Management

Information Systems
Eleventh Edition

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MIS-11e_Prelims.indd 2 11/27/2018 1:10:59 PM
 Management
Information Systems
Eleventh Edition

Ramesh Behl
International Management Institute
Bhubaneswar & Delhi

James A. O’Brien
College of Business Administration
Northern Arizona University

George M. Marakas
KU School of Business
University of Kansas

McGraw Hill Education (India) Private Limited

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 McGraw Hill Education (India) Private Limited

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 With Love,
To my family members for their continuous support.
Ramesh Behl

Dedicated to our families and our friends. You make everything possible.
James A. O’Brien
George M. Marakas

The world of information systems presents new and exciting challenges each and every day.
Creating a textbook to capture this world is a formidable task, to be sure. This, the 11th edition
of Management Information Systems, represents the best we have to offer. We take pride in
delivering this new edition to you, and we thank all of you for your loyalty to the book and the
input you provided was instrumental in its development. Your continued support fills us with joy
and a sense of accomplishment and contribution. Please accept our sincere appreciation for your
support and loyalty. As always, we hope you enjoy and benefit from this book.
Ramesh Behl
James A. O’Brien
George M. Marakas

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 About the Authors

Ramesh Behl is the Director and Professor at International Management Institute (IMI),
Bhubaneswar and a full Professor at IMI Delhi. Prof. Ramesh Behl is credited with building
and transforming IMI Bhubaneswar to an institution of national importance. Prof. Behl is a
United Nations fellow on Information Systems and International Operations and a SAP
Certified International Consultant.
His teaching expertise includes Business Analytics, Enterprise Systems and Emerging
Technologies. In addition to teaching, Prof. Behl is an active researcher in the area of
eBusiness and Business Analytics. He has also designed and developed a number of software
for various industry applications. Prof. Behl has over thirty-two years of teaching, research
and consulting experience; and has worked with premier institutions like Indian Institute of
Foreign Trade (IIFT), New Delhi, Indian Institute of Management (IIM), Lucknow and
Statesman New Delhi. He has done a number of research and consulting assignments for government and private
organizations in the areas of Information Systems and International Trade. He has authored 22 books, 20 case studies
and number of research papers. He was also the member of Core Group on Electronic Commerce set-up by Ministry of
Commerce, Government of India.
Prof. Ramesh Behl is an international accredited Professor of International Accreditation Organization, USA. He is
on the board of leading Business Schools and Technology Companies. Prof. Behl has conducted corporate trainings and
trained over 8000 mid and senior level executives. He has also conducted training workshops for the faculties and
students of various international universities in Singapore, Indonesia, Thailand, Hong Kong, Australia, China, Germany
and Korea. He has received accolades and significant recognition as a demonstration of his leadership qualities and
innovations such as “Outstanding Academic Award 2010” from SAP Inc.; “Best Professor in Information Technology” as
part of Asia’s Best B-School Awards presented by CMO Asia at Singapore in July, 2011; “Best Professor in Information
Technology Management” as part of 21st Dewang Mehta Business School Awards in October, 2013; “Rashtriya Jewels
Award” and “Shining Achievers Award” in January, 2015.

James A. O’Brien was an adjunct professor of Computer Information Systems in the College
of Business Administration at Northern Arizona University. He completed his undergraduate
studies at the University of Hawaii and Gonzaga University and earned an MS and PhD in
Business Administration from the University of Oregon. He was professor and coordinator of
the CIS area at Northern Arizona University, professor of Finance and Management
Information Systems and chairman of the Department of Management at Eastern Washington
University, and a visiting professor at the University of Alberta, the University of Hawaii, and
Central Washington University.
Dr. O’Brien’s business experience included working in the Marketing Management
Program of the IBM Corporation, as well as serving as a financial analyst for the General
Electric Company. He is a graduate of General Electric’s Financial Management Program.
He also served as an information systems consultant to several banks and computer services firms.
Jim’s research interests were in developing and testing basic conceptual frameworks used in information systems
development and management. He wrote eight books, including several that have been published in multiple editions, as
well as in Chinese, Dutch, French, Japanese, and Spanish translations. He also contributed to the field of information
systems through the publication of many articles in business and academic journals, as well as through his participation
in academic and industry associations in the field of information systems.

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 About the Authors vii

George M. Marakas is a professor of Information Systems at the School of Business at the

University of Kansas. His teaching expertise includes Systems Analysis and Design,
Technology-Assisted Decision Making, Electronic Commerce, Management of IS Resources,
Behavioral IS Research Methods, and Data Visualization and Decision Support. In addition,
George is an active researcher in the area of Systems Analysis Methods, Data Mining and
Visualization, Creativity Enhancement Conceptual Data Modeling, and Computer Self-
Efficacy.
George received his PhD in Information Systems from Florida International University in
Miami and his MBA from Colorado State University. Prior to his position at the University
of Kansas, he was a member of the faculties at the University of Maryland, Indiana University,
and Helsinki School of Economics. Preceding his academic career, he enjoyed a highly
successful career in the banking and real estate industries. His corporate experience includes senior management
positions with Continental Illinois National Bank and the Federal Deposit Insurance Corporation. In addition, George
served as president and CEO for CMC Group Inc., a major RTC management contractor in Miami, Florida, for three
years. Throughout his academic career, George has distinguished himself both through his research and in the classroom.
He has received numerous national teaching awards, and his research has appeared in the top journals in his field. In
addition to this text, he is the author of three best-selling textbooks on information systems: Decision Support Systems for
the 21st Century; Systems Analysis and Design: An Active Approach; and Data Warehousing, Mining, and Visualization: Core
Concepts.
Beyond his academic endeavors, George is also an active consultant and has served as an advisor to a number of
organizations, including the Central Intelligence Agency, Brown & Williamson, the Department of the Treasury, the
Department of Defense, Xavier University, Citibank Asia-Pacific, Nokia Corporation, Professional Records Storage Inc.,
and United Information Systems. His consulting activities are concentrated primarily on e-commerce strategy, the
design and deployment of global IT strategy, workflow reengineering, e-business strategy, and ERP and CASE tool
integration.
George is also an active member of a number of professional IS organizations and an avid golfer, a motorcyclist, a
second-degree Black Belt in Tae Kwon Do, a PADI master scuba diver trainer and IDC staff instructor, and a member of
Pi Kappa Alpha fraternity.

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 Distinctive Features

A Business and Managerial Perspective

The Eleventh Edition is designed for business and engineering students who are or who will soon become business
professionals in today’s fast-changing business world. The goal of this text is to help students at all levels to learn how to
use and manage information technologies to revitalize business processes, improve business decision making, and gain
competitive advantage. Thus, it places a major emphasis on up-to-date coverage of the essential role of Internet
technologies in providing a platform for business, commerce, and collaboration processes among all business stakeholders
in today’s networked enterprises and global markets. This is the business and managerial perspective that this text brings
to the study of information systems. This edition:
l Brings a greater number of integrated Real World Cases, in-depth examples (both from Indian and International
markets), and opportunities to learn about real people and companies in the business world (Real World Activities,
Case Study Questions, Discussion Questions, and Analysis Exercises).
l Organizes the text around a simple Four-area Information Systems Framework that emphasizes on the Informa-
tion Systems’ knowledge a business professional needs to know.
l Places a major emphasis on the strategic role of information technology in providing business professionals with
tools and resources for managing business operations, supporting decision making, enabling enterprise collaboration,
and gaining competitive advantage.

Modular Structure of the Text

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 An Information Systems
Framework

Foundation Concepts Business Applications

Fundamental business information How businesses use emerging
system concepts, including technology technologies like Internet, AI, Cognitive
trends, components, and role of Sciences and other information
information systems are covered in technologies to support their business
Chapter 1. Competitive advantage processes, e-business, and e-commerce
concepts and their initiatives, and business
applications are covered decision making (Chapters
in Chapter 2 along with 3, 4, 5, and 6).
selective coverage of
relevant behavioral,
managerial, and Foundation Business
technological concepts. Concepts Applications

Information
Systems

Development
Information
&
Technology
Security
Infrastructure
Challenges

Development Information
& Security Technology
Challenges Infrastructure
Developing and implementing business/ Includes major concepts, developments, and
IT strategies and systems using several managerial issues involved in computer hardware,
strategic planning and application software, telecommunications networks, cloud
development approaches (Chapter 10). computing, data resource management technologies,
The challenges of business/IT data warehousing, data mining, 3D printing and
technologies and strategies, including other technologies (Chapters 7, 8, and 9).
security and ethical challenges and global
IT management (Chapters 11 and 12).

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 Real World Examples

4 Management Information Systems

CASE 1

REAL WORLD
eCourier, CableCom, and bryan Cave: delivering value through
business intelligenCe

V isitors to the eCourier Web site are greeted with the words “How happy are you? Take the eCourier happy test to-
day!” Those words and the playful purple Web site represent the company’s customer satisfaction focus. And the
company achieves that happiness through its focus on operational business intelligence.
Business intelligence is moving out of the ivory tower of specialized analysts and is being brought to the front lines.
Real World Cases In the case of eCourier, whose couriers carry 2,000 packages around London each day, operational business intelligence
allows the company to keep real-time tabs on customer satisfaction. “This is a crucial differentiator in London’s
competitive same-day courier market, where clients are far more likely to take their business elsewhere than they are to
Each chapter has minimum Six report a problem to their current courier,” says the company’s chief technology officer and cofounder Jay Bregman.
Real World Cases and number Just one online directory, London Online, shows about 350 listings for courier services.
Before implementing operational business intelligence, eCourier
of case examples that illustrates sought to define IT as a crucial differentiator. Cofounders Tom Allason, FIGURE 1.1
how prominent businesses and eCourier’s CEO, and Bregman ditched the idea of phone dispatchers and
instead gave their couriers GPS-enabled handhelds so that couriers can be
organizations have attempted tracked and orders can be communicated electronically. They also focused
to implement the theoretical on making online booking easy and rewarding, and much was invested in
user-friendly applications: Customers can track online exactly where their
concepts students have just courier is, eliminating the package delivery guesswork.
Today, 95 percent of deliveries are booked online; this means that
learned. eCourier needs a much smaller staff for monitoring, tracking, and placing
orders, which in turn makes the company more scalable. Bregman says
this is notable in a market where many courier companies use telephone
dispatchers and guesswork about package whereabouts. Booking and
tracking automation—although innovative—did not complete the
customer happiness puzzle. Without leading-edge business intelligence, Access to quality information about customers helps
account managers could miss the same issues that plagued other courier companies succeed at delivering value to shareholders.
services—late deliveries, surly couriers, or even an unnoticed ramp-up in Source: © Digital Vision/Alamy.
deliveries. “We’re only one delivery away from someone deciding to use
a different delivery firm,” says Bregman.
So eCourier started to use software from a company called SeeWhy to try to generate customer data more quickly. “What’s
unique about SeeWhy,” says Bregman, “is its ability to report what’s happening with customers instantly.” When a new booking
enters eCourier’s database, the information is duplicated and saved into a repository within SeeWhy. The software then interprets the
data by comparing it with previous information and trends, and if it notices an anomaly, it takes action. If a customer typically places
an eCourier order every Thursday morning between 9:30 and 10:00 and there’s been no contact during that time, eCourier’s CRM
team will receive an alert shortly after 10:00 that includes the client’s history and the number of bookings it typically places in a day.
Bregman says there’s a fair amount of fine-tuning to get the metrics right. For example, the company had to tweak the system to
recognize expected shifts in activity so that it doesn’t send a slew of alerts once the after-Christmas drop in business occurs. Getting
that perfect balance of when to send alerts and how best to optimize the system is an ongoing process, he says.
The SeeWhy software is designed to establish a “normal” client booking pattern from the first use, which is deepened with
each subsequent booking. A sharp drop-off in bookings, an increase in bookings, or a change in dormant account activity generates
an alert that is sent to that client’s account manager; the manager uses the opportunity to problem-solve or, in the case of increased
activity, upsell to overnight or international services. “These capabilities have provided a big payoff,” says Bregman. He also
believes the system saves his company the expense of having to hire people to monitor “who’s happy and who’s not—we’re able
to do a lot more on our customer team with a lot less.”
Other approaches to judging customer dissatisfaction exist. Cablecom, a Swiss telecom company, used SPSS’s statistical
software to mine customer data, primarily from trouble tickets—such as the average duration of a ticket, or how many tickets
had been opened for a customer over a specific time period—to build a model that could flag when a customer was at a high risk
of leaving. “But the model proved to be only about 70 percent accurate,” says Federico Cesconi, director of customer insight and
retention.
So Cesconi used SPSS’s Dimensions survey research software to create an online customer survey, and from that he was able
to determine that customer dissatisfaction usually begins around the ninth month of service, with the bulk of the customer losses
occurring between months 12 and 14. Cesconi then created another survey that he now offers to customers in the seventh
month of service, which includes an area where they can type in specific complaints and problems. “Cablecom calls customers

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 Real Life Lessons

Foundations of Information Systems in Business 5

within 24 hours of completing the survey,” says Cesconi. “The two approaches together provide the best view of customers ready
to bolt, and the best chance at retaining them.”
In 2002, global law firm Bryan Cave faced the million-dollar question: How do you make the most money with your resources
while simultaneously delivering the highest customer value? The problem was pressing. Clients of the firm, which now has 800
lawyers in 15 offices worldwide, were demanding alternatives to the traditional hourly fee structure. They wanted new models,
such as fixed pricing and pricing that was adjusted during a project.
But making money from these new billing strategies required the complicated balance of staffing and pricing.
Projects weighted too heavily with a law partner’s time would be expensive (for the law firm) and not optimized for profit.
Devoting too little of a partner’s time would leave clients feeling undervalued. Optimizing profit and perceived value had to be
achieved by spreading partners’ time throughout a number of cases and balancing the remaining resources needed for a case with
the less-expensive fees of associates and paralegals. “Clients are most likely to stay with you if you deliver just the right mix,” says
Bryan Cave’s CIO John Alber.
The law firm’s traditional method of analyzing collected fees and profit used a spreadsheet that was complicated and took too long.
“Spreadsheets provide a level of detail that can be valuable for analysts,” says Alber, “but the information in a spreadsheet can be
confusing and difficult to work with.” Alber says he decided it was better to build an easy-to-understand interface using business
intelligence tools. Although the company will not release specific figures, both profitability and hours leveraged—the hours worked by
equity partners and all other fee earners at the firm—have increased substantially since the company implemented its first BI tool in
2004, according to Alber.
The tools also allow lawyers to track budgets in real time so that they can make adjustments quickly. The BI tools even provide
a diversity dashboard, which tracks the hourly mix of women and minorities working on the firm’s cases, a feature the company
will license to Redwood Analytics for sale to other law firms. The firm developed this diversity tool to bring transparency to the
diversity reporting process required by many clients. In other words, the tools provide Bryan Cave with a method of customizing
its fees and helping clients better understand what they get for their money.
As an illustration, Alber points to the customized pricing one lawyer gave to his real estate client. “Developers think in terms of
Use Your Brain
square feet,” says Alber, “and this client couldn’t understand why legal fees for a 400,000-square-foot building might be the same
as for a 4,000-square-foot building, though it required the same amount of the lawyer’s time.” So the lawyer used the pricing and Traditional case study questions
staffing modeling tools and historical analysis tools to determine whether it made sense for the law firm to charge clients based on
the size of their projects. promote and provide
He found that while there was risk of underpricing large buildings, the deal volume in small buildings offset that risk for the law opportunity for critical thinking
firm. The result made per-square-foot pricing possible.
“It may be possible that someone with enough willpower or manpower could do that using traditional analysis,” says Alber, and classroom discussion.
“but this lawyer had the information right at his fingertips.” Business intelligence enables “us to be in touch with clients and shift
things around in response to what customers are asking,” says Alber. Adopting new and improved project management, pricing,
and customer service capabilities required planning, appropriate pacing, and user buy-in.
“In today’s environment, you can’t do value innovation without being in touch with the economics of your business, without
really understanding where you make money and where you don’t, and that’s what business intelligence tools do,” says Alber.
“Our goal,” he says, “is to build the best long-term relationships in the world.”
Source: Adapted from Diann Daniel, “Delivering Customer Happiness Through Operational Business Intelligence,” CIO Magazine, December 6, 2007; Diann Daniel,
“How a Global Law Firm Used Business Intelligence to Fix Customer Billing Woes,” CIO Magazine, January 8, 2008; and Mary Weier, “Dear Customer: Please Don’t
Leave,” InformationWeek, June 18, 2007.

Case Study Questions

1. How do information technologies contribute to the business success of the companies depicted in the case? Provide an ex-
Use Your Hands
ample from each company explaining how the technology implemented led to improved performance.
2. In the case of law firm Bryan Cave discussed above, the use of BI technology to improve the availability, access, and presenta-
The Real World Activities
tion of existing information allowed them to provide tailored and innovative services to their customers. What other profes- section offers possibilities for
sions could benefit from a similar use of these technologies, and how? Develop two different possibilities.
hands-on exploration and
3. Cablecom developed a prediction model to better identify those customers at risk of switching to other company in the near
future. In addition to those noted in the case, what other actions could be taken if that information were available? Give learning.
some examples of these. Would you consider letting some customers leave anyway? Why?

Real World Activities

1. Use the Internet to research the latest offerings in business intelligence technologies and their uses by companies. What
differences can you find with those reviewed in the case? Prepare a report to summarize your findings and highlight new
and innovative uses of these technologies.
2. Why do some companies in a given industry, like eCourier above, adopt and deploy innovative technologies while others in
the same line of business do not? Break into small groups with your classmates to discuss what characteristics of companies
could influence their decision to innovate with the use of information technologies.

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 Strategy, Ethics

Chapter two

Competing with Information

Competitive Advantage Technology
Chapter 2 focuses on the use of IT as a way
to surpass your competitor’s performance.
Chapter highlights
Section I Real World Case 2: For Companies Both Big and Small:
Describe the major types ofFundamentals of Strategic Advantage Running a Business on Smartphones
L earning LO 7-1 Understand the history and evolution of LO 7-7 computer
Reengineering Business Processes
computer hardware. software. Strategic IT
O bjectives LO 7-2 Identify the major types and uses of LO 7-8 Give examples of several major
Real types
WorldofCase 1: How to Win Friends and Influence Becoming an Agile Company
After studying this micro-computer, midrange and Business People: Quantify IT Risks and Value
application and system software. Creating a Virtual Company
chapter, you should mainframe computer systems. LO 7-9 Competitive
Explain the purpose of several popular Strategy Concepts Building a Knowledge-Creating Company
be able to: LO 7-3 Outline the major distributed computing software packages for end-user
Strategic Uses of Information Technology Knowledge Management Systems
technologies. productivity and collaborative computing.
Building a Customer-Focused Business Real World Case 3: Transforming the Business for the Digital
LO 7-4 Define cloud computing and discuss its LO 7-10 Define and describe the functions of an
The Value Chain and Strategic IS Future
types. operating system. Real World Case 4: Wachovia and Others: Trading Securities at
Section II the Speed of Light
LO 7-5 Identify and give examples of the LO 7-11 Describe the issues associated withInformation
Using open- Technology for Strategic
components and functions of a computer source software. Real World Case 5: IT Leaders: Reinventing IT as a Strategic
Advantage Business Partner
system including input and output LO 7-12 Explain the main uses of computer
devices. Strategic Uses of IT Real World Case 6: Automotive: Gaining the Required Edge
programming software, tools and
LO 7-6 Discuss 3D printing and its applications. languages.

SECTION I
by the peripheral devices which are part of modern computer systems. In Section II, we will discuss Computer is a system of
the software and its major types that one needs to run the computer hardware more efficiently. We input, processing, output, FuNdamENTalS OF STraTEgIC advaNTagE
will also be discussing the characteristics and purpose of software with theirLOapplications. storage and control
L earning LO 11-1 Understand the ethical and societal
Read the Real World Case regarding
11-3 Define the concepts components.
management of IT assets. We can learn a different
of cyber security and
lot aboutcryptography
how
dimensions. systems.
O bjectives
different organizations keep track of their IT assets and manage their lifecycle from this case. See
LO 11-2 Discuss the ethical responsibility in LO 11-4 Explain the concept of Blockchain and its STraTEgIC IT
Figure 7.1.
After studying this business & IT including computer crime. impact on business. LO 2-1
Technology is no longer an afterthought in forming business strategy, but the actual cause and driver.
chapter, you should Understand the basic com-
be able to: petitive strategies and how This chapter will show you that it is important to view information systems as more than a set
CASE 1 to use information technol- of technologies that support efficient business operations, workgroup and enterprise collaboration,
REAL WORLDREAL WORLD

ogies to confront the com- or effective business decision making. Information technology can change the way businesses
petitive forces faced by a
compete. You should also view information systems strategically, that is, as vital competitive
astraZeneCa, Unitedhealth, and Others: it asset business.
networks, as a means of organizational renewal, and as a necessary investment in technologies;
ManageMent—dO YOU KnOw what YOU’ve such technologies help a company adopt strategies and business processes that enable it to

gOt? Ethics & Security

reengineer or reinvent itself to survive and succeed in today’s dynamic business environment.

G lobal pharmaceuticals giant AstraZeneca needed some strong

medicine of its own to fix a burgeoning IT asset management
problem. It was brought about by multiple acquisitions and their
Chapter 11 discusses the issues surrounding
nonstandard gear, a high-tech workforce spread across 255 facili- these topics and the challenges IT faces.
ties in 147 countries, and a total of more than 67,000 employees
MIS-11e_02.indd 54 11/15/2018 5:21:46 PM

CASE 1
using more than 90,000 hardware and software assets ranging
from notebooks to SAP and Oracle enterprise applications and da-
tabases.
t h r i
With software vendors becoming more aggressive on audits as
exas ealth esourCes and ntel
sales of new products are generally weak, and with greater internal
:e , it,
thiCs C
and omplianCe
collaboration requiring a more consistent set of tools to simplify

T he IT staff
processes
company
at Texas
and
realized And
ments: It also has
Health Resources
maintenance,
cal functionality. a few
to meet
it needs
the $31
yearstoago
Inc.billion
deliver
must deliver
more
that
more than techni-
pharmaceuticals
than the business
Microsoft’s Systemsrequire-FIGURE 7.1 Companies are increasingly focusing
Management Server wasthesimply
organization’s
overmatchedethical standards.
for the job of on managing the myriad of platforms,
To thatthe
managing end, its systems
global mustcomplex
enterprise’s help ensure basethat
of ITTexas Health complies
assets. hardware, and software that make up
withSolaws and regulations.
Microsoft recommended the asset management products their IT infrastructures.
Andbythey
offered also have
a French companyto promote the right
called PS’Soft, behaviors
which and prevent
is a subsidiary or
of Source: © Royalty Free/Corbis.
flag undesirable
BDNA ones,provider
Corp., a top says Michael
of IT Alverson, vice president
infrastructure inventoryand anddeputy
CIO at the Arlington-based nonprofit health care system. Consider the
analysis solutions. In the years that AstraZeneca has been steadily getting its IT assets under control, PS’Soft has distinguished
challenge
itself of handling
like few patients’according
other IT vendors, medical records. Even though
to AstraZeneca Global the
IT federal
Asset lead Bernard Warrington.
Health
“In allInsurance
my years,Portability and Accountability
our engagement with PS’Soft was Actonemandates
of the firstthat
and only times we had an IT vendor show such willingness
agencies
to work as keep those
a true records
partner private,
and really caregivers
try to solve still
our need to access
problems them—
with us,” Warrington says. Referring to PS’Soft’s Julian Moreau,
when appropriate.
So the organization’s electronic health records system “gives doctors and
nurses who are caring directly for patients quick access when they use the
right authentication,” Alverson says.
But additional authentication is required to get records for patients who
aren’t under the provider’s immediate care. The system records who gets
access to what, allowing officials to audit and review cases to ensure there’s FIGURE 11.1 The pervasive use of informa-
MIS-11e_07.indd no inappropriate access.
341 tion technology in organiza- 11/22/2018 10:09:09 AM
“The IT staff holds itself to similar ethical standards, too,” Alverson says. tions and society presents
The department has policies that prohibit taking gifts and endorsing vendors, individuals with new ethical
to help guarantee that workers make procurement decisions based only on challenges and dilemmas.
quality and needs. Source: © Punchstock.
And when there’s any question—such as when a vendor proposes a deep discount if Texas Health agrees to be an early
adopter of new technology—IT leaders can turn to the systemwide Business and Ethics Council for guidance.
“If we really want everyone to subscribe to the idea that working at Texas Health is special, then we have to have people
actively believe in doing the right thing,” Alverson says.
Companies are increasingly looking at their ethics policies and articulating specific values that address a range of issues, from
community commitment to environmental sustainability, which employees can use to guide their work. The need to comply with federal
laws and regulations drives some of this, while consumer expectations, employee demands and economic pressures also play a part.
Information technology consultant Dena L. Smith lays out a hypothetical dilemma: Should an IT department hire a more expensive
vendor because the vendor shares its own company’s ethics standards, or should it go with a lower-cost provider that doesn’t?
Companies with established ethical standards that guide how they conduct business frequently confront this kind of question,
Smith says, but it’s a particularly tough question today, given the recession. With IT departments forced to cut budgets and staff,
CIOs will find it difficult to allocate dollars for applications that promote corporate ethics.

MIS-11e_Prelims.indd 12
MIS-11e_11.indd 629 11/20/2018 10:46:55 AM
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 ... and Beyond
728 Management Information Systems

SECTION II

MaNagINg glOBal IT
ThE INTErNaTIONal dIMENSION
LO 12-4
Whether they are in Berlin or Bombay, Kuala Lumpur or Kansas, San Francisco or Seoul, compa-
Discuss the challenges of
nies around the globe are developing new models to operate competitively in a digital economy. These
managing IT at global level.
models are structured, yet agile; global, yet local; and they concentrate on maximizing the risk-ad-
justed return from both knowledge and technology assets.
International dimensions have become a vital part of managing a business enterprise in the

Go Global with IT inter-networked global economies and markets of today. Whether you become a manager in a
large corporation or the owner of a small business, you will be affected by international business
developments and deal in some way with people, products, or services whose origin is not your
home country.
This text closes with Chapter 12, an in-depth Read the Real World Case 2. We can learn a lot about the challenges facing senior IT executives
who operate in a globalized world. See Figure 12.11.
look at IT across borders.
CASE 2

REAL WORLD
Planning and Developing Business/IT Solutions 583
578 Management Information Systems CadBury, Forrester researCh, a.t. Kearney, and others:
Based on the BizRules engine, the internal IT team has also built a customized underwriting system. it l F n C g
eaders The fact that aCethe ew hallenges in a w
loBalized orld
company has set up a project management office comprising senior officials from all departments of the company, to
design tHinKing
ensure that all projects are completed in time has enabled faster adoption of technology. Now, the company plans to
“Design Thinking”—a
design ethos.
focus on delivering
OneIt isITan project
methodology
innovation
services on
that has
that
thatprovided
theimbues
is powered
mobilethe full spectrum
as part
by a thorough
maximum
of its customer of innovation
benefitsunderstanding,
to the company
self-service
through
W
activities
models.with a human-centered
has been direct theobservation,
Health
him global
ayne Shurts had no experience overseeing IT operations in
emerging markets when Cadbury CEO Todd Stitzer appointed
Claims ofCIO what
Management
the summer of 2009. The geographic parameters of
people want System and need The
(CAPS). in their
project liveswas and what they
conceived like or
to build dislike scalable
a robust, about the webway based particular
integrated products
systemare
Shurts’s thatmade,
responsibilities
will serveatasthe a sweets maker—with a presence every-
packaged, marketed, sold, and supported. where from Pakistan to Palau—multiplied overnight. The former CIO
single application to be used by all third parties.
Design thinking is a lineal descendant of the tradition. Put simply, it is a discipline that uses the designer’s sensibility
The system would be accessed by the entire ecosystem of health insurance domain nationwide comprising payers most of his time globe-trotting from his for North America now spends
and methods to match people’s needs with what is technologically feasible and what a viable business homestrategy can
base in Parsippany, New Jersey, to London headquarters to oper-
convert into (insurance
customer companies),
value and providers (hospitals and clinics), TPA and branch offices.
market opportunity. ations on six continents.
The project
Design thinking has much was to innovative
offer a businessin manyworld respects.
in which It was most a pure
managementSOA based ideas health
and best claims solution;
practicesShurts are itfreely
also was
had to theshift
first
his thinking. The $7.8 billion company has
available successful
to be copied usage andof exploited.
ACORD (international Leaders now insurance
look to data model standard)
innovation as a principal for health
sourceinsurance made claim
of differentiation system
a concerted andineffort
India.toItexpand in the developing world, giving it
competitive provided
advantage; pure ACORD they would XMLdo driven
well to integration
incorporate with thirdthinking
design party system, into allwhichphases facilitated the biggest
real-time
of the process. and most
hospital accessdispersed
to emerging markets business in the
Historically,
provide design
claims hasdecision
been treated withinas a downstream
hours instead ofstep days.initthe alsodevelopment
featured a flexible process—the claim pointbenefit confectionery
where designers,
calculation industry.
engineInbuilt fact, Cadbury’s business in rapidly developing
who haveprimarily
played no earlier role
on actuate engine. in the substantive work of innovation, come along and put a beautiful markets was a major driver in Kraft’s $19.5 billion takeover bid for the FIGURE 12.11 Emerging economies are
wrapper increasingly demanding—and
around the idea. To be sure, this approach has stimulated market 602 candy
British maker.
Management Last year, 60 Systems
Information percent of the company’s growth
The project has been implemented with best of breedgrowth
Planning design inpatterns
and Developing many areas by usingby making
Business/IT spring new
and products
Solutions hibernate
547emerging and
framework. getting—IT executives’
technologies aesthetically attractive andinternational
therefore more desirable to consumers or byasenhancing came from markets.
The solution is compliant with health insurance standards such HIPAA andbrand ACORD. perception
It
“That century, also has inbuilt
means that my world as CIO does not solely revolve around attention.
through smart, evocative advertising and communication strategies. During the latter half of the twentieth Source: © Getty Images.
fraud rules for alerting blacklisted customers and hospitals. The system is completely integrated at the back
big economies of end.America,
North The Europe, Australia and New Zealand,”
Bristow
design became Helicopters:
an increasingly tecHnology- valuable competitive supported
asset in, for example,swot, and
the MucH
consumer More
electronics, automotive, and Redefine Core Business New Business
claims solution is integrated in real-time with sms, e-mail and document management explains engine Shurts. for customer and
Levels of Change

consumer packaged goods industries. But in most others, it remained a late-stage add-on. Initiatives
hospital communication at various stages inofmake
claims “Emerging markets are not afterthoughts to me. They demand—and get—a lot of my attention.” Shurts isn’t alone. In
When Bristow Now, Helicopters
however, Ltd.
rather started
thanlosing asking market
designers shareto the anprocessing.
1990s, executives
already moved to
developed ideaimprove business to
more attractive consumers,
The project hasto reduced the turnaround time industries ranging from consumer
Best Practices goods and agriculture to banking and electronics, multinationals are investing more in the
processes across the
companies areRedhill,
asking England-based
them create ideas company. “We needed
that better meet for tocashless
changeneeds
consumers’ claims
facilities
anddecisions
and
desires. from
maintenance 8 hoursrole
The former to 3 is hours.
tactical, Providing
Middle East, Asia, Eastern Europe, Africa, and South America. Now imagine
Process
developing a single system that manages reinsurance
processes, andimprove
results thelimited
anywhere
in efficiencies
and value of
everywhere the staff,
creation; theimprove
access, it allows
latter the real
interface
is strategic, and between
time information
leads to dramatic sales forand clients,”
analytics
new formsthatsays John the fraudulent claims. It
ofreduces
value. Reengineering
business processes for numerous offices around the world—offices whose staffs speak different languages, are in different time
Cloggie, technical alsodirector
allows at thethe European
executives business
to track unit of Houston-based
per customer wise claims thatBristow helps inGroup up-sellingInc., thewhich provides
portfolio
zones, of
andproducts.
just might beBest
stuckPractices
in their ways as to how they manage their business. It’s a challenge that could overwhelm you if
Source: Adapted from various articles of Tim Brown at http://hbr.org/2008/06/design-thinking/ar/1 Model Improve
helicopter services toThe theclaims
oil andmanagement
gas industry. system also features hospital credential ratings to help take right
triedcost decisions
it all atand
Expand Your Knowledge
you to tackle once instead of breaking it into small pieces.
A key goal of communicates
this reengineering Efficiency
with effort
the customerwas to at cutallseveral
stages million
of the claimsdollars from the
lifecycle operating
as all processesbudget of Bristow
are integrated at the back
“Companies are end
goingandto tap those markets as mature markets stagnate or decline,” says Bob Haas, a partner and vice president
Helicopters. The made company managed
available through the project
e-mail using
and SMS. MindGenius,
The system hasin“mind-mapping”
alsosysteMs
improved employeesoftware from East
productivity Kilbride,
withas A.T. Kearney
it auto Efficiency
who leads
allocates the the consultancy’s strategic IT practice for North America. “And CIOs are gaining more and more
Scotland-based Gael Frito-lay
Ltd. The inc.:enabled Failure it toand success developMent
claims cases to product
respective assessors. conduct a SWOT analysis (an assessment of its strengths,
responsibility for those emerging markets since IT is one of the most globally integrated corporate functions.”
weaknesses, opportunities, and threats), carve to out
focusvarious
on topprocess reengineering tasks, and delegate them to used to
Boxed-items in each chapter provide brief,
Frito-Lay created national sales teams customers such as supermarket chains, but the teams, Extended
appropriate workinggroups. Each
Source: team
Adapted
regionally, from then
found took
Dataquest issue the
nationwide high-level
dated collaboration
January 07, 2010. version of the
difficult. map and
Although createdhad
Frito-Lay its own subcategories,
rich stores of markettasks, research and Single Function Core Processes Supply Chain
Value Chain
and deadlines for its designated work segment. Sinceinbeginning theitsproject in 2004,there says wasCloggie, theway company hasmembers
in-depth examples of how ­c orporations
other pertinent customer information housed databases at headquarters, no easy for team
managed totofind
cutwhat they needed.
$6 million from itsFrustration
operating budget. rose, performance suffered, and sales team turnover reached 25 percent. Scope of Business Change
So MikeofMarino,
“Mind mapping, course, didn’tFrito-Lay’sdirectly vice president
create our $6 for millioncategory
savings,and but customer
it did allowdevelopment,
us to control the engaged
project while Dallas-based
it was beingNavigator Systems
delivered,” to help.
he says. Blue
“TheNavigator
speed with prisM: which“sHadow”
consultants you canenvisioned ita is
map processes BecoMing
Web-based
and capture enterprise More
knowledge pervasive
knowledge
is a huge portal
return.” that would apply IS concepts and theories.
FIGURE 10.45 The impact and the levels and scope of business change introduced by implementations of information technology.
Source: Adapted from Craig Fellenstein and Ron Wood, Exploring E-Commerce, Global E-Business and E-Societies (Upper Saddle River, NJ: Prentice
Mind combine
mapping tools has beenfor knowledge
around for centuries, management but it and collaboration,
didn’t garner much enabling
attention the team
until to better serve
psychologist Tony the
Buzan
Hall, customer
2000), p. 97.
began towhile promote Businesses
helping reduce
information increasingly
frustration
visualization accept
and the existence
turnover.
techniques in theof a “shadow”
1970s. A mind map IT culture, in which
is a diagram thatend users 728
radially
MIS-11e_12.indd install
arranges uncontrolled rogue 11/15/2018 5:29:33 PM

words and Aimages technology

portal development
around a to make
centralproject good
theme. teamthe
It’swasshortcomings
basedformedon the of
to work overstretched
cognitivewith theory
the national IT
thatdepartments.
supermarket
many people Rogue
learnIT
sales team
andincludes
because
recall users theywho install
information had more
the mosteasilycentralized
software or tamper
through and with
graphical demanding
existing software
representations. customers. “We
or macros
Mind knew
without if we
mapping—increasingly thecould deliverbusiness
IT department’s
called there, we could
consent,
mapping assatisfy
according it toany a survey ENd-uSEr
by rESISTaNCE aNd INvOlvEmENT
customer,”
makes inroads into Marino
integration
corporate says. The supermarket
specialist
settings—is Blue Prism.
used forsales
Budget team
a range oftold
and the project
resource
problem-solving team
constraints and what often kind
lead of
brainstorming to knowledge
elements they
activities,ofincluding
rogue needed.
behavior, The reported
request ranged from simple information,
Any new way of doing things generates some resistance from the people affected. For example, the
managing projects, by mapping
67 percent of respondents
business processes, tosuch as why
the survey.
creating Frito-Lay planning
Twenty-four
workflows, products
percent Lays andand
believed
events, Ruffles
that were in
rogue
programming IT one
isn’t part
usedof
software. inatheir
storeorganizations,
and
Doritos were implementation of new work support technologies can generate employees’ fear and resistance to
At Bristow and in 10another,
Helicopters, mind mapping
percent to more is
admitted complex
usedthey
that forresearch
“virtually onall
didn’t know. what motivates
business strategy shoppers
projects,”as they saysmove
Cloggie. throughBristow a store.
has change. Let’s look at a real-world example that demonstrates the challenges of implementing major
A
also used MindGeniusfew months later,
for managing the project team
employee-retention presented a working
efforts,variations prototype
and the company they
always had developed
uses it whenOn to a group
introducing of beta users
new they can be very
These systems are not necessarily simple on the Excel spreadsheet. the contrary, business/IT strategies and applications, the change management challenges that confront
from the
aircraft types. “We supermarket
have a [mindsales map] teamtemplateonly to find90
that’s that, in theusable
percent questfor foranyspeed, theytype.
aircraft had madeIt’s notajustclassic and crippling it’s error.
sophisticated—rivaling and even exceeding any technological solution produced byaIT checklist;
departments. Such systems management. Customer relationship management (CRM) is a prime example of a key e-business
Because the project team had not involved the Frito-Lay team in the design of the prototype, the portal they had built
a tool to help therange engineer from understand
consumer the processes
solutions like by which
Google he’llto
Apps bring
highly thetailored
aircraftones. in,” says
It Cloggie.
seems that “Through
end users it,
are he increasingly awareapplication for many companies today. It is designed to implement a business strategy of using IT to
wasn’t specific enough for the supermarket sales team.
understands the interfacenowadays with manufacturing, amongcannot different departments within the company, and
theirwith the which
Civil can lead to the support a total customer care focus for all areas of a company. Yet CRM projects have a history of a
“Conceptually, it that
was atheir great ITidea,”
department says Frito-Lay always
sales team deliver
leader a practical
Joe Ackerman. solution “But forwhen needs,
folks are not on the
Aviation Authority.” creation of a shadow IT culture within an organization, whereby users actively install their own applications or high rate of failure in meeting their objectives. For example, according to a report from Meta Group,
find
front line, their view of what is valuable is different from those running 100 miles an hour in the field.” The project
As key business strategies are developed around mind maps, the technology will need to move beyond its status as a staggering 55 percent to 75 percent of CRM projects fail to meet their objectives, often as a result
team needed their to own work-around
backtrack and plug solutions
in thein order to
missing do theirbut
features, day-to-day
they alsojob. had to win back the sales force, who now
a desktop product to better facilitate collaboration, say users. In fact, Cloggie was recently invited, along with other of sales-force automation problems and “unaddressed cultural issues”—sales staffs that are often
suspected that Thiseven
is oftena revised
because tool ITwould
departments be a waste haveof totime.
manage business-critical projects, sometimes at the expense of helping
mind-map software users from various industries, to speak on this need before the Scottish Parliament. resistant to, or even fearful of, using CRM systems.
The project
business team usersthen withspenttacticalthe next
change four months Indeed,
requests. workingmore withthan salespeople
52 percent to evolve
reported thethatprototype
working intoonastrategic
system projects
“We talked
they wouldabout the need
embrace. For toexample,
take mind a maps from being
call-reporting featurea personal
was added. tool“So to a cross-departmental
many people want to business
know what tool;happened
you can’ton extract was the main
crossfocus for their department, with 40 percent saying that delivering day-to-day business
real- change requests
a salestheir true,
call,their
was the account
priority.
business
manager abilities
involved if you cancan’t
be onwork theon mapsfor
phone simultaneously,”
days,” Ackerman saysexplains.
Cloggie. “With
“Now, we’re able to
time collaboration,
post that toyou a Webcan site.
haveItexperts
frees up develop
the account templatesmanager and facilitators
to document work thewith call different
once and teams move to on.” create maps, société de transport de Montréal: sMootH ride aFter a BuMpy start
with the business The Blue sharing
Prism survey, however, also challenges the traditional perception that IT departments frown upon rogue
Other as a whole
changes included them.” enabling users to analyze and manipulate data rather than just viewing data, and
behavior by users. The survey concludes that many IT departments fully understand why pockets Suburban of roguesprawl might make a great business case for a transit agency, but when it came to servers, Canada’s
behavior
developing reports tailored to customers’
Source: Adapted from Kym Gilhooly, “Business on the Map,” Computerworld, July 3, 2006. needs. “The original reports were very general,” Ackerman says, so users
would have exist,
had and to it reveals
spend lotsthat thesereformatting
of time departmentsthem werefor equally
customer pragmatic when asked
presentations. for the was
Ackerman bestalso Société
way de Transport
of dealing
enlisted for with it. de Montréal (STM) drew the line. Mike Stefanakis, senior systems engineer at STM, says that
the main reason he started looking at virtualization technology was to prevent server sprawl. He wanted consolidation,
Expand Your Horizons
the official rollout of the portal.
particularly for development servers at the agency, which provides more than 360 million bus and metro rides each year.
BuSINESS mOdElS aNd PlaNNINg “We crunched the numbers and realized that our growth was going to cause a few problems in the near future,”
LO 10-2 he says. If things kept going as they had, the agency would need an additional 20 to 30 servers each year, on top of its
“Business model” was one of the great buzzwords of the Internet boom, routinely invoked, as the writer existing base of 180 primarily Wintel machines. “Too many servers were going to be needed to feed the needs of our
Globe icons indicate examples with an
Michael Lewis put it, “to invoke all manner of half-baked plans.” A good business model, however, re-
Define the role of planning
and business models usersin andthe clients,” Stefanakis says.
mains essential to every successful organization, whether it’s a new venture or an established player. But even though staffers 11/16/2018 were convinced of virtualization’s benefits pretty early on, the agency’s end users didn’t
international focus so that your knowledge makes
MIS-11e_10.indd 583

A business
MIS-11e_10.indd 578 model is a conceptual framework that expresses the underlying economic logic and
development of business/IT
strategies, necessarily
architectures
11:57:41 AM
feel the same way. Several factors contributed to the initial resistance. For starters, there was a fear of the
11/16/2018 11:57:41 AM
and applications.unknown. There were questions like “How stable is this new technology?” and “What do you mean I will be sharing
you truly worldly.
system that prove how a business can deliver value to customers at an appropriate cost and make
money. A business model answers vital questions about the fundamental components of a business, Business Model my resources with other servers?” Potential users thought the new technology might slow them down.
is a
such as: Who are our customers? What do our customers value? How much will it cost to deliver conceptual framework To help users get over their fears, Stefanakis focused on giving people the information they needed, while
that value to our customers? How do we make money in this business? that expresses explaining the advantages of the new technology. Among them: great response time for business applications and
the
underlying economic
A business model specifies what value to offer customers, which customers should receive this logic and systembaked-in that
disaster recovery. If anything does fail, restoration is just a quickly restored image away.
value, which products and services will be supplied, and what the price will be. It also specifies Stefanakis and his staff kept “talking up” the technology and its benefits. “Virtualization came up in every budget,
proves how a business
how the business will organize and operate to have the capability to provide this value and sustain strategy and development meeting we had,” he recalls. “We made sure the information was conveyed to the proper
can deliver value to
any advantage from providing this value to its customers. Figure 10.7 outlines more specific customers at anpeople so that everyone in our department knew that virtualization was coming.”
questions about the components of a business that all business models must answer. Figure 10.8 appropriate cost and STM has been staging production servers in its virtual environment since December 2005. The first virtual machine
make money. was staged in STM’s testing center as a means of quickly recovering a downed production server. Once the first few
lists questions that illustrate the essential components of e-business models.

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MIS-11e_10.indd 547 11/16/2018 11:57:38 AM

MIS-11e_Prelims.indd 13 11/27/2018 1:11:10 PM

 352 Management Information Systems

l Allows more efficient and effective use of idle IT infrastructure

Technologies
l Being modular in nature, grids are more scalable and robust
l Faster solution to large and complex problems
l Grids can be managed using grid software
l Processing jobs can be executed in parallel processing mode

Disadvantages of Grid computing:

l Requires faster and reliable network
l Standards are still evolving
l Challenges associated with sharing of IT resources.
292 Management Information Systems

nortHrop grummAn: pAssing knowLedge down tHrougH generAtions ClOud COmpuTINg

In 1997, with the Cold War well behind them, thousands of engineers who had helped design and maintain the B-2
LO 7-4
Cloud computing is a form of utility computing that involves outsourcing of computing resources
Define workers
bomber were asked to leave the integrated systems sector of Northrop Grumman. As the nearly 12,000 cloud computing
filed
and discuss its types. and on-demand provisioning. In simple terms, cloud computing is delivery of computing resources
out the door, leaving only 1,200 from a staff of 13,000, they took with them years of experience and in-depth over the cloud (“the Internet”). Cloud computing brings utility computing closer to reality. It has
knowledge about what was considered at the time to be the most complex aircraft ever built. the potential to change the way IT hardware is purchased, the way it is implemented, and the way
Cloud computing is
Northrop Grumman knew it had to keep enough of that know-how to support the division’s long-term maintenance
delivery of computing applications are designed, developed and used. With its promise of infinite scalability and pay-per-
of the B-2 bomber, so a newly formed knowledge management team identified top experts and videotaped resources overinterviews
the cloud
use model, the primary benefit that cloud computing extends to the large and small & mid-size
with them before they left. But it was hard to get everything in a single interview, says Scott Shaffar, Northrop
(“the Internet”).Grum-
enterprises are greater business effectiveness at lower IT costs.
Cloud Computing man’s director of knowledge management for the Western region of the integrated systems sector. “We did lose some
of that knowledge,” says Shaffar. “In an exit interview, you can capture certain things, but not a lifetime of experience.”
Several years later, the company uses a variety of tools to retain and transfer knowledge from Systems
its engineers—well
Cloud computing has the following main characteristics:
Information Systems Infrastructure 353
Decision Support & Business Analytics l
277
Multi-tenancy: IT resources are shared between different users and customers
before they retire. Shaffar and his team have put in place document management systems and common work spaces
Chapter 7 covers the Distributed
that record how an engineer did his job for future reference. They have started programs that
In order to further automate the decision making process and enable a faster turnaround time, a more refined
and younger engineers across the country to exchange information via e-mail or in person about technical problems,
How bring tHe together Cloud Rented
older is Raining Cost savings foR a
l service
licenses and hardware
delivery model: Customers
tRavel pay fiRmfor the service instead of buying software

Computing and Cloud Computing in

version of data survey and collection format is being envisioned Business under anTravels advanced offers program of basic amenities
travel-related solutions andseveral corporate and business houses. Established in 1990, the
to
and they are using software that helps people find experts within the company.
services. The scope of the program is expected to increase substantially tohasinclude many more presence
facilities and
l On-demand usage/flexibility: Cloud services can be used almost instantly and can easily be
services,
Although most company asa Northrop
strong market did among corporate. To retain its leadership, the company wanted to keep pace
andcompanies
increase the won’t face the sudden
granularity departure
of information of thousands
being collected.of skilled workers, Grumman scaled up and scaled down
detail. in the late 1990s, they and government agencies alike will need to prepare for the loss
knowledge as the Source:baby
Adaptedboomer generation gets ready to retire over the coming value
from http://www.cio.in/case-study/e-gram-suvidha-monitors-rural-development
with
decade.
changingexperience
of important
chain
market dynamics
and strengthening
By 2010,
and technical
more than halfitsoffootprint
and customer requirements. It was also faced with the challenge of moving up the
all
l
inExternal
the B2B travel data storage:
space. This A was
customers’
not easydata is the
since usually stored externally
competition was way at the location of the
262 Management Information cloud computing vendor
workers in the UnitedSystems States will be over 40. While most top managers are awareahead with innovative
that they’ll soon have amarketing lot of workers tools and technologies. Plus, the pressure from the e-travel companies further added
retiring, few are doing much to prepare for the event. That’s often because it’s hard to toquantify
its challenges.
the cost of The company
losing knowledge. had to put Cloud in a lotcomputing
of money in is managing its backend. Making
not a technologically it paperless
new paradigm. and earlier adoptions of
During
At Northrop Grumman,JpmorgAn times haveAnd pAnoptiCon:
changed since its massive dAtA downsizing in theaccessible
visuALizAtion 1990s. Although from anywhere
HeLps Fixed at any time
inCome
a large percentage wasinformation
trAders
of the key business need. It was
technologies obvious that the
by organizations, company
there required
has been a lacka robust
of coordinated longer-term
its workforce is nearing retirement, the average age of employees has dropped from technology
the high upgrade
40s to the to achieve
mid 40s its objectives.
in the strategy and planning. Departments within the organization and their branches, have been
past four years Visualizing
since the company and understanding
Business hiringvast
Stakeholder
started more quantities of credit
college grads. market
Shaffar says data
he is can
nowbe
Decision overwhelming
working on balancing usingthe traditional
more techniques
deploying information systems meeting their specific needs. This has led to a number of
such as charts and Requirements
tables. Navigating through this data to find Support Shift
specific tO thE
Response
reports and CLOUdanalytical information can also prove
gradual transfer of knowledge from older to younger workers, with the need to capture some crucial expertise quickly installations having overlapping functionalities yet lacking interoperability. As a result,
daunting, and traditional information delivery mechanisms have tended The to provide
company unruly volumes
embarked upon of data.
the cloud journey to address the challenges that hindered its growth. Creating a P2P
before it’s too late. For example, Northrop Grumman engineers who are competing on a proposal for a “crew exploration management and maintenance costs of information technologies have risen sharply. To reduce
The InternetInformation
is today the at Your
obvious delivery mechanism for such Personalized,
market
portal
Proactive
data
that and proprietary
could help analyses,
its customers yet the
all providers
vehicle,” whichof is such
beingservices
designed must to deliver
replace more
Fingertips the space shuttle
intuitive and travel and
visualization to the moon
Decision
navigation (and
Analytics
to eventually
and
provide to Mars),
better value met withfor
to their
their travel needs was the biggest challenge. “The first challenge was to
rising costs, the necessity to economically coordinate, merge and manage distributed information
customers.
a group of retireesFixed who income
worked onDo-It-Yourself Data
the Apollo program that sent men to the moon more Web-Basedbuild a system
Applications for the P2P portal. As we are into travel trade, work here is a never ending process. In addition, we were
research
Analysis and analytics providers are looking at new than means 35 ofyears ago.
visualizing data to provide technology
more resources has surfaced. Drastic reduction of information technologies and adoption of
Using a PC program called Quindiservices
and a camera in needrecorded
of a robust data center with cloud services. We did not have IT infrastructure in our premises when we started,”
valuable and intuitive to theirattached
users by to goinga laptop,
beyond a facilitator
simple online tables,retirees
charts, telling
and documentstories repositories.
uniform platforms within organizations was not a solution. It would be costly due to significant
about how they grappled JPMorganwith the technical
created their CreditMapproblems of sending
application a man
using Panopticon divulges
to the moon. Developer Sunil
Theseintales Kumar,
order will Manager
tobe available
provide Systems, Business
theirascustomers withTravels.
reengineering and personnel retraining. A feasible solution to the problem emerged in a form of
Web pages foraengineers graphical working on this of
representation project. Shaffar
real-time acknowledges
activity in the corporate that employeesThe market.
bond cloudwould became rather
JPMorgan the goobvious
to another
blurred choice
the lines forbetween
the company since it did not have the bandwidthTelecommunications to hire a huge IT team and Networks 485
FIGURE 6.6 A business must meet the information and data analysis requirements of its stakeholders with service-oriented architecture and design. The service-oriented architectures permit accessing
person than a systemproviding informative
for advice, but he research
says theand valuable
exercise analytics,
helped capture to that
which has enabled support themITtoinfrastructure
win the Euromoneyon-premise.award The for “Bestcompany started with the minimum IT staff to embark upon the
more personalized and proactive Web-based decisionknowledge
support. otherwise soon would be gone.
information technology resources over networks such as intranets and internets—within or
Most important,Online Fixed has
Shaffar Income
learnedResearch.”
that the problem goes beyond looking at technology what skills you ThEhave BuSINESS
bandwagon. right now. It required
“There VaLuE
constantOf supportThE INTErNET
24×7 on the cloud for seamless operations. The company
have always beenJPMorgan new generations, was able andtowe’reprovide their
not any users with
different in that quicker
way,”access to“Mentoring,
he invested
says. their existing
in solutions online
that could
training and information
help it manage
passing
outside
using new
data, save on infrastructure cost and securely handle its data even in
LO 9-3
of organizations. Thus, allowing organizations efficiently re-use the existing information
byvisualization
lower levels of management and bylast
individuals and haveteams technologies a and related resources. capabilities that adds value to every Identify the business value
on knowledge
Business Intelligence is not something and navigation
you can do at tools.
the To do this, they
minute. You toofplan
implemented business
ahead.”
the professionals.
Panopticon’s
event of crash In
interactive
The addition,
or Internet treemap
downtime. provides visualization
a synthesis ofascomputing and communication
(BI) can be defined as this dramatic expansion
presentation layer andhas opened the
navigation doorthat
system to the use of such
provides a bird’s-eye
business view of the data,
intelligence (BI) tools
at the bysame
part of the business cycle. time allowing Distribution
the of resources and their accessibility over computer networks haveincluding
of Internet been theIoT. central
the software solution to
Source: Adapted theuser
from
to Patton,
Susannah
drill customers,
suppliers, down to specific
“How to Beat the and reports
Babyother
Boomerbusiness
and analytics.
stakeholders
Retirement Blues,” CIO Magazine, ofJanuary
a company finding thE CLOUd PrOvidEr
15, 2006. for customer relationship characteristics of cloud computing. Cloud computing model embraces distribution of information
transform data into JPMorgan’s
management, CreditMap
supply allows users to
chain management, andvisualize information
other e-business through
applications.
The companythe use of wentWhat
color, business
on size,
to shortlist value
and proximity do companies
technology in any
technology way derive
partners. from
resources
After much their
and business
their on-demand
deliberation provision via
and assessment ofnetworked
requirements,environments.
the Resources can
actionable information they
In 1989,desire with anDresner
Howard easily customizable
(later a Gartner interface.
GroupThis interface
analyst) acts asBI
proposed company
a catalyst,
as an applications
enabling
umbrella
decided use on
to term
usersto the
Ricoh Internet?
to recognize
Cloud Figure
bepatterns,
services. distributed9.7 summarizes
“Ricoh physically
shifted our how
acrossmany
servicesgeographical
in their data locations
centeror logically
with across servers. They are
complete
to support decision- analyze information, and make decisions more quickly and more accurately than ever before.
companies Beforethe
perceive CreditMap,
business the value
making at various levels. describe “concepts and methods to improve business decision making
brokerage firm’s customers could read text reports on the corporate bond market
by using fact-based
manageability, reducing support
and view various
major pain-points. accessible withinoforganizations
It also reduced
tables of statistical
the Internet
our efforts in
for
viamonitoring
intranets and andoutside Generate
of organizations
management Reduce
of entireviaITInternet. Standardized
e-commerce. Substantial cost savings can arise because New Costs of
systems.”
information.BuSINESS
So, business
But the market aNalyTICS
intelligence can be defined as the software solution
is so extensive that it could be difficult infrato to
bykeep transform
moving things it toindata
one into
centralized
perspective or protocols
location,”
to be aware saysof facilitate
Kumar. communication over both intranetRevenue and internet networks.
Doing This model allows
applications that use the Internet and Internet-based technologies
LO 6-9 actionable
many of information
the investment to support decision-making at various levels.486
opportunities. It was
With not until
Management
cloud, thecompany
the late 1990s
Information
(like intranets
Systems
has gained 24×7
and extranets)
economically efficient utilization
support throughout the year of
are typically less expensive to
andcomputing
has been hardware,
able toSources software
reduce and web
its efforts in services.
Business
that this Business
usage became
CreditMap Analytics
presents (BA) is Today,
widespread.
the corporate thebond study
BI of
universe dataas ausing
is considered quilt astatistical
ofnecessary
managing
rectangles and and
on mathematical
the amission
infrastructure.
computer critical methods
screen.TheThe cloudto
quilthasis helped
dividedthe company with proper data management, by saving cost with
Analyze business analytics develop, operate, and maintain than traditional systems. Fortechnology proved the point that two or
element
into understand
in
industrycrafting
sectors, current
and and thescenarios
executing a
rectangles and
firm’s predict
strategy.
within each future.
Consider
sector BA includes
the following
represent bondstatistical
findings
issues. tools,
The from operation
size
virtualization and disaster recovery. aof2017
happening
the analysis,
in
rectangle a seamless
indicates manner.
the The success of RFID
and power of data visual-
Business Analytics &
Gartner
size ofGroupdata mining, andpredictive
study: the colormodels, optimization techniques onSo raw atdata
example,
to support an airline
effective
more saves
decision
devices money
candeliver
store every
and time
communicatecustomers use
data among its Web
themselves without
ization. the issue, indicates the issue’s performance. Today, a glance,
thesite investors
company can see which sectors and Developany human
even ifintervention.
there is Develop New
making. instead With ofis its
able
the
to
customer
advent ofsupport
quality
popularity telephoneexperience
system.
of Internet,
to its corporate
increase in bandwidth
customers,
and availability of smarttodevices,
l which individual
revenue issuesin theare hot, and whether an issue’s market
size fits istheir investment needs. Clicking on aBusiness
rectangle opens
Global business intelligence software to grow
downtime. to US $22.8 billion
AccordingIt and to Kumar,
is estimated
in
that fortheTravels
certain isatypes
able to
ofsave at least `2-3
transactions, thelakh
New
every Markets
month after moving the Web-Based
Business Analytics iswindow In US
that today’s
gives business
basic scenario,
information onbusinesses are driven its
the issue—including byratings
data. Businesses
and the name cannot function
thephoneconcept without
number of
of interactive analyst
devices expanded to “Internet of on and Channels
Things”. IoThasenables devices/things Products
2020 from $18.3 billion in 2017. to to
the study of data using

mathematical methods
who covers
statistical and l Modern
data the
“PanopticonBI
and issue—along
data is the next
platforms
treemaps will
have
with most
continue
greatly
important resource
a drop-down
to grow
enhanced as
menu offering
they
our help
users’
cloud.
that businesses
organizations
ability
of data about customers, suppliers, products and business partners is key to success.
deliver
to
“We
have built.
detailed research.
visualize to
have
meet
quality
MIS-11e_07.indd
the new
saved
transaction
Effective
experience
traditional
credit
store,
significantly
require-
352
markets
cost
management
intervention
observe,
toand
channels. ourFor
Businesses
on
savingsidentify the
customers,”
example,
utilize analytics—
amount
are significant
and
Visualization
we
understand
adds Kumar.
booking a
spend
for online the
every
versus
Further,
reservation over
month
more on real-time basis without any us
environment
thethe
IT. Cloud empowered
deployment has enabled the firm to
and communication. One can easily find out the health of a device in terms of repair/
human 11/22/2018 10:09:10 AM

itments
was an forimportant
that accessibility,
are able to agility and
contributing
manage deeper
thefactor toanalytical
data better us winning insights.
the Euromoney
are succeeding. streamline
These are theprocesses
award,” Internet
says Lee
companies and
costs monitor
about
McGinty,
that
replacement.
projects
90
head
are setting percent
IoT of moreless effectively.
European
is about for the airlinecomputing/smart
empowering than booking the devices to collect data and take decisions. Increase
to understand current
l Portfolio & Index
Enterprise-friendly Strategy
buying at JPMorgan.
and selling models have become more critical to same
successful reservation
deploy- over the telephone. The banking industry has also Attract
new rules for the industry. Amazon outperformed 100 years old Barnes and Noble by the power Best example of such devices includes self-driving cars, whose sensors detect Customer
Newthe objectsLoyalty
in their
scenarios and predict
future. ments.of technology
Source: Adapted from Case Study: and effective
JPMorgan CreditMap,management ofMarch
www.panopticon.com, data. Data is a collection found
2008. of rawsignificant
bankingwill
facts
passage andand
transaction
costmicrowaves,
figures,savings viawhich the Internet. A typical
automatically cooks onlineTopics on Business Intelligence, Busi-
Source: Adapted from July 7, 2015 issue of DqIndia.com: http://www.dqindia.com/how-the-cloud-is-raining-cost-savings-for-a-travel-firm/
the food, etc. Customers
and
Retention
while information is a processed data with some meaning. What businesses do with(payments,
ever balance inquiry, check payment) is
When you consider some of these findings, it becomes easy to see that BI is rapidly
growing needs of data and how one can take advantage of this to get estimated
the mainstay for business decision making in the modern organization. Before long,
becoming
more insights
its
to cost
it willapplications
evolve
bricks-and-mortar
toanywhere
selling-offrom IoT50 percent to 95 percent less than
counterpart. Generally speaking, anytime
ness Analytics and Data Visualization
Data buying behaviours to attract more customers? Business analytics
Visualization is a solution to has
this.both advantages and disadvantages. Cloud-based providers generally

Business Analytics
into a competitive
As with
Data
necessity for many industries.
all concepts
visualization is theinpresentation
business-related
of datatechnologies,
in a pictorialbusiness
Cloud-based
emphasize
intelligence
or graphical format. has
model
you
advantages,
Data evolved
based
Internet
convert
such
identified
from
visualization
version, the
of Things
a business
as cost,
process
transaction
can
speed,costs
or recognized
connect
from a manual
scalability,
digitally
associated
a number
one to of
productivity,
canwith
a software-
be controlled
that process fromhave been covered in detail with appli-
devices to the Internet. Any device that can be
performance and ease
can anywhere.
FIGURE One
9.7 ofHow
of the key challenges
companies of business value
are deriving
Data visualization is
(BA) refers to the skills,
technologies,
Dresner’s original
is a powerful
decision makers
approach
data definition
referredtoto
explorationfocusing
understand
technique
as businessthe data and
analytics.
ontoconcepts
be used and
the hidden
Business patterns
analytics (BA)using
deployment,
methodsmakers
by decision to a more
significant
refersvisual
to the
while
risks.
tools. Data
skills,
they IoT
action-oriented
at all be
levels. It enables
expected
devices
is
downplay reliable
to go down
primarythat
Organizations
visualization
technologies,
Other must
or
are
in
sources
and
hide
going
account
robust
risks.
by the order
the presentation
a pictorial
Internet
Security,
tographical
for
or
of business be connected
these
connectivity.
control
andinclude
value otherwith
and
of several magnitudes.
of data legislative
each other
risks.
attracting new
cation examples.
With passage
issues ofaretime,
among
will require high speed
fromand
more theirmore
e-business
applications.
and e-commerce
number
Internet to capture
of

applications, and tools presentand

applications, the practices
data usingapplied
colorful to texture in two-iterative
a continuous or three-dimensional
exploration and visual and
representation.
investigation
customers share more
format.data and also demand for more secured systems.
of a innovative marketing and products, as well as retaining present customers with
with Businesses across industries can
practices applied to a get lot of benefits
continuous iterative The interactive
business’s visualization
historical performance helpsto in drilling
gain insighttheand
data down
drive thefor advantages
more
strategic details
business of Cloud
andplanning
insights.
improved process.Computing
customer servicefrom andIoT by implementing
support. IoT analytics
Of course, generating and IoT
revenue securitye-commerce
through systems.
exploration and Visualization
Business analyticstools
focusesare on
in existence
developing fornew
quite some time
insights in the form of of
and understanding graphs, charts,
business maps,
applications
performanceIoT a systems
isetc. will help
major11/22/2018
source organizations
of business acrossweindustries
value, which discussed in in reducing
Chapter 5.costs through improved
To summarize,
MIS-11e_06.indd 292 10:08:37 AM
investigation of a Visualization
based on data tools are becoming
and statistical popular
methods. In as human business
contrast, beings are ablel to Costs:
intelligence understand It eliminates processes,
and comprehend
most
traditionally companies
focuses on areeffective
the capital buildingasset
expenditure byutilizations
allowing
e-business and theand increasing
customers
e-commerce to productivity
Web move
sites from of employees.
CAPEX
to achieve With improved
six major business
business’ historical data presented in set
pictorial or graphical formats rather than any other to OPEX.
formats tracking
– as “aplanning,
values: picture is of health of devices, organizations can create healthier working environment and
using a consistent of metrics to both measure past performance and guide business
performance to gain worth thousand words”. Data visualization is an easier, faster and flexible method
Speed: Most of proactively
understanding
cloud services can replace
be defective
provisioned to parts;
optimizethe the
real-time
speed analytics
of would
computing. also help these organizations to
Hardware
insight and drive the which is also based on data and statistical methods. l
Generate new revenue from online sales.
and interpreting complex
l
takearesmart decisions.
strategic business Business analytics makesdata.
muchA number of benefits
more extensive usethat are associated
of data, statisticalandwith
and data visualization
software solutions
quantitative analysis, are:
modular. Modularity improves speed and ease of integration.
planning process.
l Reduce The benefits
transaction of IoT
costs throughincludeonlinereplacing
sales andlazy workforce
customer with smart machines. In this, smart
support.
explanatory
• Helps inand datapredictive
cleaning bymodeling,
identifyingand fact-based
incorrect management
and missing valuesl to driveResources
Elastic: decision can making.
be rapidly
machines talk allocated
to each and de-allocated
other rather than to offer ahuman
through scalable elastic solution
beings.
Analytics
l Attract new customers via Web marketing and advertising and onlineInsales.
manufacturing and some other
• Helpsmay be usedofas
in selection input
most for human
influential decisions
variables or may drive on
for analysis fully automated
demand basis. decisions.
industries, robots are becoming popular for routine smart jobs.
Business intelligence is more associated with querying, reporting, online analyticalIncrease l
processing the loyalty of existing customers via improved Web customer service and support.
(OLAP), and “alerts.” In other words, querying, reporting, OLAP, and alert toolsl canDevelop answer
how thedoes
new Web-basedIoT work? markets and distribution channels for existing products.
questions: what happened; how many; how often; where; where exactly is the problem; landDevelop what actionsnew information-based
Smart devices are connectedproducts accessible
to an Internet on theplatform,
of Things Web. which integrates data from various
are needed. Business analytics, in contrast, can answer the questions: why is this happening; what if
connected devices and applies analytics to share some valuable insights to address specific needs.
these trends continue; what will happen next (that is, predict); and what is the best that can happen
Internet (that is,
of Things (IoT) IoT platforms can exactly differentiate between the essential and desired
Some of the intelligent
optimize). One of the most common techniques and approaches associated with business analytics is This kind of intelligence is very useful in detecting patterns, making recommendations
Internet set of data.
MIS-11e_07.indd 353 11/22/2018 10:09:10 AM
data
MIS-11e_06.indd 277mining, a concept introduced in Chapter 8 and discussed again later in this chapter. of Things (IoT) is an ecosystem of10:08:35
11/22/2018 connecting
AM smart devices. Here smart devices mean Internet of Things
the devices andthat detecting problemsenough
are intelligent before they
to getoccur.
connected to Internet. IoT is a concept that is not (IoT) is an ecosystem of
With the insight available with IoT analytics, comes the power
used only for smart devices but for “Things”, which means anything that can connect, collect and connecting smart to make processes more
share data efficient.
over a Smart network objects
withouthelp any in automating the repetitive
human interventions. Thetime-consuming
IoT is a largetasks. A coffee
network of maker
devices.
knows when you are going to wake-up
connected things and people – all of which collect and share data. and prepares the coffee for you. This happens because of
the ability of a coffee-maker to gauge and remember your behavior. In a couple of years, your
smart fridge is going to remind you the items with short inventories.
Internet of THINGS & AI
MIS-11e_06.indd 262
why IoT?The Internet of Things (IoT) is a truly amazing development that is going to change our lives
IoT concept for 11/22/2018
the better.
emerged It has
out
10:08:32 from
AM already
one of brought a number
the existing of positive
powerful changes in
technological the industries
solutions called like healthcare,
Radio
Frequency logistics, manufacturing,
Identification (RFID). etc. Security
In RFID, thewill be RFID
active one oftagsthe major threats
store some of IoT.information
valuable
IoT, Machine Learning & AI are about the product or thing to which it is attached. Once the RFID tag comes closer to the
proximity of RFID reader, the RFID tag communicates the information to the RFID reader
iot Cloud solutions proVide enterprises aFFordable aCCess to
technologies of tomorrow and are without any human intervention. The communication between the RFID tag and the reader is
high-speed data netWorks: sap labs
covered in detail. Organizations are no longer new to the concept of Internet of Things; it is now about how they can best apply it to
drive real business value. According to a recent white paper from IHS, 75.4 bn. devices will be connected by 2025. This
makes it apparent that every organization across industries will, if not already be using this technology to increase
their operational efficiency, derive business insights and to gain better visibility and control over their assets.
Furthermore, IoT can bring change to each industry as it transforms business models and customer experiences,
potentially creating
MIS-11e_09.indd 485 new revenue streams. IoT has already made its presence felt in each industry, be it healthcare or 11/22/2018 11:13:59 AM
manufacturing, IT or retail.
The important part of a connected ecosystem of machines is that we now have the data that has the potential to
transform business processes within organizations. Concepts like the “Lot size of one”, which changes mass
manufacturing to something more specialized based on customized orders is already taking the industry by storm.

MIS-11e_09.indd 486 11/22/2018 11:13:59 AM

MIS-11e_Prelims.indd 14 11/27/2018 1:11:12 PM

 Security and Ethical Challenges 683

met. For examples, interests are automatically paid, when the financial instrument meets the
certain deadline.
2. Governance: Blockchain technology can be used to bring transparency in the governance by
sharing all information on public blockchains. Even the company’s governance can become
fully transparent by sharing the digital assets, equity or critical decisions at board level on
694 ManagementBlockchain. Information Systems
3. Warranty or Insurance Claims: Getting claims is always an expensive and time consuming
Banks are also takingthe
exercise. Once thesmart contracts
initiative to remind arecustomers
implemented usingtheir
to update Blockchain,
anti-virus itsoftware
will make andthe process
browser application, so that
their PCsofdoclaim simple any
not support andbackfaster.
doorOnceentries all and
formalities
Spywareare completed
installations. with
They respect
have to verification
also initiated a 24-hour andcustomer response
team where validation,
customers payouts can be
can report anyautomatic.
form of identity The theft
complete
or accountprocess can be managed using QR-code,
discrepancies.
Presently,whichmany mayleading contain
bankscomplete
have appointedinformationagencies about
to carrythe out
product/service.
a 27X7 monitoring of the Internet, activities on the bank’s

... of Tomorrow
Web site and also the profile of the users and nature of their transactions at any given time. In addition, most banks have been
4. Shares/Debentures/Derivatives: Smart contracts can be created to manage all these tradable
partnering with law and enforcement agencies and organizations such as CERT-IN to shutdown spoofed sites quickly.
ICICI,financial
HDFC, Bank instruments.
of India and One mayother
a few again use the
public as well QR-code
as private to banks
store all
have the information
started implementingaboutdual the factor or second
instrument and
factor authentication, keepSSL
128-bit track of itsocket
(secure in a more secured manner
layer) encryption, scrambled through Blockchain.
keyboard, Using smart
adding multiple layers of security which
contracts trading of these financial
helps a user identify a fake Web site and not divulge his credentials. instruments is possible without any hassle.
5. Document/Identity
Axis Bank is in the process of Verification:
implementing Using
second thefactor
Blockchain, the verification
authentication to enhanceofthe online
securityidentity
features of the online
banking will gateway.
be much Besides,
easieralmost
and all banks
faster. Intoday send out
Blockchain the post transaction
online identityalerts
will to becustomers
maintained on intheir mobile and Email id, so
a decen-
that the tralized
customerdistributed
response time is quickwhich
network, and any illegal
will keeptransactions
the data more can be reported
secure andquickly.
incorruptible.
Another key development is that Indian banks have appointed Chief Information Security Officers (CISOs) to manage all the
6. concerns
security Internet of Things
within the bank.(IoT):
The CISO IoT leadsis aa network
team dedicated of smartonly devices,
to securitywhich collects,
and functions store and
separately from ex-the central IT team.
changetolot
According of data. Blockchain
ReadiMinds, more thantechnology
57 percent along of thewith banks smart contracts
still do not have willa help in maintaining
dedicated budget for online security,
choosingthe safe to
instead IoT network
include onlinebysecurity
guarding against
as part hackers.
of their overall IT budget. However, the appointing of CISOs is slated to reverse
this trend going forward.
7. Protection of Intellectual Property: As Blockchain offers the facility of Security archiving andtheEthical
docu-Challenges 681
Though banks have
mentations been
of all the this
kinds, pioneers
will helpin embracing
in protecting the latest of technologies
the intellectual propertyand have
in muchconstantly
easier been
and scaling up their
security procedures, vulnerability to hackers remains. Threats are evolving and becoming more dynamic with the increasing
BlOCkChaIN safe manner. - Smart NEW
ThE contracts can protect the
SECurEd IP or copyright material and eliminating the risk
TEChNOlOgy
number of customer touch points and delivery mechanisms.
of file coping and redistribution.
Hence, phishing can no longer be handled by a technology solution alone. Banks have to put in place the LO right11-4
blend of
Blockchain
8. Social
technology,
is a Media:
policy
new technological
Numbers
guidelines, and user of innovation,
social sitestouse
awareness
which
keep thepaceredefines
personal
with the
the
data ofway we
its users
increasing
transact
withoutand
sophistication their weknowl-
with which fraudsters operate.of
Explain the concept
exchange edge. businessUsing information.
Blockchain, Successful
user is able business transactions
to protect its personal needdatato be or fast,
mayprecise,
share assecureper his/her Blockchain and its impact
and accessible
Source:
will. to all
Adapted from stakeholders
Dataquest, of that
Sept. 30–Oct.14, 2008,transaction.
Vol.XXVI, No.19.Blockchain is a technological solution that
on business.
provides a way to execute such business transactions in a much better manner. It combines the
Case9.of
power
LandQuestions
Study Title Management: Blockchain is a smart secure ledger and land title can be managed
Internet with the security of cryptography to offer much faster, safer way to store and Blockchain is a
in more safer and secured manner using this technology. Numbers of countries have already distributed, tamperproof
verify
1. Howbusiness information.
different financial institutions can protect their systems from phishing and other related security threats?
started the projects to manage land records using Blockchain. digital ledger.
Blockchain technology was originally developed to transact and manage digital currency
2. What are the other security threats these banks have, when they move their systems to online space?
Bitcoin. Blockchain is also being compared with the technology & concept used by Wikipedia.
3. Blockchain
But, Is phishing prevalent
can support only in India?range
a wide Comment.
BloCkChain - ofa application
nEw solution like supplyto chain tracking, digital record
unEMployMEnt in india
4. Majority ofpeer-to-peer
management, phishing threats payments
mentioned etc. A Blockchain
in the case above are is from
a record of transactions
the banking sector. Are theselike in threats prevalent in other
In order
industries
accounting to further digitally strengthen
also?Blockchain is more secured way
ledger. the ofIndian
storing economy,
information Finance andMinister
is designed Arun in Jaitley
such in his budget speech has
a way thatmentioned
it makesthat technologies
impossible to add, like artificial
update intelligence,
or delete informationmachine learning,
without beingBlockchain
detected by technology and the like will
establish
other users of thea block.
countryBlockchain
level program to research new
is a decentralized developments
system, in this field.
where verification Also, for ushering in digital technology,
of information/
the government
transaction happens on of India willoftake
consensus proactive
multiple users.steps towards exploring
Information stored in the Blockchain
Blockchain technology.
is shared
CASE 6

REAL WORLD
Coinlancer
and continuously is one such
reconciled. Theplatform
databasefor the clients as
of Blockchain wellstored
is not as thein freelancers
any singleinlocation,
Blockchain it is technology. Coinlancer has

Block Chain &

been listedand
truly distributed in EtherDelta,
is hosted byHitBTC millions andof Cryptopia.
computers Coinlancer,
across the a decentralized
globe and is accessibledigital currency,
to is usually a connection
between the two peers. Amongst many Blockchain companies, Coinlancer is generating significant interest in the
B
anyone.
loCkChain
Bothindustries
Wikipedia
:n
in India. eW 2018
Budget
and Blockchain
s killinfor
run on India the d
clearly boasts
a distributed
igital a ge
of opportunities
network. Wikipediainiscreating built onjobs or employment through varied
client-

T
though
sectors.
server based
he used
idea of
the clients
Thewhere
web, idea of
incryptocurrency
multiple
the freelancing
sectors
are distributed.
Wikipediawill
and through
Blockchain
Wikipedia’s
surely leadhas
management
investments.
technology
to make
complete
Fororiginally
was
digital backbone
this a
implementing
turning
access
released
is highly its
point
to the
to public
protected the and
world
in India.
central
policies
in 2009,
centralized
Blockchain technology can be
server,
and various
almost schemes in India,
an entire Cryptography
and its control rests with the owners. Whereas, the digital backbone of Blockchain is totallydigital
decade ago. In has
Coinlancer less adopted
than ten years,such Bitcoin was by
technique able to become an
considering the incredibly
prioritized powerful
needs and
for popular
making servicescurrency.
available through
Today,digitisation.
it is not only Coinlancer
about the “cryptocurrency” anymorewhere – the underlying technology, knowncan as Blockchain, offers a
distributed and its control is not iswith oneany such
single platform big entities,
person or organization. firms, etc.
In Blockchain every enable
node safer, faster and cheaper
much transactions
more flexible solution
of theBlockchain
chain is technology
Thede-facto
digitally.than
empowered
use of Blockchain has
just atransactions
Allupdate
to the
allowed
currency thatare
the records
companies
will surely help to
allows for transactions
completed
independently
thestart developing
country
in aand
generate
to be executed
transparent
the most
applications
more jobs
manner.
thatpopular
take
for
online.
record of peer-to-peer
advantage
freelancing. Job creation is an integral
A new section is added on Block Chain and
becomes the official record.
Cryptography in Chapter 11.
data distribution and offer better versatility and security over existing database systems. Even companies in the healthcare
focus area of the government and acceptance of Blockchain is the first step towards it. To realise the benefits at the
sector have identified the potential role that Blockchain application can play in their facilities, boosting efficiency,
how itindustry
improving Works? level, Coinlancer and its competitors, constantly keep exploring business opportunities to improve their
security, easing transactions, engaging patients and improving other aspects essential to their success.
In business associatesworld
this fast-changing and subsidiaries.
of technology, a massive onrush towards artificial intelligence, automation, as well as
In Blockchain the data is gathered and stored into blocks and then chain those together using
multiple digital transformation initiatives is bringing a big shift to the world of work, with considerable implications for
secured cryptography.
Source:
workforce skills. For example, Alice sells her car to Bill. The transaction is recorded and
Feb 12, 2018: http://www.dqindia.com/blockchain-new-solution-unemployment-india/

shared overManagement
Reports
658 the other
suggest thatcomputers
about half in
Information of the Blockchain
all work
Systems activities network.
globally haveOn thethetechnical
network,potential
the record
to beisautomated by adapting
combined with other transactions
currently demonstrated technologies.into While a block
some and
skills the transaction
are likely to become is time-stamped.
redundant faster Once
thantheyou would have probably
block
thoughtis complete,
and someitnew is also time-stamped.
skills A blockDealing
will rise in demand. will consist of many
with such transactions
transitions arranged
is certainly in a to be a cakewalk for
not going
sequential manner. Thetocompleted block is sent out new
to the network, where itthe
gets appended to the
businesses.
chain.Utilizing
SECTION II
They need
If the other
invest heavily
participants
cutting-edge
in either
of thetonetwork
technology
hiring talents
also sendsincrease
drive productivity,
or up-skilling
their completed
efficiency blocks
workforce.
and spur at innovation
the same time
is the number one business
than the blocks
imperative are chainedaround
for corporations using the the time-stamped
world. As a result, data.
theOnce the blockare
organizations is not
chained, it needs
only seeing an to be
emergence of new job roles,
subject683
secured
MIS-11e_11.indd matter the
using experts
hashaskey. well A
as hash
a set of
is hybrid professionalstechnique
a cryptographic around cyber security,the
to secure mobile appAdevelopment,
block. hash UI/UX, Big Data 11/20/2018 10:46:59 AM
CyBEr SECurITy aNd CrypTOgraphy
function takes some information from the block to create the hash key, which is a unique string of
characters. The hash from one block is added to the data in the next block to link the blocks into
a chain. This linking of blocks using hash key, prevent the information written in previous blocks
INTrOduCTION
from being LO 11-3
modified/added/deleted. Since all participants have the copy of the entire Blockchain,
it is easy for them to detect anyWith tempering.
InternetInaccess
case of any tempering,
proliferating rapidly,theonehashes
mightofthink
the tempered
that the biggest obstacle to e-commerce
Define the concepts of cy-
block will not match with the would hash of its next block.
be bandwidth. Sonot;
But it’s when
the the hashes
number match up
one problem across And
is security. the part of the problem is that the
ber security and different
MIS-11e_11.inddchain,
694 all participants are confident and
Internet wastrust the information.
developed for Since,
interoperability, Blockchain
not establish
impenetrability. trust, 11/20/2018 10:47:00 AM
cryptography systems.
they provide a simple, paperless way to create ownership of money, information and digital
As we saw in Section I, there are many significant threats to the security of information systems in
objects. It also helps in creating a network of trustworthy business partners.
business. That’s why this section is dedicated to exploring the methods that companies can use to
Blockchain is transparent and incorruptible as the network lives in a state of consensus. It is a
manage their security. Business managers and professionals alike are responsible for the security,
kind of self-auditing ecosystem and the network reconciles every transaction in a pre-defined time
quality, and performance of the business information systems in their business units. Like any other
intervals. It is totally a decentralized network, where user-to-user exchange happens. It is an
vital business assets, hardware, software, networks, and data resources need to be protected by a
orchestration of three technologies – the Internet, the Private Key Cryptography and Protocol
variety of security measures to ensure their quality and beneficial use. That’s the business value of
Governing Incentivization.
security management. 576 Management Information Systems
The private key cryptography of Blockchain provides a power ownership that fulfills
Read the Real World Case given below. We can learn a lot about why IT managers are
authentication and trust requirements. Blockchain technology is often described as the backbone
increasingly concerned about securing the user end of their networks, and how they are facing
for a transaction layer for the Internet, the foundation of the Internet of Value. In fact, the idea dESIgN ThINkINg
this challenge.
that cryptographic keys and shared ledgers can incentivize users to secure and formalize digital LO 10-5
Design Thinking is a system development methodology that provides a solution-based approach
Discuss the concept of de-
sign thinking and its impor- to problem solving. It is very useful methodology for solving complex problem that are not clearly
CASE 2
REAL WORLD

tance to a successful system defined and/or unknown. It involves the process of understanding the user needs by re-framing
development effort. the problem which can be understood by human beings, by creating number of ideas in interactive
W yoming m C ,l
ediCal enter os ngeles ounty and aymond Design a C , r
ames Thinking is a J the
:
sessions and by adopting a more practical hands-on approach in creating prototype and testing
AMsame. It is methodology that is again iterative in nature. Design Thinking is methodology that
e -p s g C
MIS-11e_11.indd 681 11/20/2018 10:46:59
methodology that
nd oint eCurity ets ompliCated provides a solution- can be applied not only in system development process, but can also be in creating new businesses
based approach to for our countries and even for the mankind.

U sers say protecting network end points is becoming more difficult as the type of endpoint devices—desktops, problem solving.
lap- Design Thinking tools and methods are borrowed from a variety of disciplines, like computer
tops, smartphones—grows, making security a complex moving target. The problem is compounded by the range of sciences, psychology, ethnography and organization learning and design. Design Thinking
what groups within corporations do on these devices, which translates into different levels of protection for classes of methods allow entrepreneurs and innovators to clearly define their hazy or wicked problems.
users on myriad devices.
Design Thinking is a methodology that describes a human-centered, iterative design process
Design Thinking “Deciding the appropriate device defense becomes the No. 1 job of endpoint security specialists,” says Jennifer
Jabbush, CISO of Carolina Advanced Digital consultancy. Depending on the device and the user’s role, end points need to
be locked down to a greater or lesser degree.
consisting of 5 steps—Empathize, Define, Ideate, Prototype and Test, as depicted in Figure 10.28.
In short, the Design Thinking process is iterative, flexible and focused on collaborative approach
For instance, Wyoming Medical Center in Casper, Wyoming, has four classifications of PCs: “open PCs in hallways for between stakeholders with an objective to bring crazy ideas to reality. Design thinking tackles

A newspecific,
concept to solve complex manager ofproblems
staff use; PCs at nursing stations; PCs in offices; and PCs on wheels that move between patient rooms and handle very
limited applications,” says Rob Pettigrew, technical systems and help desk for the center.
complex problem by:
Empathizing: Understanding the human needs involved.
and bring
With 110innovation.
Pettigrew is deploying Novell ZenWorks to 850 of the center’s 900 PCs in order to make sure each class has the right software. l

applications and 40 major medical software systems, that makes a huge matrix of machine types and restrictions to l Defining: Re-framing and defining the problem in human-centric ways.
contend with, he says.
In addition, physicians in affiliated clinics can access via SSL VPN (a kind of VPN that is accessible over Web browsers), but
l Ideating: Creating many ideas in ideation stage.
they are limited to reaching Web servers in a physician’s portal, which is protected from the hospital data network. Some Citrix l Prototyping: Adopting a hands-on approach in prototyping.
thin clients are also used to protect data from leaving the network but overall the strategy for unmanaged machines is a work
l Testing: Developing a prototype/solution to the problem.
in progress, Pettigrew says. “We’re hoping to get more help desk to deal with the external physicians,” he says.
One concern that can be addressed by endpoint security is data privacy, which is paramount for the Los Angeles County
Department of Health Services in California, says Don Zimmer, information security officer for the department. He supports about Empathize Define Ideate Prototype Test
18,000 desktops and laptops and operates under the restrictions of Health Insurance Portability and Accountability Act (HIPAA)
regulations. “That means disk encryption,” he says.
“If it’s not encrypted and there is a breach, then we have to start calling people,” he says. To avoid violating patients’ privacy
and a loss of public trust, the department encrypts the drives of all the PC end points with software from PointSec.
Equally important is keeping sensitive information off movable media that can plug into USB ports. The department uses
Safend’s USB Port Protector product that either denies access to sensitive documents or requires that they be encrypted and
password-protected before being placed on the removable device.
FIGURE 10.28 Five stages of Design Thinking

The Five Stages of design Thinking

The five stage process of Design Thinking is not always sequential. It all depends on how the
designing teams want these five stages to be followed. Sometimes, the design teams find the stages
MIS-11e_11.indd 658 11/20/2018need toAMoccur in parallel and may also need to repeat some stages on an iterative basis.
10:46:57

Consequently, designers need to know these five stages and need to adopt as per the need of the
project.
1. Empathize. “Empathy” being the first stage of the Design Thinking is very crucial for under-
standing the user problem from his/her perspective. It helps in keeping aside the own assumptions
and false notions about the problem by looking at the problem from the eyes of the user. This
involves doing lot of research about the problem, consulting experts, observing and gathering
facts, engaging and empathizing with people and also immersing yourself in the environment to
gain the first hand experience about the issues. At this stage, a substantial data is collected, which
can be used in the subsequent stages.
2. Define. At this stage, all the information that was collected during the Empathy stage is being
organized and analyzed. The problem statement is being defined at this stage after necessary
analysis and synthesis of information. Define stage helps in identifying the root cause while

MIS-11e_Prelims.indd 15 11/27/2018 1:11:14 PM

 What’s New?

Information Systems have become pervasive: Social Media, Mobility, Analytics and Cloud have transformed organizations
and society. One of the greatest challenges that the Professors face in teaching Management Information Systems courses
is how to keep pace in the classroom with what is happening out in the real world. Being relevant to the students and also
at the same time providing the necessary foundation for understanding the breadth, depth and complexity of Information
Systems. The Eleventh Edition of MIS book includes significant changes to the previous edition’s content that updates
and improves its coverage. Some of the key changes for this edition include the following:
1. Content is updated to suit both Management & Engineering level courses.
2. Model course outlines are proposed with chapter-wise mapping.
3. Introduced new pedagogical tools based on AACSB based Assurance of Learning Programme.
4. Each chapter has Learning Objectives that are mapped to the learning pedagogies that each school follows to achieve
course objectives. In this new edition, we have tried supporting assessment-based education, whereby each chapter
will have learning objectives, page-side definitions of important terms and chapter-end questions, quizzes, application
exercises, projects, case studies etc.
5. Latest Indian examples are added in the book across chapters. This will help to relate theory to application.
6. Fourteen new Indian and Asian case studies have been added in the current edition. Each case study has questions
that will reinforce the learning of concepts covered in the chapter and its business application.
7. New MIS applications are added in some of the chapters based on MS-Excel and MS-Access.
8. New applications using visualization tool to support decision making.
9. More detailed business analytics and CRM content based on application tools.
10. New topics on Emerging Technologies/Concepts are added or upgraded. Some of the topics that are added/updated
includes:
a. Information Systems & Ethics
b. Distributed Computing; Cloud Computing and Big Data Applications
c. Communication and Collaboration using Social Media
d. Digital Marketing
e. Business Analytics
f. Visualization Tools and Techniques
g. Social Media Analytics
h. Supply Chain Management and Supplier Relationship Management
i. Customer Relationship Management and ERP
j. Internet of Things (IoT)
k. 3D Printing
l. Blockchain Technologies
m. Artificial Intelligence
n. Cyber Security and Cryptography

MIS-11e_Prelims.indd 16 11/27/2018 1:11:14 PM

 What’s New? xvii

o. Design Thinking
p. System Development Models
q. Smart Cities & Smart Governance
11. New business applications and small projects across functional areas of HR, Finance, Sales & Distribution, Logistics
and Manufacturing.
12. New edition has twelve chapters:
a. Chapter 1: Foundations of Information Systems in Business provides an expanded discussion on Trends in IT, Man-
agement information systems trends, IS careers and the Job market outlook.
b. Chapter 2: Competing with Information Technology has added coverage of the Strategic uses of IS/ IT and Knowl-
edge management systems.
c. Chapter 3: e-Business Systems includes new discussions on e-Business systems and Functional business systems
including a new topic on Digital marketing.
d. Chapter 4: Enterprise Business Systems includes a new discussion on the relationship between SCM, CRM, and
ERP with regard to supporting corporate strategy. There is also an expanded discussion of SCM as a top strategic
objective of modern enterprises and a new discussion of the use of digital billboards in targeted marketing.
e. Chapter 5: e-Commerce Systems provides a new section and discussion of Search engine optimization, new data
relating to top Retail web sites and Online sales volume, Digital wallets and increased coverage and discussion of
e-Commerce success factors.
f. Chapter 6: Decision Support Systems & Business Analytics includes an additional discussion with regard to the strate-
gic value of Business intelligence activities in the modern organization. New topics have been included on Data
visualization, Dashboards, Business analytics and Machine learning.
g. Chapter 7: Information Systems Infrastructure provides an expanded history of computing section and updated cov-
erage of the distributed computing. New detailed section on Cloud computing, 3D printing, In-memory com-
puting and Virtualization.
h. Chapter 8: Data Resource Management expands the discussions of Facebook, YouTube, and Strategic data manage-
ment. New topics have been added on Big data, Data warehousing and Data mining.
i. Chapter 9: Telecommunications and Networks updates the discussions of Internet2, the number of Internet users, and
Metropolitan area networks. New topic on Internet of Things is added.
j. Chapter 10: Planning and Developing Business/IT Solutions has added coverage of System implementation chal-
lenges, User resistance, and Logical versus Physical models. It has increased coverage of System development
methodologies, Design thinking, and End-user development including CASE tools.
k. Chapter 11: Security and Ethical Challenges includes a new section on Cyber terrorism, Cryptography and Block-
chain. Additionally, it provides updated coverage of Software piracy’s economic impacts, increased coverage of
HIPAA, and a significant increase in discussion of current state of Cyber law.
l. Chapter 12: Enterprise and Global Management of Information Technology provides expanded in-depth coverage of
COBIT and IT governance structures in organizations, added section on Trends in outsourcing and Off-shoring,
Smart governance, Role of data centres and Workforce agility.

MIS-11e_Prelims.indd 17 11/27/2018 1:11:14 PM

 Student Support
Chapter One

Foundations of Information
Systems in Business
Each chapter contains complete pedagogical support in the form of:

Chapter highlights
Section I Real World Case 2: The New York Times and Boston Scientific:
l Chapter Highlights: Beginning of chapter Foundation Concepts: Information Systems in
Business
Two Different Ways of Innovating with Information
Technology

highlights the detailed list of topics that are The Real World of Information Systems
Real World Case 1: eCourier, Cablecom, and Bryan Cave:
Components of Information Systems
Information System Resources

going to be covered. Delivering Value through Business Intelligence

The Fundamental Roles of ‘IS’ in Business
Information System Activities
Recognizing Information Systems
Trends in Information Systems Real World Case 3: Digital Disruption
The Role of e-Business in Business Real World Case 4: Sew What? Inc.: The Role of Information
Technology in Small Business Success
Types of Information Systems
Real World Case 5: JetBlue and the Veterans Administration:
Managerial Challenges of Information Technology The Critical Importance of IT Processes
Section II Real World Case 6: Spark Batteries Ltd.
Foundation Concepts: The Components of
Information Systems
L earning LO 1-1 Understand the concept of a system and LO 1-5 Demonstrate familiarity withSystem
514 the
Concepts: A Foundation
myriad
Management Information Systems
how it relates to information system. of career opportunities existing in
O bjectives
After studying this
LO 1-2
Explain fundamental role and importance
of information system in business.
information systems.
Switch is a communica-
LO 1-6 Classify components of information
l
Inter-Network Learning Objectives: After studying the
processors
tions processor that
L earning
chapter, you should LOLO2-1
1-3 Understand thenew
What are the
strategies
basictrends
competitive
in information
systems? and how to use information
systems and
LO 2-4 Recognize theprovide
businessreal
valueworld examples.
of connections
makes
Internet technologies to become
using
an agile
be- chapter what student is going to learn.
Telecommunications networks are interconnected by special-purpose communications processors
O bjectives
be able to:
technologies to confront the competitive competitor or to form a virtual company.
tions circuits
SECTION I
tween telecommunica-
in a network.
called inter-network processors, such as switches, routers, hubs, and gateways. A switch is a
LO 1-4 Provide examples of several major types communications processor that makes connections between telecommunications circuits in a
forces faced by a business. LO 2-5 Explain how knowledge management
After studying this of information systems from business Bridge is a device that network. Switches are now available in managed versions with network management capabilities.
chapter, you should LO 2-2 Identify several in
organizations strategic
the realuses of Internet
world. systems can help a business gain strategic
be able to:
technologies and how they can help a advantages.
connects two or more lo-
cal area networks that
FOuNdaTION CONCEpTS: INFOrmaTION
A bridge is a device that connects two or more local area networks that use the same
communications rules or protocol. In contrast, a router is an intelligent communications processor
business in gaining competitive
advantages.
use the same communi-
cations rules or protocols.
SySTEmS IN BuSINESS
that interconnects networks based on different rules or protocols, so a telecommunications message
LO 2-3 Understand how business process can be routed to its destination. A hub is a port-switching communications processor. Advanced
Protocol is a set of The question of why we need to study information systems and information technology has evolved
reengineering is involved in the strategic
communication rules.
versions of both
into a moot issue.hubs and switches
Information provide
systems have automatic
become as switching
integratedamong
into ourconnections called
daily business ports
activities
use of Internet technologies. for shared access to a network’s
as accounting, finance, operationsresources.
management, Workstations,
marketing, servers, printers, management,
human resource and other network
or any
Router is an intelligent resources are typically connected to ports. Networks that use different communications
communications proces- other major business function. Information systems and technologies are vital components of
architectures are interconnected
successful businesses by using a communications
and organizations—some would say theyprocessor called
are business a gateway.They
imperatives. All these
thus
l Key Terms and Concepts: Important key sor that interconnects
networks based on dif- devices arean
constitute essential
essentialtofield
providing
of studyconnectivity and easy access
in business administration andbetween the multiple
management, which isLANs and
why most
ferent rules or protocols. business
wide areamajors include
networks that aare
course in the
part of information
intranetssystems. Since younetworks
and client/server probably in
intend
manytoorganizations.
be a manager,
terms aretechnologies,
Information explained including throughout the
Internet-based information book
systems, as vital and
are playing
expanding roles in business. Information technology can help all kinds of businesses improve the Hub is a port-switching entrepreneur, or business
Again referring to Figure professional,
9.21, we can it is
seejust as important
examples tothese
of all of have elements.
a basic understanding
The corporate of
information systemsin as
theit upper
is to understand any other
usesfunctional area in business.
side notes/definitions.
efficiency and effectiveness of their business processes, managerial decision making, and
workgroup collaboration, which strengthens their competitive positions in rapidly changing
communications
processor.
local area network left of the figure a hub to connect its multiple workstations to
the network switch. The switch sends the signals to a series of switches and routers to get the data
marketplaces. This
Section I of this benefit
chapter occurs irrespective
introduces fundamental of competitive
whether thestrategy
information technology
concepts is used
that underlie theto Gateway is a communi- to their intended destination.
cation processor that in-
supportuse
strategic product development
of information teams,
systems. customer
Section support
II then processes,
discusses several e-commerce transactions,
major strategic applicationsor terconnects a network
ofany other business
information activity.
technology Information
used technologies
by many companies and systems are, quite simply, an essential
today. that use different com-
Multiplexers
ingredient
Read the for
Realbusiness
World success in today’show
Case regarding dynamic globalthe
to quantify environment.
risks (and value) of investing in IT. munications architectures A multiplexer is a communications processor that allows a single communications channel11/15/2018 to
MIS-11e_01.indd 2 5:21:18 PM
We can learn a lot about how IT can best be managed to provide superior returns on investment
Multiplexer is a commu- carry simultaneous data transmissions from many terminals. This process is accomplished in two
from this case. See Figure 2.1. nication processor that al-
ThE rEal WOrld OF INFOrmaTION SySTEmS basic ways. In frequency division multiplexing (FDM), a multiplexer effectively divides a high-speed
lows a single
LO 1-1 channel channel into multiple slow-speed channels. In time division
communication
multiplexing
Competing (TDM), the
with Information multiplexer
Technology 59
Let’s take a moment to bring the real world into our discussion of the importance of Information to carrythesimultaneous divides the time each terminal can use the high-speed line into very short time slots, or time
CASE 1
Systems (IS) and Information Technology (IT). See Figure 1.1, and read the Real World Case a system
Understand concept of
REAL WORLD

just
data starve
transmissionsa
and how it relates business
from by controlling
frames. the flow of parts or raw materials essential to the manufacture
about using information technology to better understand and satisfy customer needs. of a terminals.
many
to information product.
system. For example, if we need to have eight telephone numbers for a small business, we could have
If we are to understand information systems and their functions, we first need to be clear on Figure 2.2 also illustrates that businesses
linescan counter the building—one
threats of competitive forces that they
h ow to w F in riends and i nFluenCe B usiness p eople : Frequency Division
face by implementing
eight individual
one or morehowever,
of the five
come into the for each telephone number. Using a digital
the concept of a system. In its simplest form, a system is a set of interrelated components, with a (FDM) is a webasic competitive strategies.
Opening Case Study: Each chapter and
Multiplexing multiplexer, can have one line handle all eight telephone numbers (assuming we have
Q uantiFy
clearly it r
defined boundary, isks working V
and togetheralueto achieve a common set of objectives. Using this multiplexing method in
l Cost Leadershipan
l
Strategy.
eight-channel
Becoming multiplexer).
a low-cost Multiplexers
producer work to increase
of products and the number
services of transmissions possible
in the
definition, it becomes easy to see that virtually everything you can think of is a system, and one which high-speed
system canSchaefer
be made up of other
dosystems
matter. or be part of a bigger system. We will expand on this
channelsindustry or finding
are divided into
section starts with a real world opening case
ways toincreasing
without help suppliers or customers
the number reducedata
of physical their costs or increase the costs
channels.

C IO Tim
conceptWhen
understanding
thinks
laterheinlooked
the next
the focus
words
at thesection,
words IT but
of this
used for
textbook:
insidenow, this definition
Northwestern
So, overinformation
gives
Mutual Life,
systems.
he us
feltathat
good
theyfoundation
multiple
forwrong message
sent exactly the
of slow-speed
channels.
l
competitors.

study.
Differentiation Strategy. Developing ways to differentiate a firm’s products and services
about IT’s role in meeting business goals. the last 18 months, these words are out: IT costs, internal customers, IT leaders,
from TELECOM
those of its competitors orMuNICaTIONS
reduce the differentiationSOfTwarE
advantages of competitors. This
alignment, and IT systems. These words are in: IT investments, external customers, business leaders, integration, service Time levels, Division
and IT assets. In addition, “IT and the business” is now referred to as “our business.” strategy
Multiplexing mayis allow
(TDM) a a firm to focus its products or services to give it an advantage in particular
What Is an Information System? method of multiplexing Telecommunications software is a vital component of all telecommunications networks.
“We came to realize we ourselves were building the wall. We were distinguishing ourselves from the rest of the segments or niches of a market.
which divides the time Telecommunications and network management software may reside in PCs, servers, mainframes,
We begin with a simple definition that we can expand upon later insays
company,” the Schaefer.
chapter. An “WeInformation
were somehowInformation
different.
each
l Systems (IS) Strategy. Finding new ways of doing business. This strategy may involve develop-
Innovation
terminal can use
FIGURE (IS)2.1 can be any organized combination of people, and communications processors like multiplexers and routers. Network servers and other
System We hardware,
had all thissoftware, communications
special knowledge. So this whole Anconcept
Information
ing unique
the high-speed products and services or entering unique markets or market niches. It may also
line into
networks, data resources, and policies and procedures of thatblack box, and
stores, the gaptransforms,
retrieves, in the relationship, System
and we came (IS)
very to can be any computers in a network use these programs to manage network performance. Network
involve
short making
time slots or radical changes to the business processes for producing or distributing prod-
disseminates information in an organization. People rely realize was of our
on modern own doing.”
information As part
systems
organized
to of aof broader
combination
time frames. management programs perform functions such as automatically checking client PCs for input/
people, ucts and services that are so different from the way a business has been conducted that they
hardware,
change of IT strategy and culture, Schaefer
communicate with one another using a variety of physical devices (hardware), information software, alter the fundamental has asked the top 150 output activity,
structure of assigning
an industry. priorities to data communications requests from clients and terminals,
leaders in IT to commit to being business leaders, not IT leaders. and detecting and correcting transmission errors and other network problems.
processing instructions and procedures (software), communications channels (networks), and stored communications
Symbolic, semantics, and a whole lot of fuss? Sure—if IT
data (data resources). Although today’s information systems are typically thought of as having networks, data For example, mainframe-based wide area networks frequently use telecommunications monitors
continued to behave exactly the same way resources, it alwaysand has. At
policies
something to do with computers, we have been using information Northwesternsystems Mutual, since the dawnand
a life insurance of investment company Digitalor teleprocessing
initiatives (TP) atmonitors.
KempegowDa The CICSinternational
(Customer IdentificationairportControltoSystem) for IBM
and procedures that
civilization. Even today we make regular use of information systems that have
$155 nothing
billion into do with mainframes is again typicalCompetitive
example. ServersaDvantage
in local area and other networks frequently rely on
l Case Examples: A number of real-life case
a computer. Consider some of the following examples of information
with more than
systems:
assets,
working very hard to put a real value on IT assets.
IT has stores,
not. ITretrieves,
started by
Although
transforms, and the network operating systems like Novell NetWare or operating systems like UNIX, Linux, or
Built on 4000 acres of land, theWindows
Kempegowda 2008 International Airport (KIA) of Bengaluru
Manyis software
one of the first green field
examples are added in support of all impor-
process is ongoing, Schaefer says the company disseminates now knows it has Microsoft Servers for network management. vendors also offer
l Smoke signals for communication were used as early as recorded history and can account information in an
IT assets worth “somewhere north of $3 billion.” airports IT can talk built on a public-private partnership
telecommunications (PPP).asBangalore
software International
middleware, Airport
which can help Limited
diverse (BIAL),communicate
networks the public-private
with
for the human discovery of fire. The pattern of smoke transmitted valuable information
about service levels in terms that business units care
to organization. about: that operates Kempegowda International Airport, has entered into an agreement with a number of
consortium
tant learning objectives in all the chapters.
others who were too far to see or hear the sender. Causing problems in the underwriting process costs $11,000 an
technology and management consulting companies, in order to set up a state-of-the-art airport.
hour in lost productivity, and problems that keep the field force
one another.
In the initial years, Siemens IT Solutions and Services (SIS) was appointed as the master SI for the BIAL project, and
Being able to quantify the value of IT initiatives from using their client management tools costs $25,000 wasan hour.
entrusted with end-to-end project management of the airport. SIS has equipped BIAL with complete electrical, IT
allows CIOs to show their impact on the bottom line. Schaefer’s goal is to get IT systems to be viewed as a business
and communications systems, airfield lighting, passenger boarding passes, escalators and elevators, baggage handling
Source: © Getty Images. asset, with a value every bit as real as the buildings and land the
system, power supply equipment, building security and automation system. With its airport domain knowledge, SIS
has managed to cater to the passenger forecast and projected cargo.
MIS-11e_01.indd 3
In 2005,11/15/2018
SIS established
5:21:18 PM
an Airport Systems Laboratory (ASL) in Bengaluru with an objective to showcase world-class
MIS-11e_09.indd 514 11/22/2018 11:15:40 AM
airport systems. It offers a unique integration system called Airport Integration Platform (AIP), while providing single
accountability for the wide variety of IT and non-IT systems found in any modern airport. The ASL is also the test bed
for many of SIS’s solutions deployed at KIA—from biometric security systems like 3D face scanners or fingerprint
MIS-11e_02.indd 55
scanners,11/15/2018
a complete baggage handling system to the Airport Operation Center. It also served as a virtual airport, and
5:21:46 PM
is connected to the Siemens Airport Center in Germany.

TechnOLOgy InTegrATIOn AT KIA

One of the outstanding features of KIA, which is unique in India, is the completely integrated Airport Operations
Control Center (AOCC), which brings together the airport operators, security forces, customs, immigration, police, air
traffic control (ATC), ground handlers, fuel suppliers and in-flight catering, all-in-one control room. By integrating all
MIS-11e_Prelims.indd 18 11/27/2018 1:11:16 PM
the stakeholders, the operations have been effectively streamlined, improving safety, security and passenger
 Till now, most banks have focused on the internal mechanisms for sharing knowledge. This poses a limitation, as it is
highly person dependent. At best knowledge sharing has meant effective use of a collaboration tool. These are all
static mechanisms and are not fast paced.
The need of the hour is a technology solution, which will be an effective medium to seamlessly integrate the
knowledge in the minds of people and structured/un-structured information stored in various forms. For this medium
to be effective it should be the following:
• An easily accessible medium such as an online medium for knowledge sharing within the organization which is
integrated with the documentation repositories, relevant databases, people profile, etc.
• A context sensitive knowledge sharing medium. For example a query on Securitization may also look at data on Mort-
gage Backed Securities (MBS) or may be even Asset Backed Security (ABS) depending on the context of the query.
• An efficient medium, which would build the associations in an intelligent manner depending on the usage over time.
All these factors require an intelligent technology platform, which is designed for global banks operating in the
capital markets space. The technology solution should understand the subject matter of capital markets domain to be
an effective context sensitive medium for sharing and retrieving knowledge.
Student Support xix
Source: Adapted from February 23, 2011, DqIndia.com; http://www.dqindia.com/smart-knowledge-management-means-quick-money/
Competing with Information Technology 87

Review Quiz
ConCept ConneCtions
Match one of the key terms and concepts listed previously with one of the brief examples or definitions that
follow.
LO 2-1TryUnderstand
to find the best
thefit for answers
basic that seem to
competitive fit more than
strategies andone termtooruse
how concept. Defend your
information choices.
technologies to confront the
l Concept Connections: Revisiting key
competitive forces faced by a business.
1. A business must deal with customers, suppliers, competitors, new entrants, and substitutes. concepts in order of learning objectives in a
summary
2. Cost
3. Using
leadership, differentiation of products, and new product innovation are examples.
Information technologies
investments can support
in technology many
to keep competitive
firms strategies - help a business cut costs, differentiate and innovate in
out of an industry.
bulleted-point summary along with the
its products and services, promote growth, develop alliances, lock-in customers and suppliers, create switching costs, raise
4. Making
barriers ittounattractive for a firm’s
entry, and leverage itscustomers
investment orin
suppliers to switch
IT resources. to itsinformation
Thus, competitors.
technology can help a business gain a associated key terms.
5. Strategies
competitive designed
advantageto in
increase the time, money,
its relationships and effort
with customers, needed competitors,
suppliers, for customers or entrants,
new suppliersand
to producers of substitute
change
products.to Refer
a firm’s
tocompetitors.
Figures 2.3 and 2.5 for summaries of the uses of information technology for strategic advantage.
6. Information systems that reengineer business processes or promote business innovation are examples.
Key terms
7. This strategic
Strategic focus recognizes
Information System that
canquality,
be anyrather than
kind of price, has become
information the primary
system (e.g., determinant
TPS, MIS, and DSS) that uses information
in customers choosing a product or service.
technology to help an organization gain a competitive advantage, reduce a competitive disadvantage, or meet other
8. Highlights how strategic information systems can be applied to a firm’s business processes and sup- Competing with Information Technology 87
strategic enterprise objectives.
port activities for competitive advantage.
9. A business finding strategic uses for the computing and telecommunications capabilities it has
developed to run its operations.
Review Quiz
l Review Quiz:
10. Information A detailed
technology helping self-assessment
a business make radical re-
improvements in business processes. Match one of the key terms and concepts listed previously with one of the brief examples or definitions that
follow. Try to find the best fit for answers that seem to fit more than one term or concept. Defend your choices.
viewsolutions
quiz is needs.
provided at the end of each chap-
11. A business can prosper in rapidly changing markets while offering its customers individualized
MIS-11e_02.indd 85 to their 11/15/2018 5:21:51 PM

1. A business must deal with customers, suppliers, competitors, new entrants, and substitutes.
ter13.to practice.
12. A network of business partners formed to take advantage of rapidly changing market opportunities.
Learning organizations that focus on creating, disseminating, and managing Competing
business knowledge. 2. Cost leadership, differentiation of products, and new product innovation are examples.
with Information Technology 89
14. Information systems that manage the creation and dissemination of organizational knowledge. 3. Using investments in technology to keep firms out of an industry.
More significantly,
15. Using Wikipedians
the Internet (as thetovolunteers
and extranets call themselves)
link a company’s corrected
information systemseach error of
to those byits
January 2006. Alexa.com rated4.Wiki-
customers Making it unattractive for a firm’s customers or suppliers to switch to its competitors.
pedia.org as the 17th most visited Web site on the Internet, while Britannica.com came in 2,858th place (Yahoo and Google
and suppliers. 5. Strategies designed to increase the time, money, and effort needed for customers or suppliers to
ranked in the 1st and 2nd places). change to a firm’s competitors.
Wikipedia has already built on its success. In addition to offering foreign language encyclopedias, it also provides a common
6. Information systems that reengineer business processes or promote business innovation are examples.
media archive (commons.wikimedia.org), a multilingual dictionary (www.wiktionary.org), and a news service (www.wikinews.org).
7. This strategic focus recognizes that quality, rather than price, has become the primary determinant
a. How does the Wikimedia Foundation meet the criteria for an agile company?
b. How does the Wikimedia Foundation meet the criteria for a virtual company?
DisCussion Questions in customers choosing a product or service.
l Discussion Questions: Whether assigned
8. Highlights how strategic information systems can be applied to a firm’s business processes and sup-
c. How does the Wikimedia Foundation meet the criteria for a knowledge-creating organization?
as homework or used for classroom-discus-
1. Suppose you are a manager being asked to develop computer-based applications to gain a competitive port activities for competitive advantage.
d. How would you recommend that Encyclopedia Britannica adapt to this new threat?
advantage in an important market for your company. What reservations might you have about doing so? 9. A business finding strategic uses for the computing and telecommunications capabilities it has

sion, these complex questions will help the

Why? developed to run its operations.
4. Knowledge Management
2. How could a business use information technology to increase switching costs and lock in its customers and 10. Information technology helping a business make radical improvements in business processes.
Knowing UseWhat You Know
suppliers?
3. How could
policies,
business examples to support your answers.
Employees often receive a great deal of unstructured information in the form of e-mails. For example, employees may11.
a business leverage
announcements, its investment
and daily in information
operational information technology to build strategic
via e-mail. However, IT capabilities
e-mail systems typically make poor enterprise-
students to develop critical thinking
A business can prosper in rapidly changing markets while offering its customers individualized
receive
solutions to their needs. skills.
that
wideserve as a barrier
knowledge to new entrants
management systems.intoNewitsemployees
markets? don’t have access to e-mails predating their start date. Employees typically 12. A network of business partners formed to take advantage of rapidly changing market opportunities.
4. Refer to the RealtoWorld
aren’t permitted searchCase
others’on e-mail
quantifying ITneeded
files for risks and value in the
information. chapter. Why
Organizations doproductivity
lose you think that when each employee13. spends
Learning organizations that focus on creating, disseminating, and managing business knowledge.
the “IT as a cost” mindset is so prevalent
time reviewing and organizing his or her e-mail files. among organizations?
Lastly, the same Relate your answer
information may to theitself
find discussion
saved across thousands of differ-
about technology as a competitive 14. Information systems that manage the creation and dissemination of organizational knowledge.
ent e-mail files, thereby ballooningadvantage
e-mail fileorstorage
a competitive necessity in the chapter.
space requirements.
Microsoft’s Exchange server, IBM’s 15. Using the Internet and extranets to link a company’s information systems to those of its customers
5. What strategic role can information playDomino
in businessserver, and reengineering?
process Interwoven’s WorkSite, along with a wide variety of open-standard
Web-based products, aim to address an organization’s need to share unstructured information. These products provide common and suppliers.
6. How can Internet technologies help a business form strategic alliances with its customers, suppliers, and others?
repositories for various categories of information. For example, management may use a “Policy” folder in Microsoft88 Management
Exchange to Information Systems
7. How
store could a business
all their use Internet
policy decisions. technologies
Likewise, sales to form a virtual may
representatives company
use aor become an agile
“Competitive competitor?
Intelligence” database in IBM’s Domino

Analysis Exercises: Each analysis exercise is

server to
to store information obtained during theusing
sales smartphones
process aboutincompeting products,
Do youprices,
thinkorsmaller
marketplace rumors. WorkSite
l
8. Refer the Real
users categorize
World Case
and store
on companies
all their electronic documents in a large,
the chapter.
searchable, secured commoninrepository.
AnAlysis exeRCises
Organizations using
companies
these systems
business?
like Lloyd’s
Whatcan secure
could
Construction
theythem,
do to manage
are ready
prepare forthem,
for large-scale
andimplementations?
those
implementations
make them available
of technology
to the appropriate
Use examples to illustratepersonnel.
their
your answer.Managers can also appoint a
DisCussion Questions
based on an innovative scenario and are
few specific employees
9. Information
However,
technologyrequiring little
can’t really technical
give a companyexperience to manage
a strategic the because
advantage content.most competitive ad- 1. End-User Computing
1. fail
Suppose useyou are a manager being asked to develop computer-based applications to gain a competitive
don’tthese systems
thancannot benefit ansoon
organization if its employees fail that
to contribute their knowledge, if they Skill toAssessment
thought provoking. These exercises present a
vantages last more a few years and become strategic necessities just raise the stakes advantage in an important market for your programmers.
company. WhatMany reservations might you have about
thethe
of system
game. toDiscuss.
retrieve information, or if the system simply isn’t available where and when needed. To help managers better Not under-
all programs are written by dedicated knowledge workers write theirdoing so?
own software using familiar word
Why?
stand how employees use these systems, knowledge management systems include usage statistics such as date/time, user name, spreadsheet, presentation, and database tools. This textbook contains end-user computing exercises representing a
processing,
business problem and force students to use
10. MIS
reads,author
writes,andandconsultant Peter
even specific Keen says:
document “We
access have learned that it is not technology that creates a
information.
competitive edge, but the management process that exploits technology.” What does he mean? Do you
Research each of the products mentioned above and answer the following questions:
2. real-world
How couldprogramming
suppliers?
of
a business use challenge.
Use business
the following
information technology
This to increase
first exercise
areas: examples to support your answers.
switching
will allow costs and
your course lock in to
instructor itsassess
customers and Assess your skills in each
the class.
agree or disagree? Why?
and test their IS knowledge with the help of
a. What steps might a manager take to encourage his or her employees to use the organization’s knowledge management
tem?
3. How
a. sys-
Word
thatHave
couldprocessing:
serveyou
a business leverage
as a ever
barrier
About how
settoupnew
your
its investment
many words
entrants
own mailintomerge
in information
per minute can
its markets?
technology
you type? to build
Do you strategic IT capabilities
use styles to manage document formatting?
template and data source? Have you created your own macros to handle re-
various tools and techniques.
b. Should managers set minimum quotas for system usage for each employee? Why or why not?
c. Aside from setting employee usage quotas, how might an organization benefit from knowledge management system
4. Refer
the
petitive
“IT
to the tasks?
Real
as a cost”Do
b. Spreadsheets:
usage
Have
World
mindset
you
Case
you know
ever
on
is sothe
added
prevalent
order of
branching
quantifying
among
IT
operations
or
risks looping
and value
organizations?
logic
in in
the your
chapter.
Relate your
your spreadsheet
macro
program
Why
answer
programs?
do you
usesto(what
think that
the discussion
does “55*2^2-10” equal)? Do you
statistics? aboutknow technology as a competitive
how to automatically sortadvantage or a competitive
data in a spreadsheet? Do necessity
you knowinhow the tochapter.
create graphs and charts from spreadsheet data?
5. What Canstrategic
you build pivot
role cantables from spreadsheet
information play in businessdata? process
Do you reengineering?
know the difference between a relative and a fixed cell reference? Do
MIS-11e_02.indd 87 you11/15/2018
know how toPM
5:21:52 use functions in your spreadsheet equations? Do you know how to use the IF function? Have you created
6. How can Internet technologies help a business form strategic alliances with its customers, suppliers, and others?
your own macros to handle repetitive tasks? Have you ever added branching or looping logic in your macro programs?
7. How could a business
c. Presentations: Have useyou
Internet technologies
ever used presentation to form a virtual
software company
to create or becomeoutlines?
presentation an agile competitor?
Have you added your own multime-
AppliCAtion exeRCise 8. Referdia tocontent
the Realto aWorld
presentation?
Case onDo you knowusing
companies how smartphones
to add chartsin and
thegraphs
chapter. from Dospreadsheet
you think software
smaller into your presentations
so that they
companies like automatically update when
Lloyd’s Construction the spreadsheet
are ready for large-scaledata implementations
change? of technology in their
1. Comfort Inn is a small, three star hotel based in Goa. The hotel has forty rooms which caters to tourists from India and business?
d. abroad.
Database:
stored
WhatHavecouldyoutheyever
dol to
imported Application Exercises: These exercises
prepare data
for those
into implementations?
a database from aUse textexamples
file? Have to illustrate
you everyour answer.
written queries to sort or filter data
Majority of its customers are from UK. The hotel also has a web-based booking and customer support model. During the peak in atechnology
9. Information database table? Have you
can’t really give built reportsato
a company format advantage
strategic your data for output?
because mostHave you builtad-
competitive forms to aid in manual data
season, hotel management always has a problem in deciding on how many bookings to accept, as, during the peak season,
rush is always there and also more number of cancellations do happen. Not utilizing the facilities to an optimal level means
entry?don’t
90 vantages
Management
booking
of the
Havelastyou builtthan
Information
game. Discuss.
losing
more functions
a few or
Systems force the student to apply the theoretical
programs
years and soon to manipulate
become strategicdata stored in database
necessities tables?
that just raise the stakes

business. Management studied the past booking and cancellation data and decided to take up to 47 bookings on any given
analysis of past records indicates that the number of daily bookings varies from 39 to 47, with each value in this rangeand
2. Marketing:
day. author
10. taking
MIS
Strategic
having
The
(ii) the
competitive
Competitive
47 bookings
and consultant
a Marketing
percentage
edge, but the
Intelligence
is a correct decision.
Peter
of nights when the
management
concepts to an application problem using
Keen Alsosays: find
“We(i)have
hotel that
process
the learned
average number
is overbooked.
that it isofnoteffective roomthat
technology
exploits technology.” What does he mean? Do you
bookings per
creates a night after cancellations,

probability as per the table given below: agree

2. On
ment
the or10th
disagree?
is 8%
Why?
birthday of Joy, his parents tools like Excel, Access, etc.
Marketing professionals use information systems to gather and analyze information about their competitors. They use this
decided to invest `4000 every year
information to assess their product’s position relative to the competition and make strategic marketing till the 17th birthday. Return available on this
decisions invest-
about the
Number of bookings 39 40 41 42 43 44 45 46 47 product, its per year.
price, itsFrom 18th birthday
distribution (place),onwards
and the to best21st
waybirthday,
to managetheyitswant to withdraw
promotion. `20000
Michael every year founder
Bloomberg, for Joy’s of
education.
Bloom-
You
berg need to find whether `4000
(www.bloomberg.com), andinvestment
others every
have year their
made was sufficient
fortunes to meet Joy’s
gathering education
and selling expenses
data about after 18th birthday.
businesses. If it is
Marketing
Probability 0.1 0.2 0.2 0.15 0.15 0.05 0.05 0.05 0.05 not, find how much they should have invested every year.
professionals find information about a business’s industry, location, employees, products, technologies, revenues, and market
The probability of cancellations is represented by the following distribution table: share useful when planning marketing initiatives.
Number of cancellations 0 1 2 3 4 During your senior year, you will find yourself in close competition for jobs. You can take the same intelligence-gathering
5
MIS-11e_02.indd 87 approach
used by professional marketers when planning how to sell your own skills. Use the following questions to help 11/15/2018
you 5:21:52 PM
Probability 0 0.3 0.3 0.2 0.1 0.1
prepare for your job search:
Management decided to hire you to develop a decision model to help them take a strategic decision. You may use the simulation
CASE 3
a. Product: Which business majors are presently in greatest demand by employers? Use entry-level salaries as the primary indica-
REAL WORLD

model using MS-Excel or any other simulation tool. Develop the model to simulate a thirty days’ data and hence find whether
tor for demand.
b. Product: Which colleges or universities in your region pose the greatest competitive threat to students with your major?
transForming
c. Price: What is the average Business
the salary For
for entry-level the d
employees your majorFand
in igital uture
geographic region? Is salary your top concern?
l Closing Case Studies: Reinforcing impor- Why or why not?
d. Place: Which areas of the country are currently experiencing the greatest employment growth?
tant concepts with prominent examples from T ransformation is quickly becoming the watchword for enterprises gearing up to meet the demands of the digital
e.economy.
Promotion:
bling employers.
the11/15/2018
business
What
It is no
How
is your
longer
can
to better
marketing
enough
theengage
plan?
to simply
Internetitshelp
Describe
have how
an online
you get noticed?
customers
you planortoa get
presence yourapp;
mobile name and
true qualifications isinabout
transformation front ena-
and using these interactions to guide strategic thinking. However,
of prospective

businesses and organizations. A number of

MIS-11e_02.indd 89 5:21:53 PM

transformation is not easy, and working with the right outsourcing partner can help to mitigate some of the risks in-
3. Competing against Free
volved. Carey International, a leading provider of chauffeured vehicle and ground transportation management services
discussion questions follow each case study. Wikipedia Faces Down Encyclopedia Britannica
headquartered in Washington, DC, chose NIIT Technologies to be its partner in its transformation. NIIT Technologies went
The record and movie industries are not the only industries to find themselves affected by free access to their products. Encyclo-
beyond the contractual terms to enable Carey to transform into an agile enterprise that has all the necessary tools in
pedia Britannica faces challenges by a nonprofit competitor that provides its services without charge or advertising, Wikipedia.
place for future growth.
org. Wikipedia depends on volunteers to create and edit original content under the condition that contributors provide their work
without
Ovum copyright.
view
Who would work for free? During the creation of the Oxford English Dictionary in the 19th century, the editors solicited word
The Carey–NIIT
articles Technologies
and references fromengagement can beIn
the general public. seen
the as
20thpart of an ongoing
century, AOL.com trend
foundwhereby enterprises
thousands prefertovendors
of volunteers monitor its chat
that can offer vertical specialization,
rooms. Amazon.com coaxed more than flexibility,
100,000andreaders
responsiveness
to post bookin order
reviewsto on
deliver more
its retail customer-facing,
Web site. Outdoing high-profile
them all in thework21st
within timeWikipedia
century, and budgetary constraints.
published It shows how
its one-millionth the emphasis
English language has shifted
article to a more
in March 2006.product-oriented
Wikipedia includes approach
more thanto application
two million
development that focuses on the rapid, iterative development of the IP assets
articles in more than 200 languages, all created and edited by more than one million users. that underpin a digital enterprise. The engagement
is also Can
testament to the
Wikipedia evolution
compete of the business’s
on quality? Wikipediaattitude
provides toward (and
its users involvement
both editing andin) the IT roadmap,
monitoring as well
tools, which as the
allows facttothat
users self-
vendor investments
police. Wikipedia in building
also super-specializations
uses voluntary administrators have
whobegun
block to pay off.
vandals, temporarily protect articles, and manage arbitration pro-
Careywhen
cesses provides a useful
disputes arise.reference point for organizations
A paper published that are considering
by Nature in December working
2005 evaluated with a partner
50 Wikipedia as and
articles theyfound
transition into
an average
being future-ready.
of four It isper
factual errors probably
Wikipediafair article
to describe Carey’s
compared with existing technology
an average of threeinvestments as basic
errors per article andEncyclopedia
in the its IT organization as
Britannica.
immature and lacking exposure to the cutting-edge technology in its segment, as most of its core systems are home-grown and
were last updated nearly a decade ago. However, Carey’s executive team showed maturity in its commitment to driving the
transformation of both its systems and its IT organization, which was the driving force behind the initiative. Carey also insisted on
working with a partner that showed depth of expertise in the travel segment and was amenable to working within extremely
tight time frames under a fixed price arrangement.
Carey executives expressed their appreciation for NIIT Technologies’ proactive approach – from its pre-assessment of existing
systems and IT organization to its flexibility and willingness to take over a project that, as such a massive undertaking with such
MIS-11e_02.indd 88 11/15/2018 5:21:53 PM
tight deadlines, had scared many other vendors away. With its significant experience in the segment, NIIT Technologies was able
to anticipate Carey’s requirements, and it even made several suggestions and amendments that have formed the basis of the next
phase in Carey’s journey to becoming a truly digital and agile enterprise. Carey also made a few suggestions that have helped the
vendor to fine-tune its portfolio of transformational offerings – which is proof of an active and engaged partnership rather than
a simple client-vendor story.
By going above and beyond the contractual terms with Carey, NIIT Technologies has created a strong client reference for its
transformation offerings, and it continues to be Carey’s partner of choice in its future initiatives. Client-centricity is difficult to
convey in marketing messages alone; the feedback from Carey’s executives is much a stronger validation that the right attitude
and approach can help midsize vendors like NIIT Technologies to make further inroads in the potentially lucrative digital
transformation space.

RecOmmendatiOns fOR enteRpRises

This case illustrates several aspects that make for a successful transformation narrative, specifically the importance of working
with a vendor with the correct vertical and technical know-how to deliver what is required within established timeframes and to
quality standards. When embarking on a transformative engagement, enterprises need to remember the following:
MIS-11e_Prelims.indd 19 11/27/2018 1:11:19 PM
1. Most importantly, any business transformation endeavor is not the sole responsibility of the IT organization. True transforma-
 Web Supplements

Visit www.mhhe.com/sie-obrien11e for additional instructor and student resources.

Available to adopting faculty, the Online Learning Center provides one convenient place to access the Instructor’s
Manual, PowerPoint Slides, and Test Bank.

For Instructors

Instructor’s Manual (IM)

To help ease your teaching burden, each chapter is supported by solutions to Real World Case Questions, Discussion
Questions, and Analysis Exercises.

Test Bank
Choose from more than 1,200 true/false, multiple-choice, and fill-in-the-blank questions of varying levels of difficulty.
Complete answers are provided for all test questions. By using the EZ Test Computerized Test Bank, instructors can
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bank; analyze test results; and organize a database of tests and student results.

PowerPoint Slides
A set of visually stimulating PowerPoint slides accompanies each chapter, providing a lecture outline and key figures and
tables from the text. Slides can be edited to fit the needs of your course.

For Students

Chapter Quiz
Detailed self-assessment review quiz have been provided for practice.

PowePoint Slides
Chapter-wise PowerPoint slides accompanies chapter outlines, key figures, lecture notes.

Sample Course Outline

Authors have tried creating couple of sample course outlines by aligning the chapters for easy adoption and reference of
the faculty members.

Glossary
Chapter-wise important key terms are explained.

MIS-11e_Prelims.indd 20 11/27/2018 1:11:19 PM

 Acknowledgments

The Eleventh Edition represents an ongoing effort to improve and adapt this text to meet the needs of students and
instructors. For this revision, we received the guidance of more than 100 reviewers over the course of several months of
review work. We thank all of them for their insight and advice.

Hans-Joachim Adler, University of Texas at Dallas Thomas Franza, Dowling College

Beni Asllani, University of Tennessee—Chattanooga Carl Friedman, University of the District of Columbia
Michel Benaroch, Syracuse University Zbigniew J. Gackowski, California State University—
James P. Borden, Villanova University Stanislaus

Kevin Brennan, University of Rochester Maria R. Garcia, Franklin Pierce University

Richard L. Brozovic, McMurry University Leo Gemoets, University of Texas at El Paso

Mari W. Buche, Michigan Technological University Richard T. Grenci, John Carroll University

Jane Carey, Arizona State University Bernard Han, Western Michigan University—Kalamazoo

Arthur E. Carter, Radford University Joseph T. Harder, Indiana State University

Steve Casarow, Clearwater Christian College David Harris, University of New Mexico—Albuquerque

Carl J. Case, St. Bonaventure University Nik Hassan, University of Minnesota—Duluth

David Chao, San Francisco State University James He, Fairfield University

Edward J. Cherian, George Washington University Jun He, University of Pittsburgh

Robert Chi, California State University—Long Beach Fred Hughes, Faulkner University

Dale Chisamore, University of Texas at Dallas Lynn Isvik, Upper Iowa University

Michael Cummings, Georgia Institute of Technology A. T. “Tom” Jarmoszko, Central Connecticut State
University
Andy Curran, University of Cincinnati—Clermont
Jeanne Johnson, Culver-Stockton University
Joanna DeFranco-Tommarello, New Jersey Institute of
Technology Surinder Kahai, Binghamton University
Robin L. Dillon-Merrill, Georgetown University Rex Karsten, University of Northern Iowa
Kevin Lee Elder, Ohio University Ranjan B. Kini, Indiana University Northwest
Kurt Engemann, Iona College Ronald Kizior, Loyola University—Chicago
Roger Finnegan, Metropolitan State University Rebecca Berens Koop, University of Dayton
Gary Fisher, Angelo State University Linda Lau, Longwood University

MIS-11e_Prelims.indd 21 11/27/2018 1:11:19 PM

 xxii Acknowledgments

Al Lederer, University of Kentucky Padmal Vitharana, Syracuse University

Anita Lee-Post, University of Kentucky Anita Whitehill, Foothill College
John D. “Skip” Lees, California State University—Chico G. W. Willis, Baylor University
David Lewis, University of Massachusetts—Lowell Wita Wojtkowski, Boise State University
Dahui Li, University of Minnesota—Duluth Robert Wurm, Nassau Community College
Shin-jeng Lin, Le Moyne College Yue “Jeff” Zhang, California State University—
Celia Romm Livermore, Wayne State University Northridge

John Lundin, San Jose State University Robert Zwick, Baruch College (CUNY)

Sharad K. Maheshwari, Hampton University Sourabh Sharma, International Management Institute

Bhubaneswar
Yogish Malhotra, Syracuse University
Surinder Batra, Institute of Management Technology,
Victor Mbarika, Louisiana State University
Ghaziabad, Uttar Pradesh
Denise McManus, University of Alabama—Tuscaloosa
Arunabha Mukhopadhaya, Indian Institute of
William A. McMillan, Madonna University Management Lucknow, Lucknow, Uttar Pradesh
Patricia McQuaid, California State Polytechnic S. VijayaKumar Bharathi, Symbiosis Centre for
University—San Luis Obispo Information Technology, Pune, Maharashtra
Janet T. Nilsen, Metropolitan State University Ashok Wahi, Jaypee Institute of Information Technology,
Peter Otto, Dowling College Noida, Uttar Pradesh
Shailendra C. Palvia, Long Island University Amit Garg, MIIT
Panagiotis Petratos, California State University— Abhishek Bhushan Singhal, Amity University, Noida,
Stanislaus Uttar Pradesh
William Pritchard, Wayne State University Sunita Kanaujiya, KIET Group of Institutions, Ghaziabad,
Mahesh S. Raisinghani, University of Dallas Uttar Pradesh

Frederick Rodammer, Michigan State University Sahil Raj, Punjab University, Patiala, Punjab

Paula Ruby, Arkansas State University Abhishek Kumar Saxena, Bansal Institute of engineering
and Technology, Lucknow, Uttar Pradesh
Mark B. Schmidt, Mississippi State University
Sanjay Tyagi, Kurukshetra University, Kurukshetra,
Roy Schmidt, Bradley University
Haryana
Ganesan Shankar, Boston University
Amit Deor, Jawaharlal Nehru Government Engineering
Betsy Page Sigman, Georgetown University College, Ghangnoo, Himachal Pradesh
K. David Smith, Cameron University Krishnendu Sarkar, NSHM College of Management &
Marion Smith, Texas Southern University Technology, Behala, Kolkata
Bill Sodeman, Hawaii Pacific University Balakrishnan Unny R, Institute of Management, Nirma
University, Ahmedabad, Gujarat
Toni M. Somers, Wayne State University
Pragya Gupta, K. J. Somaiya College of Engineering,
Richard W. Srch, DeVry University
Mumbai, Maharashtra
Godwin Udo, University of Texas at El Paso
P. Bhanumathi, Aravinda Reddy M N, Ramaiah Institute
Gregory W. Ulferts, University of Detroit Mercy of Management, Bangalore, Karnataka
David A. Vance, Mississippi State University S.Mahalakshmi, B.M.S. Institute of Technology and
Sameer Verma, San Francisco State University Management, Bengaluru, Karnataka

MIS-11e_Prelims.indd 22 11/27/2018 1:11:19 PM

 Acknowledgments xxiii

For previous edition, our thanks also go to Robert Lawton of Western Illinois University for his contribution to the
analysis exercises, Richard Perle of Loyola Marymount University for his MBA cases that so many instructors use in
conjunction with this text, and to Miguel Aguirre-Urreta, who provided content for the Real World Cases.
Much credit should go to several individuals who played significant roles in this project. Thus, special thanks go to
the editorial and production team at McGraw-Hill/Irwin: Paul Ducham, editorial director; Trina Hauger, developmental
editor; Natalie Zook, marketing manager; Bruce Gin, project manager; Lori Kramer, photo coordinator; and Matthew
Baldwin, designer. Their ideas and hard work were invaluable contributions to the successful completion of the project.
The contributions of many authors, publishers, and firms in the computer industry that contributed case material, ideas,
illustrations, and photographs used in this text are also thankfully acknowledged.
For this edition, number of individuals contributed at various stages of the manuscript of the book. It is always a challenge
to quantify the contribution of each individual. Some help in the research work, some in creating the content, some does
the critical review, some does the creative work and some give new thought and new ideas. Writing book is a process,
where the author keeps learning from the environment and keeps gathering thoughts and ideas from everyone directly
or indirectly related to the project. Our Faculty colleagues at the Institute always extended the necessary support and
guidance as and when we needed. Staff at the institute for all help they extended. We thank everyone who directly or
indirectly contributed in this endeavour.
Special thanks to the editorial team at McGraw-Hill Education Nikhil Wadhera, Shalini Jha, Sachin Kumar, Shivkant
Singhal and Atul Gupta for their ideas and hardwork to the successful completion of the project.
We cannot complete this without acknowledging the support that our family members have extended. We are thankful
to each member of our family.

Acknowledging the Real World of Business

The unique contribution of the hundreds of business firms and other computer-using organizations that are the subjects
of the Real World Cases, exercises, and examples in this text is gratefully acknowledged. The real-life situations faced by
these firms and organizations provide readers of this text with valuable demonstrations of the benefits and limitations of
using the Internet and other information technologies to enable electronic business and commerce, as well as enterprise
communications and collaboration in support of the business processes, managerial decision making, and strategic
advantage of the modern business enterprise. Our special thanks to Mr. Pradeep Gupta, Chairman and Managing
Director, Cyber Media India Ltd. for allowing us to use some of the real world case studies for the book.
Ramesh Behl
James A. O’Brien
George M. Marakas

Assurance of Learning Ready

Many educational institutions today are focused on the notion of assurance of learning, an important element of some
accreditation standards. Management Information Systems is designed specifically to support your assurance of learning
initiatives with a simple, yet powerful, solution.
Each test bank question for Management Information Systems maps to a specific chapter learning outcome/objective
listed in the text. You can use our test bank software, EZ Test, to query about learning outcomes/objectives that directly
relate to the learning objectives for your course. You can then use the reporting features of EZ Test to aggregate student
results in similar fashion, making the collection and presentation of assurance of learning data simple and easy.

MIS-11e_Prelims.indd 23 11/27/2018 1:11:19 PM

 xxiv Acknowledgments

AACSB STANDARD
Recognizing the importance and value of AACSB accreditation, the authors of Management Information Systems 11e have
sought to recognize the curricula guidelines detailed in AACSB standards for business accreditation by connecting
Learning Objectives of each chapter with the content of the chapter and also the selected questions in Management
Information Systems or its test bank with the general knowledge and skill guidelines found in the AACSB standards. It is
important to note that the statements contained in Management Information Systems 11e are provided only as a guide for
the users of this text.
The AACSB leaves content coverage and assessment clearly within the realm and control of individual schools, the
mission of the school, and the faculty. The AACSB charges schools with the obligation of doing assessments against their
own content and learning goals. Although Management Information Systems 11e and its teaching package make no claim
of any specific AACSB qualification or evaluation, we have, within Management Information Systems 11e, labeled selected
questions according to the six general knowledge and skills areas. The labels or tags within Management Information
Systems 11e are as indicated. There are, of course, many more within the test bank, the text, and the teaching package,
which might be used as a “standard” for your course. However, the labeled questions are suggested for your consideration.

MIS-11e_Prelims.indd 24 11/27/2018 1:11:19 PM

 Brief Contents

About the Authors vi

Distinctive Features viii
An Information Systems Framework ix
Real World Examples x
Real Life Lessons xi
Strategy, Ethics and Beyond xii
Technologies of Tomorrow xiv
What’s New? xvi
Student Support xviii
Web Supplements xx
Acknowledgments xxi
Contents xxvii
Model Course Outline xxxvi

Module 1: Foundation Concepts

Chapter One: Foundations of Information Systems in Business 2

SECTION I Foundation Concepts: Information Systems in Business 2
SECTION II Foundation Concepts: The Components of Information Systems 29

Chapter Two: Competing with Information Technology 54

SECTION I Fundamentals of Strategic Advantage 54
SECTION II Using Information Technology for Strategic Advantage 72

Module 2: Business Applications

Chapter Three: e-Business Systems 100

SECTION I  e-Business Systems 100
SECTION II Functional Business Systems 114

Chapter Four: Enterprise Business Systems 150

SECTION I  Getting All the Geese Lined Up: Managing at the Enterprise Level 150
SECTION II Enterprise Resource Planning: The Business Backbone 164
SECTION III Supply Chain Management: The Business Network 177

MIS-11e_Prelims.indd 25 11/27/2018 1:11:19 PM

 xxvi Brief Contents

Chapter Five: e-Commerce Systems 202

SECTION I  e-Commerce Fundamentals 202
SECTION II  e-Commerce Applications and Issues 219

Chapter Six: Decision Support Systems & Business Analytics 254

SECTION I Decision Support in Business 254
SECTION II  Artificial Intelligence Technologies in Business 301

Module 3: Information Technology Infrastructure

Chapter Seven: Information Systems Infrastructure 340

SECTION I Computer Systems: End User and Enterprise Computing 341
SECTION II  Application Software: End-User Applications 382

Chapter Eight: Data Resource Management 420

SECTION I Technical Foundations of Database Management 420
SECTION II  Managing Data Resources 437

Chapter Nine: Telecommunications and Networks 472

SECTION I The Networked Enterprise 472
SECTION II Telecommunications Network Alternatives 494

Module 4: Development & Security Challenges

Chapter Ten: Planning and Developing Business/IT Solutions 540

SECTION I  Planning Fundamentals 540
SECTION II Implementing Business Systems 585

Chapter Eleven: Security and Ethical Challenges 628

SECTION I Security, Ethical, and Societal Challenges of IT  628
SECTION II Cyber Security and Cryptography 658

Chapter Twelve: Enterprise and Global Management of Information Technology 698

SECTION I  Managing Information Technology 698
SECTION II  Managing Global IT  728

Glossary 759
Review Quiz Answers 767
Company Index 769
Subject Index 775

MIS-11e_Prelims.indd 26 11/27/2018 1:11:19 PM

 Contents

About the Authors vi

Distinctive Features viii
An Information Systems Framework ix
Real World Examples x
Real Life Lessons xi
Strategy, Ethics and Beyond xii
Technologies of Tomorrow xiv
What’s New? xvi
Student Support xviii
Web Supplements xx
Acknowledgments xxi
Brief Contents xxv
Model Course Outline xxxvi

SECTION II Foundation Concepts: The Components

Module 1 of Information Systems 29
Foundation Concepts System Concepts: A Foundation 29
What Is a System? 29
Chapter One: Foundations of Information Real World Case 2: T he New York Times and Boston Scientific:
Two Different Ways of Innovating with
Systems in Business 2 Information Technology 30
SECTION I Foundation Concepts: Information Feedback and Control 32
Systems in Business 2 Other System Characteristics 32
Components of Information Systems 34
The Real World of Information Systems 3
Information System Resources 35
What Is an Information System? 3
People Resources 36
Real World Case 1: e
 Courier, Cablecom, and Bryan Cave:
Hardware Resources 36
Delivering Value through Business
Software Resources 36
Intelligence 4
Data Resources 37
The Fundamental Roles of ‘IS’ in Business 7 Network Resources 38
Trends in Information Systems 11 Information System Activities 38
The Role of e-Business in Business 15 Input of Data Resources 38
Types of Information Systems 16 Processing of Data into Information 39
Operations Support Systems 16 Output of Information Products 39
Management Support Systems 17 Storage of Data Resources 39
Other Classifications of Information Systems 18 Control of System Performance 39
Managerial Challenges of Information Technology 20 Recognizing Information Systems 40
Success and Failure with IT 20 Concept Connections 40
Developing IS Solutions 22 Review Quiz 42
Challenges and Ethics of IT 23 Discussion Questions 44
Challenges of IT Careers 24 Analysis Exercises 44
Understanding Different IS Career Opportunities 26 Application Exercise 45
The IS Function 28

MIS-11e_Prelims.indd 27 11/27/2018 1:11:19 PM

 xxviii Contents

Real World Case 3: Digital Disruption 46

Real World Case 4: S
 ew What? Inc.: The Role of Information
Module 2
Technology in Small Business Success 48 Business Applications
Real World Case 5: JetBlue and the Veterans Administration: The
Critical Importance of IT Processes 50 Chapter Three: e-Business Systems 100
Real World Case 6: Spark Batteries Ltd. 52
SECTION I  e-Business Systems 100
Introduction 100
Chapter Two: Competing with Real World Case 1: T oyota Europe, Campbell Soup Company,
Information Technology 54 Sony Pictures, and W.W. Grainger: Making
the Case for Enterprise Architects 101
SECTION I Fundamentals of Strategic
Cross-Functional Enterprise Applications 103
Advantage 54 Enterprise Application Architecture 104
Strategic IT 54 Enterprise Application Integration 105
Real World Case 1: H
 ow to Win Friends and Influence Business Transaction Processing Systems 106
People: Quantify IT Risks and Value 55 The Transaction Processing Cycle 109
Competitive Strategy Concepts 57 Enterprise Collaboration Systems 110
Competitive Forces and Strategies 57 Tools for Enterprise Collaboration 112
Strategic Uses of Information Technology 61 SECTION II Functional Business Systems 114
Other Strategic Initiatives 62 Introduction 114
Building a Customer-Focused Business 66 IT in Business 114
The Value Chain and Strategic IS 70 Real World Case 2: N
 ationwide Insurance: Unified Financial
Value Chain Examples 70 Reporting and “One Version of the
Truth” 115
SECTION II Using Information Technology for
Marketing Systems 117
Strategic Advantage 72 Interactive Marketing 118
Strategic Uses of IT 72 Targeted Marketing 118
Real World Case 2: F or Companies Both Big and Small: Running Sales Force Automation 120
a Business on Smartphones 72 Digital Marketing 123
Reengineering Business Processes 75 Manufacturing Systems 125
The Role of Information Technology 76 Computer-Integrated Manufacturing 125
Human Resource Systems 127
Becoming an Agile Company 78
HRM and the Internet 128
Creating a Virtual Company 79 HRM and Corporate Intranets 128
Virtual Company Strategies 80 Accounting Systems 130
Building a Knowledge-Creating Company 81 Online Accounting Systems 131
Knowledge Management Systems 82 Financial Management Systems 132
Implementing Knowledge Management Projects 82 Concept Connections 133
Concept Connections 85 Review Quiz 136
Review Quiz 87 Discussion Questions 137
Discussion Questions 87 Analysis Exercises 137
Analysis Exercises 88 Application Exercise 139
Application Exercise 89 Real World Case 3: C
 isco Systems: Telepresence and the Future
of Collaboration 140
Real World Case 3: T ransforming the Business for the Digital
Future 90 Real World Case 4:OHSU, Sony, Novartis, and Others:
Strategic Information Systems—It’s HR’s
Real World Case 4: W
 achovia and Others: Trading Securities at Turn 142
the Speed of Light 92
Real World Case 5: D
 rishtee.Com: Connecting India Village by
Real World Case 5: IT Leaders: Reinventing IT as a Strategic Village 144
Business Partner 94 Real World Case 6: C
 igniti Turns to Hitachi for Seamless, Single-
Real World Case 6: Automotive: Gaining the Required Edge 96 pane Management of its IT Assets 148

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 Contents xxix

Chapter Four: Enterprise Business Real World Case 5: C

 RM for Building Closer Relationship with
Dealers 197
Systems 150
Real World Case 6: Managing Supply Chain at Flipkart 199
SECTION I  Getting All the Geese Lined Up:
Managing at the Enterprise Level 150 Chapter Five: e-Commerce Systems 202
Customer Relationship Management: The Business SECTION I  e-Commerce Fundamentals 202
Focus 151 Introduction to e-Commerce 202
Introduction 151 The Scope of e-Commerce 203
Real World Case 1: D
 ow Corning and DirecTV: CRM Goes Real World Case 1: S
 ony, 1-800-Flowers, Starbucks, and Others:
Mobile 152 Social Networks, Mobile Phones, and the
What Is CRM? 154 Future of Shopping 204
Contact and Account Management 154 e-Commerce Technologies 206
Sales 154 Categories of e-Commerce 208
Marketing and Fulfillment 155 Essential e-Commerce Processes 210
Customer Service and Support 155 Access Control and Security 210
Retention and Loyalty Programs 155 Profiling and Personalizing 211
The Three Phases of CRM 157 Search Management 211
Benefits and Challenges of CRM 159 Content and Catalog Management 212
CRM Failures 159 Workflow Management 213
Trends in CRM 161 Event Notification 214
Collaboration and Trading 215
SECTION II Enterprise Resource Planning: Electronic Payment Processes 215
The Business Backbone 164 Web Payment Processes 215
Introduction 164 Electronic Funds Transfer 215
Real World Case 2: K
 ennametal, Haworth, Dana Holding, and Digital Wallet 216
Others: ERPs Get a Second Lease on Secure Electronic Payments 218
Life 165 SECTION II  e-Commerce Applications and
What Is ERP? 167 Issues 219
Benefits and Challenges of ERP 172 Real World Case 2: L inkedIn, Umbria, Mattel, and Others:
Benefits of ERP 172 Driving the “Buzz” on the Web 219
Challenges 172 e-Commerce Trends 221
The Costs of ERP 173
Business-to-Consumer e-Commerce 222
Causes of ERP Failures 173
e-Commerce Success Factors 224
Trends in ERP 175
Web Store Requirements 226
SECTION III Supply Chain Management: The Developing a Web Store 226
Business Network 177 Getting Customers to Find You 228
Introduction 177 SEO Techniques 229
Serving Your Customers 229
Real World Case 3: C
 isco Systems, Black & Decker, and O’Reilly
Managing a Web Store 230
Auto Parts: Adapting Supply Chains to
Tough Times 178 Business-to-Business e-Commerce 231
What Is SCM? 180 e-Commerce Marketplaces 232
Electronic Data Interchange 182 Clicks and Bricks in e-Commerce 234
The Role of SCM 184 e-Commerce Integration 234
Other Clicks-and-Bricks Strategies 235
Benefits and Challenges of SCM 186
e-Commerce Channel Choices 237
Trends in SCM 188 Concept Connections 238
Concept Connections 190 Review Quiz 240
Review Quiz 191 Discussion Questions 240
Discussion Questions 192 Analysis Exercises 241
Analysis Exercises 193 Application Exercise 243
Application Exercise 194
Real World Case 3: E
 ntellium, Digg, Peerflix, Zappos, and
Real World Case 4: N
 etSuite Inc., Berlin Packaging, Churchill Jigsaw: Success for Second Movers in
Downs, and Others: The Secret to CRM is in e-Commerce 244
the Data 195

MIS-11e_Prelims.indd 29 11/27/2018 1:11:19 PM

 xxx Contents

Real World Case 4: K

 itchenAid and the Royal Bank of Canada: An Overview of Artificial Intelligence 303
Do You Let Your Brand Go Online All by The Domains of Artificial Intelligence 304
Itself? 246 Business Applications of AI 307
Real World Case 5: Making of egurucool.com 248 Expert Systems 308
Real World Case 6: P
 aytm, Tez and WhatsApp—Digital Payment Components of an Expert System 308
Systems 252 Expert System Applications 310
Benefits of Expert Systems 310
Limitations of Expert Systems 311
Chapter Six: Decision Support Systems Developing Expert Systems 312
& Business Analytics 254 Knowledge Engineering 314
SECTION I Decision Support in Business 254 Neural Networks 314
Fuzzy Logic Systems 315
Introduction 254
Fuzzy Logic in Business 316
Real World Case 1: V
 alero Energy, Elkay Manufacturing, J&J,
Genetic Algorithms 316
and Overstock.com: The Move Toward Fact-
Based Decision Making 255 Virtual Reality 316
VR Applications 318
Information, Decisions, and Management 257
Information Quality 258 Intelligent Agents 320
Decision Structure 258 Concept Connections 321
Decision Support Trends 260 Review Quiz 325
Decision Support Systems 264 Discussion Questions 326
Example 264 Analysis Exercises 326
DSS Components 265 Application Exercise 328
Management Information Systems 267 Real World Case 3: G
 oodyear, JEA, OSUMC, and Monsanto:
Management Reporting Alternatives 267 Cool Technologies Driving Competitive
Advantage 330
Online Analytical Processing 268
OLAP Examples 271 Real World Case 4: H
 illman Group, Avnet, and Quaker
Geographic Information and Data Visualization Chemical: Process Transformation through
Business Intelligence Deployments 332
Systems 273
Data Visualization 277 Real World Case 5: Indian Distributors Ltd. 334
Dashboards 279 Real World Case 6: Data Analytics on Electoral Big Data 337
Using Decision Support Systems 281
What-If Analysis 282
Sensitivity Analysis 282
Goal-Seeking Analysis 283
Module 3
Optimization Analysis 283 Information Technology Infrastructure
Data Mining for Decision Support 284
Executive Information Systems 287 Chapter Seven: Information Systems
Features of an EIS 287
Infrastructure 340
Enterprise Portals and Decision Support 289
Enterprise Information Portals 289 SECTION I Computer Systems: End User and
Knowledge Management Systems 291 Enterprise Computing 341
Business Analytics 292 Introduction 341
Why Business Analytics? 293 Real World Case 1: A
 straZeneca, UnitedHealth, and Others: IT
Benefits of Implementing Business Analytics 294 Asset Management—Do You Know What
Business Intelligence Vs. Business Analytics 294 You’ve Got? 341
Four-Stage Business Analytics Model 294
A Brief History of Computer Hardware 343
Implementing Business Analytics 296
Business Analytics Techniques 296
Types of Computer Systems 345
Microcomputer Systems 346
SECTION II  Artificial Intelligence Technologies Computer Terminals 346
in Business 301 Network Computers 346
Business and AI 301 Midrange Systems 347
Real World Case 2: K
 imberly-Clark Corp.: Shopping for Virtual Mainframe Computer Systems 348
Products in Virtual Stores 301 Supercomputer Systems 348

MIS-11e_Prelims.indd 30 11/27/2018 1:11:20 PM

 Contents xxxi

The Next Wave Computing 349 Electronic Spreadsheet 387

Peer-to-Peer Computing 350 Presentation Tools 388
Cluster Computing 351 Groupware 388
Utility Computing 351 Application Service Providers 388
Grid Computing 351 System Software Overview 389
Cloud Computing 352 Operating Systems 389
Advantages of Cloud Computing 353 Operating System Functions 390
Types of Cloud-Based Deployment Models 354 Open-Source Software 391
Categories of Cloud Services 356 Application Virtualization 393
Cloud Related Concerns 357 Application Servers 394
Jungle Computing 359 Programming Languages 394
Technical Note: The Computer System Concept 360 Machine Languages 394
Computer Processing Speeds 362 Assembler Languages 394
Moore’s Law: Where Do We Go From Here? 362 High-Level Languages 395
Computer Peripherals: Input, Output and Storage Fourth-Generation Languages 395
Technologies 364 Fifth-Generation Languages 396
Real World Case 2: IT in Health Care: Voice Recognition Tools Object-Oriented Languages 396
Make Rounds at Hospitals 364 Web Languages and Services 396
Peripherals 366 HTML 397
Input Technologies 366 XML 397
Pointing Devices 366 JAVA and .NET 397
Pen-Based Computing 367 Web Services 398
Speech Recognition Systems 367 Programming Software 400
Optical Scanning 368 Language Translator Programs 400
Other Input Technologies 369 Programming Tools 400
Output Technologies 369 Case Tools 401
Video Output 369 Concept Connections 401
Printed Output 370 Review Quiz 405
3D Printing 370 Discussion Questions 407
How does 3D Printing Work? 371 Analysis Exercises 407
3D Printing Technologies Comparison 371 Application Exercises 410
Storage Trade Offs 372
Real World Case 4: IBM, Wachovia, and PayPal: Grid
Computer Storage Fundamentals 372
Computing Makes It Easier and
Direct and Sequential Access 375
Cheaper 412
Semiconductor Memory 376
Real World Case 5: A
 pple, Microsoft, IBM, and Others: The
Magnetic Disks 376
Touch Screen Comes of Age 414
Types of Magnetic Disks 377
RAID Storage 377 Real World Case 6: W
 olf Peak International: Failure and Success
Magnetic Tape 378 in Application Software for the Small-to-
Optical Disk 378 Medium Enterprise 416
Radio Frequency Identification (RFID) 379 Real World Case 7: IT Service Management 418
RFID Privacy Issues 380
SECTION II  Application Software: End-User Chapter Eight: Data Resource
Applications 382 Management 420
Introduction to Software 382
SECTION I Technical Foundations of Database
Real World Case 3: G
 E, H.B. Fuller Co., and Others: Successful
Management 420
Implementations of Software-as-a-
Service 382 Database Management 420
What is Software? 384 Real World Case 1: B
 eyond Street Smarts: Data-Driven Crime
Types of Software 384 Fighting 421
Application Software for End Users 384 Fundamental Data Concepts 423
Business Application Software 385 Character 423
Web Browsers 385 Field 423
Electronic Mail, Instant Messaging and Record 424
Weblogs 385 File 424
Word Processing and Desktop Publishing 386 Database 425

MIS-11e_Prelims.indd 31 11/27/2018 1:11:20 PM

 xxxii Contents

Database Structures 426 The Concept of a Network 475

Hierarchical Structure 427 Metcalfe’s Law 475
Network Structure 428 Trends In Telecommunications 476
Relational Structure 428 Industry Trends 477
Relational Operations 428 Technology Trends 478
Multidimensional Structure 429 Business Application Trends 479
Object-Oriented Structure 430 Internet2 480
Evaluation of Database Structures 431
The Business Value of Telecom­munications
Database Development 433 Networks 481
Data Planning and Database Design 434
The Internet Revolution 482
SECTION II  Managing Data Resources 437 Internet Service Providers 482
Data Resource Management 437 Internet Applications 482
Real World Case 2: D
 uke University Health System, Beth Israel Business Use of the Internet 483
Deaconess Medical Center, and Others: The Business Value of the Internet 485
Medical IT Is Getting Personal 438 Internet of Things (IoT) 485
Types of Databases 440 Why IoT? 485
Operational Databases 440 Applications of IoT 486
Distributed Databases 440 How Does IoT Work? 486
External Databases 441 The Role of Intranets 488
Hypermedia Databases 441 The Business Value of Intranets 489
Big Data 443 The Role of Extranets 491
NoSQL Databases 444
SECTION II Telecommunications Network
Data Warehouses and Data Mining 445
Characteristics of Data Warehouse 447 Alternatives 494
Data Mining 448 Telecom­munications Alternatives 494
Why Mine Data? 448 Real World Case 2: B
 rain Saving Technologies, Inc. and the
Techniques for Data Mining 449 T-Health Institute: Medicine through
Traditional File Processing 450 Videoconferencing 494
Problems of File Processing 450 A Telecom­munications Network Model 496
The Database Management Approach 452 Types of Telecom­munications Networks 497
Database ­Management System 452 Wide Area Networks 497
Database ­Interrogation 455 Metropolitan Area Network 497
Database ­Maintenance 457 Local Area Networks 498
Application ­Development 457 Virtual Private Networks 498
Concept Connections 458 Client/Server Networks 502
Review Quiz 460 Network Computing 502
Discussion Questions 461 Peer-to-Peer Networks 502
Analysis Exercises 461
Digital and Analog Signals 505
Application Exercise 463
Telecommuni­cations Media 506
Real World Case 3: C
 ogent Communications, Intel, and Others:
Mergers Go More Smoothly When Your Wired Technologies 506
Data Are Ready 464 Twisted-Pair Wire 506
Coaxial Cable 506
Real World Case 4: A
 pplebee’s, Travelocity, and Others: Data
Mining for Business Decisions 466
Fiber Optics 507
The Problem of “The Last Mile” 507
Real World Case 5: R
 edbus.in: Automating Bus Travel
Industry 468 Wireless Technologies 508
Terrestrial Microwave 508
Real World Case 6: Implementing HANA & BI for Growth 470
Communications Satellites 508
Cellular and PCS Systems 510
Chapter Nine: Telecommunications Wireless LANs 510
and Networks 472 Bluetooth 511
The Wireless Web 511
SECTION I The Networked Enterprise 472 Telecom­munications Processors 512
The Networked Enterprise 472 Modems 512
Real World Case 1: D
 LA Piper, MetLife, PepsiCo, and Others: Inter-Network Processors 514
Telepresence Is Finally Coming of Age 473 Multiplexers 514

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 Contents xxxiii

Telecom­munications Software 514 Real World Case 2: M

 icrosoft, SiCortex, and Others: How
Network Management 515 Virtualization Helps Software
Network Topologies 516 Developers 557
Network Architectures and Protocols 517 The Systems Approach 559
Protocols 517 Systems Thinking 559
Network Architectures 518 Systems Analysis and Design 560
The OSI Model 518 The Systems Development Life Cycle 560
The Internet’s TCP/IP 519 Starting the Systems Development Process 561
Voice over IP 520 Feasibility Studies 562
Bandwidth Alternatives 522 Operational Feasibility 563
Switching Alternatives 523 Economic Feasibility 563
Technical Feasibility 563
Network Interoperability 524
Human Factors Feasibility 564
Concept Connections 524
Legal/Political Feasibility 565
Review Quiz 527
Systems Analysis 565
Discussion Questions 528 Organizational Analysis 565
Analysis Exercises 528 Analysis of the Present System 565
Application Exercise 530 Logical Analysis 566
Real World Case 3: M
 etric & Multistandard Components Corp.: Functional Requirements Analysis and
The Business Value of a Secure Self- Determination 566
Managed Network for a Small-to-Medium Systems Design 567
Business 531
System Development Methodologies 567
Real World Case 4: S
 tarbucks and Others: The Future of Public Waterfall Model 567
Wi-Fi 533 Prototyping 568
Real World Case 5: Seconds & Powerful 535 Incremental 571
Real World Case 6: S
 apient Undergoes Digital Spiral 572
Metamorphosis 536 Rapid Application Development (RAD) 573
Agile Method 574
Extreme Programming (XP) Methodology 574
Joint Application Development (JAD)
Module 4 Methodology 575
Development & Security Challenges Rational Unified Process (RUP) Methodology 575
Design Thinking 576
The Five Stages of Design Thinking 576
Chapter Ten: Planning and Developing Design Thinking – A Non-linear Model 577
Business/IT Solutions 540 User Interface Design 579
System Specifications 580
SECTION I  Planning Fundamentals 540 End-User Development 581
Introduction 540 Focus on IS Activities 581
Real World Case 1: IT Leaders: IT/Business Alignment Takes on a Doing End-User Development 582
Whole New Meaning 541 Technical Note: Overview of Object-Oriented Analysis
Organizational Planning 543 and Design 584
The Scenario Approach 544 SECTION II Implementing Business Systems 585
Planning for Competitive Advantage 545 Implementation 585
SWOT Analysis 545 Real World Case 3: JetBlue Airways, WestJet Airlines, and
Business Models and Planning 547 Others: The Difficult Path to Software
Business/IT Architecture Planning 551 Upgrades 586
Information Technology Architecture 551 Implementing New Systems 588
Balanced Scorecard 552 Project Management 589
Identifying Business/IT Strategies 554 What Is a Project? 590
Business Application Planning 555 The Process of Project Management 590
Business/IT Architecture Planning 556 Evaluating Hardware, Software, and Services 592
Hardware Evaluation Factors 593
Developing Business Systems 557 Software Evaluation Factors 594
IS Development 557 Evaluating IS Services 594

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 xxxiv Contents

Other Imple­mentation Activities 595 Privacy Issues 649

Testing 595 Privacy on the Internet 650
Data Conversion 595 Computer Matching 651
Documentation 596 Privacy Laws 652
Training 597 Computer Libel and Censorship 653
System Conversion Strategies 597 The Current State of Cyber Law 653
Direct Conversion 598 Other Challenges 654
Parallel Conversion 598 Employment Challenges 654
Pilot Conversion 598 Computer Monitoring 655
Phased Conversion 599 Challenges in Working Conditions 655
Postimplementation Activities 599
Challenges of Individuality 656
Systems Maintenance 599
Health Issues 656
Postimplementation Review 599
Ergonomics 656
Computer Aided Software Engineering (CASE) 600
Implementing Information Technology 601 Societal Solutions 657
End-User Resistance and Involvement 602 SECTION II Cyber Security and Cryptography 658
Change Management 604 Introduction 658
A Change Management Process 605 Real World Case 2: W
 yoming Medical Center, Los Angeles
Concept Connections 608 County, and Raymond James: End-Point
Review Quiz 611 Security Gets Complicated 658
Discussion Questions 613 Tools of Security Management 660
Analysis Exercises 613
Inter-Networked Security Defenses 663
Application Exercise 616
Cryptography 665
Real World Case 4: F orrester, NMSU, Exante Financial Services, Cryptographic Keys 665
and Others: Getting Real about Strategic
Encryption 666
Planning 617
Firewalls 666
Real World Case 5: R
 ole of Information Technology in Processed Denial of Service Attacks 668
Food Industry 619 E-mail Monitoring 671
Real World Case 6: P
 ayPal: Going Global All Languages at a Virus Defenses 671
Time 624 Other Security Measures 673
Real World Case 7: C
 entene, Flowserve, and Shaw Industries: Security Codes 673
Relationships, Collaboration, and Project Backup Files 673
Success 626 Security Monitors 673
Biometric Security 674
Chapter Eleven: Security and Ethical Computer Failure Controls 675
Fault-Tolerant Systems 675
Challenges 628
Disaster Recovery 676
SECTION I Security, Ethical, and Societal System Control and Audits 676
Challenges of IT  628 Information System Controls 677
Introduction 628 Auditing IT Security 677
Real World Case 1: T exas Health Resources and Intel: Ethics, IT, Blockchain - the New Secured Technology 681
and Compliance 629 How it Works? 681
Business/IT Security, Ethics, and Society 631 Some Important Features of a Blockchain 682
Ethical Responsibility of Business Professionals 632 Business Applications of Blockchain 682
Business Ethics 632 Concept Connections 684
Technology Ethics 633 Review Quiz 685
Ethical Guidelines 633 Discussion Questions 686
Computer Crime 635 Analysis Exercises 687
Hacking and Cracking 638 Application Exercise 688
Cyber-Theft 639 Real World Case 3: E
 thics, Moral Dilemmas, and
Cyberterrorism 640 Tough Decisions: The Many Challenges
Unauthorized Use at Work 641 of Working in IT 689
Software Piracy 641 Real World Case 4: R
 aymond James Financial, BCD Travel,
Theft of Intellectual Property 644 Houston Texans, and Others: Worrying
Computer Viruses and Worms 645 about What Goes Out, Not What Comes
Adware and Spyware 647 In 691

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 Contents xxxv

Real World Case 5: Phishing: Customers Beware! 693 Real World Case 2: C
 adbury, Forrester Research, A.T. Kearney,
Real World Case 6: B
 lockchain: New Skill for the Digital and Others: IT Leaders Face New
Age 694 Challenges in a Globalized World 728
Global IT Management 730
Chapter Twelve: Enterprise and Global Cultural, Political, and Geoeconomic Challenges 732
Global Business/IT Strategies 733
Management of Information
Global Business/IT Applications 735
Technology 698 Global IT Platforms 736
SECTION I  Managing Information Technology 698 The Internet as a Global IT Platform 738
Global Data Access Issues 739
Business and IT 698
Internet Access Issues 740
Real World Case 1: Reinventing IT at BP 699
Global Systems Development 743
Managing Information Technology 701 Systems Development Strategies 744
Business/IT Planning 702 Workforce Agility 745
Information Technology Architecture 703 Concept Connections 746
Managing the IT Function 704 Review Quiz 748
Organizing IT 705 Discussion Questions 749
Managing Application Development 706 Analysis Exercises 749
Managing IS Operations 706 Real World Case 3: T oyota, Procter & Gamble,
Data Center 707 Hess Corporation, and Others: Retiring CIOs
IT Staff Planning 710 and the Need for Succession Planning 751
The CIO and Other IT Executives 710 Real World Case 4: R
 einsurance Group of America and
Technology Management 712 Fonterra: Going for Unified Global
Managing User Services 712 Operations 753
Outsourcing and Offshoring IT and IS 712 Real World Case 5: R
 FID Implementation at Abhishek
Outsourcing 713 Industries 755
Offshoring 715
Real World Case 6: S
 oftware Technology Parks -- Destination for
Trends in Outsourcing and Offshoring 716
Outsourcing IT Services 756
Failures in IT Management 717
Management ­Involvement 718
IT Governance 719 Glossary 759
Smart Governance 722
Features of Smart Governance 724 Review Quiz Answers 767
Models of Smart Governance 724
Company Index 769
SECTION II  Managing Global IT  728
The International Dimension 728 Subject Index 775

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 Model Course
Information Technology for Management
Objective Refers to Components of Information Technology Infrastructure that is used for collecting, storing
& transmitting data
Scope IT Infrastructure
Interpretations Information Technology for Management would be anything related to computers, softwares,
telecommunication systems, internet technologies and security systems that are required to build
Management Information Systems.
Focus IT supports and informs the methods of reaching MIS objectives
Learning LO1. To provide students with a basic understanding of the technologies used in decision-making.
Objectives
Suggestive R: Chapters 1 & 2 of Textbook
C: Digital Disruption… on Page 46 of Textbook
Readings C: Transforming the Business on Page 90 of Textbook
R: Readings Exercise 3 on Page 46
C: Cases Exercise 2 on Page 90
LO2. To understand the skills needed to manage and use information technology in changing
technological and organizational settings.
R: Chapter 7 of Textbook
C: G.E, H.B. Fuller & Co…. on Page 384 of Textbook
C: IBM, Wachovia… on Page 414 of Textbook
Exercise 1 & 3 on Page 412 of Textbook
LO3. To understand concepts and applications of databases and information management.
R: Chapter 8 of Textbook C: Redbus.in on Page 470 of Textbook
Exercise 1 on Page 466 of Textbook
LO4. To provide basic concept about the role of telecommunication and networking technologies
in decision making.
R: Chapter 9 of Textbook C: Seconds & Powerful on Page 536 of Textbook

LO5. To understand the process of designing and development of information technology

infrastructure.
R: Chapter 10 of Textbook C: Jetblues Airways… on Page 588 of Textbook
Exercise 2 & 3 on Pages 618 & 619 of Textbook

LO6. Identify strategies, policies, and procedures for effective management of information system.
R: Chapter 6 of Textbook C: Indian Distributors Ltd. on Page 336 of Textbook
Exercise 1 & 2 on Pages 331 & 332 of Textbook

LO7. Exposure to the current and emerging trends in information technology.

R: Chapters 3, 4 & 5 of Textbook C: Making of eGurucool.com on Page 249 of Textbook
C: Netsuits Inc… on Page 195 of Textbook
Exercise 1 on Page 194

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 ... Outline
Management Information Systems
Refers to Application of Information Technology to support Decision Making

IT Applications
Management Information System is a set of data, computing devices (IT Infrastructure) and
management methods that supports decision making.

MIS begins with a focused purpose and addresses the needs of business
LO1. To understand the support of information system in key business functions.

R: Chapter 1 of Textbook C: eCourier, Cablecom… on Page 4 of Textbook

Exercise 1 on Page 45

LO2. To understand the types of information systems that are needed to support the various
levels of a business enterprise.
R: Chapter 1 of Textbook C: Sparks Batteries... on Page 52 of Textbook
Exercise 3 on Page 46

LO3. To understand the Strategic role of Information Systems.

R: Chapter 2 of Textbook C: IT Leaders—Reinventing IT on Page 94 of Textbook
Exercise 1 on Page 89
LO4. The course will equip students with skills to analyze information requirements for
managerial decision-making.
R: Chapter 6 of Textbook C: Indian Distributors Ltd on Page 336 of Textbook
R: Chapter 8 of Textbook C: AppleBee’s, Travelocity on Page 466 of Textbook
Exercise 1, 2 & 3 on Pages 331 & 332 of Textbook
LO5. To understand the process of designing and developing an information system.

R: Chapter 10 of Textbook
C: Role of IT … on Page 621 of Textbook
C: Paypal Going Global… on Page 626 of Textbook
Exercise 2 & 3 on Page 618 & 619 of Textbook
LO6. To understand the role of IS in electronic business and enterprise wide computing.
R: Chapters 3 & 5 of Textbook
C: Cisco Systems… on Page 140 of Textbook
R: Chapter 4 of Textbook
C: Kennametal, Haworth… on Page 165 of Textbook
C: Making of eGurucool.com on Page 249 of Textbook
Exercise 1 on Page 194
LO7. To understand the infrastructure needed for information system.
R: Chapters 7 & 9 of Textbook
C: IT Service Management on Page 418 of Textbook
C: Sapient Undergoes… on Page 536 of Textbook
Exercise 2 on Page 411 of Textbook
LO8. To develop an awareness of critical issues around information systems like data security,
privacy and ethical use of information.
R: Chapter 11 of Textbook C: Texas Health Resources… on Page 631 of Textbook
LO9. To demonstrate managerial problem solving skills using exercises, case scenarios and
project for the Global Information systems.
R: Chapter 12 of Textbook C: Reinventing IT at BP Business…on Page 699 of
Textbook

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