Managemen rmation System

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1 ssentiais о 1Яш Managemen rmation System Ninth Edition Global Edition Kenneth C. Laudon New York University Jane P. Laudon Azimuth Information Systems 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 Complete Contents I Information Systems in the Digital Age 25 1 Business Information Systems in Your Career 26 Chapter-Opening Case: The New Yankee Stadium Looks to the Future The Role of Information Systems in Business Today 29 How Information Systems Are Transforming Business 29 What's New In Management Information Systems? 30 Interactive Session: Organizations MIS in Your Pocket 32 Globalization Challenges and Opportunities: A Flattened World 33 Business Drivers of Information Systems Perspectives on Information Systems and Information Technology 37 What Is an Information System? 37 It Isn 't Simply Technology: The Role of People and Organizations 39 Dimensions of Information Systems 39 Interactive Session: Technology UPS Competes Globally with Information Technology Understanding Information Systems: A Business Problem-Solving Approach 44 The Problem-Solving Approach 44 A Model of the Problem-Solving Process 45 The Role of Critical Thinking in Problem Solving 47 The Connection Between Business Objectives, Problems, and Solutions Information Systems and Your Career 48 How Information Systems Will Affect Business Careers 49 Information Systems and Your Career: Wrap-Up 53 How This Book Prepares You For the Future Hands-On MIS Projects 54 Management Decision Problems 54 Improving Decision Making: Using Databases to Analyze Sales Trends 55 Improving Decision Making: Using the Internet to Locate Jobs Requiring Information Systems Knowledge 55 Learning Tracks 56 Review Summary 56 Key Terms 57 Review Questions 57 Discussion Questions 58 Video Cases 58 Collaborating and Teamwork Creating a Web Site for Team Collaboration 58 Business Problem-Solving Case What's the Buzz on Smart Grids? 58 2 Global E-Business and Collaboration 62 Chapter-Opening Case: Hyperone: Solutions to Achieve Business Objectives Components of a Business 65 Organizing a Business: Basic Business Functions 65 Business Processes 66 Managing a Business and Firm Hierarchies 68 The Business Environment 69 The Role of Information Systems in a Business 70

3 6 Contents 2.2 Types of Business Information Systems 71 Systems for Different Levels of Management 71 Interactive Session: Management El-AIamein for Printing and Packaging Goes Digital 76 Systems That Span the Enterprise 77 Intranets and Extranets 79 E-Business, E-Commerce, and E-Government Systems for Collaboration and Teamwork 80 What is Collaboration? 80 Business Benefits of Collaboration and Teamwork 82 Building a Collaborative Culture 83 Tools and Technologies for Collaboration and Teamwork 84 Interactive Session: Technology Virtual Meetings: Smart Management The Information Systems Function in Business 92 The Information Systems Department 92 Information Systems Services Hands-On MIS Projects 93 Management Decision Problems 94 Improving Decision Making: Using a Spreadsheet to Select Suppliers 94 Achieving Operational Excellence: Using Internet Software to Plan Efficient Transportation Routes 95 Learning Tracks 95 Review Summary 95 Key Terms 96 Review Questions 97 Discussion Questions 97 Video Case 98 Collaboration and Teamwork Describing Management Decisions and Systems 98 Business Problem-Solving Case Modernization of NTUC Income 98»НА«.>- -'' INFORMATION л -> Achieving Competitive Advantage with Information Systems 102 Chapter-Opening Case: Verizon or AT&T: Which Company Has the Best Digital Strategy? Using Information Systems to Achieve Competitive Advantage 105 Porter's Competitive Forces Model 106 v i",.,,, Information System Strategies for Dealing with Competitive Forces 107 Interactive Session: People How Much Do Credit Card Companies Know -' -,.. About You'? ге Internet's Impact on Competitive Advantage 112 The Business Value Chain Model 112 Synergies, Core Competencies, and Network-Based Strategies 116 Disruptive Technologies: Riding the Wave Competing on a Global Scale 119 Interactive Session: Organizations Will TV Succumb to the Internet? 120 The Internet and Globalization 121 Global Business and System Strategies 122 Global System Configuration Competing on Quality and Design 123 What Is Quality? 123 How Information Systems Improve Quality 124

4 3.4 Competing on Business Processes 125 What Is Business Process Management? 125 Tools for Business Process Management Hands-On MIS Projects 129 Management Decision Problems 129 Improving Decision Making: Using a Database to Clarify Business Strategy 130 Improving Decision Making: Using Web Tools to Configure and Price an Automobile 131 Learning Tracks 131 Review Summary 132 Key Terms 133 Review Questions 133 Discussion Questions 134 Video Cases 134 Collaboration and Teamwork Identifying Opportunities for Strategic Information Systems 134 Business Problem-Solving Case Soundbuzz's Music Strategy for Asia Pacific 135 Information Technology Infrastructure 137 ] IT Infrastructure: Hardware and Software 138 Chapter-Opening Case: Cars.Corn's IT Infrastructure Drives Rapid Business Growth 139 q g ^ 4.1 IT Infrastructure: Computer Hardware 141 ~ S«-. IgS. Infrastructure Components 141 jpjji r ; В ; «^Цл Types of Computers 143 ^S ~~ ~ ~-~ :S, Storage, Input, and Output Technology "" _;- -- Contemporary Hardware Trends 147 HSs? «.«-««^i^r^- S~~ Interactive Session: Technology Is Green Computing Good for Business? IT Infrastructure: Computer Software 153 Operating System Software 154 Interactive Session: Organizations New to the Touch 156 Application Software and Desktop Productivity Tools 158 Software for the Web: Java, Ajax, and HTML 161 Web Services 162 Software Trends Managing Hardware and Software Technology 166 Capacity Planning and Scalability 166 Total Cost of Ownership (TCO) of Technology Assets 167 Using Technology Service Providers 167 Managing Software Localization for Global Business Hands-On MIS Projects 170 Management Decision Problems 170 Improving Decision Making: Using a Spreadsheet To Evaluate Hardware and Software Options 170 Improving Decision Making: Using Web Research to Budget for a Sales Conference 171 Learning Tracks 172 Review Summary 172 Key Terms 174

5 Review Questions 174 Discussion Questions 175 Video Cases 175 Collaboration and Teamwork Evaluating Server and Mobile Operating Systems 175 Business Problem-Solving Case Salesforce.com: Cloud Software Services Go Mainstream Foundations of Business Intelligence: Databases and Information Management 180 Chapter-Opening Case: RR Donnelley Tries to Master Its Data The Database Approach to Data Management 183 Entities and Attributes 184 Organizing Data in a Relational Database 184 Establishing Relationships Database Management Systems 189 Operations of a Relational DBMS 189 Capabilities of Database Management Systems 190 Object-Oriented Databases Using Databases to Improve Business Performance and Decision Making 193 Data Warehouses 194 What is a Data Warehouse 194 Interactive Session: Organizations The IRS Uncovers Tax Fraud with a Data Warehouse 195 Data Marts 196 Business Intelligence, Multidimensional Data Analysis and Data Mining 197 Data Mining 198 Databases and the Web Managing Data Resources 202 Establishing an Information Policy 202 Ensuring Data Quality 202 Interactive Session: People Credit Bureau Errors Big People Problems Hands-On MIS Projects 205 Management Decision Problems 205 Achieving Operational Excellence: Building a Relational Database for Inventory Management 206 Improving Decision Making: Searching Online Databases for Overseas Business Resources 207 Learning Tracks 207 Review Summary 208 Key Terms 209 Review Questions 209 Discussion Questions 210 Video Cases 210 Collaboration and Teamwork Identifying Entities and Attributes in an Online Database 210 Business Problem-Solving Case Trouble with the Terrorist Watch-List Database 211

6 Telecommunications, the Internet, and Wireless Technology 214 Chapter-Opening Case: Los Angeles International Airport Soars with New Networking Technology Telecommunications and Networking in Today's Business World 217 Networking and Communication Trends 217 What Is a Computer Network? 218 Key Digital Networking Technologies Communications Networks 222 Signals: Digital vs. Analog 222 Types of Networks 222 Physical Transmission Media The Global Internet 226 What Is the Internet? 226 Internet Addressing and Architecture 227 Internet Services and Communication Tools 229 Interactive Session: Organizations Should Network Neutrality Continue? 230 Interactive Session: People Monitoring Employees on Networks: Unethical or Good Business? 234 The Web The Wireless Revolution 242 Cellular Systems 242 Wireless Computer Networks and Internet Access 243 RFID and Wireless Sensor Networks Hands-On MIS Projects 248 Management Decision Problems 248 Improving Decision Making: Using Spreadsheet Software to Evaluate Wireless Services 248 Achieving Operational Excellence: Using Web Search Engines for Business Research 249 Learning Tracks 249 Review Summary 249 Key Terms 251 Review Questions 251 Discussion Questions 252 Video Cases 252 Collaboration and Teamwork Evaluating Smartphones 252 Business Problem-Solving Case Google Versus Microsoft: Clash of the Technology Titans 253 Securing Information Systems 256 Chapter-Opening Case: Boston Celtics Score Big Points Against Spyware System Vulnerability and Abuse 259 Why Systems Are Vulnerable 259 Malicious Software: Viruses, Worms, Trojan Horse, and Spyware 262 Hackers and Computer Crime 264 Identity Theft 265 Interactive Session: Technology Security at ICICI Bank 267 Software Vulnerability Business Value of Security and Control 270 9

7 Legal and Regulatory Requirements for Electronic Records Management 270 Electronic Evidence and Computer Eorensics Establishing a Framework for Security and Control 272 Information Systems Controls 272 Risk Assessment 272 Security Policy 274 Disaster Recovery Planning and Business Continuity Planning 274 The Role of Auditing 276 1A Technologies and Tools for Protecting Information Resources 276 Access Control 276 Firewalls, Intrusion Detection Systems, and Antivirus Software 277 Securing Wireless Networks 279 Encryption and Public Key Infrastructure 280 Ensuring System Availability 281 Security Issues for Cloud Computing and the Mobile Digital Platform 282 Ensuring Software Quality 283 Interactive Session: Technology How Secure Is the Cloud? Hands-On MIS Projects 285 Management Decision Problems 285 Improving Decision Making: Using Spreadsheet Software to Perform a Security Risk Assessment 286 Improving Decision Making: Evaluating Security Outsourcing Services 287 Learning Tracks 287 Review Summary 287 Key Terms 288 Review Questions 289 Discussion Questions 290 Video Cases 290 Collaboration and Teamwork Evaluating Security Software Tools 290 Business Problem-Solving Case Are We Ready for Cyberwarfare? 291 III Key System Applications for the Digital Age Achieving Operational Excellence and Customer Intimacy: Enterprise Applications 294 Chapter-Opening Case: Enterprise Applications Help Severstal Create a Global Production Platform Enterprise Systems 297 What Are Enterprise Systems? 297 Enterprise Software 298 Business Value of Enterprise Systems Supply Chain Management Systems 300 The Supply Chain 300 Information Systems and Supply Chain Management 301 Supply Chain Management Software 303 Global Supply Chains and the Internet 304 Interactive Session: Technology Procter & Gamble Tries to Optimize Inventory 305 Business Value of Supply Chain Management Systems Customer Relationship Management Systems 309 What Is Customer Relationship Management? 309

8 CRM Software 310 Interactive Session: Organizations Customer Relationship Management Helps Chase Card Services Manage Customer Calls 312 Operational and Analytical CRM 314 Business Value of Customer Relationship Management Systems Enterprise Applications: New Opportunities and Challenges 315 Enterprise Applications Challenges 316 Next-Generation Enterprise Applications Hands-On MIS Projects 319 Management Decision Problems 319 Improving Decision Making: Using Database Software to Manage Customer Service Requests 319 Achieving Operational Excellence: Evaluating Supply Chain Management Services 320 Learning Tracks 320 Review Summary 321 Key Terms 322 Review Questions 322 Discussion Questions 323 Video Cases 323 Collaboration and Teamwork Analyzing Enterprise Application Vendors 323 Business Problem-Solving Case Border States Industries Fuels Rapid Growth witherp E-commerce: Digital Markets, Digital Goods 326 Chapter-Opening Case: Nexon Games: E-Commerce Goes Social E-commerce and the Internet 329 E-commerce Today 329 Why E-commerce Is Different 330 Key Concepts in E-commerce: Digital Markets and Digital Goods in a Global Marketplace 334 Interactive Session: Technology Turner Sports Marries TV and the Internet, then Goes Social E-commerce: Business and Technology 338 Types of E-commerce 338 E-commerce Business Models 339 E-commerce Revenue Models 341 Interactive Session: Organizations Twitter Searches For a Business Model 342 Web 2.0, Social Networking, and the Wisdom of Crowds 345 E-commerce Marketing 346 B2B E-commerce: New Efficiencies and Relationships The Mobile Digital Platform and Mobile E-commerce 351 M-commerce Services and Applications Building an E-commerce Web Site 353 Pieces of the Site-Building Puzzle 353 Business Objectives, System Functionality, and Information Requirements 354 Building the Web Site: In-House Versus Outsourcing Hands-On MIS Projects 356 Management Decision Problems

9 Improving Decision Making: Using Spreadsheet Software to Analyze a Dot-Com Business 357 Achieving Operational Excellence: Evaluating E-commerce Hosting Services 357 Learning Tracks 358 Review Summary 358 Key Terms 359 Review Questions 359 Discussion Questions 360 Video Cases 360 e Collaboration and Teamwork Performing a Competitive Analysis of E-commerce Sites 360 Business Problem-Solving Case Facebook's Dilemma: Profits (Theirs) versus Privacy (Yours) Improving Decision Making and Managing Knowledge 364 Chapter-Opening Case: P&G Moves from Paper to Pixels for Knowledge Management Decision Making and Information Systems 367 Business Value of Improved Decision Making 367 Types of Decisions 368 The Decision-Making Process 369 Quality of Decisions and Decision Making 370 Systems and Technologies for Supporting Decisions Systems for Decision Support 371 Management Information Systems (MIS) 371 Decision-Support Systems (DSS) 372 Interactive Session: People Data-Driven Schools 374 Executive Support Systems (DSS) 379 Group Decision-Support Systems Intelligent Systems for Decision Support 380 Expert Systems 380 Case-Based Reasoning 382 Fuzzy Logic Systems 382 Neural Networks 383 Genetic Algorithms 384 Interactive Session: Technology Al-Bassami's Job is Not Feasible Without IT 385 Intelligent Agents Systems for Managing Knowledge 387 Enterprise-Wide Knowledge Management Systems 388 Knowledge Work Systems Hands-On MIS Projects 393 Management Decision Problems 393 Improving Decision Making: Using Pivot Tables to Analyze Sales Data 393 Improving Decision Making: Using Intelligent Agents for Comparison Shopping 394 Learning Tracks 394 Review Summary 394 Key Terms 396 Review Questions 396 Discussion Questions 397 Video Cases 397

10 Collaboration and Teamwork Designing a University GDSS 397 Business Problem-Solving Case Knowledge Management and Collaboration at Tata Consulting Services 397 IV Building and Managing Systems Building Information Systems and Managing Projects 402 Chapter-Opening Case: A New Ordering System for Girl Scout Cookies Problem Solving and Systems Development 405 Defining and Understanding the Problem 406 Developing Alternative Solutions 407 Evaluating and Choosing Solutions 407 Implementing the Solution Alternative Systems-Building Approaches 411 Traditional Systems Development Lifecycle 411 Prototyping 412 End-User Development 413 Purchasing Solutions: Application Software Packages and Outsourcing 413 Interactive Session: Technology Zimbra Zooms Ahead with One View 415 Rapid Application Development for E-business Modeling and Designing Systems 417 Structured Methodologies 417 Object-Oriented Development 419 Computer-Aided Software Engineering (CASE) Project Management 421 Project Management Objectives 421 Interactive Session: People Kaiser Permanente Botches Its Kidney Transplant Center Project 422 Selecting Projects: Making the Business Case for a New System 423 Managing Project Risk and System-Related Change 427 Managing Projects on a Global Scale Hands-On MIS Projects 431 Management Decision Problems 432 Improving Decision Making: Using Database Software to Design a Customer System for Auto Sales 432 Achieving Operational Excellence: Analyzing Web Site Design and Information Requirements 433 Learning Tracks 433 Review Summary 433 Key Terms 435 Review Questions 435 Discussion Questions 436 Video Cases 436 Collaboration and Teamwork Preparing Web Site Design Specification 436 Business Problem-Solving Case Structured Project Implementation Methodology at Focus 437

11 12 Ethical and Social Issues in Information Systems 440 (available on the Web at Chapter-Opening Case: Ethical Issues Facing the Use of Technologies for the Aged Community Understanding Ethical and Social Issues Related to Systems 443 A Model for Thinking about Ethical, Social, and Political Issues 444 Five Moral Dimensions of the Information Age 445 Key Technology Trends that Raise Ethical Issues Ethics in an Information Society 448 Basic Concepts: Responsibility, Accountability, and Liability 448 Ethical Analysis 448 Candidate Ethical Principles 449 Professional Codes of Conduct 450 Some Real-World Ethical Dilemmas The Moral Dimensions of Information Systems 450 Information Rights: Privacy and Freedom in the Internet Age 450 Property Rights: Intellectual Property 456 Accountability, Liability, and Control 458 System Quality: Data Quality and System Errors 459 Quality of Life: Equity, Access, and Boundaries 460 Interactive Session: People The Perils of Texting: Path to Prison 462 Interactive Session: Management Green IT at Wipro Hands-On MIS Projects 468 Management Decision Problems 468 Achieving Operational Excellence: Creating a Simple Blog 469 Improving Decision Making: Using Internet Newsgroups for Online Market Research 469 Learning Tracks 470 Review Summary 470 Key Terms 471 Review Questions 471 Discussion Questions 472 Video Cases 472 Collaboration and Teamwork Developing a Corporate Ethics Code 472 Business Problem-Solving Case Google Microsoft, and IBM: The Health of Your Medical Records' Privacy 473

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