Management information system 6e effy oz

Course Technology’s Management Information Systems
Instructor and Student Resources
Introduction to IS/MIS
Principles of Information Systems, Eighth Edition • Stair, Reynolds
Fundamentals of Information Systems, Fourth Edition • Stair, Reynolds
Management Information Systems, Sixth Edition • Oz
Information Technology in Theory • Aksoy, DeNardis
Office Applications in Business
Problem-Solving Cases in Microsoft Access & Excel, Sixth Annual Edition • Brady, Monk
Succeeding in Business Applications with Microsoft Office 2007 • Bast, Gross, Akaiwa, Flynn, et.al
Succeeding in Business with Microsoft Office Excel 2007 • Gross, Akaiwa, Nordquist
Succeeding in Business with Microsoft Office Access 2007 • Bast, Cygman, Flynn, Tidwell
Databases
Database Systems, Eighth Edition • Rob, Coronel
Concepts of Database Management, Sixth Edition • Pratt, Adamski
Data Modeling and Database Design • Umanath, Scamell
A Guide to SQL, Seventh Edition • Pratt
A Guide to MySQL • Pratt, Last
Guide to Oracle 10g • Morrison, Morrison, Conrad
Oracle 10g Titles
Oracle9i Titles
Enterprise Resource Planning
Concepts in Enterprise Resource Planning, Third Edition • Monk, Wagner
Data Communications
Data Communications and Computer Networks: A Business User’s Approach, Fourth Edition • White
Systems Analysis and Design
Systems Analysis and Design in a Changing World, Fifth Edition • Satzinger, Jackson, Burd
Object-Oriented Analysis and Design with the Unified Process • Satzinger, Jackson, Burd
Systems Analysis and Design for the Small Enterprise, Third Edition • Harris
Security

Management of Information Security, Second Edition • Whitman, Mattord
Principles of Information Security, Third Edition • Whitman, Mattord
Readings and Cases in the Management of Information Security • Whitman, Mattord
Hands-On Information Security Lab Manual, Second Edition • Whitman, Mattord, Shackleford
Database Security and Auditing: Protecting Data Integrity and Accessibility • Afyouni
Electives
Information Technology Project Management, Fifth Edition • Schwalbe
Introduction to Project Management • Schwalbe
Readings in Information Technology Project Management • Richardson, Butler
Electronic Commerce, Seventh Edition • Schneider
Creating a Winning E-Business, Second Edition • Napier, Rivers, Wagner, Napier
Learning and Using Geographic Information Systems: ArcGIS Edition • Gorr, Kurland
Learning and Using Geographic Information Systems: ArcExplorer Edition • Gorr, Kurland
Ethics in Information Technology, Second Edition • Reynolds
Customer Relationship Management • Wagner, Zubey
Systems Architecture, Fifth Edition • Burd
Management of Information Technology, Fourth Edition • Frenzel, Frenzel


MANAGEMENT INFORMATION
SYSTEMS
Sixth Edition

EFFY OZ
The Pennsylvania State University, Great Valley


Management Information Systems,
Sixth Edition
by Effy Oz

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Kate Hennessy

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ISBN-13: 978-1-4239-0178-5
ISBN-10: 1-4239-0178-9


To Narda, Sahar, Adi, Noam, Ron, Jess, and Lily
and in memory of my sister, Miry Herzog


BRIEF CONTENTS
PART ONE

THE INFORMATION AGE

Chapter
Chapter
Chapter

1
2
3

PART TWO

INFORMATION TECHNOLOGY

Chapter
Chapter
Chapter
Chapter

4
5
6
7

PART THREE
Chapter
Chapter

Business Hardware
Business Software
Business Networks and Telecommunications
Databases and Data Warehouses

WEB-ENABLED COMMERCE
8
9

PART FOUR
Chapter 10
Chapter 11

PART FIVE

The Web-Enabled Enterprise

Challenges of Global Information Systems

DECISION SUPPORT AND BUSINESS INTELLIGENCE
Decision Support and Expert Systems
Business Intelligence and Knowledge Management

PLANNING, ACQUISITION, AND CONTROLS

Chapter 12
Chapter 13
Chapter 14

iv

Business Information Systems: An Overview
Strategic Uses of Information Systems
Business Functions and Supply Chains

BRIEF CONTENTS

Systems Planning and Development
Choices in Systems Acquisition
Risks, Security, and Disaster Recovery

1
5
39
75

115

119
157
193
231

265
268
312

337
340
376

405
409
443
473


TABLE OF CONTENTS
PART ONE
Chapter 1

THE INFORMATION AGE

1

Case I: Gardeners+

1

Business Information Systems: An Overview

5

Gardeners+: Business Systems and Information

6

Does Information Technology Matter?
The Power of Digital Systems
The Purpose of Information Systems

7
7
8

Why You Should Be Well-Versed in Information Systems

9

Data, Information, and Information Systems

9

Data vs. Information 9
Data Manipulation 9
Generating Information 10
Information in Context 11
What Is a System? 11

Information and Managers 13
The Benefits of Human-Computer Synergy 14
Information Systems in Organizations 14
The Four Stages of Processing 16
Computer Equipment for Information Systems 17

From Recording Transactions to Providing Expertise:
Types of Information Systems

18

Transaction Processing Systems 18
Supply Chain Management Systems 18
Customer Relationship Management Systems 19
Business Intelligence Systems 20
Decision Support and Expert Systems 20
Geographic Information Systems 21

Information Systems in Business Functions

22

Accounting 22
Finance 22
Marketing 22
Human Resources 23

Web-Empowered Enterprises
Careers in Information Systems

23
24

Help Desk Technician 24
Ethical & Societal Issues: The Downside
Systems Analyst 26
Database Administrator 26
Network Administrator 28
System Administrator 28
Webmaster 29
Chief Security Officer 29
Chief Information Officer and Chief Technology Officer 29

25

Summary

31

Gardeners+ Revisited

32

Key Terms
Review Questions
Discussion Questions

33
33
34

TABLE OF CONTENTS

v


TABLE OF CONTENTS
Applying Concepts
Hands-On Activities
Team Activities

Chapter 2

34
35
35

From Ideas to Application: Real Cases

36

Strategic Uses of Information Systems

39

Gardeners+: Using Information Strategically

40

Strategy and Strategic Moves

Achieving a Competitive Advantage

42
43

Initiative #1: Reduce Costs 44

Why You Should Understand the Notion of Strategic
Information Systems
Initiative #2: Raise Barriers to Market Entrants 45
Initiative #3: Establish High Switching Costs 46
Initiative #4: Create New Products or Services 46
Initiative #5: Differentiate Products or Services 48
Initiative #6: Enhance Products or Services 49
Initiative #7: Establish Alliances 50
Initiative #8: Lock in Suppliers or Buyers 53

Creating and Maintaining Strategic Information Systems

45

54

Creating an SIS 54
Reengineering and Organizational Change 55
Competitive Advantage as a Moving Target 56

JetBlue: A Success Story

57

Massive Automation 58
Away from Tradition 59
Enhanced Service 59
Impressive Performance 60
Late Mover Advantage 60

Ethical & Societal Issues: Size Matters

Ford on the Web: A Failure Story

61

62

The Ideas 62
Hitting the Wall 63
The Retreat 63

The Bleeding Edge
Summary

Chapter 3

Gardeners+ Revisited

66

Key Terms
Review Questions

Discussion Questions
Applying Concepts
Hands-On Activities
Team Activities

66
67
67
68
69
69

From Ideas to Application: Real Cases

70

Business Functions and Supply Chains

75

Gardeners+: Continued Growth and Specialization

76

Effectiveness and Efficiency

vi

TABLE OF CONTENTS

63
65

77


TABLE OF CONTENTS
Accounting

80

Why You Should Know About Business Functions
and Supply Chains

81

Finance

81

Cash Management 81
Investment Analysis and Service 82

Engineering
Supply Chain Management

83
85

Material Requirements Planning and Purchasing 86

Manufacturing Resource Planning 87
Monitoring and Control 87
Shipping 88
RFID in SCM 90

Customer Relationship Management

91

Market Research 92
Targeted Marketing 92
Customer Service 95
Salesforce Automation 95

Human Resource Management

96

Employee Record Management 96
Promotion and Recruitment 96
Training 98
Evaluation 98
Compensation and Benefits Management 99
Ethical & Societal Issues: Consumer Privacy

100

Supply Chain Management Systems

101

The Importance of Trust 102
The Musical Chairs of Inventory 103
Collaborative Logistics 104

Enterprise Resource Planning

104

Challenges and Disadvantages of ERP Systems 105
Providing the Missing Reengineering 106

Summary

107

Gardeners+ Revisited

108

Key Terms
Review Questions
Discussion Questions
Applying Concepts
Hands-On Activity
Team Activities

108
109
109

110
110
111

From Ideas to Application: Real Cases

PART TWO
Chapter 4

112

INFORMATION TECHNOLOGY

115

Case II: QuickBiz Messengers

115

Business Hardware

119

QuickBiz Messengers: Hardware Streamlines Processes

120

TABLE OF CONTENTS

vii

TABLE OF CONTENTS
Computer Hardware Components

121

Why You Should Understand Information Systems Hardware

123

Classification of Computers

123

Supercomputers 123
Mainframe Computers 124
Midrange Computers 125
Microcomputers 125
Computers on the Go: Notebook, Handheld, and Tablet Computers 125
Converging Technologies 126

A Peek Inside the Computer

127

The Central Processing Unit 128
Computer Power 129

Input Devices

130

Keyboard 130
Mouse, Trackball, and Trackpad 131
Touch Screen 131
Source Data Input Devices 132
Imaging 133
Speech Recognition 134

Output Devices

135

Monitors 135
Printers 136

Storage Media
Modes of Access 137
Magnetic Tapes 137
Magnetic Disks 138
Optical Discs 139
Optical Tape 140
Flash Memory 140
DAS, NAS, and SAN 141
Ethical & Societal Issues: Computers May Be Hazardous
to Your Health
Business Considerations in Evaluating Storage Media 143

Considerations in Purchasing Hardware

136

142

145

Scalability and Updating Hardware 146

Summary
QuickBiz Messengers Revisited

Key Terms
Review Questions
Discussion Questions
Applying Concepts
Hands-On Activities
Team Activities
From Ideas to Application: Real Cases

Chapter 5

TABLE OF CONTENTS

149

149
150
150
151

152
153
154

Business Software

157

QuickBiz Messengers: Software Steers a Path to Stability

158

Software: Instructions to the Hardware
Programming Languages and Software Development Tools

viii

148

159
160


TABLE OF CONTENTS
Why You Should Be Software Savvy
Visual Programming 162
Object-Oriented Programming 163

162

Language Translation: Compilers and Interpreters
Application Software

165
167

Office Productivity Applications 167
Hypermedia and Multimedia 169
Mashups 170
Web Site Design Tools 171
Groupware 171
Virtual Reality 172
3-D Geographic Software 173

System Software

174

Operating Systems 174
Other System Software 178

Open Source Software
Software Licensing
Considerations for Packaged Software

178
180
180

Ethical & Societal Issues: Software Piracy

181

Summary

183

QuickBiz Messengers Revisited

184

Key Terms
Review Questions
Discussion Questions
Applying Concepts
Hands-On Activities
Team Activities
From Ideas to Application: Real Cases

Chapter 6

185
185
186
186
187
187
188

Business Networks and Telecommunications

193

QuickBiz Messengers: Communication Is Key

194

Telecommunications in Business
Telecommunications in Daily Use

195
197

Cellular Phones 197
Videoconferencing 197
Wireless Payments and Warehousing 198
Why You Should Understand Telecommunications
Peer-to-Peer File Sharing 198
Web-Empowered Commerce 199

Bandwidth and Media

198

199

Bandwidth 199
Media 200

Networks

203

Types of Networks 203
PANs 204
Networking Hardware 205
Virtual Private Networks 205
Switching Techniques 206

TABLE OF CONTENTS

ix


TABLE OF CONTENTS
Protocols

207

TCP/IP 207
Ethernet 208
Wireless Protocols 208
Generations in Mobile Communications 212

Internet Networking Services

213

Cable 214
Digital Subscriber Line (DSL) 214

T1 and T3 Lines 215
Satellite 215
Fixed Wireless 216
Fiber to the Premises 216
Optical Carrier 216
Broadband Over Power Lines (BPL) 217

The Future of Networking Technologies
Broadband Telephony 217
Ethical & Societal Issues: Telecommuting: Pros and Cons
Radio Frequency Identification 220
Converging Technologies 222

Summary
QuickBiz Messengers Revisited

Chapter 7

217
218

224
225

Key Terms
Review Questions
Discussion Questions
Applying Concepts
Hands-On Activities
Team Activities

From Ideas to Application: Real Cases

225
226
227
227
228
228
229

Databases and Data Warehouses

231

QuickBiz Messengers: The Value and Uses of Databases

232

Managing Digital Data

233

Why You Should Know About Data Management
The Traditional File Approach 234
The Database Approach 235

234

Database Models

238

The Relational Model 239
The Object-Oriented Model 241

Relational Operations

242

Structured Query Language 243
The Schema and Metadata 244

Data Modeling
Databases on the Web
Data Warehousing

245
246
248

Ethical & Societal Issues: Every Move You Make
From Database to Data Warehouse 250
Phases in Data Warehousing 251

249

Summary

253

QuickBiz Messengers Revisited

x

TABLE OF CONTENTS

254


TABLE OF CONTENTS
Key Terms
Review Questions
Discussion Questions
Applying Concepts
Hands-On Activities
Team Activities

254
255
255
256
257
258

From Ideas to Application: Real Cases

PART THREE
Chapter 8

259

WEB-ENABLED COMMERCE

265

Case III: It Fits Outfits

265

The Web-Enabled Enterprise

268

It Fits Outfits: Setting Up Operations on the Internet

269

Web Business: Growing and Changing
Web Technologies: A Review

271
271

HTTP 271
Why You Should Know More About Web-Enabled Business
HTML and XML 272
File Transfer 273
RSS 273
Blogs 274
Wikis 274

Podcasting 275
Instant Messaging 275
Cookies 276
Proprietary Technologies 278

272

Web-Enabled Business

278

B2B Trading 278
B2C Trading 283
Ethical & Societal Issues: Online Annoyances and Worse

288

Supply Chains on the Web
Options in Establishing a Web Site

292
294

Owning and Maintaining a Server 294
Using a Hosting Service 294
Considerations in Selecting a Web Host 296
More than Meets the Eye 299

Rules for Successful Web-Based Business

300

Target the Right Customers 300
Capture the Customer’s Total Experience 300
Personalize the Service 300
Shorten the Business Cycle 300
Let Customers Help Themselves 301
Be Proactive and De-Commoditize 301
E-Commerce Is Every Commerce 301

Summary

302

It Fits Outfits Revisited

303

Key Terms
Review Questions

303
304
TABLE OF CONTENTS

xi


TABLE OF CONTENTS
Discussion Questions

Applying Concepts
Hands-On Activities
Team Activities
From Ideas to Application: Real Cases

Chapter 9

312

It Fits Outfits: Expanding Gloabally

313

Multinational Organizations
The Web and International Commerce

314
315

Think Globally, Act Locally 317
Why You Should Learn About Challenges of Global ISs

318

Challenges of Global Information Systems

318

Summary
Key Terms

Review Questions
Discussion Questions
Applying Concepts
Hands-On Activities
Team Activities

331
331
331
332
333
333

DECISION SUPPORT AND BUSINESS INTELLIGENCE

334

337

Case IV: DeBoer Farms

337

Decision Support and Expert Systems

340

DeBoer Farms: Farming Technology for Information

341

342
342
343

Why You Should Be Familiar with Decision Aids

345

Decision Support Systems

345

The Data Management Module 346
The Model Management Module 347
The Dialog Module 349

TABLE OF CONTENTS

330
330

Decision Support
The Decision-Making Process
Structured and Unstructured Problems

xii

326

It Fits Outfits Revisited

From Ideas to Application: Real Cases

Chapter 10

308

Challenges of Global Information Systems

Technological Challenges 318
Regulations and Tariffs 319
Differences in Payment Mechanisms 320
Language Differences 320
Cultural Differences 321
Conflicting Economic, Scientific, and Security Interests 321
Political Challenges 323
Different Standards 324
Legal Barriers 325
Ethical & Societal Issues: Legal Jurisdictions in Cyberspace
Different Time Zones 329

PART FOUR

304
305
306
307


TABLE OF CONTENTS

Sensitivity Analysis 350
Decision Support Systems in Action 351
Ethical & Societal Issues: Decisions by Machines

356

Expert Systems

357

Expert Systems in Action 360

Group Decision Support Systems
Geographic Information Systems
Summary

364
364
367

DeBoer Farms Revisited

368

Key Terms
Review Questions
Discussion Questions
Applying Concepts
Hands-On Activities
Team Activities

368
369
369
370
371
372

From Ideas to Application: Real Cases

Chapter 11

373

Business Intelligence and Knowledge Management

376

DeBoer Farms: Harvesting Technology’s Benefits

377

Data Mining and Online Analysis

378

Data Mining 379
Why You Should Learn About BI and KM Tools
Online Analytical Processing 382
More Customer Intelligence 387

Dashboards 389

379

Knowledge Management

390

Capturing and Sorting Organizational Knowledge 391
Employee Knowledge Networks 392
Ethical & Societal Issues: Knowledge and Globalization
Knowledge from the Web 394
Autocategorization 396

393

Summary

397

DeBoer Farms Revisited

398

Key Terms
Review Questions
Discussion Questions
Applying Concepts
Hands-On Activities
Team Activities

398
398
399
400
400
400

From Ideas to Application: Real Cases

PART FIVE
Chapter 12

401

PLANNING, ACQUISITION, AND CONTROLS

405

Case V: Worldwide Host

405

Systems Planning and Development

409

Worldwide Host: A Vision for the Future

410

TABLE OF CONTENTS

xiii


TABLE OF CONTENTS
Planning Information Systems

411

Steps in Planning Information Systems 411
Why You Should Understand the Principles of
Systems Development
The Benefits of Standardization in Planning 414
From Planning to Development 415

414

The Systems Development Life Cycle

415

Analysis 416
Design 420
Implementation 423
Support 425

Agile Methods

426

When to Use Agile Methods 428
When Not to Use Agile Methods 428

Project Planning and Management Tools
Systems Integration

429
431

Ethical & Societal Issues: Should IS Professionals Be Certified?

433

Summary

434

Worldwide Host Revisited

Key Terms
Review Questions
Discussion Questions
Applying Concepts
Hands-On Activities
Team Activities

Chapter 13

435

435
435
436
437
438
438

From Ideas to Application: Real Cases

439

Choices in Systems Acquisition

443

Worldwide Host: Tapping Others’ Expertise

444

Options and Priorities
Outsourcing
Outsourcing Custom-Designed Applications 446
Why You Should Understand Alternative Avenues for
the Acquisition of Information Systems
Outsourcing IT Services 448
Advantages of Outsourcing IT Services 451
Risks of Outsourcing IT Services 451

Licensing Applications

445
446
446

453

Software Licensing Benefits 454
Software Licensing Risks 454
Steps in Licensing Ready-Made Software 455

Software as a Service

457

Caveat Emptor 459

User Application Development

463

Summary

465

Worldwide Host Revisited

xiv

TABLE OF CONTENTS

460

Managing User-Developed Applications 460
Advantages and Risks 461
Ethical & Societal Issues: Computer Use Policies for Employees

466


TABLE OF CONTENTS
Key Terms
Review Questions
Discussion Questions
Applying Concepts
Hands-On Activities
Team Activities

466
466
467
468
468
469

From Ideas to Application: Real Cases

Chapter 14

470

Risks, Security, and Disaster Recovery

473

Worldwide Host: Battling Back from Attacks
Goals of Information Security

474
475

Why You Should Understand Risks, Security, and Disaster
Recovery Planning

476

Risks to Information Systems

476

Risks to Hardware 476
Risks to Data and Applications 477

Risks to Online Operations

483

Denial of Service 484
Computer Hijacking 484

Controls

485

Application Reliability and Data Entry Controls 485
Backup 485
Access Controls 486
Atomic Transactions 488
Audit Trail 489

Security Measures

489

Firewalls and Proxy Servers 490
Authentication and Encryption 491
The Downside of Security Measures 498
Ethical & Societal Issues: Terrorism and PATRIOTism

499

Recovery Measures

500

The Business Recovery Plan 500
Recovery Planning and Hot Site Providers 502

The Economics of Information Security

502

How Much Security Is Enough Security? 503
Calculating Downtime 503

Summary

505

Worldwide Host Revisited

506

Key Terms
Review Questions
Discussion Questions
Applying Concepts
Hands-On Activities
Team Activities

507
507
508
509
509
510

From Ideas to Application: Real Cases

511

Glossary
Subject Index
Name & Company Index

515
531
559
TABLE OF CONTENTS

xv


PREFACE
The goal of Management Information Systems, Sixth Edition is to provide a real-world understanding
of information systems (ISs) for business and computer science students. Like its predecessor, this
Sixth Edition provides students with a firm foundation in business-related information technology
(IT) on which they can build successful careers regardless of the particular fields they choose. They
may find themselves formulating strategic plans in executive suites, optimizing operations in
businesses or on factory floors, fine-tuning plans for their own entrepreneurial ventures, designing
ISs to optimize their organization’s operations, working as consultants, augmenting business
activities on the Web, or creating valuable new information products in any number of industries.
This Sixth Edition is organized in fourteen chapters that contain the most important topics for
business students.The fundamental principle guiding this book is that ISs are everywhere in business. Information systems are pervasive because information is the single most powerful resource
in every business function in every industry. Knowledge of IT is not always explicitly stated as a
job requirement, but it is an essential element of success in virtually any position. Not everyone
in business needs to have all the technical skills of an IT professional, but everyone needs a deepenough understanding of the subject to know how to use IT in his or her profession. This is especially so in the increasingly digital and networked business world.
Management Information Systems provides students with the proper balance of technical information and real-world applications. No matter what field they undertake, students will enter the
business world knowing how to get information to work for them. They will know enough about

IT to work productively with IT specialists, and they will know enough about business applications to get information systems to support their work in the best way possible.

APPROACH
Part Cases Show IS Principles in Action
In this edition Part Cases were carefully updated to integrate all the IT principles that arise in business, to give students an opportunity to view IS issues in action, and to solve business problems
related to IT just as they arise in the real world. The cases are built around companies that range
in size from the entrepreneurial start-up to the multimillion-dollar corporate giant, reflecting a
wide variety of industries. These cases were created to show students how the full range of business functions operate within virtually every business setting. The Part Cases are integrated into
the text in four ways:

xvi

PREFACE

•

The Case: Each part of the text (made up of between two and four chapters) opens with
the Part Case: the story of a business, including the business’s IS challenges, the characters involved, and the issues. Everyone in business knows that almost every business
problem has a human element; this aspect of managing IT-related challenges is realistically represented in each case.

•

The Business Challenge: The presentation of each case is immediately followed by a
succinct statement of the business challenge of the case and the ways the information
in each chapter in the case will help the reader meet that challenge.

•

Case Installments: Each chapter opens with an installment of the Part Case that
focuses and expands on an aspect of the original story that relates most closely to the

chapter content.


PREFACE
•

Case Revisited Sections: Each chapter ends with a Case Revisited section, which
includes a concise summary of the challenge in the case installment; a section called
What Would You Do?, a series of questions that asks the readers to play a role in the
case and decide how they would handle a variety of challenges inherent in the case; and
New Perspectives, a series of questions that introduces a wide variety of “what ifs”
reaching beyond the original scope of the case and again asking the students to play different roles to meet business challenges.

Emphasis on the Real World
Management Information Systems is not afraid to warn about the limitations of ISs. The text also
explains the great potential of many information technologies, which many organizations have
not yet unleashed. Of course, this book includes chapters and features that provide a thorough,
concise—and refreshingly clear—grounding in the technology of information systems, because all
professionals in successful organizations are involved in making decisions about hardware, software, and telecommunications. But, through current, detail-rich, real-world case studies throughout the book, and a dedication to qualifying each presentation with the real-world factors that
may affect business, this book stays close to the workplace in its presentation.

Attention to New Business Practices and Trends
Large parts of the text are devoted to discussing innovative uses of information technology and
its benefits and risks. Contemporary concepts such as supply chain management systems, data
warehousing, business intelligence systems, knowledge management, Web-based electronic data
interchange, and software as a service are explained in plain, easy-to-understand language.

Illustration of the Importance of Each Subject to One’s Career
Business students often do not understand why they have to learn about information technology.
The reason many students are frustrated with introductory MIS courses is that they do not fully

understand how information technology works or why it is important for them to understand it.
One of the primary goals of this book is for its entire presentation to make the answers to these
questions apparent. First, all subjects are explained so clearly that even the least technically
oriented student can understand them. Technology is never explained for technology’s sake, but
to immediately demonstrate how it supports businesses. For instance, networking, database
management, and Web technologies (Chapters 6 through 8), which are often confusing topics, are
presented with clear, concise, and vivid descriptions to paint a picture of technology at work. In
addition, each chapter includes a feature titled Why You Should, which explains to students
how being well-versed in that chapter’s aspect of IT is important to their careers.

Emphasis on Ethical Thinking
The book puts a great emphasis on some of the questionable and controversial uses of information
technology, with special treatment provided in the Ethical & Societal Issues boxes. The students
are required to weigh the positive and negative impacts of technology and to convincingly argue
their own positions on important issues such as privacy, free speech, and professional conduct.

PREFACE

xvii


PREFACE
Emphasis on Critical Thinking
Critical thinking is used throughout the text as well as in the book’s many features. For instance,
the students are put in the midst of a business dilemma relating to the running case of each chapter and required to answer What Would You Do? questions. The questions motivate students
to evaluate many aspects of each situation and to repeatedly consider how quickly IT evolves.
Similarly, many of the Discussion Questions at the end of chapters call for their evaluation and
judgment.

ADDITIONAL EMPHASES IN THE SIXTH EDITION

Building on the success of the Fifth Edition, Management Information Systems, Sixth Edition includes
a uniquely effective combination of features.

Updated and New Part and Chapter Case Studies
This Sixth Edition highlights again the well-received, powerful pedagogical tool: five Part Cases
that clearly incorporate a wide array of real-world events and challenges that dramatize how information technology is integrated into everyday business.

Strong Foundation in Strategic ISs in Business Functions
In addition to a complete chapter on strategic uses of ISs (Chapter 2), strategic thinking is an
underlying theme throughout the book. Current examples are used to illustrate how information
systems can give businesses a strategic advantage.

Up-to-date Coverage of Web Technologies and Web-Enabled Commerce
Reflecting the use of Web technologies in so many business activities, the book integrates the
topic seamlessly throughout the text, just as it has become integrated into business in general. But
the text goes beyond the well-worn discussions of the topic (and the handful of sites everyone
knows about) to tell the students what works about e-commerce and what doesn’t work.

Thorough Discussion of Supply Chain Management Systems
As SCM systems are becoming pervasive in the business world, supply chains and their management are discussed both in a dedicated chapter (Chapter 3) and throughout the text. Related technologies, such as RFID, are clearly explained. In text and diagrams, the importance of these systems is underscored.

Current Real-world Examples Reflect a Wide Variety of Businesses
The text incorporates more applications, cases, and projects in the full range of business functions
and industries throughout the book. The cases at the end of the chapter, in the From Ideas to
Application: Real Cases sections, have been carefully selected to include critical thinking questions to guide students to apply what they have learned. Most of these cases are new to this edition and others have been updated and reflect current technology and trends. In addition, for
strong pedagogical reinforcement, examples are embedded throughout the book.

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Coverage of Global Issues
Globalization has become an important issue both economically and technologically. An entire
chapter, Chapter 9, is devoted to discussing challenges to global information systems, from legal
discrepancies through cultural issues to time zone issues. The chapter also discusses how the challenges can be met successfully. This topic receives little coverage in similar textbooks. The breadth
and depth of coverage of challenges to global uses of IT in this book has been enthusiastically
received by adopters.

New Aspects of Ethical and Societal Issues
The coverage of Ethical & Societal Issues in Management Information Systems builds on the
strong foundation started in the first five editions. However, new issues have emerged, such as
phishing and offshoring, which are discussed in this edition. This is a powerful feature provided
by an author who is internationally recognized as a researcher in the field of IT Ethics.

New Student Assignments for Reinforcement of Material
This Sixth Edition continues to provide a large selection of assignments at the ends of chapters,
mainly assignments that require the use of relevant software and the Web. Many of these assignments, including Applying Concepts, Hands-On Activities, and Team Activities, have
been updated for the this Edition. Responding to instructors’ recommendations, more assignments require research involving the Web. In addition to the hands-on exercises in each chapter,
students and instructors will find a host of additional new hands-on work available at the Student
Companion Web site, which is discussed later in this Preface.

More Points of Interest
Responding to instructors’ enthusiastic reception of Points of Interest, we added a wealth of
new sidebar statistics, anecdotes, and short stories that add an interesting and entertaining aspect
to the main chapter text. Except for a few entries, all are new in this edition.

ASSESSMENT OPTIONS FOR INSTRUCTORS
To further enhance student learning, Course Technology offers SAM (Skills Assessment Manager),

the worldwide leader in online assessment and proven to be the most effective tool to assess and
train students in Microsoft Office tasks, Computer Concepts, Windows, the Internet, and more.
SAM is a hands-on, simulated computer assessment and training tool that gives students the feeling of working live in the computer application.

Want More? SAM 2007
Inject a wider breadth of applications, as well as additional Excel, Access, and Computer Concepts
coverage into your MIS course with SAM 2007! Visit to learn more.
Please contact your Course Technology Sales Representative for more information regarding
these assessment options.

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STUDENT COMPANION WEB SITE
We have created an exciting online companion for students to utilize as they work through the
Sixth Edition of Management Information Systems. In the back of this text you will find a key code
that provides full access to a robust Web site, located at www.course.com/mis/mis6. This Web
resource includes the following features:

PowerPoint Slides
Direct access is offered to the book’s PowerPoint presentations, which cover the key points from
each chapter. These presentations are a useful study tool.

Videos
Twelve topical video clips, linked to chapters throughout the book, can be found on this Web site.
Questions to accompany the respective video clips are featured on the Student Companion Web
site. These exercises reinforce the concepts taught and provide the students with more critical

thinking opportunities.

Glossary of Key Terms
Students can view a PDF file of the glossary from the book.

Part Case Resources from the Sixth Edition
Gain access to a multitude of online resources tied to the five Part Opening Cases which have been
updated from the previous edition.

Sixth Edition Part Case Projects
Unique hands-on projects associated with the five Part Cases have been created to allow for
first-hand participation in the businesses introduced in each Part. For each Part Case, there is
a selection of hands-on projects that asks the user to become a “character” in the cases and
perform small tasks to help meet business needs. The solution files for these activities are available
to instructors at www.course.com, via the password-protected Instructor Downloads page for
this textbook.

“Bike Guys” Business Cases
For more examples of MIS concepts in action, we have supplied the popular “Bike Guys” cases
from the Third Edition of the text.

Further Case Offerings
Course Technology now offers cases from Harvard Business School Publishing and other leading
case-writing institutions. Create the ideal casebook for your course by selecting cases, adding your
own materials, and combining it with our best-selling Course Technology titles. For further information, please contact your instructor.

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Additional business articles and cases are offered through InfoTrac, the popular Journal
Database, made up of more than 15 million full-text articles from over 5000 scholarly and popular periodicals. Please speak with your instructor about accessing this database.

Additional Content
Here you will find the following additional material:
•

Organizing Information Technology Resources

•

Measurement Units

Test Yourself on MIS
Brand new quizzes, created specifically for this site, allow users to test themselves on the content
of each chapter and immediately see what answers were answered right and wrong. For each question answered incorrectly, users are provided with the correct answer and the page in the text
where that information is covered. Special testing software randomly compiles a selection of questions from a large database, so students can take quizzes multiple times on a given chapter, with
some new questions each time.

Additional Exercises
Also created just for this Student Companion Web site, a selection of exercises asks users to apply
what they have learned in each chapter and further explore various software tools. The solution
files for these activities are also available to instructors at www.course.com.

Useful Web Links
Access a repository of links to the home pages of the primary Web sites relative to each chapter
for further research.

INSTRUCTOR’S PACKAGE
Management Information Systems, Sixth Edition, includes teaching tools to support instructors in the
classroom. The ancillaries that accompany the textbook include an Instructor’s Manual, Solutions,
Test Banks and Test Engine, Distance Learning content, PowerPoint presentations, and Figure
Files. This textbook is one of the few accompanied by an Instructor’s Manual written by the text
author, ensuring compatibility with the textbook in content, pedagogy, and philosophy. All
teaching tools available with this book are provided to the instructor on a single CD-ROM and
also available on the Web at www.course.com.

The Instructor’s Manual
The text author has created this manual to provide materials to help instructors make their classes
informative and interesting. The manual offers several approaches to teaching the material, with
sample syllabi and comments on different components. It also suggests alternative course outlines
and ideas for term projects. For each chapter, the manual includes teaching tips, useful Web sites,
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and answers to the Review Questions, Discussion Questions, and Thinking about the Case questions. Having an Instructor’s Manual created by the text author is particularly valuable, as the
author is most familiar with the topical and pedagogical approach of the text.

Solutions
We provide instructors with solutions to Review Questions and Discussion Questions as well as
for quantitative hands-on work in each chapter. If appropriate, we will also provide solution files
for various activities. Solutions may also be found on the Course Technology Web site at
www.course.com. The solutions are password protected.

ExamView®

This objective-based test generator lets the instructor create paper, LAN, or Web-based tests from
test banks designed specifically for this Course Technology text. Instructors can use the QuickTest
Wizard to create tests in fewer than five minutes by taking advantage of Course Technology’s
question banks—or create customized exams.

PowerPoint Presentations
Microsoft PowerPoint slides are included for each chapter. Instructors might use the slides in a
variety of ways, including as teaching aids during classroom presentations or as printed handouts
for classroom distribution. Instructors can add their own slides for additional topics introduced to
the class.

Figure Files
Figure files allow instructors to create their own presentations using figures taken directly from
the text.

Distance Learning Content
Course Technology, the premiere innovator in management information systems publishing, is
proud to present online courses in WebCT and Blackboard.
•

Blackboard and WebCT Level 1 Online Content. If you use Blackboard or WebCT, the test
bank for this textbook is available at no cost in a simple, ready-to-use format. Go to
www.course.com and search for this textbook to download the test bank.

•

Blackboard and WebCT Level 2 Online Content. Blackboard Level 2 and WebCT Level 2 are
also available for Management Information Systems. Level 2 offers course management and
access to a Web site that is fully populated with content for this book.

For more information on how to bring distance learning to your course, instructors should
contact their Course Technology sales representative.

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ORGANIZATION
Management Information Systems, Sixth Edition is organized into five parts, followed by a glossary
and an index. It includes the following major elements.

Part One: The Information Age
Part One of the book includes three chapters. Chapter 1, “Business Information Systems: An
Overview,” provides an overview of information technology (IT) and information systems (ISs)
and a framework for discussions in subsequent chapters. Chapter 2, “Strategic Uses of Information
Systems,” discusses organizational strategy and ways in which ISs can be used to meet strategic
goals. Chapter 3, “Business Functions and Supply Chains,” provides a detailed discussion of business functions, supply chains, and the systems that support management of supply chains in various industries. Together, these three chapters address the essence of all overarching ideas that are
discussed at greater depth in subsequent chapters.

Part Two: Information Technology
To understand how ISs enhance managerial practices, one must be well versed in the technical
principles of information technology, which are covered in Part Two. Chapters 4, “Business
Hardware,” 5, “Business Software,” and 6, “Business Networks and Telecommunications,” provide
a concise treatment of state-of-the-art hardware, software, and networking technologies in business.
Chapter 7, “Databases and Data Warehouses,” covers database management systems and data
warehousing, which provide the technical foundation for a discussion of business intelligence and
knowledge management in Chapter 11.

Part Three: Web-Enabled Commerce
Part Three is devoted to networked businesses and their use of the Internet. Chapter 8, “The Webenabled Enterprise,” is fully devoted to a thorough discussion of relevant Web technologies for
business operations. Chapter 9, “Challenges of Global Information Systems,” highlights cultural
and other challenges organizations face in planning and using the Web and international information systems.

Part Four: Decision Support and Business Intelligence
Part Four provides a view of state-of-the-art decision support and expert systems in Chapter 10
and business intelligence in Chapter 11. Electronic decision aids have been integrated into other
systems in recent years, but understanding of their fundamentals is important. Business intelligence applications, such as data mining and online analytical processing, are essential tools in a
growing number of businesses. Plenty of examples are provided to demonstrate their power.

Part Five: Planning, Acquisition, and Controls
Part Five is devoted to planning, acquisition, and controls of information systems to ensure their
successful and timely development and implementation, as well as their security. Chapter 12,
“Systems Planning and Development,” discusses how professionals plan information systems. It

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