PART ONE ORGANIZATIONAL FOUNDATIONS OF INFORMATION SYSTEMS 1
PART ONE ORGANIZATIONAL FOUNDATIONS OF INFORMATION SYSTEMS 1
Chapetr 1 The Information Systems Revolution:Transforming Business and Management 2
Chapetr 1 The Information Systems Revolution:Transforming Business and Management 2
InPart Delivers Digital Parts on the Internet 3
The Competitive Business Environment 4
1.1 Why Information Systems? 4
What Is an Information System? 7
Window on Technology:UPS Competes Globally with Information Technology 9
A Business Perspective on Information Systems 10
1.2 Contemporary Approaches to Information Systems 12
Behavioral Approach 13
Approach of this Text:sociotechnical Systems 13
Technical Approach 13
1.3 The New Role of Information Systems in Organizations 14
The Widening Scope of Information Systems 14
The Network Revolution and the Internet 16
New Options for Organizational Design:The Networked Enterprise 18
Window on Management:Asian Netrepreneurs Thrive on the Internet 18
Electronic Commerce and Electronic Business 23
Window on Organizations:Internet Trading Heats Up 24
1.4 Learning to Use Information Systems:New Opportunities with Technology 27
The Challenge of Information Systems:Key Management Issues 27
Integrating Text with Technology:New Opportunities for Leaming 29
Summary 30
Management Wrap-Up 30
Key Terms 31
Review Questions 31
Group Project 31
Tools for Interactive Learning 31
Case Study:Battling Information Overload:A New Business Is Born 32
Chapetr 2 The Strategic Role of Information Systems 34
Chapetr 2 The Strategic Role of Information Systems 34
Orchids Paper Products Moves Back on Course 35
2.1 Key System Applications in the Organization 37
Different Kinds of Systems 38
Six Major Types of Systems 39
Window on Technology:Canadian Oil Companies Make Data Flow 43
Ralationship of Systems to One Another Integration 47
2.2 Information Systems and Business Strategy 48
What Is a Strategic Information System? 48
Business-Level Strategy and the Value Chain Model 49
Window on Organizations:Mining for Profitable Customers 54
Film-Level Strategy and Information Technology 56
Industry-Level Strategy and Information Systems:Competitive Forces and Network Economics 58
Window on Management:British Consumer Companies Pool Their Data 60
2.3 Using Systems for Competitive Advantage:Management Issues 61
Managing Strategic Transitions 61
What Manager Can Do 62
Management Wrap-Up 63
Summary 63
Key Terms 64
Review Questions 64
Group Project 65
Tools for Interactive Learning 65
Case Study:Can Sears Reinvent Itself? 65
Chapetr 3 Information Systems,Organizations,and Business Processes 68
Chapetr 3 Information Systems,Organizations,and Business Processes 68
Schneider Responds to the New Rules of the Trucking Game 69
3.1 The Relationship Between Organizations and Information Systems 71
The Two-Way Relationship 71
What is an Organization 72
3.2 Salient Features of Organizations 73
Why Organizations Are So Much Alike:Common Features 73
Why Organizations Are So Different:Unique Features 75
Business Processes 78
Levels of Analysis 79
3.3 How Organizations Affect Information Systems 80
Decisions About the Role of Information Systems 82
Information Technology Services 82
Why Organizations Build Information Systems 84
Window on Organizations:Euro Currency Conversion Creates a Systems Nightmare 85
3.4 How Information Systems Affect Organizations 86
Economic Theories 86
Behavioral Theories 87
Window on Technology:Oil Companies Go Virtual 88
The Internet and Organizations 90
Window on Management:Learning to Share Knowledge 91
Implications for the Design and Understanding of Information Systems 91
Management Wrap-Up 92
Summary 93
Key Terms 93
Review Questions 93
Case Study:Utilities Deregulation Sparks Big Business Changes 94
Tools for Interactive Learning 94
Group Project 94
Chapetr 4 Information,Management,and Decision Making 96
Chapetr 4 Information,Management,and Decision Making 96
Can Marks and Spencer Spark a Comeback? 97
4.1 What Managers Do 98
Putting Management and Information Systems in Context 98
Three Schools of Management 99
The Technical-Rational Perspective 100
The Behavioral Perspective 101
Window on Technology:Schwab s Managers Turn to the Internet 104
The Cognitive Perspective and Postmodern Era 106
Types of Decisions and Types of Systems 109
4.2 Introduction to Decision Making 109
Types of Decisions:Structured vs.Unstructured 109
Levels of Decision Making 109
Window on Management:Managers Look to the Future 110
Stages of Decision Making 110
4.3 Individual Models of Decision Making 112
The Rational Model 112
Muddling Through 113
Bounded Rationality and Satisficing 113
Psychological Types and Frames of Reference 114
4.4 Organizational Models of Decision Making 115
Bureaucratic Models 115
Window on Organizations:Blockade by the Book 116
Political Models of Organizational Choice 116
Garbage Can Model 116
Traditional and Contemporary Management 117
Implications for System Design 118
Management Wrap-Up 120
Summary 120
Key Terms 121
Review Questions 121
Tools for Interactive Learning 122
Case Study:A Tale of Two Cities Information Systems 122
Group Project 122
Chapetr 5 Ethical and Social Impact of Information Systems 124
Chapetr 5 Ethical and Social Impact of Information Systems 124
Health Files on the Internet:What Price for Convenience? 125
5.1 Understanding Ethical and Social Issues Related to Systems 127
A Model for Thinking about Ethical,Social,and Political Issues 127
Five Moral Dimensions of the Information Age 127
Key Technology Trends That Raise Ethical Issues 128
5.2 Ethics in an Information Society 130
Basic Concepts:Responsibility,Accountability,and Liability 130
Ethical Analysis 130
Candidate Ethical Principles 131
Window on Technology:Are the Cookies Eating Your Privacy? 132
Professional Codes of Conduct 132
Some Real-World Ethical Dilemmas 132
5.3 The Moral Dimensions of Information Systems 134
Information Righsts:Rights:Privacy and Freedom in an Information Society 134
Property Rights:Intellectual Property 136
Window on Management:Did Reuters Steal from Bloomberg? 137
Accountability,Liability,and Control 140
Winddow on Organizations:Employee Guidelines for Using Software 141
System Quality:Data Quality and System Errors 143
Quality of Life:Equity Access,Boundaries 144
Management Actions:A Corporate Code of Ethics 150
Management Wrap-Up 150
Summary 151
Key Terms 151
Review Questions 151
Group Tools for Interactive Learning 152
Case Study:Profiling You! 152
Part One Case Study:Daimler Chrysler and GM:Organization Technology and Business Processes in the U.S.Auto Industry 154
Case Study Questions 159
Chapetr 6 Computers and Information Processing 160
PATR TWO TECHNICAL FOUNDATIONS OF INFORMATION SYSTEMS 160
Chapetr 6 Computers and Information Processing 160
PATR TWO TECHNICAL FOUNDATIONS OF INFORMATION SYSTEMS 160
Navigation Canada Takes Flight With New Computers 161
6.1 What Is a Computer System? 162
How Computers Represent Data 163
Time and Size in the Computer World 164
Computer Generations 165
6.2 The CPU and Primary Storage 166
Primary Storage 166
The Arithmetic-Logic Unit and Control Unit 168
6.3 Computers and Computer Processing 168
Categories of Computers 168
Types of Semiconductor Memory 168
Window on Technology:Mainframes Leam to Serve the Web 170
Microprocessors and Processing Power 171
Computer Networks and Client/Server Computing 173
Network Computers and Total Cost of Ownership 174
Magnetic Disk 175
6.4 Secondary Storage 175
Window on Management:Network Computers:A New Management Option 176
4.5 How Information Technology Has Changed the Management Process 177
Window on Organizations:Selecting Laptop Computers:The Bottom Line for Organizations 177
Optical Disks 178
Magnetic Tape 179
6.5 Input and Output Devices 180
Input Devices 180
Batch and On-Line Input and Processing 182
Output Devices 182
6.6 Information Technology Trends 184
Interactive Multimedia 184
Superchips and Fifth-Generation Computers 185
Smart Cards and Microminiaturization 186
Social Interfaces 187
Management Wrap-Up 187
Summary 188
Key Terms 189
Review Questions 189
Group Project 190
Tools for Interactive Learning 190
Case Study:CheckFree Looks at the Total Cost of Ownership 190
Chapetr 7 Informations Systems Software 192
Chapetr 7 Informations Systems Software 192
Software Helps Norway s National Hospital Deliver Better Care 193
7.1 What is Software? 194
Software Programs 195
Major Types of Software 195
7.2 System Software 196
Functions of the Operating System 196
Multiprogramming,Virtual Storage,Time Sharing,and Multiprocessing 196
Language Translation and Utility Software 198
Graphical User Interfaces 199
PC Operating Systems 200
Window on Organizations:Should Businesses Switch to Linux? 203
7.3 Application Software 203
Generation of Programming Languages 203
Popular Programming Languages 204
Fourth-Generation Languages and PC Software Tools 206
7.4 New Software Tools and Approaches 213
Object-Oriented Programming 213
Java 215
Window on Technology:Banque Generale Luxembourg Competes with Object Technology 216
Hypertext Markup Language(HTML) and XML 217
7.5 Managing Software Assets 217
Software Trends 217
Window on Management:Adding Java to the Programming Mix 218
Software Maitenance and the Year 2000 Problem 219
Selecting Software for the Organization 220
Management Wrap-Up 221
Summary 222
Key Terms 223
Review Questions 223
Group Project 224
Tools for Interactive Learning 224
Case Study:The Year 2000 Problem 224
Chapetr 8 Managing Data Resources 226
Chapetr 8 Managing Data Resources 226
Saab Centralizes Customer Data 227
File Organization Terms and Concepts 229
8.1 Organizing Data in a Traditional File Environment 229
Accessing Records from Computer Files 230
Problems with the Traditional File Environment 233
8.2 The Database Environment 234
Database Management Systems 235
Logical and Physical Views of Data 236
8.3 Designing Databases 237
Hierarchical Data Model 237
Network Data Model 238
Relational Data Model 239
Advantages and Disadvantages of the Three Database Models 239
Creating a Database 241
8.4 Database Trends 242
Distributed Databases 243
Object-Oriented and HyPermedia Databases 244
Multidimensional Data Analysis 245
Window on Technology:La Scala s Multimedia Database 246
Data Warehouses 246
Window on Management:Canned Data Marts on the Rescue 249
Linking Databases to the Web 249
8.5 Management Requirements for Database Systems 250
Data Administration 250
Data Planning and Modeling Methodology 251
Database Technology Management and Users 251
Window on Organizations:DNA Databases:Crime Fighters or Threats to Privacy? 252
Management Wrap-Up 253
Summary 253
Key Terms 254
Review Questions 255
Group Project 255
Tools for Interactive Learning 255
Case Study:The EPA Cleans Up Its Own Mess with a Data Warehouse 256
Chapetr 9 Telecommunications and Networks 258
Chapetr 9 Telecommunications and Networks 258
Manitoba Insurance Goes Wireless 259
9.1 The Telecommunications Revolution 260
The Marriage of Computers and Communications 261
The Information Superhighway 261
Telecommunications System Components 261
9.2 Components and Functions of a Telecommunications System 261
Communications Channels 263
Types of Signals:Analog and Digital 263
Communications Processors and Software 267
Network Topologies 268
9.3 Communications Networks 268
Private Branch Exchanges and Local Area Networks(LANs) 270
Wide Area Networks(WANs),Valued-Added Networks(VANs),and Network Services 271
Enterprise Networking and Standards 274
Window on Organizations:Banco do Brasil Competes with a Multiservice WAN 274
Facilitating Applications 277
9.4 Electronic Commerce and Electronic Business Technologies 277
Window on Management:Monitoring Employees on Networks:Unethical or Good Business? 278
Electronic Data Interchange and Electronic Commerce 281
Window on Technology:Videoconferencing on the Internet 281
9.5 Management Issues and Decisions 282
The Challenge of Managing Enterprise Networking 282
The Telecommunications Plan 284
Management Wrap-Up 286
Summary 286
Key Terms 287
Review Questions 287
Group Project 288
Tools for Interactive Learning 288
Case Study:State Street Banks on Networks to Stay Competitive 288
Chapetr 10 The Internet:Electronic Conmerce and Electronic Business 290
Chapetr 10 The Internet:Electronic Conmerce and Electronic Business 290
Tiny Firms Become Intermational Giants on the Internet 291
10.1 The Internet 292
What is the Internet? 292
Internet Technology and Capabilities 293
The World Wide Web 296
Intranets and Extranets 298
Internet Benefits to Organizations 299
10.2 The Internet and Electronic Commerce 302
Internet Business Models 302
Customer-Centered Retailing 305
Window on Technology:Interacting with the Customer 307
Business-to-Business Electronic Commerce:New Efficiencies and Relationships 307
Electronic Commerce Support Systems 310
10.3 Intranets and Electronic Business 311
How Intranets Support Electronic Business 311
Intranets and Group Collaboration 312
Intranet Applications for Electronic Business 313
Coordination and Supply Chain Management 315
Window on Organizations:The Supply Chain Goes Global 317
10.4 Management Challenges and Opportunities 317
Unproven Business Models 317
Technology Hurdles 318
Business Process Change Requirements 318
Window on Management:Avoiding Channel Conflict 319
Legal Issues 320
Security and Privacy 320
Management Wrap-Up 321
Summary 321
Key Terms 322
Review Questions 322
Group Project 322
Tools for Interactive Learning 323
Case Study:Bidding the Profits of Web Companies Lower 323
Part Two Case Study:Amazon.com versus Barnes Noble:The Battle of the Bookstores 326
PART THREE BUILDING INFORMATION SYSTEMS:CONTEMPORARY APPROACHES 330
Chapetr 11 Redesigning the Organization with Information Systems 330
PART THREE BUILDING INFORMATION SYSTEMS:CONTEMPORARY APPROACHES 330
Chapetr 11 Redesigning the Organization with Information Systems 330
Grupo Financiero Bital Moves to Private Banking Systems 331
11.1 Systems as Planned Organizational Change 333
Window on Organizations:How a Call Center Changed a Company 333
Linking Information Systems to the Business Plan 334
Establishing Organizational Information Requirements 334
11.2 Systems Development and Organizational Change 338
The Spectrum of Organizational Change 338
Business Process Reengineering 340
Window on Technology:Redesigning with the Intermet 341
Process Improvement and Total Quality Management(TQM) 344
11.3 Overview of Systems Development 346
Systems Analysis 347
System Design 348
Completing the Systems Development Process 351
11.4 Understanding the Business Value of Information Systems 353
Capital Budgeting Models 354
Case Example:Primrose,Mendelson,and Hansen 356
Nonfinancial and Strategic Considerations 361
Window on Management:Extranet ROIs:Figuring the Payback 362
Management Wrap-Up 363
Summary 364
Key Terms 364
Review Questions 365
Group Project 365
Tools for Interactive Learning 365
Case Study:Greasing Mobil s Orders 366
Chapetr 12 Approaches to Systems-Building 368
Chapetr 12 Approaches to Systems-Building 368
Euro Brokers Lures New Clients on the Net 369
12.1 The Traditional Systems Lifecycle 370
Stages of the Systems Lifecycle 371
Limitations of the Lifecycle Approach 372
12.2 Alternative System-Building Approaches 372
Prototyping 372
Application Software Packages 374
Window on Technology:Enterprise Resource Planning Systems:Benefits and Headaches 377
End-User Development 377
Outsourcing 381
Window on Management:VISA s Outsourcing Triumph 382
12.3 System-Building Methodologies and Tools 383
Structured Methodologies 383
Object-Oriented Software Development 388
Computer-Aided Software Engineering(CASE) 389
Rapid Application Development(RAD) 391
Software Reengineering 391
Window on Organizations:Gulf Canada Refines Budgeting with Object-Oriented Software 392
Management Wrap-Up 393
Summary 393
Key Terms 394
Review Questions 395
Group Project 395
Tools for Interactive Learning 395
Case Study:Can a German Software Giant Provide Enterprise Solutions? 396
Chapetr 13 System Success and Failure:Implementation 398
Chapetr 13 System Success and Failure:Implementation 398
Lights Go Out for Washington State s LAMP Project 399
13.1 Information System Failure 400
Information System Problem Areas 401
Window on Organizations:Facing Up to ERP Software 402
Measuring System Success 403
13.2 Causes of Information System Success and Failure 404
The Concept of Implementation 404
Causes of Implementation Success and Failure 406
Window on Management:Are the Users Involved in Your Project? 408
Window on Technology:Boston Tunnel s Data Gridlock 410
The Challenge of Business Process Reengineering(BPR)and Enterprise Planning(ERP) 412
The Implementation Process:What Can Go Wrong 413
13.3 Managing Implementation 414
Controlling Risk Factors 414
Designing for the Organization 418
Sociotechnical Design 419
Summary 420
Management Wrap-Up 420
Key Terms 421
Review Questions 421
Group Project 421
Tools for Interactive Learning 422
Case Study:Healtheon s Healthcare System Struggle 422
Part Three Case Study:System Modernization at the Social Security Administration 424
PART FOUR MANAGEMENT AND ORGANIZATIONAL SUPPORT SYSTEMS 432
Chapetr 14 Managing Knowledge 432
Chapetr 14 Managing Knowledge 432
PART FOUR MANAGEMENT AND ORGANIZATIONAL SUPPORT SYSTEMS 432
Shell Wakes Up with Knowledge Management 433
14.1 Knowledge Management in the Organizaion 434
Information Systems and Knowledge Management 435
Knowledge Work and Productivity 435
14.2 Information and Knowledge Work Systems 436
Distributing Knowledge:Office and Document Management Systems 437
Window on Management:Managing Building Projects with the Internet 439
Creating Knowledge:Knowledge Work Systems 440
Sharing Knowledge:Group Collaboration Systems and Intranet Knowledge Environments 442
What Is Artificial Intelligence? 444
14.3 Artificial Intelligence 444
Window on Organizations:Multimedia Education for Learning Organizations 445
Why Business Is Interested in Artificial Intelligence 446
Capturing Knowledge:Expert Systems 446
Organizational Intelligence:Case-Based Reasoning 451
Neural Networks 453
14.4 Other Intelligent Techniques 453
Window on Technology:Case-Based Reasoning Teams Up with Intranets 454
Fuzzy Logic 456
Genetic Algorithms 458
Intelligent Agents 460
Summary 462
Management Wrap-Up 462
Key Terms 463
Review Questions 463
Group Project 464
Tools for Interactive Learning 464
Case Study:Booz,Allen s Quest for Knowledge Management 464
Chapetr 15 Enhancing Management Decision Making 466
Chapetr 15 Enhancing Management Decision Making 466
Foiling Bad Forecasts with a DSS 467
15.1 Decision-Support Systems(DSS) 468
Types of Decision-Support Systems 469
DSS and MIS 469
Components of DSS 471
Examples of DSS Applications 472
Window on Technology:Utilizing Barclay s Bulging Data Warehouse 475
Web-Based DSS 476
Window on Organizations:Bond Network:A Web-Based Financial DSS 478
15.2 Group Decision-Support Systems(GDSS) 478
What Is a GDSS? 478
Characteristics of GDSS 479
GDSS Software Tools 480
How GDSS Can Enhance Group Decision Making 482
15.3 Executive Support Systems(ESS) 483
The Role of ESS in the Organization 484
Developing ESS 484
Benefits of ESS 485
Window on Management:Netting Information on Your Competition 485
Example of ESS 486
Management Wrap-Up 488
Summary 488
Key Terms 489
Review Questions 489
Group Project 490
Tools for Interactive Learning 490
Case Study:Premier Inc.Learns to Make Healthier Decisions 490
Part Four Case Study:Can Boeing Fly High Again? 492
PART FIVE MANAGING CONTEMPORARY INFORMATION SYSTEMS 496
Chapetr 16 Information Systems Security and Control 496
PART FIVE MANAGING CONTEMPORARY INFORMATION SYSTEMS 496
Chapetr 16 Information Systems Security and Control 496
Why Systems Are Vulnerable 498
16.1 System Vulnerability and Abuse 498
Window on Organizations:Internet Hackers on the Rise 500
Concerns for System Builders and Users 501
Window on Management:Disaster Recovery in the Information Age 502
System Quality Problems:Software and Data 503
General Controls 506
16.2 Creating a Control Environment 506
Application Controls 509
Security and the Internet 511
Window on Technology:Building a Security Infrastructure for Electronic Commerce 515
Developing a Control Structure:Costs and Benefits 516
The Role of Auditing in the Control Process 517
16.3 Ensuring System Quality 518
Software Quality Assurance 518
Data Quality Audits 519
Management Wrap-Up 520
Summary 520
Key Terms 521
Review Questions 521
Tools for Interactive Learning 522
Group Project 522
Case Study:Did the FAA Fly Off Course? 522
Chapetr 17 Managing International Information Systems 526
Chapetr 17 Managing International Information Systems 526
Kellogg Seeks Global Coordination 527
17.1 The Growth of International Information Systems 528
Developing the International Information Systems Infrastructure 529
The Global Environment:Business Drivers and Challenges 530
Window on Organizations:Marine Power Europe s Extranet Challenge 533
17.2 Organizing International Information Systems 534
Global Strategies and Business Organization 534
State of the Art 534
Global Systems to Fit the Strategy 536
17.3 Managing Global Systems 537
A Typical Scenario:Disorganization on a Global Scale 537
Reorganizing the Business 537
Strategy:Divide Conquer Appease 538
Implementation Tactics:Cooptation 540
17.4 Technology Issues and Opportunities 541
Main Technical Issues 541
The Management Solution 541
Window on Management:Developing an International Web Strategy 544
Window on Technology:Virtual Private Networks to the Rescue 546
New Technical Opportunites and the Internet 547
Management Wrap-Up 548
Summary 548
Group Project 549
Review Questions 549
Tools for Interactive Learning 549
Key Terms 549
Case Study:Pirelli s Drive Toward a Global Strategy 550
Managing Firm Infrastructure and Enterprise Systems 552
Chapetr 18 Managing Firm Infrastructure and Enterprise Systems 552
Coca-Cola Creates an Extended Enterprise 553
18.1 Managing IT Infrastructure and Architecture:Enterprise Computing 555
Basic Concepts of Enterprise Computing 556
Industrial Networks and Transenterprise Systems 558
Business Drivers:The Changing Business Environment 559
Technology Drivers:The New Networked Environment 562
An Ideal Model of Enterprise Computing 562
18.2 Managing the New IT Infrastructure 563
Elements of the New IT Infrastructure 563
Window on Technology:Harley-Davidson Fights Back with its IT Infrastructure 563
Key Infrastructure Decisions 565
Connecting Infrastructure to Strategy:Governance 567
Dealing with Mergers and Acquisitions 567
Window on Management:Bank Mergers:More Than Meets the Eye 569
Enterprise Systems:The Vision 570
18.3 Enterprise Systems 570
Enterprise Systems:The Reality 571
18.4 Industrial Networks and Extended Enterprise Systems 573
Window on Organizations:Extending the Supply Chain 574
Industrial Networks:The Vision 574
Industrial Networks:The Reality 576
Steps to Building and Managing Enterprise Systems and Industrial Networks 577
Management Wrap-Up 579
Summary 579
Key Terms 580
Review Questions 580
Group Project 580
Tools for Interactive Learning 581
Case Study:Using a Shoehorn to Fit in an ERP System 581
Part Five Case Study:When Two Titans Merge:Management,Organization,and Technology Challenges at Citigroup 584