Essentials of Management Information Systems pptx

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Customer service analysis Database design Chapter 8Database querying and reportingSales lead and customer analysis Database design Chapter 11Database querying and reportingWeb page design Word processing, Web page creation, Chapter 12or Web page development toolInternet SkillsUsing online software tools for job hunting and career development Chapter 1Using online interactive mapping software to plan efficient Chapter 2transportation routesResearching product information Chapter 3Evaluating Web sites for auto salesResearching travel costs using online travel sites Chapter 4Searching online databases for products and services Chapter 5Using Web search engines for business research Chapter 6Researching and evaluating business outsourcing services Chapter 7Researching and evaluating supply chain management services Chapter 8Evaluating e-commerce hosting services Chapter 9Using shopping bots to compare product price, features, Chapter 10and availabilityAnalyzing Web site design Chapter 11Using Internet newsgroups for marketing Chapter 12Analytical, Writing, and Presentation SkillsBusiness Problem ChapterManagement analysis of a business Chapter 1Value chain and competitive forces analysis Chapter 3Business strategy formulationEmployee productivity analysis Chapter 6Disaster recovery planning Chapter 7Locating and evaluating suppliers Chapter 8Developing an e-commerce strategy Chapter 9Formulating a corporate privacy policy Chapter 12Essentials ofManagementInformation SystemsEighth EditionKenneth C. LaudonNew York UniversityJane P. LaudonAzimuth Information SystemsUpper Saddle River, New Jersey 07458CIP data on file with Library of Congress.Editor-in-Chief: David ParkerAVP/Executive Editor: Bob HoranProduct Development Manager: Ashley Santora Assistant Editor: Kelly Loftus Editorial Assistant: Christine IettoMedia Project Manager: Denise VaughnMarketing Manager: Anne HowardMarketing Assistant: Susan OsterlitzAssociate Managing Editor: Renata ButeraProject Manager, Production: Renata Butera, Carol SametPermissions Project Manager: Charles MorrisSenior Operations Supervisor: Arnold VilaOperations Specialist: Michelle Klein Art Director: Steve FrimInterior Design: Ken Rosenblatt/Azimuth Interactive, Inc.Cover Design: Steven Frim Cover Illustration/Photo: Robert Harding/Digital Vision/Getty Images, Inc.Illustration (Interior): Azimuth Interactive, Inc.Director, Image Resource Center: Melinda Patelli Manager, Rights and Permissions: Zina Arabia Manager: Visual Research: Beth Brenzel Manager, Cover Visual Research & Permissions: Karen Sanatar Image Permission Coordinator: Angelique SharpsPhoto Researcher: Diane AustinComposition: Azimuth Interactive, Inc.Printer/Binder: Courier/KendallvilleTypeface: 10.5/12.5 Times LT StdCredits and acknowledgments borrowed from other sources and reproduced, with permission, in thistextbook appear on appropriate page within text (or on page P-1).Microsoft® and Windows® are registered trademarks of the Microsoft Corporation in the U.S.A. andother countries. Screen shots and icons reprinted with permission from the Microsoft Corporation. Thisbook is not sponsored or endorsed by or affiliated with the Microsoft Corporation.Copyright © 2009, 2007 by Pearson Education, Inc., Upper Saddle River, New Jersey, 07458. Pearson Prentice Hall. All rights reserved. Printed in the United States of America. This publication isprotected by Copyright and permission should be obtained from the publisher prior to any prohibitedreproduction, storage in a retrieval system, or transmission in any form or by any means, electronic,mechanical, photocopying, recording, or likewise. For information regarding permission(s), write to:Rights and Permissions Department.Pearson Prentice Hall™ is a trademark of Pearson Education, Inc.Pearson® is a registered trademark of Pearson plcPrentice Hall® is a registered trademark of Pearson Education, Inc.Pearson Education LTD. Pearson Education Australia PTY, LimitedPearson Education Singapore, Pte. Ltd Pearson Education North Asia LtdPearson Education, Canada, Ltd Pearson Educación de Mexico, S.A. de C.V.Pearson Education–Japan Pearson Education Malaysia, Pte. Ltd.10 9 8 7 6 5 4 3 2 1ISBN-13: 978-0-13-602579-5ISBN-10: 0-13-602579-XKenneth C. Laudon is a Professor of Information Systems at New YorkUniversity’s Stern School of Business. He holds a B.A. in Economics from Stanford and aPh.D. from Columbia University. He has authored twelve books dealing with electroniccommerce, information systems, organizations, and society. Professor Laudon has also writ-ten over forty articles concerned with the social, organizational, and management impacts ofinformation systems, privacy, ethics, and multimedia technology.Professor Laudon’s current research is on the planning and management of large-scaleinformation systems and multimedia information technology. He has received grants fromthe National Science Foundation to study the evolution of national information systems atthe Social Security Administration, the IRS, and the FBI. Ken’s research focuses on enter-prise system implementation, computer-related organizational and occupational changes inlarge organizations, changes in management ideology, changes in public policy, and under-standing productivity change in the knowledge sector.Ken Laudon has testified as an expert before the United States Congress. He has been aresearcher and consultant to the Office of Technology Assessment (United States Congress),Department of Homeland Security, and to the Office of the President, several executivebranch agencies, and Congressional Committees. Professor Laudon also acts as an in-houseeducator for several consulting firms and as a consultant on systems planning and strategy toseveral Fortune 500 firms.At NYU’s Stern School of Business, Ken Laudon teaches courses on Managing theDigital Firm, Information Technology and Corporate Strategy, Professional Responsibility(Ethics), and Electronic Commerce and Digital Markets. Ken Laudon’s hobby is sailing.Jane Price Laudon is a management consultant in the information systems areaand the author of seven books. Her special interests include systems analysis, data manage-ment, MIS auditing, software evaluation, and teaching business professionals how to designand use information systems.Jane received her Ph.D. from Columbia University, her M.A. from Harvard University,and her B.A. from Barnard College. She has taught at Columbia University and the NewYork University Stern School of Business. She maintains a lifelong interest in Oriental lan-guages and civilizations.The Laudons have two daughters, Erica and Elisabeth, to whom this book is dedicated.About the AuthorsiiiPREFACE xvI Information Systems in the Digital Age 11 Business Information Systems in Your Career 22 E-Business: How Businesses Use Information Systems 383 Achieving Competitive Advantage with Information Systems 78II Information Technology Infrastructure 1134 IT Infrastructure: Hardware and Software 1145 Foundations of Business Intelligence: Databases and Information Management 1566 Telecommunications, the Internet, and Wireless Technology 1887 Securing Information Systems 228III Key System Applications for the Digital Age 2658 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications 2669 E-Commerce: Digital Markets, Digital Goods 29610 Improving Decision Making and Managing Knowledge 330IV Building and Managing Systems 36711 Building Information Systems and Managing Projects 36812 Ethical and Social Issues in Information Systems 408GLOSSARY G-1REFERENCES R-1INDEX I-1PHOTO AND SCREEN SHOT CREDITS P-1ivBrief ContentsI Information Systems in the Digital Age 11 Business Information Systems in Your Career 2Chapter-Opening Case: NBA Teams make a Slam Dunk with InformationTechnology 31.1 The Role of Information Systems in Business Today 5How Information Systems Are Transforming Business 5Globalization Challenges and Opportunities: A Flattened World 6Business Drivers of Information Systems 71.2 Perspectives on Information Systems and Information Technology 10What Is an Information System? 11It Isn’t Simply Technology: The Role of People and Organizations 13Dimensions of Information Systems 13Interactive Session: Technology UPS Competes Globally with InformationTechnology 161.3 Understanding Information Systems: A Business Problem-SolvingApproach 18The Problem-Solving Approach 18A Model of the Problem-Solving Process 18The Role of Critical Thinking in Problem Solving 21The Connection Between Business Objectives, Problems, and Solutions 221.4 Information Systems and Your Career 22How Information Systems Will Affect Business Careers 22Interactive Session: People How Can Saks Know Its Customers? 23Information Systems and Your Career: Wrap-Up 28How This Book Prepares You For the Future 281.5 Hands-On MIS 29Understanding Information System Requirements 29Improving Decision Making: Using Databases to Analyze Sales Trends 30Improving Decision Making: Using the Internet to Locate Jobs RequiringInformation Systems Knowledge 31Learning Tracks 31Review Summary 32Key Terms 33Review Questions 33Discussion Questions 34Video Case 34Teamwork Analyzing a Business System 34Business Problem-Solving Case Is Second Life Ready for Business? 342 E-Business: How Businesses Use Information Systems 38Chapter-Opening Case: Information Systems Join the Tupperware Party 392.1 Components of a Business 41Organizing a Business: Basic Business Functions 42Business Processes 42Interactive Session: Organizations Toyota as Number One 44Managing a Business and Firm Hierarchies 45The Business Environment 46The Role of Information Systems in a Business 47vComplete Contents2.2 Types of Business Information Systems 47Systems from a Functional Perspective 48Systems from a Constituency Perspective 52Interactive Session: People Google’s New Search for the Best and theBrightest 53Relationship of Systems to One Another 582.3 Systems That Span the Enterprise 58Enterprise Applications 58Intranets and Extranets 64Collaboration and Communication Systems: “Interaction” Jobs in a GlobalEconomy 65E-Business, E-commerce, and E-Government 672.4 The Information Systems Function in Business 67The Information Systems Department 68Information Systems Services 682.5 Hands-On MIS 69Analyzing Financial Performance 69Improving Decision Making: Using a Spreadsheet to Select Suppliers 70Achieving Operational Excellence: Using Internet Software to Plan EfficientTransportation Routes 71Learning Tracks 71Review Summary 71Key Terms 72Review Questions 73Discussion Questions 73Video Case 74Teamwork Describing Management Decisions and Systems 74Business Problem-Solving Case JetBlue Hits Turbulence 743 Achieving Competitive Advantage with Information Systems 78Chapter-Opening Case: Apple’s iTunes: Music’s New Gatekeeper 793.1 Using Information Systems to Achieve Competitive Advantage 81Porter’s Competitive Forces Model 82Information System Strategies for Dealing with Competitive Forces 83Interactive Session: Organizations Can Detroit Make the Cars CustomersWant? 87Interactive Session: People Parker Hannifin Finds the Right Price 89The Internet’s Impact on Competitive Advantage 90The Business Value Chain Model 91Synergies, Core Competencies, and Network-Based Strategies 94Disruptive Technologies: Riding the Wave 963.2 Competing on a Global Scale 97The Internet and Globalization 98Global Business and System Strategies 98Global System Configuration 993.3 Competing on Quality and Design 100What Is Quality? 100How Information Systems Improve Quality 1013.4 Competing on Business Processes 102Business Process Reengineering 103Steps in Effective Reengineering 103vi Contents3.5 Hands-On MIS 105Improving Decision Making: Analyzing Competitive Strategy 105Improving Decision Making: Using a Database to Clarify Business Strategy 106Improving Decision Making: Using Web Tools to Configure and Price anAutomobile 106Learning Tracks 107Review Summary 107Key Terms 108Review Questions 108Discussion Questions 109Video Case 109Teamwork Identifying Opportunities for Strategic Information Systems 110Business Problem-Solving Case YouTube, the Internet, and the Future ofMovies 110II Information Technology Infrastructure 1134 IT Infrastructure: Hardware and Software 114Chapter-Opening Case: University of Pittsburgh Medical Center’s TechnologyCure 1154.1 IT Infrastructure: Computer Hardware 117Infrastructure Components 118Types of Computers 119Storage, Input, and Output Technology 122Contemporary Hardware Trends 125Interactive Session: Technology Computing Goes Green 1284.2 IT Infrastructure: Computer Software 129Operating System Software 129Application Software and Desktop Productivity Tools 132Software for the Web: Java, Ajax, and HTML 135Interactive Session: Organizations Will Google Take Over the Desktop? 136Web Services 138Software Trends 1404.3 Managing Hardware and Software Technology 141Capacity Planning and Scalability 142Total Cost of Ownership (TCO) of Technology Assets 142Using Technology Service Providers 142Managing Software Localization for Global Business 1454.4 Hands-On MIS 145Improving Decision Making: Making the Rent Versus Buy Decision for Hardwareand Software 146Improving Decision Making: Using a Spreadsheet To Evaluate Hardware andSoftware Options 146Improving Decision Making: Using Web Research to Budget for a SalesConference 147Learning Tracks 138Review Summary 148Key Terms 150Review Questions 150Discussion Questions 151viiVideo Case 151Teamwork Evaluating Server Operating Systems 151Business Problem-Solving Case Amazon’s New Store: Utility Computing 1525 Achieving Competitive Advantage with Information Systems 156Chapter-Opening Case: NASCAR Races to Manage Its Data 1575.1 The Database Approach to Data Management 159Entities and Attributes 160Organizing Data in a Relational Database 160Establishing Relationships 1625.2 Database Management Systems 165Operations of a Relational DBMS 166Capabilities of Database Management Systems 166Object-Oriented Databases 1695.3 Using Databases to Improve Business Performance and Decision Making 170Data Warehouses 170What is a Data Warehouse 170Data Marts 170Business Intelligence, Multidimensional Data Analysis and Data Mining 171Data Mining 173Databases and the Web 174Interactive Session: Management DNA Databases: Crime Fighting Weaponor Threat to Privacy? 175Interactive Session: Technology The Databases Behind MySpace 1775.4 Managing Data Resources 178Establishing an Information Policy 178Ensuring Data Quality 1795.5 Hands-On MIS 178Improving Decision Making: Redesigning the Customer Database 180Achieving Operational Excellence: Building a Relational Database for InventoryManagement 181Improving Decision Making: Searching Online Databases for Overseas BusinessResources 181Learning Tracks 182Review Summary 182Key Terms 183Review Questions 183Discussion Questions 184Video Case 184Teamwork Identifying Entities and Attributes in an Online Database 184Business Problem-Solving Case Can HP Mine Success from an EnterpriseData Warehouse? 1856 Telecommunications, the Internet, and Wireless Technology 188Chapter-Opening Case: Hyatt Regency Osaka Uses Wireless Networking forHigh-Touch Service 1896.1 Telecommunications and Networking in Today’s Business World 191Networking and Communication Trends 191What Is a Computer Network? 192Key Digital Networking Technologies 194viii[...]... Enterprise Systems 269 What Are Enterprise Systems? 269 Enterprise Software 270 Business Value of Enterprise Systems 271 8.2 Supply Chain Management Systems 271 The Supply Chain 272 Information Systems and Supply Chain Management 272 Global Supply Chains and the Internet 276 Business Value of Supply Chain Management Systems 277 8.3 Customer Relationship Management Systems 278 What Is Customer Relationship Management? ... University; to Professors Walter Brenner and Lutz Kolbe of the University of St Gallen; to Professor Donald Marchand of the International Institute for Management Development; and to Professor Daniel Botha of Stellenbosch University who provided additional suggestions for improvement Thank you to Professor Ken Kraemer, University of California at Irvine, and Professor John King, University of Michigan,... will information systems affect business careers and what information systems skills and knowledge are essential? Ess8_Ch_01_mmv2.qxd 11/20/2007 12:57 PM Page 3 C HAPTER O UTLINE Chapter-Opening Case: NBA Teams Make a Slam Dunk with Information Technology 1.1 The Role of Information Systems in Business Today 1.2 Perspectives on Information Systems and Information Technology 1.3 Understanding Information. .. 11/20/2007 12:54 PM Page 1 Information Systems in the Digital Age 1 Business Information Systems in Your Career 2 E-Business: How Businesses Use Information Systems 3 I P A R T Achieving Competitive Advantage with Information Systems Part I introduces the major themes and the problem-solving approaches that are used throughout the book While surveying the role of information systems in today’s businesses,... Quality of Decisions and Decision Making 336 Systems and Technologies for Supporting Decisions 336 10.2 Systems for Decision Support 337 Management Information Systems 337 Decision-Support Systems (DSS) 338 Interactive Session: People Too Many Bumped Fliers: Why? 339 Executive Support Systems (DSS) 345 Group Decision-Support Systems 345 10.3 Intelligent Systems for Decision Support 346 Expert Systems. .. having to redesign their expensive fixed-cost information systems infrastructure Over half of eBay’s revenues in 2007 originated outside the United States Briefly, information systems enable globalization BUSINESS DRIVERS OF INFORMATION SYSTEMS What makes information systems so essential today? Why are businesses investing so much in information systems and technologies? They do so to achieve six important... results Regardless of whether you are an accounting, finance, management, operations management, marketing, or information systems major, the knowledge and information you find in this book will be valuable throughout your business career It's a New World of Business A continuing stream of information technology innovations from the Internet to wireless networks to digital phone and cable systems are continuing... production of the text and to Megan Miller for her help during production We thank Diana R Craig for her assistance with database topics Special thanks to colleagues at the Stern School of Business at New York University; to Professor Edward Stohr of Stevens Institute of Technology; to Professors Al Croker and Michael Palley of Baruch College and New York University; to Professor Lawrence Andrew of Western... this part raises several major questions: What is an information system? Why are information systems so essential in businesses today? How can information systems help businesses become more competitive? What do I need to know about information systems to succeed in my business career? Ess8_Ch_01_mmv2.qxd 11/20/2007 12:54 PM Page 2 Business Information Systems in Your Career 1 C H A P T E R STUDENT LEARNING... efficiency of their operations in order to achieve higher profitability Information systems and technologies are some of the most important tools available to managers for achieving higher levels of efficiency and productivity in business operations, especially when coupled with changes in business practices and management behavior 7 Ess8_Ch_01_mmv2.qxd 11/20/2007 8 12:58 PM Page 8 Part I: Information Systems . Role of Information Systems in a Business 47vComplete Contents2.2 Types of Business Information Systems 47 Systems from a Functional Perspective 48 Systems. World 6Business Drivers of Information Systems 71.2 Perspectives on Information Systems and Information Technology 10What Is an Information System? 11It
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