Table of contents for Management information systems / James A. O'Brien, George M. Marakas.

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Contents
Module I Foundation Concepts
Chapter 1
Foundations of Information Systems in Business 3
Section I: Foundation Concepts: Information Systems in Business 4
The Real World of Information Systems 4
What Is an Information System 4
Real World Case 1: Heidelberg, Honeywell, and Eaton: Using Information 
Technology 
to Build Smart Products and Services 5
Information Technologies 7
What You Need to Know 7
An IS Knowledge Framework for Business Professionals 8
The Fundamental Roles of IS in Business 9
Trends in Information Systems 10
The Role of e-Business in Business 12
Types of Information Systems 13
Operations Support Systems 13
Management Support Systems 15
Other Classifications of Information Systems 16
Managerial Challenges of Information Technology 17
Success and Failure with IT 17
Developing IS Solutions 19
Challenges and Ethics of IT 20
Challenges of IT Careers 21
The IS Function 23
Section II: Foundation Concepts: The Components of Information Systems 24
System Concepts: A Foundation 24
What Is a System? 24
Real World Case 2: Lufthansa: Taking Mobile Computing to the Skies While Keeping 
the Mobile Workforce Connected 25
Feedback and Control 27
Other System Characteristics 27
Components of an Information System 29
Information System Resources 30
People Resources 30
Hardware Resources 30
Software Resources 31
Data Resources 31
Network Resources 32
Information System Activities 33
Input of Data Resources 33
Processing of Data into Information 33
Output of Information Products 33
Storage of Data Resources 34
Control of System Performance 34
Recognizing Information Systems 34
Real World Case 3: Aviall Inc.: From Failure to Success with Information 
Technology 39
Real World Case 4: Continental Airlines: This Call Is Being Monitored 41
Chapter 2
Competing with Information Technology 43
Section I: Fundamentals of Strategic Advantage 44
Strategic IT 44
Competitive Strategy Concepts 44
Competitive Forces and Strategies 44
Real World Case 1: GE, Dell, Intel, GM, and Others: The Competitive Advantage of 
Information Technology 45
Strategic Uses of Information Technology 48
Other Competitive Strategies 48
Building a Customer-Focused Business 51
The Value Chain and Strategic IS 53
Value Chain Examples 54
Section II: Using Information Technology for Strategic Advantage 55
Strategic Uses of IT 55
Reengineering Business Processes 55
The Role of Information Technology 55
Real World Case 2: GE Energy and GE Healthcare: Using Information Technology to 
Create Strategic Customer Relationships 56
Becoming an Agile Company 59
Creating a Virtual Company 60
Virtual Company Strategies 60
Building a Knowledge-Creating Company 62
Knowledge Management Systems 63
Real World Case 3: CDW, Harrah?s Entertainment, and Others: Developing Strategic 
Customer-Loyalty Systems 68
Real World Case 4: The U.S. Department of Commerce:Using IT to Tap Experts? 
Know-How through Knowledge Management 70
Module II Information Technologies
Chapter 3
Computer Hardware 73
Section I: Computer Systems: End User and Enterprise Computing 74
Introduction 74
A Brief History of Computer Hardware 74
Real World Case 1: Northrup Grumman, Boeing, and Others: Employee Connectivity 
Trumps ROI for Mobile Devices and Wireless Technologies 75
Types of Computer Systems 78
Microcomputer Systems 79
Computer Terminals 81
Network Computers 81
Information Appliances 81
Midrange Systems 82
Mainframe Computer Systems 84
Supercomputer Systems 85
Technical Note: The Computer System Concept 86
Computer Processing Speeds 88
Moore?s Law: Where Do We Go from Here? 88
Section II: Computer Peripherals: Input, Output, and Storage Technologies 90
Peripherals 90
Input Technologies 90
Pointing Devices 90
Real World Case 2: Apple Computer: The iPod, the iMac, and the Business Lessons 
of 
Closed Systems 91
Pen-Based Computing 93
Speech Recognition Systems 94
Optical Scanning 95
Other Input Technologies 97
Output Technologies 98
Video Output 98
Printed Output 99
Storage Trade-Offs 100
Computer Storage Fundamentals 100
Direct and Sequential Access 102
Semiconductor Memory 103
Magnetic Disks 104
Types of Magnetic Disks 104
RAID Storage 104
Magnetic Tape 105
Optical Disks 105
Business Applications 106
Radio Frequency Identification 107
Real World Case 3: Delta, Northwest Airlines, and Vancouver Airport: The 
Business 
Value of Customer Self-Service Kiosks 113
Real World Case 4: Verizon Communications, AAA, and Others: Advances in Speech 
Recognition Software Are Extending the Utility of Traditional Applications 115
Chapter 4
Computer Software 117
Section I: Application Software: End User Applications 118
Introduction to Software 118
What Is Software? 118
Types of Software 118
Application Software for End Users 118
Real World Case 1: Microsoft and Others: Developing Software Products for How 
Companies Do Business 119
Business Application Software 121
Software Suites and Integrated Packages 123
Web Browsers and More 124
Electronic Mail, Instant Messaging, and Weblogs 124
Word Processing and Desktop Publishing 126
Electronic Spreadsheets 127
Presentation Graphics 128
Personal Information Managers 129
Groupware 129
Software Alternatives 130
Application Service Providers 130
Software Licensing 132
Section II: System Software: Computer System Management 133
System Software Overview 133
Overview 133
Operating Systems 133
Operating System Functions 133
Real World Case 2: Webtop Software: Transforming the Desktop with Personalized 
Web-Based Applications 134
Microsoft Windows 137
UNIX 138
Linux 138
Mac OS X 139
Other System Management Programs 140
Programming Languages 141
Machine Languages 141
Assembler Languages 141
High-Level Languages 142
Fourth-Generation Languages 142
Object-Oriented Languages 143
Web Languages and Services 144
HTML 144
XML 145
Java and .NET 145
Web Services 146
Programming Software 148
Language Translator Programs 148
Programming Tools 149
Real World Case 3: Amazon and eBay: The New Face of Web Services in Business 
154
Real World Case 4: Linux and the Growth of Open-Source Software: IT Managers 
Evaluate the Value and the Risks 156
Chapter 5
Data Resource Management 159
Section I: Technical Foundations of Database Management 160
Database Management 160
Fundamental Data Concepts 160
Character 160
Field 160
Record 160
File 160
Real World Case 1: Amazon, eBay, and Google: Unlocking and Sharing Business 
Databases 161
Database 163
Database Structures 164
Hierarchical Structure 165
Network Structure 165
Relational Structure 165
Relational Operations 165
Multidimensional Structure 166
Object-Oriented Structure 167
Evaluation of Database Structures 168
Database Development 169
Data Planning and Database Design 170
Section II: Managing Data Resources 174
Data Resource Management 174
Types of Databases 174
Operational Databases 174
Distributed Databases 174
Real World Case 2: Emerson and Sanofi: Data Stewards Seek Data Conformity 175
External Databases 178
Hypermedia Databases 178
Data Warehouses and Data Mining 179
Data Mining 181
Traditional File Processing 182
Problems of File Processing 182
The Database Management Approach 184
Database Management System 185
Database Interrogation 186
Database Maintenance 188
Application Development 189
Real World Case 3: Acxiom Corporation: Data Demand Respect 193
Real World Case 4: Harrah?s Entertainment and Others: Protecting the Data Jewels 
195
Chapter 6
Telecommunications And Networks 197
Section I: The Networked Enterprise 198
Networking the Enterprise 198
The Concept of a Network 198
Metcalf?s Law 198
Real World Case 1: Best Buy, MedStar Health, and Unifi: The Challenges and 
Benefits 
of Wireless Mobile Applications 199
Trends in Telecommunications 201
Industry Trends 201
Technology Trends 202
Business Application Trends 203
Internet2 203
The Business Value of Telecommunications Networks 204
The Internet Revolution 205
Internet Service Providers 205
Internet Applications 205
Business Use of the Internet 206
The Business Value of the Internet 208
The Role of Intranets 208
The Business Value of Intranets
The Role of Extranets 211
Section II: Telecommunications Network Alternatives 213
Telecommunications Alternatives 213
A Telecommunications Network Model 213
Real World Case 2: SAIC, Hewlett-Packard, GE, and Others: The Business Case for 
Wireless Sensor Networks 214
Types of Telecommunications Networks 216
Wide Area Networks 216
Local Area Networks 216
Virtual Private Networks 218
Client/Server Networks 219
Network Computing 219
Peer-to-Peer Networks 220
Digital and Analog Signals 222
Telecommunications Media 222
Twisted-Pair Wire 222
Coaxial Cable 223
Fiber Optics 223
The Problem of ?The Last Mile? 224
Wireless Technologies 224
Terrestrial Microwave 224
Communications Satellites 224
Cellular and PCS Systems 226
Wireless LANs 226
Bluetooth 226
The Wireless Web 227
Telecommunications Processors 228
Modems 228
Internetwork Processors 229
Multiplexers 230
Telecommunications Software 230
Network Management 230
Network Topologies 231
Network Architectures and Protocols 231
The OSI Model 232
The Internet?s TCP/IP 234
Voice over IP 235
Bandwidth Alternatives 236
Switching Alternatives 236
Network Interoperability 237
Real World Case 3: Minnesota Department of Labor and Others: Leading the Way for 
Voice over IP 243
Real World Case 4: Maryland and Colorado: Serving Citizens with Wireless 
Technologies 245
Module III Business Applications 
Chapter 7
Electronic Business Systems 249
Section I: Enterprise Business Systems 250
Introduction 250
Cross-Functional Enterprise Applications 250
Enterprise Application Architecture 250
Real World Case 1: Hilton Hotels Corporation: Data-Driven Hospitality 251
Enterprise Application Integration 254
Transaction Processing Systems 256
The Transaction Processing Cycle 257
Enterprise Collaboration Systems 259
Tools for Enterprise Collaboration 259
Section II: Functional Business Systems 262
Introduction 262
IT in Business 262
Marketing Systems 262
Interactive Marketing 262
Real World Case 2: Yahoo, Google, and Chrysler: How the Internet Is Changing 
Advertising and Marketing 263
Targeted Marketing 266
Sales Force Automation 266
Manufacturing Systems 268
Computer-Integrated Manufacturing 268
Human Resource Systems 270
HRM and the Internet 271
HRM and Corporate Intranets 271
Accounting Systems 273
Online Accounting Systems 273
Financial Management Systems 274
Real World Case 3: Brunswick and Whirlpool: Improving Supply Chain Results 280
Real World Case 4: Baxter International, GE Power Systems, and Corporate 
Express: 
The Business Case for Enterprise Application Integration 282
Chapter 8
Enterprise Business Systems 285
Section I: Customer Relationship Management: The Business Focus 286
Introduction 286
What Is CRM? 286
Contact and Account Management 286
Sales 286
Real World Case 1: Forex Capital Markets and Wyse Technology: The Business 
Benefits of Customer Relationship Management 287
Marketing and Fulfillment 289
Customer Service and Support 289
Retention and Loyalty Programs 289
The Three Phases of CRM 291
Benefits and Challenges of CRM 292
CRM Failures 293
Trends in CRM 294
Section II: Enterprise Resource Planning: The Business Backbone 296
Introduction 296
What Is ERP? 296
Real World Case 2: Autosystems: The Business Value of a Successful ERP System 
for a 
Small Manufacturer 297
Benefits and Challenges of ERP 300
The Costs of ERP 300
Causes of ERP Failures 302
Trends in ERP 303
Section III: Supply Chain Management: The Business Network 305
Introduction 305
What Is SCM? 305
Real World Case 3: Tesco: Applying Lean Logistics to Supply Chain Management 
306
Electronic Data Interchange 309
The Role of SCM 310
Benefits and Challenges of SCM 312
Trends in SCM 313
Real World Case 4: Agilent Technologies and Russ Berrie: The Business Challenges 
and Consequences of Failure in Implementing ERP Systems 319
Chapter 9
Electronic Commerce Systems 321
Section I:Electronic Commerce Fundamentals 322
Introduction to e-Commerce 322
The Scope of e-Commerce 322
e-Commerce Technologies 322
Categories of e-Commerce 322
Real World Case 1: eBay Inc.: Running the Right Play in the Right Country 323
Essential e-Commerce Processes 326
Access Control and Security 327
Profiling and Personalizing 327
Search Management 328
Content and Catalog Management 328
Workflow Management 329
Event Notification 331
Collaboration and Trading 331
Electronic Payment Processes 331
Web Payment Processes 331
Electronic Funds Transfer 332
Secure Electronic Payments 332
Section II: e-Commerce Applications and Issues 334
e-Commerce Application Trends 334
e-Commerce Trends 334
Business-to-Consumer e-Commerce 334
Real World Case 2: eBay versus Google and Microsoft: The Competitive Battle for 
e-
Commerce Supremacy 335
e-Commerce Success Factors 338
Web Store Requirements 340
Developing a Web Store 340
Serving Your Customers 342
Managing a Web Store 343
Business-to-Business e-Commerce 344
e-Commerce Marketplaces 344
Clicks and Bricks in e-Commerce 347
e-Commerce Integration 347
Other Clicks and Bricks Strategies 348
e-Commerce Channel Choices 348
Real World Case 3: Yahoo and Flickr: Will Social Media and Social Networking 
Give 
Yahoo a Competitive Edge on the Web? 355
Real World Case 4: Microsoft, Federated, and Dell: Today?s Web Is Anything but 
Business as Usual 357
Chapter 10
Decision Support Systems 359
Section I: Decision Support in Business 360
Introduction 360
Information, Decisions, and Management 360
Information Quality 360
Real World Case 1: Oracle Corporation and Others: Dashboards for Executives and 
Business Professionals: The Power and the Challenge 361
Decision Structure 363
Decision Support Trends 365
Decision Support Systems 367
DSS Components 367
Management Information Systems 369
Management Reporting Alternatives 369
Online Analytical Processing 369
Geographic Information and Data Visualization Systems 372
Using Decision Support Systems 375
What-If Analysis 375
Sensitivity Analysis 376
Goal-Seeking Analysis 376
Optimization Analysis 377
Data Mining for Decision Support 377
Executive Information Systems 379
Features of an EIS 380
Enterprise Portals and Decision Support 381
Enterprise Information Portals 381
Knowledge Management Systems 382
Section II: Artificial Intelligence Technologies in Business 385
Business and AI 385
An Overview of Artificial Intelligence 385
The Domains of Artificial Intelligence 385
Real World Case 2: Harrah?s Entertainment, LendingTree, DeepGreen Financial, and 
Cisco Systems: Successes and Challenges of Automated Decision Making 386
Expert Systems 390
Components of an Expert System 391
Expert System Applications 392
Benefits of Expert Systems 393
Limitations of Expert Sytems 393
Developing Expert Systems 394
Knowledge Engineering 395
Neural Networks 396
Fuzzy Logic Systems 398
Fuzzy Logic in Business 398
Genetic Algorithms 398
Virtual Reality 399
VR Applications 399
Intelligent Agents 401
Real World Case 3: KeyCorp, McKesson Corp., Allstate Insurance, Aviva Canada, 
and 
Others: Centralized Business Intelligence at Work 408
Real World Case 4: Ford Motor Company and Laparoscopic Surgery: Robots Are the 
Common Denominator 410
Module IV Development Processes 
Chapter 11
Developing Business/IT Strategies 413
Section I: Planning Fundamentals 414
Introduction 414
Organizational Planning 414
The Scenario Approach 414
Real World Case 1: 7-Eleven Japan, Eli Lilly, Mohegan Sun, UPS, Vanguard, 
Carlson 
Companies, and Raytheon: The Portfolio Approach to IT Investment Planning and 
Management 415
Planning for Competitive Advantage 418
SWOT Analysis 419
Business Models and Planning 420
Business/IT Planning 422
Information Technology Architecture 423
Balanced Scorecard 423
Identifying Business/IT Strategies 424
Business Application Planning 426
Business/IT Architecture Planning 426
Section II: Implementation Challenges 428
Implementation 428
Implementing Information Technology 428
End User Resistance and Involvement 428
Real World Case 2: Infosys Technologies: The Implementation Challenges of 
Knowledge Management Initiatives 429
Change Management 433
A Change Management Process 435
Real World Case 3: Lowe?s, Entellium, Digg, Peerflix, Zappos, and Jigsaw: 
Planning 
Strategies of Second Movers 441
Real World Case 4: FedEx Corporation: Planning for Innovation and Competitive 
Advantage in a Dynamic Global Environment 443
Chapter 12
Developing Business/IT Solutions 445
Section I: Developing Business Systems 446
IS Development 446
The Systems Approach 446
Systems Thinking 446
Real World Case 1: Intuit Inc.: Innovation in Customer-Driven Development of 
Small 
Business and Consumer Software 447
Systems Analysis and Design 449
The Systems Development Life Cycle 449
Starting the Systems Development Process 449
Feasibility Studies 449
Operational Feasibility 451
Economic Feasibility 451
Technical Feasibility 452
Human Factors Feasibility 453
Legal/Political Feasibility 453
Systems Analysis 453
Organizational Analysis 454
Analysis of the Present System 454
Logical Analysis 455
Functional Requirements Analysis and Determination 455
Systems Design 456
Prototyping 456
The Prototyping Process 456
User Interface Design 458
System Specifications 460
End User Development 460
Focus on IS Activities 460
Doing End User Development 461
Section II: Implementing Business Systems 464
Implementation 464
Implementing New Systems 464
Project Management 464
Real World Case 2: Hewlett-Packard: Managing the Implementation of Radical 
Change 
in IT Staffing, Systems, and Application Development 465
What Is a Project? 467
The Process of Project Management 467
Evaluating Hardware, Software, and Services 469
Hardware Evaluation Factors 470
Software Evaluation Factors 471
Evaluating IS Services 471
Other Implementation Activities 472
Testing 472
Data Conversion 472
Documentation 474
Training 474
System Conversion Strategies 474
Direct Conversion 475
Parallel Conversion 476
Pilot Conversion 476
Phased Conversion 476
Postimplementation Activities 476
Systems Maintenance 477
Postimplementation Review 477
Real World Case 3: Indiana University: Financial Aid System Implementation: 
Success 
or Failure? 483
Real World Case 4: H&R Block, Morgan Stanley, and Others: In-House Development 
Is 
Alive and Well 485
Module V Management Challenges 
Chapter 13
Security and Ethical Challenges 489
Section I: Security, Ethical, and Societal Challenges of IT 490
Introduction 490
Business/IT Security, Ethics, and Society 490
Ethical Responsibility of Business Professionals 490
Business Ethics 490
Real World Case 1: Cyberscams: Four Top Cybercriminals: Who They Are and What 
They Do 491
Technology Ethics 494
Ethical Guidelines 494
Computer Crime 496
Hacking and Cracking 497
Cyber Theft 499
Unauthorized Use at Work 500
Software Piracy 501
Theft of Intellectual Property 502
Computer Viruses and Worms 503
Adware and Spyware 505
Privacy Issues 506
Privacy on the Internet 506
Computer Matching 508
Privacy Laws 508
Computer Libel and Censorship 509
The Current State of Cyberlaw 509
Other Challenges 510
Employment Challenges 510
Computer Monitoring 510
Challenges in Working Conditions 510
Challenges to Individuality 511
Health Issues 512
Ergonomics 512
Societal Solutions 513
Section II: Security Management of Information Technology 514
Introduction 514
Tools of Security Management 514
Real World Case 2: Lowe?s, TCI, Bank of America, ChoicePoint, and Others: 
Failures 
in Data Security Management 515
Internetworked Security Defenses 517
Encryption 517
Firewalls 518
Denial of Service Attacks 520
e-Mail Monitoring 521
Virus Defenses 522
Other Security Measures 523
Security Codes 523
Backup Files 523
Security Monitors 523
Biometric Security 523
Computer Failure Controls 525
Fault Tolerant Systems 525
Disaster Recovery 526
System Controls and Audits 526
Information System Controls 526
Auditing IT Security 526
Real World Case 3: Western Corporate Federal Credit Union and Others: Managing 
Information Security 533
Real World Case 4: Shavlik Technologies: Maintaining Software Security 535
Chapter 14
Enterprise and Global Management of Information Technology 537
Section I: Managing Information Technology 538
Business and IT 538
Managing Information Technology 538
Real World Case 1: UPS, Manheim Auctions, JPMorgan Chase, and ING Direct: Using 
Alternative Governance Models for Managing IT 539
Managing the IT Function 541
Organizing IT 542
Managing Application Development 543
Managing IS Operations 543
IT Staff Planning 544
The CIO and Other IT Executives 544
Technology Management 545
Managing User Services 545
Outsourcing and Offshoring IT and IS 546
Outsourcing 546
Offshoring 547
Failures in IT Management 549
Management Involvement and Governance 550
Section II: Managing Global IT 551
The International Dimension 551
Global IT Management 551
Real World Case 2: IBM Corporation: Competing Globally by Offshoring IT Workers 
and Giving Away Technology 552
Cultural, Political, and Geoeconomic Challenges 554
Global Business/IT Strategies 555
Global Business/IT Applications 557
Global IT Platforms 558
The Internet as a Global IT Platform 559
Global Data Access Issues 560
Internet Access Issues 562
Global Systems Development 562
Systems Development Strategies 563
Real World Case 3: Globalization and IT: CIOs Need to Think Globally and Act 
Locally 568
Real World Case 4: Northwestern Mutual Life, GE, and Boeing: The Hard Road to 
Outsourcing 570
Review Quiz Answers 573
Selected References 577
Glossary for Business Professionals 589
Name Index 609
Company Index 612
SUBJECT INDEX 615

Library of Congress Subject Headings for this publication:

Management information systems.