Information Systems Perspective 1. An Introduction to Information Systems in Organizations 2
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1 Contents Preface Information Systems Perspective 1 An Introduction to Information Systems in Organizations 2 Spain 3 Information Concepts 5 Data, Information, and Knowledge 5 The Characteristics of Valuable Information 7 The Value of Information 7 What Is an Information System? 8 Input, Processing, Output, Feedback 8 Computer-Based Information Systems 10 Ethical & Societal Issues: How Much Privacy for Your Data? 15 Business Information Systems 18 Electronic and Mobile Commerce 18 Enterprise Systems: Transaction Processing Systems and Enterprise Resource Planning 20 Information and Decision Support Systems 21 Specialized Business Information Systems: Knowledge Management, Artificial Intelligence, Expert Systems, and Virtual Reality 23 Systems Development 26 Systems Investigation and Analysis 26 Systems Design, Implementation, and Maintenance and Review 27 Information Systems in Society 27 Organizations and Information Systems 28 Organizational Culture and Change 30 User Satisfaction and Technology Acceptance 31
2 Competitive Advantage 31 Factors That Lead Firms to Seek Competitive Advantage 31 Strategic Planning for Competitive Advantage 32 Performance-Based Information Systems 35 Productivity 35 Return on Investment and the Value of Information Systems 36 Risk 38 Careers in Information Systems 38 Intormation Work: Profile of a CIO: Bringing Technology to Health Care 39 Roles, Functions, and Careers in IS 41 Typical IS Titles and Functions 43 Other IS Careers 45 Finding a Job in IS 45 Global Challenges in Information Systems 47 CASE ONE: Business Before Technology at Campbell's Soup 54 CASE TWO: Shoes Plus Information: A Winning Formula 55 PART 2 Technology 61 Hardware and Software 62 Deutsche Bank, Germany 63 Computer Systems: Integrating the Power of Technology 64 Hardware Components 65 Processing and Memory Devices: Power, Speed, and Capacity 66 Processing Characteristics and Functions 66 Memory Characteristics and Functions 66 Multiprocessing 67 Secondary Storage and Input and Output Devices 68 Access Methods 69 Secondary Storage Devices 69 Input Devices 74 Digital Cameras 75 Cards 77 Output Devices 78 Computer System Types 82 Portable Computers 82 Nonportable Single-User Computers 84 Multiple-User Computer Systems 85 Information Work: Build Your Own 87 Green Computing 88 Overview of Software 88 Supporting Individual, Group, and Organizational Goals 89 Installing and Removing New Software 90 Systems Software 90 Operating Systems 90 Current Operating Systems 94 Workgroup Operating Systems 97 Enterprise Operating Systems 98 Operating Systems for Small Computers, Embedded Computers, and Special-Purpose Devices 99
3 Utility Programs 100 Middleware 101 Application Software 101 Types and Functions of Application Software 102 Personal Application Software 104 Mobile Application Software 109 Workgroup Application Software 110 Enterprise Application Software 110 Ethical & Societal Issues: Software Controls Nuclear Power Plants 112 Application Software for Information, Decision Support, and Specialized Purposes 114 Programming Languages Software Issues and Trends 114 Software Bugs Copyrights and Licenses Software Upgrades Global Software Support CASE ONE: Serving Up Football 122 CASE TWO: Your Next Car on a Tablet 123 Database Systems, Data Centers, and Business Intelligence 128 South Africa 129 Data Management 131 The Hierarchy of Data Data Entities, Attributes, and Keys 132 Data Centers, Data Modeling, and Database Characteristics 134 Data Center 134 Data Modeling 136 The Relational Database Model 137 Database Management Systems Overview of Database Types 140 Providing a User View 141 Creating and Modifying the Database 142 Storing and Retrieving Data 143 Manipulating Data and Generating Reports 144 Database Administration 147 Popular Database Management Systems 148 Database Virtualization 149 Special-Purpose Database Systems 149 Using Databases with Other Software 150 Information Work: Managing the Database: It Can't 151 Database Applications 152 Big Data Applications 152 Ethical & Societal Issues: HanaTour Strengthens Database Security 153 Linking the Company Database to the Internet and Mobile Devices 155 Data Warehouses, Data Marts, and Data Mining 155 Distributed Databases 159 Object-Relational Database Management Systems 161 Visual, Audio, and Other Database Systems l6l CASE ONE: Helping Marines and Sailors to Quit Smoking 168 CASE TWO: The Giants, the Pats, the Money, and the Tweets 169
4 Telecommunications, the Internet, Intranets, and Extranets 172 Nethope, United States 173 An Overview of Telecommunications 175 Channel Bandwidth 176 Communications Media 176 3G Wireless Communications 181 Growth in Wireless Data Traffic 182 Telecommunications Hardware 182 Networks and Distributed Processing 184 Network Types 185 Distributed Processing 186 Client/Server Systems 187 Telecommunications Software 188 Use and Functioning of the Internet 188 How the Internet Works 190 Cloud Computing 194 Ethical & Societal Issues: Bringing High-Speed Internet to Poland 195 The World Wide Web 197 How the Web Works 197 Web Programming Languages 200 Web Services 201 Developing Web Content and Applications 201 Internet and Web Applications 202 Web 2.0 and the Social Web 203 Online Information Sources 205 Search Engines and Web Research 207 Information Work: Improved Insight via Clickstream Analysis 209 Web Portals Blogging and Podcasting Online Media and Entertainment Shopping Online 219 Travel, Geolocation, and Navigation 221 Internet Utilities 223 Intranets and Extranets 223 CASE ONE: No More Wires in the Dorms at the University ot Massachusetts Amherst 232 CASE TWO: Amanda Palmer Kickstarts Business Information Systems 237 Electronic and Mobile Commerce and Enterprise Systems 238 Group, Holland 239 An Introduction to Electronic Commerce 240 Business-to-Business E-Commerce 240 E-Commerce 241 Consumer-to-Consumer E-Commerce 242 e-government 242
5 Mobile Commerce 243 Mobile Commerce in Perspective 243 Electronic and Mobile Commerce Applications 244 Retail and Wholesale 244 Manufacturing 245 Marketing 246 Advertising 247 Bartering 247 Investment and Finance 249 Banking 249 E-Boutiques 250 Advantages of Electronic and Mobile Commerce 251 E-Commerce and M-Commerce Technology Infrastructure 251 Hardware 251 Information Work: E-Commerce Web Sites: They Only Work If They Work 252 Web Server Software 253 E-Commerce Software 254 Mobile Commerce Hardware and Software 254 Electronic Payment Systems 254 An Overview of Transaction Processing Systems 257 Traditional Transaction Processing Methods and Objectives 258 Transaction Processing Activities 260 Data Collection 261 Data Editing 262 Data Correction 262 Data Manipulation 262 Data Storage 263 Document Production 263 Traditional Transaction Processing Applications 263 Transaction Processing Systems for Entrepreneurs and Small and Medium-Sized Enterprises 264 Enterprise Resource Planning 264 An Overview of Enterprise Resource Planning 266 Advantages of ERP 266 Challenges in Implementing ERP Systems 268 Leading ERP Systems 269 Supply Chain Management (SCM) 270 Financial and Managerial Accounting 271 Customer Relationship Management 272 Product Lifecycle Management (PLM) 274 Ethical & Societal Issues: Kick-Starting a Small Nonprofit with Online Fundraising 275 Hosted Software Model for Enterprise Software 276 CASE ONE: Moves to the Cloud 283 CASE TWO: Kerry Group Is on Your Table 284 Information and Decision Support Systems 288 Irish Life, Ireland 289 Decision Making and Problem Solving 290 Decision Making as a Component of Problem Solving 290 Programmed versus Nonprogrammed Decisions 292
6 Optimization, Satisficing, and Heuristic Approaches 293 The Benefits of Information and Decision Support Systems 294 An Overview of Management Information Systems 295 Management Information Systems in Perspective 295 Inputs to a Management Information System 296 Outputs of a Management Information System 297 Characteristics of a Management Information System 299 Functional Aspects of the MIS 299 Financial Management Information Systems 300 Manufacturing Management Information Systems 303 Marketing Management Information Systems 306 Human Resource Management Information Systems 311 Other Management Information Systems 313 Ethical & Societal Issues: You Want to Put That Where? 315 An Overview of Decision Support Systems 316 Characteristics of a Decision Support System 317 Capabilities of a Decision Support System 318 A Comparison of DSS and MIS 319 Components of a Decision Support System 320 The Database 320 The Model Base 321 The User Interface, or Dialogue Manager 322 Information Work: Decision Support Technology 323 Group Support Systems 324 Characteristics of a GSS That Enhance Decision Making 325 GSS Hardware and Software Tools 328 GSS Alternatives 329 Executive Support Systems 330 Executive Support Systems in Perspective 331 Capabilities of Executive Support Systems 331 CASE ONE: Not Just Fun and Games 339. CASE TWO: Mando: Inventory Management and More 339 Knowledge Management and Specialized Information Systems 344 Repsol, Spain 345 Knowledge Management Systems 346 Overview of Knowledge Management Systems 347 Data and Knowledge Management Workers and Communities of Practice 348 Obtaining, Storing, Sharing, and Using Knowledge 349 Technology to Support Knowledge Management 349 An Overview of Artificial Intelligence 351 Artificial Intelligence in Perspective 352 The Nature of Intelligence 352 The Brain Computer Interface 354 The Major Branches of Artificial Intelligence 354 Expert Systems 355 Robotics 355 Ethical & Societal Issues: To School by Remote Control 356 Information Work: Allied Vision Technologies Is Watching the Pavement 359
7 Vision Systems 360 Natural Language Processing and Voice Recognition 360 Learning Systems Neural Networks 361 Other Artificial Intelligence Applications 361 An Overview of Expert Systems 362 Components of Expert Systems 363 The Inference Engine 365 The Explanation Facility 365 The Knowledge Acquisition Facility 365 The User Interface 366 Participants in Developing and Using Expert Systems 366 Expert Systems Development Tools and Techniques 367 Multimedia and Virtual Reality 368 Overview of Multimedia 368 Overview of Virtual Reality 372 Interface Devices 372 Forms of Virtual Reality 373 Virtual Reality Applications 374 Specialized Systems 376 CASE ONE: Google and BMW Train Cars to Drive Themselves 384 CASE TWO: Knowledge Management Improves Customer Support at Canon Systems Development and Social Issues Systems Development 390 Practice Plan, United Kingdom 391 An Overview of Systems Development 392 Participants in Systems Development 392 Individual Systems Developers and Users 394 Ethical & Societal Issues: Privacy by Design at Hydro One 396 Information Systems Planning and Aligning Corporate and IS Goals 397 Systems Development Life Cycles and Approaches 398 The Traditional Systems Development Life Cycle 398 Prototyping 399 Rapid Application Development, Agile Development, and Other Systems Development Approaches 399 Outsourcing, On-Demand Computing, and Cloud Computing 402 Mobile Application Development 403 Factors Affecting Systems Development Success 404 Degree of Change 404 The Importance of Planning 404 Use of Project Management Tools 405 Object-Oriented Systems Development 407 Systems Investigation 408 Initiating Systems Investigation 408 Feasibility Analysis 408 Object-Oriented Systems Investigation 409 The Systems Investigation Report 409 Systems Analysis 410 Data Collection 410
8 Data Analysis Requirements Analysis 414 Object-Oriented Systems Analysis 415 The Systems Analysis Report 416 Systems Design 416 Logical and Physical Design 417 Object-Oriented Design 417 Environmental Design Considerations 418 Generating Systems Design Alternatives 420 The Design Report 422 Systems Implementation 422 Acquiring Hardware from an IS Vendor 422 Acquiring Software: Make or Buy? 424 Acquiring Database and Telecommunications Systems 424 Information Work: implementation: about People, Too 425 User Preparation 426 IS Personnel: Hiring and Training 427 Site Preparation 427 Data Preparation 427 Installation 427 Testing 427 Start-Up 427 User Acceptance 429 Systems Operation and Maintenance 429 Systems Review 430 System Performance Measurement 430 CASE ONE: Requirements Tracking at Honeywell Technology Solutions 437 CASE TWO: COBOL: Not Going Away Anytime Soon Information Systems in Business and Society The Personal and Social Impact of Computers 444 Bredolab Botnet, Russia 445 Computer Waste and Mistakes 446 Computer Waste 446 Computer-Related Mistakes 447 Preventing Computer-Related Waste and Mistakes 448 Establishing Policies and Procedures 448 Implementing Policies and Procedures 449 Monitoring Policies and Procedures 449 Reviewing Policies and Procedures 450 Computer Crime 450 The Computer as a Tool to Commit Crime Identity Theft 452 Ethical & Societal Issues: Identity Theft and Gaming Consoles Internet Gambling 455 The Computer as a Tool to Fight Crime 455 Recovery of Stolen Property 455
9 Monitoring Criminals 456 Assessing Crime Risk for a Given Area 456 The Computer as the Object of Crime 457 Illegal Access and Use 457 Spyware 459 Information and Equipment Theft 459 Patent and Copyright Violations 460 Computer-Related Scams 463 International Computer Crime 463 Preventing Computer-Related Crime 464 Crime Prevention by State and Federal Agencies 464 Crime Prevention by Corporations 464 Crime Prevention for Individuals and Employees 468 Privacy Issues 471 Privacy and the Federal Government 471 Privacy at Work 471 Privacy and 471 Privacy and Instant Messaging 472 Privacy and Personal Sensing Devices 472 Privacy and the Internet 472 Information Work: Keeping on Target 473 Privacy and Internet Libel Concerns 475 Privacy and Fairness in Information Use 475 Privacy and Filtering and Classifying Internet Content 476 Electronic Communications Privacy Act 477 Individual Efforts to Protect Privacy 480 The Work Environment 481 Health Concerns 481 Avoiding Health and Environmental Problems 481 Ethical Issues in Information Systems 483 CASE ONE: Fletcher Allen Health Care Deals with Another Kind of Virus 490 CASE TWO: Security Monitoring and Big Data 491 Glossary 495 Subject Index 503 Company Index
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