Solution manual for management information systems for the information age 8th edition haag

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CLOSING CASES
CLOSING CASE STUDY ONE (p. 30)
YOU ARE YOUR OWN WORST ENEMY
This is a good opening case study for the class, mainly because it’s about the generation of most
of your students.
In this case, Gen Y’s are shown to be a substantial security risk to organizations because Gen Y’s
download and use non-sanctioned and often compromising software like instant messaging
software and open-source technologies.
QUESTIONS
1. Think of yourself as a business manager. You have employees you supervise and you are
responsible for ensuring that they meet daily work quotas. But, you find they are spending
a couple of hours per day shopping online, chatting with friends through instant
messaging, and so on. How do you motivate your employees to perform their work? How
do you restrict them from non-work-related activities without creating a stifling, boring,
and dull workplace?
DISCUSSION
 This is a great first question that should generate a lot of discussion.
 Your students will be able to answer this, because they understand what motivates their
generation.
2.

The case study mentioned the need for employee education. What elements would you
include in an education program for helping employees better understand the dangers in
which they place the organization’s IT infrastructure by using technology the wrong way
while at work?
DISCUSSION
 Features of a good education program would include short cases of organizations that
have been compromised because of unsafe software, having a fellow Gen Y person make
the presentation, showing safe computing habits, etc.

3.

Beyond the compromises caused to IT infrastructure, what do you see wrong with
shopping online while at work? Is this illegal or unethical, perhaps both, or – in reality –
neither?
DISCUSSION
 It’s probably not illegal but it is definitely grounds for dismissal from employment.
 People may or may not see it as unethical, because so many people do it.

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4.

Read the acceptable use policy (AUP) for your school. Are you doing anything with your
school’s technology that violates the AUP? If so, what is it? How prevalent among other
students is the violation? Does widespread violation somehow or another make it okay?
DISCUSSION
 Many of your students may not be aware that your school has an AUP.
 This is a great time to have them read it.

5.

Why do you think Gen Y is being singled out? Wouldn’t it make sense that people in other
age groups also put a company at risk by misusing technology? What is so different and
unique about Gen Y?
DISCUSSION
 Gen Y is the digital generation, and thus uses technology more, especially those types of
tools that can compromise security.

 Sure, other age groups misuse technology but not to the extent of Gen Y.

6.

Would you consider working for a company that prohibited access to social networking
sites, gaming, blogs, and online shopping while at work? Why or why not? How about in
the defense industry? In certain places within defense organizations, you’re not allowed to
carry cell phones and the like because you can take photos and videos with them. Do you
want to work there? Why or why not?
DISCUSSION
 Answers here will vary greatly according to your students.
 Let your class spend all the time it wants in debating these questions.

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CLOSING CASE STUDY TWO (p. 31)
IS THE WORLD DUMPING DATA ON YOU?
In this second case study, your students will address the very big present-day problem of being
inundated with too much data and information.
There certainly is “too much of a good thing” and information is one of those things.
QUESTIONS
1. Critically evaluate the bulleted list of information-related items in this case study. How are
each contradictory to the notion of being an information-literate knowledge worker?
DISCUSSION
 The answers here are fairly obvious but it is a good exercise for your students to
complete.
 For example, the fact that IT managers spend 30 percent of their time trying to find
information is contradictory to an information-literate knowledge worker knowing

where to obtain information.
2.

If you consider Figure 1.1 on page 5 and the steps associated with determining which
technologies are most appropriate in an organization, why is information so important?
For each of the four steps in that process, what information should be derived and used in
the next step?
DISCUSSION
 Information is everywhere in Figure 1.1. Industry pressures and competition are simply
information as are business strategies, in the most generic of terms.
 Industry pressures and competition – who is the competition, what are the competitive
strengths of each competitor, how big is the market, what new market segments are
emerging, etc
 Key business strategies – what are the strategies to be undertaken, what is the rationale
behind those strategies, are they top-line or bottom-line focused, etc
 Important business processes – what do our customers value the most, what do they
value the least, etc
 Key technologies – how do the technologies support business processes, how can we
measure of the success of the technologies, etc.

3.

Again, considering the four steps associated with determining which technologies are most
appropriate in an organization and the information you identified for each step in question
#2, which of that information is internal, external, objective, and subjective information?
Which of those pieces of information are some combination of internal, external,
objective, and subjective?

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DISCUSSION
 Answers here will vary greatly according to what answers your students derive for
question #2.
 Interestingly, in the earlier stages of the overall process, information is more external
and becomes increasingly internal as you move through the process.
4.

Is it ethical for people within an organization to withhold information and not share it with
other employees? Under what circumstances would it be acceptable not to share certain
types of information with other employees? What can organizations do to encourage their
employees to share information?
DISCUSSION
 People must share information in an organization.
 The exception is information that is personal, potentially damaging, etc.
 To encourage people to share information, organizations must make it exceedingly easy
to do so. If it’s as easy as “falling off a log,” people will do it.

5.

What about your personal life at your school? How easy is it to find the following
information on your school’s Web site?
 The course description for the classes you are currently taking
 A list of classes you need to take to complete your degree
 The requirements you must meet to qualify for various types of government-supported
loan programs
 The process you go through to apply for graduation
DISCUSSION
 Answers here will vary according to your school’s site.

 You may want to do this in class and not pre-assign it. Have random students find the
information while in front of the class and time them to see how long it takes.

6.

Overall, how would you rate your school’s Web site in terms of providing the information
you need? How would you rate your school’s Web site in terms of allowing you to process
your own transactions, such as signing up for a class, scheduling time with an advisor, and
so on?
DISCUSSION
 Again answers will vary according to your school’s site.

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SHORT-ANSWER QUESTIONS (p. 33)
1. What is the relationship between management information systems (MIS) and information
technology (IT)?
ANSWER: MIS is a broad business function and the study of the use of IT. IT is a set of
tools and a resource within MIS.
2. What four steps should an organization follow in determining which technologies to use?
ANSWER: The four steps are: (1) assess the state of competition and industry pressures, (2)
determine business strategies, (3) identify important business processes, and (4) align
technology tools with the business processes.
3. What is the relationship between data, information, business intelligence (BI), and
knowledge?
ANSWER: Each build on the previous. Data are raw facts, while information is data that

has meaning. Business intelligence is collective information that gives you the ability to
make strategic business decisions. Finally, knowledge is a broad term that can encompass
BI context, how to affect BI, patents and trademarks, and organizational know-how.
4. How does the granularity of information change as it moves from lower to upper
organizational levels?
ANSWER: At the lowest levels, information granularity is very fine because people need
tremendous detail to perform their jobs. As information moves up through the
organization, it becomes more coarse because people don’t need as much detail but rather
aggregations of information.
5. What is the difference between a technology-literate knowledge worker and an informationliterate knowledge worker?
ANSWER: A technology-literate knowledge worker knows how and when to apply
technology; that is, he/she understands the value and role of technology. An informationliterate knowledge worker knows all about information; that is, he/she understands the
value and role of information.
6. How do ethics differ from laws?
ANSWER: Laws either clearly require or prohibit an action. Ethics are more subjective,
more a matter of personal or cultural interpretation.
7. What role does the Five Forces Model play?
ANSWER: Porter’s Five Forces Model helps business people understand the relative
attractiveness of an industry and the industry’s competitive pressures in terms of buyer
power, supplier power, threat of substitute products or services, threat of new entrants,
and rivalry among existing competitors.

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8. Why are competitive advantages never permanent?
ANSWER: Once an organization creates a competitive advantage, all competitors move to
offer similar or even better competitive advantages, thus nullifying the competitive
advantage of the first organization.

9. What are the three generic strategies according to Michael Porter?
ANSWER: The three generic strategies according to Michael Porter are: overall cost
leadership, differentiation, and focus.
10. How are Porter’s three generic strategies, an above-the-line versus a below-the-line
approach, and the RGT framework similar?
ANSWER: They are similar as follows: (1) run = overall cost leadership = bottom line, (2)
grow = focus and differentiation = top line, and (3) transform = (new) differentiation = top
line (when the focus is innovation).
11. What is the role of value-chain analysis?
ANSWER: Value-chain analysis is a systematic approach to assessing and improving the
value of business processes within your organization to further increase it competitive
strengths. So, value-chain analysis helps you identify important business processes and
how technology might help support them.
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ASSIGNMENTS & EXERCISES (p. 33)
1. USING PORTER TO EVALUATE THE MOVIE RENTAL INDUSTRY One hotly contested and
highly competitive industry is the movie rental business. You can rent videos from local
video rental stores, you can order pay-per-view from the comfort of your own home, and
you can rent videos from the Web at such sites as NetFlix. Using Porter’s Five Forces Model,
evaluate the relative attractiveness of entering the movie rental business. Is buyer power
low or high? Is supplier power low or high? Which substitute products and services are
perceived as threats? Can new entrants easily enter the market? What are the barriers to
entry? What is the level of rivalry among existing competitors? What is your overall view of
the movie rental industry? Is it a good or bad industry to enter?
DISCUSSION

 This is a good project for your students because they can easily and quickly relate to the
movie rental industry.
 It’s also a fairly easy and simple application of the Five Forces Model.
 Buyer power – high because of many choices (VOD, Netflix, local rental places, etc)
 Supplier power – low; the opposite of buyer power
 Substitute products and services – mobisodes delivered via cell phone, YouTube, pirated
movies, and many others including the commonly recognized ones
 This is a relatively easy market into which to enter
 Barriers – no late fees, some sort of online facility, etc
 Rivalry among existing competitors is very high
 Probably not a good industry into which to enter
2. REVIEWING THE 100 BEST COMPANIES TO WORK FOR Each year Fortune magazine devotes
an issue to the top 100 best companies to work for. Find the most recent of Fortune that
does this. First, develop a numerical summary that describes the 100 companies in terms of
their relative industries. Which industries are the most dominant? Pick one of the more
dominant industries (preferably one in which you would like to work) and choose a specific
highlighted company. Prepare a short class presentation on why that company is among the
100 best to work for.
DISCUSSION
 Because you’ll be assigning this exercise at different times (and because we wrote this
exercise in mid 2007), we can’t give you the correct answers for this project.
 However, your students should find a considerable number of companies in the IT field
that are the best to work for according to Fortune.

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3. YOUR SCHOOL’S VALUE CHAIN Develop a value chain for your school. You don’t have to
gather information to construct the value chain, but you do have to determine which

processes are support value processes and which processes are primary value processes.
Draw your value chain according to Figure 1.12 on page 27. Finally, list the three most
important processes to you as a student and provide a short explanation of why they are the
most important to you.
DISCUSSION
 This is a great interactive in-class project.
 Help your students focus on what is “primary” (e.g., delivery of education) and what is
support (e.g., food services).
4. BUSINESS STRATEGY FOR ENTERING THE CELL PHONE SERVICE INDUSTRY Assume that you
run a start-up and have decided to enter the cell phone service industry. Which of the three
generic strategies would you choose as your primary business strategy – overall cost
leadership, differentiation, or focus? Explain your choice by elaborating on the product and
services features you would offer to lure customers from the competition.
DISCUSSION
 Again, this is another great interactive in-class project.
 We recommend that you split the class into 3 groups and have each group focus on a
different strategy.
 Your groups will come up with some very interesting ideas.
5. RESEARCHING YOUR CAREER AND INFORMATION TECHNOLOGY To position yourself in the
best possible way to succeed in the business world, you need to start researching your
career right now. Here, we would like you to focus on the IT skills your career requires.
First, consider what career you want to have. Second, visit Monster.com
(www.monster.com) and search for jobs that relate to your career. Read through several of
the job postings and determine what IT skills you need to acquire.
DISCUSSION
 We recommend that you assign this to each individual student and also cover XLM/K
(Careers in Business) in conjunction with it.
 Answers will vary greatly, but try to get all the finance majors to compile a list, all the
marketing majors, etc.
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DISCUSSION QUESTIONS (p. 34)
1. The three key resources in management information systems (MIS) are information,
information technology, and people. Which of these three resources is the most important?
Why? The least important? Why?
DISCUSSION
 The most important resource is people, plain and simple. People are the heart of any
business, regardless of its industry and regardless of the extent to which it uses
technology.
 The least important is really technology. We simply use technology to work with
information. If information were not so important, we would need much less
technology.
2. We often say that hardware is the physical interface to a technology system while software
is the intellectual interface. How is your hardware your physical interface to your computer?
How is your software your intellectual interface to your computer? Do you see technology
progressing to the point that we may no longer distinguish between hardware and software
and thus no longer perceive differing physical and intellectual interfaces?
DISCUSSION
 Hardware is the physical interface because it is the physical devices that make up a
computer. Hardware is the also the set of devices we interact with physically – typing on
a keyboard, moving a mouse, viewing something on the screen.
 Software takes over steps that we would otherwise perform with our mind – adding two
numbers together, creating a graph, etc. So, it is our intellectual interface.
 Who knows if technology will ever progress to the point that we can’t distinguish
between hardware and software.
 However, our view of technology is changing. We see it as an integrated set of tools.

That view may make hardware and software indistinguishable.
3. In a group of three to four students, consider eBay in the context of Porter’s Five Forces
Model. How does eBay reduce the threat of new entrants? If necessary, you may want to
explore eBay’s site (www.ebay.com) and determine the role of buyer and seller ratings, its
integration with PayPal, and how it helps buyers and sellers resolve disputes.
DISCUSSION
 eBay uses many techniques to reduce the threat of new entrants. These essentially
become entry barriers that are costly and time-consuming for new entrants to
implements.

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 Some include buyer and seller ratings, eBay learning seminars, and PayPal as a financial
cybermediary for payments.
4. In this chapter, we discussed the use of loyalty programs in the travel industry as a
mechanism for reducing buyer power. What is another industry that also uses loyalty
programs to reduce buyer power? How does that industry use loyalty programs to do so?
DISCUSSION
 Loyalty programs are just about everywhere – restaurants now have programs in which
you accumulate points toward free meals, Office Max and Office Depot have similar
programs, home supply stores do as well, and so on.
5. As an information-literate knowledge worker for a local distributor of imported foods and
spices, you’ve been asked to prepare a customer mailing list that will be sold to international
cuisine restaurants in your area. If you do so, will you be acting ethically? Suppose you
don’t consider the proposal ethical. What will you do if your boss threatens to fire you if
you don’t prepare the list? Do you believe you would have any legal recourse if you didn’t
prepare the list and were subsequently fired?
DISCUSSION

 Answers here will vary according to your students’ ethics.
 It is legal for the distributor to sell a customer mailing list, if it has clearly stated so in its
privacy and information usage policy. So, depending on in which state you work (and
whether or not you work for a union), you may be subject to being fired.
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INDUSTRY & GLOBAL PERSPECTIVES
GLOBAL PERSPECTIVE – Are You Who You Say You Are? (p. 11)
 This Global Perspective addresses how the U.K. is integrating biometric data into its passport
system.
 Computer Services Corp. and IBM will do most of the work, and were awarded over $1.5
billion for the job.
 New passports will include both fingerprint and facial biometric data.
Return to Slide #20
INDUSTRY PERSPECTIVE – E-Learning: Not Just for School (p. 14)
 This Industry Perspective speaks to the necessity of continuing to learn after your students
graduate and how technology can help.
 Many organizations, like Brink’s Home Security, have turned to technology as a tool for
disseminating knowledge and teaching employees about their jobs.
 In this instance, the employees are nationwide and often work nights and weekends
installing home security systems.
 That makes it difficult for them to gather in a central place and participate in classes.
 The ROI is high in this case – the initial investment was $300,000 and Brinks’ expect to save
over $500,000 in just three years.
Return to Slide #23
INDUSTRY PERSPECTIVE – Reducing Buyer Power through Community Building (p. 20)

 This Industry Perspective introduces crwodsourcing, which will also be discussed in Chapter
5.
 Crowdsourcing can be effectively used to engage customers and make them not want to
leave an organization.
 This reduces buyer power, because they have less desire to go to a competitor.
Return to Slide #35

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INDUSTRY PERSPECTIVE – Creating Synergy Above and Below Line (p. 24)
 UrbanFlorist was able to implement a new order processing system that increased the top
line and reduced the bottom line simultaneously.
 It raised the above-the-line (revenues) by increasing sales per representative.
 It reduced the below-the-line (costs) by decreasing errors and reducing the time and
number of people required to complete an order process.
 The focus here is that some IT-based initiatives can help both above and below the line. This
is the best.
Return to Slide #42

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ADDITIONAL ASSIGNMENTS AND EXERCISES

E-MAIL: ELECTRONIC MAIL OR EXPENSIVE MAIL?

Note: Use this in the section on ethics and your ethical responsibilities




Provide your students with the above graphic.
Ask them to develop answers to both the “yes” and “no” components at the bottom.

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IDENTIFYING HARDWARE AND SOFTWARE
Note: Use this in the section on information technology as a key resource
Pick up a recent copy of your local newspaper or perhaps a computer magazine such as PC
Magazine or Wired and find an ad for a personal computer system. What is the price of the
complete system? What hardware devices does it include? What software does it include?
Now, compare that system to a similar one that you can find on the Internet (you might want to
start at Dell at www.dell.com). Which is cheaper? Does this surprise you? Why or why not?
Finally, identify all the various computer components and place them in the graphical depiction
of information technology hardware and software in Figure 1.6 on page 15.
DEVELOPING STRATEGIES FOR PROTECTING YOURSELF FROM IDENTITY THEFT
Note: Use this anywhere in the chapter.
Identity theft is not something that happens to someone else. Almost 10 million people in the
United States reported themselves as victims of identity theft in 2002 – that’s about 1 in every
29 people (even less when you take children out of the equation).
Focus on creating a comprehensive list of steps you can take to avoid identity theft. Write down
the most important steps. To help you start, consider visiting these sites:
 Federal Trade Commission – www.ftc.gov
 Identity Theft Prevention and Survival – www.identitytheft.org

 MSN’s MoneyCentral – www.moneycentral.msn.com
 Identity Theft Resource Center – www.idtheftcenter.org

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