Management Information Systems for the Information Age [8 ed.] 0073376787, 9780073376783

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Management Information Systems for the Information Age [8 ed.]
 0073376787, 9780073376783

Table of contents :
Tittle
Table of Contents
CHAPTER ONE The Information Age in Which You Live: Changing the Face of Business
OPENING CASE STUDY: IS YOUR SOCIAL SECURITY NUMBER WORTH $98?
INTRODUCTION
MANAGEMENT INFORMATION SYSTEMS
Information as a Key Resource in MIS
People as a Key Resource in MIS
Information Technology as a Key Resource in MIS
PORTER’S FIVE FORCES MODEL:
ASSESSING THE STATE OF THE COMPETITION Buyer Power
Supplier Power
Threat of Substitute Products or Services
Threat of New Entrants
Rivalry among Existing Competitors
PORTER’S THREE GENERIC STRATEGIES: BUILDING BUSINESS STRATEGY
Overall Cost Leadership
Differentiation
Focus
Two Interesting and Complementary Strategy Frameworks
IDENTIFYING IMPORTANT BUSINESS PROCESSES: VALUE-CHAIN ANALYSIS
Identifying Processes That Add Value
Identifying Processes That Reduce Value
SUMMARY: STUDENT LEARNING OUTCOMES REVISITED
CLOSING CASE STUDY ONE: YOU ARE YOUR OWN WORST ENEMY
CLOSING CASE STUDY TWO: IS THE WORLD DUMPING DATA ON YOU?
KEY TERMS AND CONCEPTS
SHORT-ANSWER QUESTIONS
ASSIGNMENTS AND EXERCISES
DISCUSSION QUESTIONS
Chapter Projects
CHAPTER TWO Major Business Initiatives: Gaining Competitive Advantage with IT
OPENING CASE STUDY: NONPAID, NONEMPLOYEE COLLABORATION: A NEW BUSINESS MODEL
INTRODUCTION
SUPPLY CHAIN MANAGEMENT
Strategic and Competitive Opportunities with SCM
IT Support for Supply Chain Management
CUSTOMER RELATIONSHIP MANAGEMENT
Strategic and Competitive Opportunities with CRM
IT Support for Customer Relationship Management
E-COLLABORATION
Work Activities with Integrated Collaboration Environments
Knowledge Management with Knowledge Management Systems
Social Networking with Social Networking Systems
Learning with E-Learning Tools
Informal Collaboration to Support Open-Source Information
Strategic and Competitive Opportunities with E-Collaboration
IT Support for E-Collaboration
IT CULTURE—AN ORGANIZATIONAL PERSPECTIVE
IT Culture—Structuring the IT Function
IT Culture—Philosophical Approach to IT
ENTERPRISE RESOURCE PLANNING—BRINGING IT ALL TOGETHER
SUMMARY: STUDENT LEARNING OUTCOMES REVISITED
CLOSING CASE STUDY ONE: COCA-COLA IS EVERYTHING: SCM, CRM, YOU NAME IT
CLOSING CASE STUDY TWO: IT’S ALL ABOUT CUSTOMER RELATIONS IN THE FINANCIAL SERVICES MARKET
KEY TERMS AND CONCEPTS
SHORT-ANSWER QUESTIONS
ASSIGNMENTS AND EXERCISES
DISCUSSION QUESTIONS
Chapter Projects
CHAPTER THREE Databases and Data Warehouses: Building Business Intelligence
OPENING CASE STUDY: MORE CHERRIES PLEASE INTRODUCTION
THE RELATIONAL DATABASE MODEL
Collections of Information
Created with Logical Structures
With Logical Ties within the Information
With Built-In Integrity Constraints
DATABASE MANAGEMENT SYSTEM TOOLS
Data Definition Subsystem
Data Manipulation Subsystem
Application Generation Subsystem
Data Administration Subsystem
DATA WAREHOUSES AND DATA MINING
What Is a Data Warehouse?
What Are Data-Mining Tools?
Data Marts: Smaller Data Warehouses
Data Mining as a Career Opportunity
Important Considerations in Using a Data Warehouse
BUSINESS INTELLIGENCE REVISITED
INFORMATION OWNERSHIP
Strategic Management Support
Sharing Information with Responsibility
Information Cleanliness
SUMMARY: STUDENT LEARNING OUTCOMES REVISITED
CLOSING CASE STUDY ONE: DEMAND-SIGNAL MANAGEMENT: A NEW FORM OF BUSINESS INTELLIGENCE
CLOSING CASE STUDY TWO: BUSINESS INTELLIGENCE: SUCH POSSIBILITIES, SUCH PROBLEMS
KEY TERMS AND CONCEPTS
SHORT-ANSWER QUESTIONS
ASSIGNMENTS AND EXERCISES
DISCUSSION QUESTIONS
Chapter Projects
CHAPTER FOUR Decision Support and Artificial Intelligence: Brainpower for Your Business
CHAPTER FOUR Decision Support and Artificial Intelligence: Brainpower for Your Business
OPENING CASE STUDY: AN NFL TEAM NEEDS MORE THAN ATHLETIC ABILITY
INTRODUCTION
DECISION SUPPORT SYSTEMS
Components of a Decision Support System
GEOGRAPHIC INFORMATION SYSTEMS
EXPERT SYSTEMS
What Expert Systems Can and Can’t Do
NEURAL NETWORKS AND FUZZY LOGIC
Fuzzy Logic
GENETIC ALGORITHMS
INTELLIGENT AGENTS
Information Agents
Monitoring-and Surveillance Agents
Data-Mining Agents
User Agents
MULTI-AGENT SYSTEMS AND AGENT-BASED MODELING
Ant Colonies and Swarm Intelligence
SUMMARY: STUDENT LEARNING OUTCOMES REVISITED
CLOSING CASE STUDY ONE: CRYSTAL BALL, CLAIRVOYANT, FORTUNE TELLING
PREDICTIVE ANALYTICS DELIVER THE FUTURE?
CLOSING CASE STUDY TWO: DECISION SUPPORT IS GOOD FOR YOUR HEALTH
KEY TERMS AND CONCEPTS
SHORT-ANSWER QUESTIONS
ASSIGNMENTS AND EXERCISES
DISCUSSION QUESTIONS
Chapter Projects
CHAPTER FIVE Electronic Commerce: Strategies for the New Economy
OPENING CASE STUDY: WHAT’S REPLACING THE DAY AFTER THANKSGIVING FOR SHOPPING SALES?
INTRODUCTION
E-COMMERCE BUSINESS MODELS
Business to Business (B2B) E-Commerce
Business to Consumer (B2C) E-Commerce
Consumer to Business (C2B) E-Commerce
Consumer to Consumer (C2C) E-Commerce
Business to Government (B2G) E-Commerce
Consumer to Government (C2G) E-Commerce
Government to Business (G2B) E-Commerce
Government to Consumer (G2C) E-Commerce
Government to Government (G2G) E-Commerce
UNDERSTAND YOUR BUSINESS, PRODUCTS, SERVICES, AND CUSTOMERS
Who Are Your Customers?
What Is the Value of Your Products and Services as Perceived by Your Customers?
FIND CUSTOMERS AND ESTABLISH RELATIONSHIPS
Business to Consumer
Business to Business
MOVE MONEY EASILY AND SECURELY
Business to Consumer Payment Systems
Business to Business Payment Systems
Security: The Pervading Concern
E-BUSINESS TRENDS
Youth
M-Commerce
The Long Tail
SUMMARY: STUDENT LEARNING OUTCOMES REVISITED
CLOSING CASE STUDY ONE: WHEN YOU’RE BIG, YOU CAN BE YOUR OWN B2B E-MARKETPLACE
CLOSING CASE STUDY TWO: CROWDSOURCING: THE FOURTH E-BUSINESS TREND
KEY TERMS AND CONCEPTS
SHORT-ANSWER QUESTIONS
ASSIGNMENTS AND EXERCISES
DISCUSSION QUESTIONS
Chapter Projects
CHAPTER SIX Systems Development: Phases, Tools, and Techniques
OPENING CASE STUDY: SAVING LIVES THROUGH SYSTEMS DEVELOPMENT AND INTEGRATION
INTRODUCTION
INSOURCING AND THE SYSTEMS DEVELOPMENT LIFE CYCLE
Phase 1: Planning
Phase 2: Analysis
Phase 3: Design
Phase 4: Development
Phase 5: Testing
Phase 6: Implementation
Phase 7: Maintenance
COMPONENT-BASED DEVELOPMENT
Rapid Application Development Methodology
Extreme Programming Methodology
Agile Methodology
Service-Oriented Architecture—An Architecture Perspective
SELFSOURCING (END-USER DEVELOPMENT)
The Selfsourcing Process
The Advantages of Selfsourcing
Potential Pitfalls and Risks of Selfsourcing
Which Applications for IT to Offload
The Right Tool for the Job
PROTOTYPING
The Prototyping Process
The Advantages of Prototyping
The Disadvantages of Prototyping
OUTSOURCING
The Outsourcing Process
The Service Level Agreement
Geopolitical Outsourcing Options
The Advantages and Disadvantages of Outsourcing
SUMMARY: STUDENT LEARNING OUTCOMES REVISITED
CLOSING CASE STUDY ONE: GETTING ON THE RIGHT TRACK AT GENERAL MOTORS
CLOSING CASE STUDY TWO: SHOULD AN ORGANIZATION OUTSOURCE SECURITY?
KEY TERMS AND CONCEPTS
SHORT-ANSWER QUESTIONS
ASSIGNMENTS AND EXERCISES
DISCUSSION QUESTIONS
Chapter Projects
CHAPTER SEVEN Enterprise Infrastructure, Metrics, and Business Continuity Planning: Building and Sustaining the Dynamic Enterprise
OPENING CASE STUDY: STATE OF CALIFORNIA DIGS ITSELF OUT OF A TECHNOLOGY HOLE
INTRODUCTION
Customers
End Users
Software Development
Information Needs
Hardware Requirements
HARDWARE AND SOFTWARE INFRASTRUCTURE
Enterprise Resource Planning (ERP) Revisited
Supporting Network Infrastructures
CLOUD COMPUTING: NO INFRASTRUCTURE AT ALL
IT SUCCESS METRICS
Efficiency and Effectiveness Metrics
Web-centric Metrics
Call Center Metrics
Financial Metrics
Service Level Agreements Revisited
BUSINESS CONTINUITY PLANNING
Phase 1: Organizational Strategic Plan
Phase 2: Analysis
Phase 3: Design
Phase 4: Implementation
Phase 5: Testing
Phase 6: Maintenance
SUMMARY: STUDENT LEARNING OUTCOMES REVISITED
CLOSING CASE STUDY ONE: INTERNATIONAL TRUCK MAKES A HUGE BET ON A SERVICE-ORIENTED ARCHITECTURE
CLOSING CASE STUDY TWO: DENVER HEALTH OPERATES WITH A PRIVATE CLOUD AND THIN CLIENTS
KEY TERMS AND CONCEPTS
SHORT-ANSWER QUESTIONS
ASSIGNMENTS AND EXERCISES
DISCUSSION QUESTIONS
Chapter Projects
CHAPTER EIGHT Protecting People and Information: Threats and Safeguards
OPENING CASE STUDY: SHE LOST $400,000 TO AN E-MAIL SCAM
INTRODUCTION
ETHICS
Two Factors That Determine How You Decide Ethical Issues
Intellectual Property
PRIVACY
Privacy and Other Individuals
Identity Theft
Privacy and Employees
Privacy and Consumers
Privacy and Government Agencies
Laws on Privacy
SECURITY
Security and Employees
Security and Outside Threats
Security Precautions
SUMMARY: STUDENT LEARNING OUTCOMES REVISITED
CLOSING CASE STUDY ONE: CAUTIONARY TALES OF INDISCREET E-MAIL
CLOSING CASE STUDY TWO: GOOGLE
KEY TERMS AND CONCEPTS
SHORT-ANSWER QUESTIONS
ASSIGNMENTS AND EXERCISES
DISCUSSION QUESTIONS
Chapter Projects
CHAPTER NINE Emerging Trends and Technologies: Business,
INTRODUCTION
THE CHANGING INTERNET
Software-as-a-Service
Push, Not Pull, Technologies and Personalization
F2b2C: A New E-Commerce Business Model
Voice over Internet Protocol (VoIP)
Web 2.0
E-Society
PHYSIOLOGICAL INTERACTION
Automatic Speech Recognition
Virtual Reality
Cave Automatic Virtual Environments
Haptic Interfaces
Biometrics
THE WIRELESS ARENA
The Next Generation of Cell Phone Technology
RFID (Radio Frequency Identification)
PURE TECHNOLOGY
Nanotechnology
Multistate CPUs
Holographic Storage Devices
MOST IMPORTANT CONSIDERATIONS
The Necessity of Technology
Closing the Great Digital Divide
Technology for the Betterment of Society
Exchanging Privacy for Convenience
Ethics, Ethics, Ethics
SUMMARY: STUDENT LEARNING OUTCOMES REVISITED
CLOSING CASE STUDY ONE: THE NBA GOES NFC
CLOSING CASE STUDY TWO: BUSINESS ON SECOND LIFE IN TOUGH
KEY TERMS AND CONCEPTS SHORT-ANSWER QUESTIONS
ASSIGNMENTS AND EXERCISES
DISCUSSION QUESTIONS
Chapter Projects
PROJECTS
GROUP PROJECTS
ELECTRONIC COMMERCE PROJECTS
EXTENDED LEARNING MODULE A
Computer Hardware and Software A QUICK TOUR OF TECHNOLOGY
CATEGORIES OF COMPUTERS BY SIZE
Personal Digital Assistants (PDAs)
Tablet PCs
Notebook Computers
Desktop Computers
Minicomputers, Mainframe Computers, and Supercomputers
SOFTWARE: YOUR INTELLECTUAL INTERFACE
Application Software
System Software
HARDWARE: YOUR PHYSICAL INTERFACE
Common Input Devices
Common Output Devices
Common Storage Devices
CPU and RAM
Connecting the Hardware Outside to the Hardware Inside
SUMMARY: STUDENT LEARNING OUTCOMES REVISITED
KEY TERMS AND CONCEPTS
SHORT-ANSWER QUESTIONS ASSIGNMENTS AND EXERCISES
EXTENDED LEARNING MODULE B
The World Wide Web and the Internet INTRODUCTION
WORLD WIDE WEB
Web Sites, Addresses, and Pages
Understanding Addresses
Using Web Browser Software
SEARCH ENGINES
WEB 2.
Wikis
Social Networking Sites
Blogs
RSS Feeds
Podcasting
INTERNET TECHNOLOGIES
The Internet Backbone
Internet Servers
Communications Protocols
CONNECTING TO THE INTERNET
Communications Software
Telecommunications Hardware
SUMMARY: STUDENT LEARNING OUTCOMES REVISITED
KEY TERMS AND CONCEPTS
SHORT-ANSWER QUESTIONS
ASSIGNMENTS AND EXERCISES
EXTENDED LEARNING MODULE C
Designing Databases and Entity-Relationship Diagramming INTRODUCTION
DESIGNING AND BUILDING A RELATIONAL DATABASE
Step 1: Define Entity Classes and Primary Keys
Step 2: Define Relationships among the Entity Classes
Step 3: Define Information (Fields) for Each Relation
Step 4: Use a Data Definition Language to Create Your Database
SUMMARY: STUDENT LEARNING OUTCOMES REVISITED
KEY TERMS AND CONCEPTS
SHORT-ANSWER QUESTIONS
ASSIGNMENTS AND EXERCISES
EXTENDED LEARNING MODULE D
Decision Analysis with Spreadsheet Software INTRODUCTION
LISTS
BASIC FILTER
CUSTOM FILTER
CONDITIONAL FORMATTING
PIVOT TABLES
BACK TO DECISION SUPPORT
Filter
Conditional Formatting
Pivot Table
SUMMARY: STUDENT LEARNING OUTCOMES REVISITED
KEY TERMS AND CONCEPTS
ASSIGNMENTS AND EXERCISES
EXTENDED LEARNING MODULE E
Network Basics INTRODUCTION
Basic Principle of Networks
HOME NETWORKS
Network Cards in Each Computer
Wired and Wireless Transmission Media
Home Internet Service and Broadband Routers
Network Software
NETWORK COMPONENTS
Hubs
Switches
Routers
CLASSIFYING NETWORKS BY DISTANCE
LANs, WANs, and MANs
INTERNET
Bandwidth
Internet Connection Types
Voice over IP
NETWORK COMMUNICATIONS MEDIA
Wired Communications Media
Wireless Communications Media
NETWORK SECURITY
Principles of Computer Security
Firewalls and Intrusion Detection Systems
Encrypted Communications: SSL and Virtual Private Networks
Other Security Threats: Malware
THE CLIENT/SERVER SOFTWARE MODEL
Client/Server—A Business View
SUMMARY: STUDENT LEARNING OUTCOMES REVISITED
KEY TERMS AND CONCEPTS
SHORT-ANSWER QUESTIONS
ASSIGNMENTS AND EXERCISES
EXTENDED LEARNING MODULE F
EXTENDED LEARNING MODULE G
EXTENDED LEARNING MODULE H
Computer Crime and Digital Forensics INTRODUCTION
COMPUTER CRIME
Outside the Organization
Web Defacing
The Players
DIGITAL FORENSICS
The Collection Phase
The Analysis Phase
RECOVERY AND INTERPRETATION
Places to Look for Useful Information
Anti-Forensics
WHO NEEDS DIGITAL FORENSICS INVESTIGATORS?
Proactive Digital Forensics Education for Problem Prevention
Reactive Digital Forensics for Incident Response
A Day in the Life
SUMMARY: STUDENT LEARNING OUTCOMES REVISITED
KEY TERMS AND CONCEPTS
SHORT-ANSWER QUESTIONS
ASSIGNMENTS AND EXERCISES
EXTENDED LEARNING MODULE I
EXTENDED LEARNING MODULE J
Implementing a Database with Microsoft Access INTRODUCTION
SOLOMON ENTERPRISES DATABASE
Implementing the Structure of the Solomon Enterprises Database
Implementing the Raw Material Relation Structure
Implementing the Concrete Type Relation Structure
Implementing the Bill of Material Relation Structure
DEFINING RELATIONSHIPS WITHIN THE SOLOMON ENTERPRISES DATABASE
ENTERING INFORMATION INTO THE SOLOMON DATABASE
Changing the Structure of Information in Relations
CREATING A SIMPLE QUERY USING ONE RELATION
Simple Query with a Condition (Conditional Query)
CREATING AN ADVANCED QUERY USING MORE THAN ONE RELATION
GENERATING A SIMPLE REPORT
GENERATING A REPORT WITH GROUPING, SORTING, AND TOTALS
CREATING A DATA INPUT FORM
SUMMARY: STUDENT LEARNING OUTCOMES REVISITED
KEY TERMS AND CONCEPTS
ASSIGNMENTS AND EXERCISES
EXTENDED LEARNING MODULE K
EXTENDED LEARNING MODULE L
EXTENDED LEARNING MODULE M
Glossary
Notes
Photo Credits
Index

Citation preview

Management Information Systems FOR THE INFORMATION AGE

Management Information Systems FOR THE INFORMATION AGE

EIGHTH EDITION

Stephen Haag DANIELS COLLEGE OF BUSINESS UNIVERSITY OF DENVER

Maeve Cummings COLLEGE OF BUSINESS PITTSBURG STATE UNIVERSITY

MANAGEMENT INFORMATION SYSTEMS FOR THE INFORMATION AGE Published by McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY, 10020. Copyright © 2010, 2008, 2007, 2005, 2004, 2002, 2000, 1998 by The McGraw-Hill Companies, Inc. All rights reserved. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning. Some ancillaries, including electronic and print components, may not be available to customers outside the United States. This book is printed on acid-free paper. 1 2 3 4 5 6 7 8 9 0 DOW/DOW 0 9 ISBN MHID

978-0-07-337678-3 0-07-337678-7

Vice president and editor-in-chief: Brent Gordon Publisher: Paul Ducham Director of development: Ann Torbert Development editor II: Trina Hauger Vice president and director of marketing: Robin J. Zwettler Marketing manager: Natalie Zook Vice president of editing, design and production: Sesha Bolisetty Manager of photo, design & publishing tools: Mary Conzachi Lead production supervisor: Carol A. Bielski Interior and cover designer: Cara Hawthorne, cara david DESIGN Senior photo research coordinator: Jeremy Cheshareck Photo researcher: Jennifer Blankenship Media project manager: Joyce J. Chappetto Typeface: 11/13 Bulmer MT Compositor: Laserwords Private Limited Printer: R. R. Donnelley Library of Congress Cataloging-in-Publication Data Haag, Stephen. Management information systems for the information age / Stephen Haag, Maeve Cummings. -- 8th ed. p. cm. Includes index. ISBN-13: 978-0-07-337678-3 (alk. paper) ISBN-10: 0-07-337678-7 (alk. paper) 1. Management information systems. 2. Information technology. I. Cummings, Maeve. II. Title. T58.6.H18 2010 658.4’038011--dc22 2009036809

www.mhhe.com

D E D I C AT I O N

For Katrina Victoria: Our second Ukrainian Princess. Stephen Haag To Lily Brenda and Belle Maeve Lyons: In your failures may you find wisdom and humor and in your successes peace and joy. Maeve Cummings

B R I E F TA B L E O F C O N T E N T S

CHAPTER ONE

2

The Information Age in Which You Live: Changing the Face of Business

CHAPTER TWO

62

94

Decision Support and Artificial Intelligence: Brainpower for Your Business

CHAPTER FIVE

126

158

192

Enterprise Infrastructure, Metrics, and Business Continuity Planning: Building and Sustaining the Dynamic Enterprise

CHAPTER EIGHT

Group Projects Electronic Commerce Projects vi

408

EXTENDED LEARNING MODULE F Building a Web Page with HTML

(on OLC)

EXTENDED LEARNING MODULE G Object-Oriented Technologies

(on OLC)

EXTENDED LEARNING MODULE I Building an E-Portfolio

442

(on OLC)

224

EXTENDED LEARNING MODULE J (OFFICE 2003 VERSION) (on OLC) Implementing a Database with Microsoft Access

258

EXTENDED LEARNING MODULE K Careers in Business

(on OLC)

EXTENDED LEARNING MODULE L Building Web Sites with FrontPage

(on OLC)

Emerging Trends and Technologies: Business, People, and Technology Tomorrow

PROJECTS

EXTENDED LEARNING MODULE D (OFFICE 2003 VERSION) (on OLC) Decision Analysis with Spreadsheet Software

EXTENDED LEARNING MODULE J (OFFICE 2007 VERSION) 476 Implementing a Database with Microsoft Access

Protecting People and Information: Threats and Safeguards

CHAPTER NINE

EXTENDED LEARNING MODULE D 386 (OFFICE 2007 VERSION) Decision Analysis with Spreadsheet Software

EXTENDED LEARNING MODULE H Computer Crime and Digital Forensics

Systems Development: Phases, Tools, and Techniques

CHAPTER SEVEN

350

EXTENDED LEARNING MODULE E Network Basics

Electronic Commerce: Strategies for the New Economy

CHAPTER SIX

EXTENDED LEARNING MODULE B The World Wide Web and the Internet

EXTENDED LEARNING MODULE C 370 Designing Databases and Entity-Relationship Diagramming

Databases and Data Warehouses: Building Business Intelligence

CHAPTER FOUR

322

36

Major Business Initiatives: Gaining Competitive Advantage with IT

CHAPTER THREE

EXTENDED LEARNING MODULE A Computer Hardware and Software

286

EXTENDED LEARNING MODULE M (on OLC) Programming in Excel with VBA

TA B L E O F C O N T E N T S

PREFACE XIV

CHAPTER TWO

CHAPTER ONE

Major Business Initiatives: Gaining Competitive Advantage with IT

36

OPENING CASE STUDY: NONPAID, NONEMPLOYEE COLLABORATION: A NEW BUSINESS MODEL

37

The Information Age in Which You Live: Changing the Face of Business

2

OPENING CASE STUDY: IS YOUR SOCIAL SECURITY NUMBER WORTH $98?

3

INTRODUCTION

38

INTRODUCTION

4

SUPPLY CHAIN MANAGEMENT

38

MANAGEMENT INFORMATION SYSTEMS

6

Information as a Key Resource in MIS 6 People as a Key Resource in MIS 11 Information Technology as a Key Resource in MIS 14 PORTER’S FIVE FORCES MODEL: ASSESSING THE STATE OF THE COMPETITION

16

20

26

Identifying Processes That Add Value 27 Identifying Processes That Reduce Value 28 SUMMARY: STUDENT LEARNING OUTCOMES REVISITED CLOSING CASE STUDY ONE: YOU ARE YOUR OWN WORST ENEMY

41

Strategic and Competitive Opportunities with CRM 43 IT Support for Customer Relationship Management 44 E-COLLABORATION

Overall Cost Leadership 21 Differentiation 22 Focus 22 Two Interesting and Complementary Strategy Frameworks 22 IDENTIFYING IMPORTANT BUSINESS PROCESSES: VALUE-CHAIN ANALYSIS

41

CUSTOMER RELATIONSHIP MANAGEMENT

Buyer Power 17 Supplier Power 18 Threat of Substitute Products or Services 18 Threat of New Entrants 19 Rivalry among Existing Competitors 19 PORTER’S THREE GENERIC STRATEGIES: BUILDING BUSINESS STRATEGY

Strategic and Competitive Opportunities with SCM 40 IT Support for Supply Chain Management

45

Work Activities with Integrated Collaboration Environments 46 Knowledge Management with Knowledge Management Systems 46 Social Networking with Social Networking Systems 46 Learning with E-Learning Tools 47 Informal Collaboration to Support Open-Source Information 47 Strategic and Competitive Opportunities with E-Collaboration 47 IT Support for E-Collaboration 48 IT CULTURE—AN ORGANIZATIONAL PERSPECTIVE

48

IT Culture—Structuring the IT Function 49 IT Culture—Philosophical Approach to IT 51 29 30

ENTERPRISE RESOURCE PLANNING—BRINGING IT ALL TOGETHER

52

SUMMARY: STUDENT LEARNING OUTCOMES REVISITED

55

CLOSING CASE STUDY ONE: COCA-COLA IS EVERYTHING: SCM, CRM, YOU NAME IT

56

57

CLOSING CASE STUDY TWO: IS THE WORLD DUMPING DATA ON YOU?

31

KEY TERMS AND CONCEPTS

33

SHORT-ANSWER QUESTIONS

33

ASSIGNMENTS AND EXERCISES

33

CLOSING CASE STUDY TWO: IT’S ALL ABOUT CUSTOMER RELATIONS IN THE FINANCIAL SERVICES MARKET

DISCUSSION QUESTIONS

34

KEY TERMS AND CONCEPTS

58

Chapter Projects

35

SHORT-ANSWER QUESTIONS

59

vii

viii

Table of Contents

ASSIGNMENTS AND EXERCISES

59

CHAPTER FOUR

DISCUSSION QUESTIONS

60

Chapter Projects

61

Decision Support and Artificial Intelligence: Brainpower for Your Business 94 OPENING CASE STUDY: AN NFL TEAM NEEDS MORE THAN 95 ATHLETIC ABILITY

CHAPTER THREE

INTRODUCTION

96

DECISION SUPPORT SYSTEMS

98

Databases and Data Warehouses: Building Business Intelligence

62

OPENING CASE STUDY: MORE CHERRIES PLEASE

63

INTRODUCTION

64

GEOGRAPHIC INFORMATION SYSTEMS

103

THE RELATIONAL DATABASE MODEL

66

EXPERT SYSTEMS

105

What Expert Systems Can and Can’t Do

Collections of Information 66 Created with Logical Structures 66 With Logical Ties within the Information 68 With Built-In Integrity Constraints 69 DATABASE MANAGEMENT SYSTEM TOOLS

70

111

INTELLIGENT AGENTS

113 114

MULTI-AGENT SYSTEMS AND AGENT-BASED MODELING 116

Ant Colonies and Swarm Intelligence 116

BUSINESS INTELLIGENCE REVISITED

82

INFORMATION OWNERSHIP

84 84

CLOSING CASE STUDY ONE: DEMAND-SIGNAL MANAGEMENT: A NEW FORM OF BUSINESS INTELLIGENCE

108

GENETIC ALGORITHMS

Information Agents 114 Monitoring-and Surveillance Agents Data-Mining Agents 115 User Agents 115 77

SUMMARY: STUDENT LEARNING OUTCOMES REVISITED

106

Fuzzy Logic 110

What Is a Data Warehouse? 77 What Are Data-Mining Tools? 79 Data Marts: Smaller Data Warehouses 80 Data Mining as a Career Opportunity 81 Important Considerations in Using a Data Warehouse 82

Strategic Management Support Sharing Information with Responsibility 85 Information Cleanliness 85

99

NEURAL NETWORKS AND FUZZY LOGIC

Data Definition Subsystem 71 Data Manipulation Subsystem 72 Application Generation Subsystem 75 Data Administration Subsystem 75 DATA WAREHOUSES AND DATA MINING

Components of a Decision Support System

86

SUMMARY: STUDENT LEARNING OUTCOMES REVISITED

119

CLOSING CASE STUDY ONE: CRYSTAL BALL, CLAIRVOYANT, FORTUNE TELLING . . . CAN PREDICTIVE ANALYTICS DELIVER THE FUTURE?

120

CLOSING CASE STUDY TWO: DECISION SUPPORT IS GOOD FOR YOUR HEALTH

121

KEY TERMS AND CONCEPTS

123

SHORT-ANSWER QUESTIONS

123

ASSIGNMENTS AND EXERCISES

123

DISCUSSION QUESTIONS

124

Chapter Projects

125

87

CHAPTER FIVE

CLOSING CASE STUDY TWO: BUSINESS INTELLIGENCE: SUCH POSSIBILITIES, SUCH PROBLEMS

88

Electronic Commerce: Strategies for the New Economy 126

KEY TERMS AND CONCEPTS

90

SHORT-ANSWER QUESTIONS

90

ASSIGNMENTS AND EXERCISES

90

DISCUSSION QUESTIONS

92

Chapter Projects

93

OPENING CASE STUDY: WHAT’S REPLACING THE DAY AFTER THANKSGIVING FOR SHOPPING SALES? 127 INTRODUCTION

128

E-COMMERCE BUSINESS MODELS

129

Business to Business (B2B) E-Commerce 129 Business to Consumer (B2C) E-Commerce 130

Table of Contents Consumer to Business (C2B) E-Commerce 130 Consumer to Consumer (C2C) E-Commerce 131 Business to Government (B2G) E-Commerce 131 Consumer to Government (C2G) E-Commerce 131 Government to Business (G2B) E-Commerce 132 Government to Consumer (G2C) E-Commerce 132 Government to Government (G2G) E-Commerce 132 UNDERSTAND YOUR BUSINESS, PRODUCTS, SERVICES, AND CUSTOMERS

133

Who Are Your Customers? 133 What Is the Value of Your Products and Services as Perceived by Your Customers? 134 FIND CUSTOMERS AND ESTABLISH RELATIONSHIPS

Business to Consumer 138 Business to Business 139 MOVE MONEY EASILY AND SECURELY

141

Business to Consumer Payment Systems 141 Business to Business Payment Systems 143 Security: The Pervading Concern 145 E-BUSINESS TRENDS

Phase 5: Testing 165 Phase 6: Implementation 165 Phase 7: Maintenance 166 COMPONENT-BASED DEVELOPMENT

167

Rapid Application Development Methodology 167 Extreme Programming Methodology 168 Agile Methodology 170 Service-Oriented Architecture—An Architecture Perspective 170 SELFSOURCING (END-USER DEVELOPMENT)

138

ix

170

The Selfsourcing Process 171 The Advantages of Selfsourcing 172 Potential Pitfalls and Risks of Selfsourcing 173 Which Applications for IT to Offload 173 The Right Tool for the Job 174 PROTOTYPING

174

The Prototyping Process 175 The Advantages of Prototyping 177 The Disadvantages of Prototyping 177 146

Youth 147 M-Commerce 148 The Long Tail 148

OUTSOURCING

178

The Outsourcing Process 180 The Service Level Agreement 182 Geopolitical Outsourcing Options 182 The Advantages and Disadvantages of Outsourcing 184

SUMMARY: STUDENT LEARNING OUTCOMES REVISITED

150

CLOSING CASE STUDY ONE: WHEN YOU’RE BIG, YOU CAN BE YOUR OWN B2B E-MARKETPLACE

152

SUMMARY: STUDENT LEARNING OUTCOMES REVISITED

185

CLOSING CASE STUDY TWO: CROWDSOURCING: THE FOURTH E-BUSINESS TREND

153

CLOSING CASE STUDY ONE: GETTING ON THE RIGHT TRACK AT GENERAL MOTORS

186

KEY TERMS AND CONCEPTS

155

SHORT-ANSWER QUESTIONS

155

CLOSING CASE STUDY TWO: SHOULD AN ORGANIZATION OUTSOURCE SECURITY?

187

ASSIGNMENTS AND EXERCISES

155

KEY TERMS AND CONCEPTS

188

DISCUSSION QUESTIONS

156

SHORT-ANSWER QUESTIONS

189

Chapter Projects

157

ASSIGNMENTS AND EXERCISES

189

DISCUSSION QUESTIONS

190

Chapter Projects

191

CHAPTER SIX Systems Development: Phases, Tools, and Techniques

158

OPENING CASE STUDY: SAVING LIVES THROUGH SYSTEMS DEVELOPMENT AND INTEGRATION

159

INTRODUCTION

160

INSOURCING AND THE SYSTEMS DEVELOPMENT LIFE CYCLE

160

Phase 1: Planning 162 Phase 2: Analysis 163 Phase 3: Design 164 Phase 4: Development 164

CHAPTER SEVEN Enterprise Infrastructure, Metrics, and Business Continuity Planning: Building and Sustaining the Dynamic Enterprise

192

OPENING CASE STUDY: STATE OF CALIFORNIA DIGS ITSELF OUT OF A TECHNOLOGY HOLE

193

INTRODUCTION

194

Customers 194 End Users 195

x

Table of Contents Software Development 196 Information Needs 196 Hardware Requirements 196 197

HARDWARE AND SOFTWARE INFRASTRUCTURE

Enterprise Resource Planning (ERP) Revisited Supporting Network Infrastructures 200

197

CLOUD COMPUTING: NO INFRASTRUCTURE AT ALL

205

IT SUCCESS METRICS

207

Efficiency and Effectiveness Metrics 208 Web-centric Metrics 209 Call Center Metrics 210 Financial Metrics 210 Service Level Agreements Revisited 211 213

BUSINESS CONTINUITY PLANNING

Phase 1: Organizational Strategic Plan Phase 2: Analysis 214 Phase 3: Design 214 Phase 4: Implementation 215 Phase 5: Testing 215 Phase 6: Maintenance 215 SUMMARY: STUDENT LEARNING OUTCOMES REVISITED

213

216

CLOSING CASE STUDY ONE: INTERNATIONAL TRUCK MAKES A HUGE BET ON A SERVICE-ORIENTED ARCHITECTURE 218 CLOSING CASE STUDY TWO: DENVER HEALTH OPERATES WITH A PRIVATE CLOUD AND THIN CLIENTS 219

Privacy and Employees 235 Privacy and Consumers 238 Privacy and Government Agencies Laws on Privacy 243

242 244

SECURITY

Security and Employees 245 Security and Outside Threats 246 Security Precautions 248 SUMMARY: STUDENT LEARNING OUTCOMES REVISITED

250

CLOSING CASE STUDY ONE: CAUTIONARY TALES OF INDISCREET E-MAIL

251

CLOSING CASE STUDY TWO: GOOGLE

252

KEY TERMS AND CONCEPTS

254

SHORT-ANSWER QUESTIONS

254

ASSIGNMENTS AND EXERCISES

254

DISCUSSION QUESTIONS

255

Chapter Projects

256

CHAPTER NINE Emerging Trends and Technologies: Business, People, and Technology Tomorrow 258 OPENING CASE STUDY: TV PROGRAMMING GOES MOBILE

259

KEY TERMS AND CONCEPTS

220

INTRODUCTION

260

SHORT-ANSWER QUESTIONS

220

THE CHANGING INTERNET

261

ASSIGNMENTS AND EXERCISES

221

DISCUSSION QUESTIONS

221

Chapter Projects

222

CHAPTER EIGHT Protecting People and Information: Threats and Safeguards 224 OPENING CASE STUDY: SHE LOST $400,000 TO AN E-MAIL SCAM

225

INTRODUCTION

226

ETHICS

226 Two Factors That Determine How You Decide Ethical Issues 228 Intellectual Property 229

Privacy and Other Individuals Identity Theft 232

231

266

PHYSIOLOGICAL INTERACTION

Automatic Speech Recognition 266 Virtual Reality 266 Cave Automatic Virtual Environments Haptic Interfaces 268 Biometrics 268

267

THE WIRELESS ARENA

The Next Generation of Cell Phone Technology RFID (Radio Frequency Identification) 273 PURE TECHNOLOGY

231

PRIVACY

Software-as-a-Service 261 Push, Not Pull, Technologies and Personalization 262 F2b2C: A New E-Commerce Business Model 263 Voice over Internet Protocol (VoIP) 264 Web 2.0 264 E-Society 265

Nanotechnology 275 Multistate CPUs 276 Holographic Storage Devices 277

271 272 275

MOST IMPORTANT CONSIDERATIONS

277

The Necessity of Technology 277 Closing the Great Digital Divide 277 Technology for the Betterment of Society 278 Exchanging Privacy for Convenience 278 Ethics, Ethics, Ethics 278

xi

EXTENDED LEARNING MODULE B

350

The World Wide Web and the Internet

SUMMARY: STUDENT LEARNING OUTCOMES REVISITED

279

CLOSING CASE STUDY ONE: THE NBA GOES NFC

280

CLOSING CASE STUDY TWO: BUSINESS ON SECOND LIFE IN TOUGH

281

KEY TERMS AND CONCEPTS

282

SHORT-ANSWER QUESTIONS

282

ASSIGNMENTS AND EXERCISES

283

DISCUSSION QUESTIONS

284

Chapter Projects

Table of Contents

285

PROJECTS

286

GROUP PROJECTS

286

ELECTRONIC COMMERCE PROJECTS

310

INTRODUCTION

351

WORLD WIDE WEB

352

Web Sites, Addresses, and Pages 352 Understanding Addresses 353 Using Web Browser Software 354 SEARCH ENGINES

356

WEB 2.0

357 Wikis 357 Social Networking Sites Blogs 358 RSS Feeds 358 Podcasting 359

358

INTERNET TECHNOLOGIES

The Internet Backbone 359 Internet Servers 360 Communications Protocols 361 CONNECTING TO THE INTERNET

EXTENDED LEARNING MODULE A

322

Computer Hardware and Software

359

361

Communications Software 362 Telecommunications Hardware 363 SUMMARY: STUDENT LEARNING OUTCOMES REVISITED

364

A QUICK TOUR OF TECHNOLOGY

323

KEY TERMS AND CONCEPTS

366

CATEGORIES OF COMPUTERS BY SIZE

325

SHORT-ANSWER QUESTIONS

366

ASSIGNMENTS AND EXERCISES

367

EXTENDED LEARNING MODULE C

370

Personal Digital Assistants (PDAs) 325 Tablet PCs 325 Notebook Computers 326 Desktop Computers 326 Minicomputers, Mainframe Computers, and Supercomputers 326 SOFTWARE: YOUR INTELLECTUAL INTERFACE

Designing Databases and Entity-Relationship Diagramming 328

Application Software 328 System Software 331 HARDWARE: YOUR PHYSICAL INTERFACE

333

Common Input Devices 334 Common Output Devices 336 Common Storage Devices 338 CPU and RAM 340 Connecting the Hardware Outside to the Hardware Inside 342 SUMMARY: STUDENT LEARNING OUTCOMES REVISITED

346

KEY TERMS AND CONCEPTS

347

SHORT-ANSWER QUESTIONS

348

ASSIGNMENTS AND EXERCISES

349

INTRODUCTION

371

DESIGNING AND BUILDING A RELATIONAL DATABASE

371

Step 1: Define Entity Classes and Primary Keys 373 Step 2: Define Relationships among the Entity Classes 374 Step 3: Define Information (Fields) for Each Relation 380 Step 4: Use a Data Definition Language to Create Your Database 383 SUMMARY: STUDENT LEARNING OUTCOMES REVISITED

383

KEY TERMS AND CONCEPTS

384

SHORT-ANSWER QUESTIONS

384

ASSIGNMENTS AND EXERCISES

384

xii

Table of Contents

EXTENDED LEARNING MODULE D (OFFICE 2007 VERSION)

423

NETWORK COMMUNICATIONS MEDIA

386

Decision Analysis with Spreadsheet Software

Wired Communications Media 423 Wireless Communications Media 424 426

NETWORK SECURITY INTRODUCTION

387

LISTS

388

BASIC FILTER

390

CUSTOM FILTER

392

CONDITIONAL FORMATTING

394

PIVOT TABLES

396

BACK TO DECISION SUPPORT

403

Filter 403 Conditional Formatting Pivot Table 403

403

SUMMARY: STUDENT LEARNING OUTCOMES REVISITED

404

KEY TERMS AND CONCEPTS

404

ASSIGNMENTS AND EXERCISES

404

EXTENDED LEARNING MODULE D (on (OFFICE 2003 VERSION)

OLC)

Decision Analysis with Spreadsheet Software

Principles of Computer Security 427 Firewalls and Intrusion Detection Systems 428 Encrypted Communications: SSL and Virtual Private Networks 429 Other Security Threats: Malware 430 431

THE CLIENT/SERVER SOFTWARE MODEL

Client/Server—A Business View 432 SUMMARY: STUDENT LEARNING OUTCOMES REVISITED

436

KEY TERMS AND CONCEPTS

438

SHORT-ANSWER QUESTIONS

438

ASSIGNMENTS AND EXERCISES

438

EXTENDED LEARNING MODULE F

(on OLC)

Building a Web Page with HTML

EXTENDED LEARNING MODULE G

(on OLC)

Object-Oriented Technologies

EXTENDED LEARNING MODULE E

408

Network Basics

EXTENDED LEARNING MODULE H

442

Computer Crime and Digital Forensics 409

INTRODUCTION

Basic Principle of Networks

409 410

HOME NETWORKS

Network Cards in Each Computer 410 Wired and Wireless Transmission Media Home Internet Service and Broadband Routers 411 Network Software 412

COMPUTER CRIME

444 444

454

DIGITAL FORENSICS

Hubs 412 Switches 412 Routers 414

The Collection Phase 455 The Analysis Phase 461 462

RECOVERY AND INTERPRETATION

CLASSIFYING NETWORKS BY DISTANCE

LANs, WANs, and MANs

443

Outside the Organization Web Defacing 452 The Players 452

410

412

NETWORK COMPONENTS

INTRODUCTION

415

415

Bandwidth 416 Internet Connection Types Voice over IP 422

417

463

WHO NEEDS DIGITAL FORENSICS INVESTIGATORS?

415

INTERNET

Places to Look for Useful Information Anti-Forensics 466

Proactive Digital Forensics Education for Problem Prevention 469 Reactive Digital Forensics for Incident Response 470 A Day in the Life 471

469

Table of Contents

xiii

SUMMARY: STUDENT LEARNING OUTCOMES REVISITED

472

GENERATING A SIMPLE REPORT

498

KEY TERMS AND CONCEPTS

473

GENERATING A REPORT WITH GROUPING, SORTING, AND TOTALS

474

500

SHORT-ANSWER QUESTIONS

CREATING A DATA INPUT FORM

474

507

ASSIGNMENTS AND EXERCISES

SUMMARY: STUDENT LEARNING OUTCOMES REVISITED

508

KEY TERMS AND CONCEPTS

508

ASSIGNMENTS AND EXERCISES

509

EXTENDED LEARNING MODULE I

(on OLC)

Building an E-Portfolio

EXTENDED LEARNING MODULE J (OFFICE 2007 VERSION)

476

Implementing a Database with Microsoft Access

Implementing a Database with Microsoft Access INTRODUCTION

477

SOLOMON ENTERPRISES DATABASE

478

ENTERING INFORMATION INTO THE SOLOMON DATABASE

EXTENDED LEARNING MODULE K

(on OLC)

Careers in Business

Implementing the Structure of the Solomon Enterprises Database 480 Implementing the Raw Material Relation Structure 482 Implementing the Concrete Type Relation Structure 484 Implementing the Bill of Material Relation Structure 485 DEFINING RELATIONSHIPS WITHIN THE SOLOMON ENTERPRISES DATABASE

EXTENDED LEARNING MODULE J (on OLC) (OFFICE 2003 VERSION)

EXTENDED LEARNING MODULE L

(on OLC)

Building Web Sites with FrontPage

487

EXTENDED LEARNING MODULE M

490

Programming in Excel with VBA

493

Glossary

514

Notes

529

Photo Credits

535

Index

537

(on OLC)

Changing the Structure of Information in Relations 493 CREATING A SIMPLE QUERY USING ONE RELATION

Simple Query with a Condition (Conditional Query) 495 CREATING AN ADVANCED QUERY USING MORE THAN ONE RELATION

496

P R E FA C E

The Eighth Edition of Management Information Systems for the Information Age provides you the ultimate in flexibility to tailor content to the exact needs of your MIS or IT course. The nine chapters and thirteen Extended Learning Modules may be presented in logical sequence, or you may choose your own mix of technical topics and business/ managerial topics. The nine chapters form the core of material covering business and managerial topics, from strategic and competitive technology opportunities to the organization and management of information using databases and data warehouses. If you covered only the chapters and none of the modules, the focus of your course would be MIS from a business and managerial point of view. The thirteen Extended Learning Modules provide a technical glimpse into the world of IT, covering topics ranging from building a Web site, to computer crimes and digital forensics, to how to use Microsoft Access. If you chose only the modules and none of the chapters, the focus of your course would be on the technical and hands-on aspects of IT. At the beginning of each chapter (and in the Instructor’s Manual for each chapter), we include our recommendations concerning which modules to cover immediately after covering a given chapter. For example, Module H on computer crime and digital forensics follows logically after Chapter 8 on protecting people and information. But you can cover Chapter 8 and omit Module H—that’s completely up to you. On the other hand, you can omit Chapter 8 and cover Module H—you have flexibility to do what suits your needs and the needs of your students. You can easily select a course format that represents your own desired blend of topics. While you might not choose to cover the technologies of networks, for example, you might require your students to build a small database application. In that case, you would omit Module E (Network Basics) and spend more time on Module C (Designing Databases and Entity-Relationship Diagramming) and Module J (Implementing a Database with Microsoft Access). On the facing page, we’ve provided a table of the chapters and the modules. As you put your course together and choose the chapters and/or modules you want to cover, we would offer the following: • • • • •

Cover any or all of the chapters as suits your purposes. Cover any or all of the modules as suits your purposes. If you choose a chapter, you do not have to cover its corresponding module. If you choose a module, you do not have to cover its corresponding chapter. You may cover the modules in any order you wish.

Please note that your students will find Modules F, G, I, K, L, and M on the Web site that accompanies the textbook at www.mhhe.com/haag. Also, to better serve a large and diverse market, we have provided two versions of Module D (Decision Analysis with Spreadsheet Software) and two of Module J (Implementing a Database with Microsoft Access). In the book, these two modules cover Office 2007 Excel and Access. However, if you’re using a previous iteration of Microsoft Office, you can teach Excel and Access using the versions of Modules D and J found on the Web site, as they teach Excel and Access using Office 2003. xiv

Preface

The unique organization of this text gives you complete flexibility to design your course as you see fit. THE CHAPTERS

THE EXTENDED LEARNING MODULES

CHAPTER 1

Extended Learning Module A

The Information Age in Which You Live

Computer Hardware and Software

CHAPTER 2

Extended Learning Module B

Major Business Initiatives

The World Wide Web and the Internet

CHAPTER 3

Extended Learning Module C

Databases and Data Warehouses

Designing Databases and EntityRelationship Diagramming

CHAPTER 4

Extended Learning Module D

Decision Support and Artificial Intelligence

Decision Analysis with Spreadsheet Software

CHAPTER 5

Extended Learning Module E

Electronic Commerce

Network Basics

CHAPTER 6

Extended Learning Module F*

Systems Development

Building a Web Page with HTML

CHAPTER 7

Extended Learning Module G*

Enterprise Infrastructure, Metrics, and Business Continuity Planning

Object-Oriented Technologies

CHAPTER 8

Extended Learning Module H

Protecting People and Information

Computer Crime and Digital Forensics

CHAPTER 9

Extended Learning Module I*

Emerging Trends and Technologies

Building an E-Portfolio Extended Learning Module J Implementing a Database with Microsoft Access Extended Learning Module K* Careers in Business Extended Learning Module L* Building Web Sites with FrontPage Extended Learning Module M* Programming in Excel with VBA

*The complete text for Modules F, G, I, K, L, and M are on the Web site (www.mhhe.com/haag) that accompanies this text. (On the Web site also are versions of Modules D and J using Office 2003.)

• Management focus—By focusing on the chapters, your class will take a managerial

approach to MIS. • Technical focus—If hands-on, technical skills are more important, focus your MIS

course on the modules.

xv

xvi

Preface

Assurance of Learning Ready All educational institutions today are focused on the notion of assurance of learning, the demonstration that students are indeed learning in the classroom. Assurance of learning is key in accreditation and in reassuring all constituents (employers, prospective students, the parents of prospective students, institutional administration, and so on) that the value of the educational dollar is very high. Management Information Systems for the Information Age, Eighth Edition, is designed specifically to support your assurance of learning initiatives. It does so in simple, yet powerful, fashion. Management Information Systems for the Information Age, Eighth Edition, maps each test bank question to a learning outcome for the chapter or module. The instructor can use the test bank software to easily query for learning outcome questions that relate directly to the learning objectives for the course. The instructor can then use the reporting features of the software to aggregate results in similar fashion, making the collection and presentation of assurance of learning information simple and easy. If you’re just starting your assurance of learning initiatives, take a close look at the diagram on the opposite page. 1. School Mission—start here to clearly define and understand the focus of your 2.

3.

4.

5.

6.

educational institution in delivering its undergraduate degree. Program Learning Goals—from your school’s mission, derive a list of program learning goals. Each of these usually maps to a specific business functional area. For example, a program learning goal for MIS might be: “Understand the use of information technology in business (and other types of organizations, i.e., notfor-profit, etc.) (1) to create and sustain a competitive advantage, (2) to be more efficient in operations, (3) to make more effective decisions, and (4) to transform the organization to remain viable in the marketplace.” Courses—map each program learning goal to one or more courses delivered in your undergraduate business degree core curriculum. This will tell you in which courses you need to provide assurance of learning for each program learning goal. Course Objectives—for each course, develop a list of course objectives. You probably already have these and include them in your syllabus to inform students of what they will be learning. Learning Outcomes by Chapter/Module—map your course objectives to the learning outcomes for each chapter and module in Management Information Systems for the Information Age, Eighth Edition. Some of your course objectives may cross more than one chapter or module or they may be inclusive of just one chapter or module. Testing Software—use the testing software provided with the text to query for questions by the learning outcomes you identified in the previous step. Choose the questions most appropriate to you. Use the reporting features of the testing software to aggregate results by learning outcome.

If you would like further insight into assurance of learning in MIS, including rubrics for software projects, contact your McGraw-Hill sales representative.

Preface

1. School Mission Clearly define the focus of your institution‘s undergraduate degree

2. Program Learning Goals From the mission, derive a list of program learning goals

3. Courses Map each program learning goal to one or more courses delivered in your undergraduate business degree core curriculum

4. Course Objectives For each course, develop a list of course objectives

5. Learning Outcomes by Chapter/Module Map your course objectives to the learning outcomes for each chapter and module in MIS, 8e

6. Testing Software Use the testing software to query for the appropriate questions and use the testing software to aggregate the results

xvii

Organization—The Haag Advantage The separation of content between the chapters and the Extended Learning Modules is very simple. We can sum it up by saying: • The chapters address what you want your students to know. • The modules address what you want your students to be able to do.

Together, both combine to provide a well-balanced repository of important information aimed at developing a prospective business professional equipped with both foundational knowledge and application experience, ready to take on today’s highly competitive job market. Each chapter and module contains full pedagogical support: • Student Learning Outcomes • Summary • Key Terms and Concepts • Short-Answer Questions

Timing of advertising Customer segment

• Assignments and Exercises

Year

North Territory Southeast Territory Southwest Territory East Territory #1

Figure 3.8

The chapters focus on the business and managerial applications of MIS and information technology.

A Multidimensional Data Warehouse with Information from Multiple Operational Databases

Marketing Database

#2 #3 PRODUCT LINES

Sales Database

#4

Customer Database

Product Database

total sales for product line 1 in the southwest territory occurred immediately after a radio advertising blitz? The information you would receive from that query constitutes business intelligence. Any specific subcube within the larger hypercube can contain a variety of summarized information gathered from the various operational databases. For example, the forwardmost and top-left subcube contains information for the North territory, by year, for product line 1. So, it could contain totals, average, counts, and distributions summarizing in some way that information. Of course, what it contains is really up to you and your needs.

A

The modules focus on giving your students real hands-onknowledge they can apply in both their personal and professional experiences.

provides a SUPPLIER

RAW MATERIAL

Figure C.3 Reading an EntityRelationship (E-R) Diagram

B

Once you determine that a relationship does exist, you must then determine the numerical nature of the relationship, what we refer to as “minimum and maximum cardinality.” To describe this, you use a | to denote a single relationship, a O to denote a zero or optional relationship, and/or a crow’s foot (