risk Management? 607 Application Exercises 610 Glossary 624 Index 637