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LAUDON
ESSENTIALS OF
MIS
LAUDON
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About the Authors
Kenneth C. Laudon is a Professor of Information Systems at New York

University’s Stern School of Business. He holds a B.A. in Economics from Stanford and
a Ph.D. from Columbia University. He has authored twelve books dealing with elec-
tronic commerce, information systems, organizations, and society. Professor Laudon
has also written over forty articles concerned with the social, organizational, and man-
agement impacts of information systems, privacy, ethics, and multimedia technology.
Professor Laudon’s current research is on the planning and management of large
scale information systems and multimedia information technology. He has received
grants from the National Science Foundation to study the evolution of national informa-
tion systems at the Social Security Administration, the IRS, and the FBI. Ken’s research
focuses on enterprise system implementation, computer-related organizational and
occupational changes in large organizations, changes in management ideology, changes
in public policy, and understanding productivity change in the knowledge sector.
Ken Laudon has testified as an expert before the United States Congress. He has
been a researcher and consultant to the Office of Technology Assessment (United
States Congress), Department of Homeland Security, and to the Office of the Presi-
dent, several executive branch agencies, and Congressional Committees. Professor
Laudon also acts as an in-house educator for several consulting firms and as a con-
sultant on systems planning and strategy to several Fortune 500 firms.
At NYU’s Stern School of Business, Ken Laudon teaches courses on Managing
the Digital 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

area and the author of seven books. Her special interests include systems analysis,
data management, MIS auditing, software evaluation, and teaching business profes-
sionals how to design and 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 Univer-
sity and the New York University Stern School of Business. She maintains a lifelong
interest in languages and civilizations of Asia.
The Laudons have two daughters, Erica and Elisabeth, to whom this book is dedicated.
vii

Brief Contents
Preface xviii
I Information Systems in the Digital Age 1

1 Business Information Systems in Your Career 2
2 Global E-business and Collaboration 40
3 Achieving Competitive Advantage with Information Systems 78
4 Ethical and Social Issues in Information Systems 114
II Information Technology Infrastructure 153

5 IT Infrastructure: Hardware and Software 154
6 Foundations of Business Intelligence: Databases and Information Management 194
7 Telecommunications, the Internet, and Wireless Technology 230
8 Securing Information Systems 272
III Key System Applications for the Digital Age 313

9 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications 314
10 E-commerce: Digital Markets, Digital Goods 348
11 Improving Decision Making and Managing Knowledge 392
IV Building and Managing Systems 433

12 Building Information Systems and Managing Projects 434
Glossary 475
Indexes 490
viii

Complete Contents
Preface xviii Using Databases to Analyze Sales Trends 33 •
Improving Decision Making: Using The Internet
I Information Systems in the to Locate Jobs Requiring Information Systems
Knowledge 34
Digital Age 1
Collaboration and Teamwork Project 34
1 Business Information Systems in Your Career 2 Business Problem-Solving Case
Did Information Systems Cause Deutsche Bank
Chapter-Opening Case: to Stumble? 35
The Grocery Store of the Future: Look at Kroger 3
1-1 Why are information systems so essential for 2 Global E-business and Collaboration 40
running and managing a business today? 5
How Information Systems are Transforming Business 5 • Chapter-Opening Case:
What’s New in Management Information Systems? 6 • Enterprise Social Networking Helps Sanofi Pasteur
Globalization Challenges and Opportunities: A Flattened Innovate and Improve Quality 41
World 8 2-1 What major features of a business are
Interactive Session: People important for understanding the role of
Can You Run Your Company with Your iPhone? 9 information systems? 42
Organizing a Business: Basic Business Functions 43 •
Business Drivers of Information Systems 11
Business Processes 44 • Managing a Business and Firm
1-2 What exactly is an information system?
Hierarchies 46 • The Business Environment 47 •
How does it work? What are its people,
The Role of Information Systems in a Business 48
organizational, and technology
components? 13 2-2 How do systems serve different management
What is an Information System? 13 • It isn’t Simply
groups in a business, and how do systems that
Technology: The Role of People and Organizations 15 •
link the enterprise improve organizational
Dimensions of Information Systems 16
performance? 48
Systems for Different Management Groups 48 • Systems
Interactive Session: Technology for Linking the Enterprise 53
UPS Competes Globally with Information
Technology 19 Interactive Session: People
Data Changes How NFL Teams Play the Game and
1-3 How will a four-step method for business How Fans See It 54
problem solving help you solve information
E-Business, E-Commerce, and E-Government 57
system–related problems? 20
The Problem-Solving Approach 21 • A Model of the
2-3 Why are systems for collaboration and social
Problem-Solving Process 21 • The Role of Critical
business so important, and what technologies
Thinking in Problem Solving 23 • The Connections
do they use? 57
What is Collaboration? 57 • What is Social Business? 59 •
Among Business Objectives, Problems, and Solutions 24
Business Benefits of Collaboration and Social
1-4 What information systems skills and knowledge
Business 59 • Building a Collaborative Culture and
are essential for business careers? 25
Business Processes 61 • Tools and Technologies for
How Information Systems will Affect Business Careers 25 •
Collaboration and Social Business 61
Information Systems and Business Careers: Wrap-Up 28 •
How This Book Prepares You for the Future 28 Interactive Session: Technology
1-5 How will MIS help my career? 30 Cisco IX5000: What State-of-the-Art Telepresence
The Company 30 • Position Description 30 • Job Can Do for Collaboration 63
Requirements 30 • Interview Questions 30 • Author Tips 30 2-4 What is the role of the information systems
Review Summary 31 • Key function in a business? 66
Terms 32 • Review Questions The Information Systems Department 67 • Information
32 • Discussion Questions 32 • Systems Services 68
Hands-On MIS Projects 33 2-5 How will MIS help my career? 68
The Company 68 •Position Description 69 • Job
Management Decision Problems
Requirements 69 • Interview Questions 69 • Author Tips 69
33 • Improving Decision Making:
ix

Review Summary 70 • Key Review Summary 105 •
Terms 71 • Review Questions Key Terms 106 • Review
71 • Discussion Questions 72 • Questions 106 • Discussion
Hands-On MIS Projects 72 Questions 107 • Hands-On
Management Decision Problems MIS Projects 107
72 • Improving Decision Management Decision
Making: Use a Spreadsheet to Select Suppliers 72 • Problems 107 • Improving Decision Making: Using a
Achieving Operational Excellence: Using Internet Database to Clarify Business Strategy 108 • Improving
Software to Plan Efficient Transportation Routes 73 Decision Making: Using Web Tools To Configure And
Collaboration and Teamwork Project 73 Price An Automobile 108
Business Problem-Solving Case
Social Business: Full Speed Ahead or Proceed with Business Problem-Solving Case
Caution? 74 Walmart Versus Amazon and the Future of Retail 110
3 Achieving Competitive Advantage with

Information Systems 78 4 Ethical and Social Issues in Information
Systems 114
Chapter-Opening Case: Chapter-Opening Case:
Verizon or AT&T: Which Company Has the Best The Dark Side of Big Data 115
Digital Strategy? 79
4-1 What ethical, social, and political issues are
3-1 How do Porter’s competitive forces model, raised by information systems? 117
the value chain model, synergies, core A Model for Thinking About Ethical, Social, and Political
competencies, and network-based strategies Issues 118 • Five Moral Dimensions of the Information Age
help companies use information systems for 119 • Key Technology Trends That Raise Ethical Issues 120
competitive advantage? 80 4-2 What specific principles for conduct can be
Porter’s Competitive Forces Model 81 • Information used to guide ethical decisions? 122
System Strategies For Dealing With Competitive Forces 82 Basic Concepts: Responsibility, Accountability, and
Interactive Session: People Liability 122 • Ethical Analysis 123 • Candidate Ethical
Digital Technology Helps Crayola Brighten Principles 123 • Professional Codes of Conduct 124 • Some
Its Brand 85 Real-World Ethical Dilemmas 124
The Internet’s Impact on Competitive Advantage 87 •
4-3 Why do contemporary information systems
The Business Value Chain Model 88 • Synergies, Core
technology and the Internet pose challenges
Competencies, and Network-Based Strategies 90 •
to the protection of individual privacy and
Disruptive Technologies: Riding the Wave 93
intellectual property? 125
Information Rights: Privacy and Freedom in the Internet
3-2 How do information systems help businesses
Age 125 • Property Rights: Intellectual Property 131
compete globally? 94
The Internet and Globalization 95 • Global Business and
4-4 How have information systems affected laws for
System Strategies 95 • Global System Configuration 96
establishing accountability and liability and the
3-3 How do information systems help businesses quality of everyday life? 134
Computer-Related Liability Problems 134 • System
compete using quality and design? 96
Quality: Data Quality and System Errors 135 • Quality of
What is Quality? 97 • How Information Systems Improve
Life: Equity, Access, and Boundaries 136
Quality 97
3-4 What is the role of business process Interactive Session: Technology
management (BPM) in enhancing Volkswagen Pollutes Its Reputation with Software to
competitiveness? 99 Evade Emissions Testing 140
What is Business Process Management? 99 Interactive Session: People
Interactive Session: Organizations Will Automation Kill Jobs? 142
Carter’s Redesigns Its Business Processes 102 Health Risks: RSI, CVS, and Cognitive Decline 143
3-5 How will MIS help my career? 103 4-5 How will MIS help my career? 144
The Company 104 • Position Description 104 • Job The Company 144 • Position Description 144 •
Requirements 104 • Interview Questions 104 • Job Requirements 145 • Interview Questions 145 •
Author Tips 104 Author Tips 145
x

Review Summary 145 • Key Review Summary 184 •
Terms 146 • Review Key Terms 185 • Review
Questions 146 • Discussion Questions 186 • Discussion
Questions 147 • Hands-On Questions 186 • Hands-On
MIS Projects 147 MIS Projects 187
Management Decision Problems Management Decision
147 • Achieving Operational Problems 187 • Improving Decision Making: Using
Excellence: Creating a Simple a Spreadsheet to Evaluate Hardware and Software
Blog 148 • Improving Decision Options 187 • Improving Decision Making: Using Web
Making: Analyzing Web Browser Privacy 148 Research to Budget For a Sales Conference 188
Collaboration and Teamwork Project 148 Collaboration and Teamwork Project 188
Business Problem-Solving Case Business Problem-Solving Case

Facebook Privacy: Your Life for Sale 149 Is BYOD Good for Business? 189
II Information Technology 6 Foundations of Business Intelligence: Databases

and Information Management 194
Infrastructure 153
Chapter-Opening Case:
5 IT Infrastructure: Hardware and Software 154 Data Management Helps the Charlotte Hornets
Learn More About Their Fans 195
6-1 What is a database, and how does a relational
Peroxychem’s Cloud Computing Formula
database organize data? 197
for Success 155
Entities and Attributes 197 • Organizing Data in a
5-1 What are the components of IT Relational Database 197 • Establishing Relationships 200
infrastructure? 156 6-2 What are the principles of a database
IT Infrastructure Components 157 management system? 203
5-2 What are the major computer hardware, data Operations of a Relational DBMS 203 • Capabilities of
storage, input, and output technologies used in Database Management Systems 204 • Non-Relational
business and the major hardware trends? 159 Databases and Databases in the Cloud 207
Types of Computers 159 • Storage, Input, and Output 6-3 What are the principal tools and technologies
Technology 161 • Contemporary Hardware Trends 161 for accessing information from databases to
Interactive Session: Technology improve business performance and decision
Wearable Computers Change How We Work 163 making? 208
The Challenge of Big Data 208 • Business Intelligence
Interactive Session: Organizations Technology Infrastructure 209
Computing Takes Off in the Cloud 168
Interactive Session: Technology
5-3 What are the major types of computer software Kraft Heinz Finds a New Recipe for Analyzing
used in business and the major software Its Data 211
trends? 171
Analytical Tools: Relationships, Patterns, Trends 212 •
Operating System Software 172 • Application
Databases and the Web 215
Software and Desktop Productivity Tools 173 •
HTML and HTML5 176 • Web Services 176 • Software
6-4 Why are information policy, data
Trends 177
administration, and data quality assurance
5-4 What are the principal issues in managing essential for managing the firm’s data
hardware and software technology? 179 resources? 217
Establishing an Information Policy 217 • Ensuring Data
Capacity Planning and Scalability 179 • Total Cost of
Quality 217
Ownership (TCO) of Technology Assets 180 • Using
Technology Service Providers 180 • Managing Mobile
6-5 How will MIS help my career? 218
The Company 218 • Position Description 218
Platforms 182 • Managing Software Localization for
Global Business 182 Interactive Session: Organizations
5-5 How will MIS help my career? 183 Keurig Green Mountain Improves Its Data
The Company 183 • Position Description 183 • Job Management 219
Requirements 183 • Interview Questions 183 • Author Job Requirements 220 • Interview Questions 220 •
Tips 184 Author Tips 220
xi

Review Summary 221 • Review Summary 262 • Key
Key Terms 222 • Review Terms 264 • Review
Questions 222 • Discussion Questions 264 • Discussion
Questions 223 • Hands-On Questions 265 • Hands-On
MIS Projects 223 MIS Projects 265
Management Decision Management Decision
Problems 223 • Achieving Operational Excellence: Problems 265 • Improving
Building a Relational Database for Inventory Decision Making: Using Spreadsheet Software to
Management 224 • Improving Decision Making: Evaluate Wireless Services 266 • Achieving Operational
Searching Online Databases for Overseas Business Excellence: Using Web Search Engines for Business
Resources 224 Research 266
Collaboration and Teamwork Project 225 Collaboration and Teamwork Project 266
Business Problem-Solving Case Business Problem Solving Case
How Reliable Is Big Data? 226 Google, Apple, and Facebook Battle for Your
Internet Experience 267
7 Telecommunications, the Internet, and Wireless
Technology 230 8 Securing Information Systems 272
Chapter-Opening Case: Chapter-Opening Case:
RFID Helps Macy’s Pursue an Omnichannel Hackers Target the U.S. Presidential Election:
Strategy 231 What Happened? 273
7-1 What are the principal components of 8-1 Why are information systems vulnerable to
telecommunications networks and key destruction, error, and abuse? 275
networking technologies? 232 Why Systems Are Vulnerable 275 • Malicious Software:
Networking and Communication Trends 232 • What Is Viruses, Worms, Trojan Horses, and Spyware 277 •
a Computer Network? 233 • Key Digital Networking Hackers and Computer Crime 279
Technologies 235
7-2 What are the different types of networks? 237 Interactive Session: Technology
Signals: Digital Versus Analog 238 • Types of WannaCry and the SWIFT System Hacking Attacks:
Networks 238 • Transmission Media and Transmission Theft on a Worldwide Scale 280
Speed 239 Internal Threats: Employees 285 • Software
7-3 How do the Internet and Internet technology Vulnerability 286
work, and how do they support communication 8-2 What is the business value of security and
and e-business? 240 control? 286
What Is the Internet? 240 • Internet Addressing and Legal and Regulatory Requirements for Electronic
Architecture 241 Records Management 287 • Electronic Evidence and
Interactive Session: Organizations Computer Forensics 288
Net Neutrality: The Battle Continues 243 8-3 What are the components of an organizational
framework for security and control? 288
Internet Services and Communication Tools 245
Information Systems Controls 289 • Risk
Interactive Session: People Assessment 290 • Security Policy 290 • Disaster Recovery
Monitoring Employees on Networks: Unethical or Planning and Business Continuity Planning 291 • The
Good Business? 248 Role of Auditing 292
The Web 249 8-4 What are the most important tools and
7-4 What are the principal technologies technologies for safeguarding information
and standards for wireless networking, resources? 292
communication, and Internet access? 256 Identity Management and Authentication 292 •
Cellular Systems 256 • Wireless Computer Networks Firewalls, Intrusion Detection Systems, and Antivirus
and Internet Access 257 • RFID and Wireless Sensor Software 294 • Securing Wireless Networks 296
Networks 259 • Encryption and Public Key Infrastructure 296 •
7-5 How will MIS help my career? 261 Securing Transactions with Blockchain 298 • Ensuring
The Company 261 • Position Description 261 • Job System Availability 298 • Security Issues for Cloud
Requirements 262 • Interview Questions 262 • Author Computing and the Mobile Digital Platform 299 •
Tips 262 Ensuring Software Quality 300
xii

Interactive Session: Organizations Interactive Session: Organizations
How Secure Is BYOD? 301 Kenya Airways Flies High with Customer
8-5 How will MIS help my career? 302 Relationship Management 333
The Company 302 • Position Description 303 • 9-4 What are the challenges that enterprise
Job Requirements 303 • Interview Questions 303 • applications pose, and how are enterprise
Author Tips 303 applications taking advantage of new
Review Summary 303 • technologies? 334
Key Terms 304 • Review Enterprise Application Challenges 334 • Next-Generation
Questions 305 • Discussion Enterprise Applications 335
Questions 306 • Hands-On 9-5 How will MIS help my career? 337
MIS Projects 306 The Company 337 • Position Description 337 •
Job Requirements 337 • Interview Questions 337 •
Management Decision Problems
Author Tips 338
306 • Improving Decision
Making: Using Spreadsheet Software to Perform a Review Summary 338 •
Security Risk Assessment 307 • Improving Decision Key Terms 339 • Review
Making: Evaluating Security Outsourcing Services 307 Questions 339 • Discussion
Questions 340 • Hands-On
MIS Projects 340
Case Study Management Decision
U.S. Office of Personnel Management Data Breach: Problems 340 • Improving Decision Making: Using
No Routine Hack 308 Database Software to Manage Customer Service
Requests 341 • Achieving Operational Excellence:
III Key System Applications for Evaluating Supply Chain Management Services 341
the Digital Age 313 Collaboration and Teamwork Project 342
Business Problem Solving Case

9 Achieving Operational Excellence and Customer How Supply Chain Management Problems Killed
Intimacy: Enterprise Applications 314 Target Canada 343
Skullcandy Rocks with ERP in the Cloud 315 10 E-commerce: Digital Markets, Digital
9-1 How do enterprise systems help businesses Goods 348
achieve operational excellence? 317
What Are Enterprise Systems? 317 • Enterprise Chapter-Opening Case:
Software 318 • Business Value of Enterprise YouTube Transforms the Media Landscape 349
Systems 319 10-1 What are the unique features of e-commerce,
9-2 How do supply chain management systems digital markets, and digital goods? 351
coordinate planning, production, and logistics E-commerce Today 351 • The New E-commerce: Social,
with suppliers? 320 Mobile, Local 354 • Why E-commerce Is Different 354 •
The Supply Chain 320 • Information Systems and Supply Key Concepts in E-commerce: Digital Markets and
Chain Management 322 • Supply Chain Management Digital Goods in a Global Marketplace 357
Software 322 • Global Supply Chains and the Internet 324 10-2 What are the principal e-commerce business
and revenue models? 360
Interactive Session: Technology
Types of E-commerce 360 • E-commerce Business
Logistics and Transportation Management at LG
Models 361
Electronics 326
Interactive Session: Organizations
Business Value of Supply Chain Management
Uber: Digital Disruptor 364
Systems 327
9-3 How do customer relationship management E-commerce Revenue Models 365
systems help firms achieve customer 10-3 How has e-commerce transformed
intimacy? 328 marketing? 367
What Is Customer Relationship Management? 328 • Behavioral Targeting 367 • Social E-Commerce and
Customer Relationship Management Software 328 • Social Network Marketing 371
Operational and Analytical CRM 332 • Business Value of Interactive Session: People
Customer Relationship Management Systems 332 “Socializing” with Customers 373
xiii

10-4 How has e-commerce affected business-to- Interactive Session: Technology
business transactions? 374 Does IBM’s Watson Have a Future in Business? 409
Electronic Data Interchange (EDI) 375 • New Ways of Neural Networks 410 • Genetic Algorithms 411 •
B2B Buying and Selling 375 Intelligent Agents 412 • Natural Language Processing,
10-5 What is the role of m-commerce in business, Computer Vision Systems, and Robotics 413
and what are the most important m-commerce
applications? 377 Interactive Session: People
Location-Based Services and Applications 378 • Other Will Robots Replace People in Manufacturing? 414
Mobile Commerce Services 379 Expert Systems 415
10-6 What issues must be addressed when building 11-4 What types of systems are used for enterprise-
an e-commerce presence? 379 wide knowledge management and knowledge
Develop an E-commerce Presence Map 379 • Develop a work, and how do they provide value for
Timeline: Milestones 380 businesses? 417
10-7 How will MIS help my career? 381 Enterprise-Wide Knowledge Management Systems 417 •
The Company 381 • Job Description 381 • Job Knowledge Work Systems 419
Requirements 381 • Interview Questions 381 • Author 11-5 How will MIS help my career? 421
Tips 382 The Company 421 • Position Description 421 • Job
Review Summary 382 • Requirements 422 • Interview Questions 422 • Author
Key Terms 383 • Review Tips 422
Questions 384 • Discussion Review Summary 422 •
Questions 384 • Hands-On Key Terms 424 • Review
MIS Projects 384 Questions 424 • Discussion
Management Decision Problems Questions 425 • Hands-On
384 • Improving Decision MIS Projects 425
Making: Using Spreadsheet Software to Analyze Management Decision
a Dot-com Business 385 • Achieving Operational Problems 425 • Improving Decision Making: Using
Excellence: Evaluating E-commerce Hosting Services 385 Pivot Tables to Analyze Sales Data 426 • Improving
Collaboration and Teamwork Project 386 Decision Making: Using Intelligent Agents for
Comparison Shopping 426
A Nasty Ending for Nasty Gal 387
11 Improving Decision Making and Managing GE Bets on the Internet of Things and Big Data
Knowledge 392 Analytics 427
Can Big Data Analytics Help People Find Love? 393 IV Building and Managing
11-1 What are the different types of decisions, Systems 433
and how does the decision-making process
work? 395
Business Value of Improved Decision Making 395 • Types
12 Building Information Systems and Managing
Projects 434
of Decisions 395 • The Decision-Making Process 397 •
High-Velocity Automated Decision Making 398 • Quality Chapter-Opening Case:
of Decisions and Decision Making 398 Girl Scout Cookie Sales Go Digital 435
11-2 How do business intelligence and business
12-1 What are the core problem-solving steps for
analytics support decision making? 399
developing new information systems? 436
What is Business Intelligence? 399 • The Business
Defining and Understanding the Problem 437 • Developing
Intelligence Environment 399 • Business Intelligence and
Alternative Solutions 439 • Evaluating and Choosing
Analytics Capabilities 401 • Business Intelligence Users
Solutions 439 • Implementing the Solution 440
404 • Group Decision-Support Systems 408
12-2 What are the alternative methods for building
11-3 What are the business benefits of using
information systems? 442
artificial intelligence techniques in decision
Traditional Systems Development Life Cycle 443 •
making and knowledge management? 408
Prototyping 443 • End-User Development 444 •
Machine Learning 408
xiv

Application Software Packages, Software Services, and Review Summary 465 •
Outsourcing 445 • Mobile Application Development: Key Terms 466 • Review
Designing for a Multi-Screen World 447 Questions 467 • Discussion
Interactive Session: Technology Questions 467 • Hands-On
Developing Mobile Apps: What’s Different 448 MIS Projects 468
Rapid Application Development for E-Business 449 Management Decision
12-3 What are the principal methodologies for Problems 468 • Improving
modeling and designing systems? 450 Decision Making: Using Database Software to Design
Structured Methodologies 450 • Object-Oriented a Customer System for Auto Sales 468 • Achieving
Development 451 • Computer-Aided Software Operational Excellence: Analyzing Website Design and
Engineering (CASE) 453 Information Requirements 469
12-4 How should information systems projects be Collaboration and Teamwork Project 469
selected and managed? 453
Project Management Objectives 454 • Selecting Projects:
The Philly311 Project: The City of Brotherly Love
Making the Business Case for a New System 454 •
Turns Problems into Opportunities 470
Managing Project Risk and System-Related Change 457
Interactive Session: Organizations Glossary 475
Snohomish County Public Utility District
Implements a New Human Resources System 462
Indexes 490
12-5 How will MIS help my career? 464
The Company 464 • Position Description 464 • Job
Requirements 464 • Interview Questions 464 • Author
Tips 465
xv

Business Cases and Interactive Sessions
Here are some of the business firms you will find described in the cases and Interactive
Sessions of this book:
Chapter 1 Business Information Systems in Your Career
The Grocery Store of the Future: Look at Kroger
Can You Run Your Company with Your iPhone?
UPS Competes Globally with Information Technology
Did Information Systems Cause Deutsche Bank to Stumble?
Chapter 2 Global E-business and Collaboration
Enterprise Social Networking Helps Sanofi Pasteur Innovate and Improve Quality
Data Changes How NFL Teams Play the Game and How Fans See It
Cisco IX5000: What State-of-the-Art Telepresence Can Do for Collaboration
Social Business: Full Speed Ahead or Proceed with Caution?
Chapter 3 Achieving Competitive Advantage with Information Systems
Verizon or AT&T: Which Company Has the Best Digital Strategy?
Digital Technology Helps Crayola Brighten Its Brand
Carter’s Redesigns Its Business Processes
Walmart Versus Amazon and the Future of Retail
Chapter 4 Ethical and Social Issues in Information Systems
The Dark Side of Big Data
Volkswagen Pollutes Its Reputation with Software to Evade Emissions Testing
Will Automation Kill Jobs?
Facebook Privacy: Your Life for Sale
Chapter 5 IT Infrastructure: Hardware and Software
PeroxyChem’s Cloud Computing Formula for Success
Wearable Computers Change How We Work
Computing Takes Off in the Cloud
Is BYOD Good for Business?
Chapter 6 Foundations of Business Intelligence: Databases and Information
Management
Data Management Helps the Charlotte Hornets Learn More About Their Fans
Kraft Heinz Finds a New Recipe for Analyzing Its Data
Keurig Green Mountain Improves Its Data Management
How Reliable Is Big Data?
Chapter 7 Telecommunications, the Internet, and Wireless Technology
RFID Helps Macy’s Pursue an Omnichannel Strategy
Net Neutrality: The Battle Continues
Monitoring Employees on Networks: Unethical or Good Business?
Google, Apple, and Facebook Battle for Your Internet Experience
Chapter 8 Securing Information Systems
Hackers Target the U.S. Presidential Election: What Happened?
WannaCry and the SWIFT System Hacking Attacks: Theft on a Worldwide Scale
How Secure Is BYOD?
U.S. Office of Personnel Management Data Breach: No Routine Hack
xvi

Chapter 9 Achieving Operational Excellence and Customer Intimacy:
Enterprise Applications
Skullcandy Rocks with ERP in the Cloud
Logistics and Transportation Management at LG Electronics
Kenya Airways Flies High with Customer Relationship Management
How Supply Chain Management Problems Killed Target Canada
Chapter 10 E-commerce: Digital Markets, Digital Goods
YouTube Transforms the Media Landscape
Uber: Digital Disruptor
“Socializing” with Customers
A Nasty Ending for Nasty Gal
Chapter 11 Improving Decision Making and Managing Knowledge
Can Big Data Analytics Help People Find Love?
Does IBM’s Watson Have a Future in Business?
Will Robots Replace People in Manufacturing?
GE Bets on the Internet of Things and Big Data Analytics
Chapter 12 Building Information Systems and Managing Projects
Girl Scout Cookie Sales Go Digital
Developing Mobile Apps: What’s Different
Snohomish County Public Utility District Implements a New Human Resources
System
The Philly311 Project: The City of Brotherly Love Turns Problems into Opportunities
xvii

Preface
We wrote this book for business school students who wanted an in-depth look at how
today’s business firms use information technologies and systems to achieve corpo-
rate objectives. Information systems are one of the major tools available to business
managers for achieving operational excellence, developing new products and services,
improving decision making, and achieving competitive advantage. Students will find
here the most up-to-date and comprehensive overview of information systems used by
business firms today. After reading this book, we expect students will be able to partici-
pate in, and even lead, management discussions of information systems for their firms.
When interviewing potential employees, business firms often look for new hires
who know how to use information systems and technologies for achieving bottom-line
business 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.
What’s New in This Edition

CURRENCY
The 13th edition features all new opening, closing, and Interactive Session cases. The
text, figures, tables, and cases have been updated through September 2017 with the lat-
est sources from industry and MIS research.
NEW FEATURES
• New Career Opportunities section in each chapter, identified by shows students
specifically how this book can help them find a job and build their careers. The
last major section of each chapter presents a description of an entry-level job for
a recent college graduate based on a real-world job description. The job require-
ments are related to the topics covered in that chapter. The job description shows
the required educational background and skills, lists business-related questions
that might arise during the job interview, and provides author tips for answering
the questions and preparing for the interview.
• New Conceptual Videos collection includes 45 conceptual videos of 3 to 5 minutes
in length. Ken Laudon walks students through three of the most important con-
cepts in each chapter using a contemporary animation platform. Available only in
the MyLabMIS digital edition
• New Video Cases collection: 28 video cases (two or more per chapter) and 10 addi-
tional instructional videos covering key concepts and experiences in the MIS
world. The video cases illustrate how real-world corporations and managers are
using information technology and systems. Video Cases are listed at the begin-
ning of each chapter.
• Learning Tracks: 53 Learning Tracks in MyLabMIS for additional coverage of
selected topics. This edition includes new Learning Tracks for case-based reason-
ing and fuzzy logic.
NEW TOPICS
• Updated coverage of artificial intelligenc (AI): Chapter 11 has been rewritten to
include new coverage of machine learning, natural language systems, computer
vision systems, and robotics, reflecting the surging interest in business uses of AI
and “intelligent” techniques.
xviii

• Big Data and the Internet of Things: In-depth coverage of big data, big data ana-
lytics, and the Internet of Things (IoT) in Chapters 1, 6, 7, and 11. Includes big
data analytics, analyzing IoT data streams, Hadoop, in-memory computing, non-
relational databases, data lakes, and analytic platforms.
• Cloud Computing: Updated and expanded coverage of cloud computing in Chapter 5
(IT infrastructure) with more detail on types of cloud services, private and pub-
lic clouds, hybrid clouds, managing cloud services, and a new Interactive Session
on using cloud services. Cloud computing also covered in Chapter 6 (databases in
the cloud), Chapter 8 (cloud security), Chapter 9 (cloud-based CRM and ERP),
Chapter 10 (e-commerce), and Chapter 12 (cloud-based systems development).
• Social, Mobile, Local: New e-commerce content in Chapter 10 describing how
social tools, mobile technology, and location-based services are transforming
marketing and advertising.
• Social Business: Expanded coverage of social business, introduced in Chapter 2
and discussed in throughout the text. Detailed discussions of enterprise (internal
corporate) social networking as well as social networking in e-commerce.
• Machine learning
• Natural language processing
• Computer vision systems
• Robotics
• Chatbots
• Blockchain
• Data lake
• Distributed database
• DevOps
• FinTech
• Near field communication (NFC)
• Native advertising
• Platforms
• Software-defined storage (SDS)
The 13th Edition: The Comprehensive Solution for the

MIS Curriculum
Since its inception, this text has helped to define the MIS course around the globe. This
edition continues to be authoritative but is also more customizable, flexible, and geared
to meeting the needs of different colleges, universities, and individual instructors. Many
of its learning tools are now available in digital form. This book is now part of a complete
learning package that includes the core text, Video Case Package, and Learning Tracks.
The core text consists of 12 chapters with hands-on projects covering the most
essential topics in MIS. An important part of the core text is the Video Case Study and
Instructional Video Package: 28 video case studies (two to three per chapter) plus 10
instructional videos that illustrate business uses of information systems, explain new
technologies, and explore concepts. Videos are keyed to the topics of each chapter.
In addition, for students and instructors who want to go deeper into selected top-
ics, there are 53 Learning Tracks in MyLabMIS that cover a variety of MIS topics in
greater depth.
THE CORE TEXT

The core text provides an overview of fundamental MIS concepts using an integrated
framework for describing and analyzing information systems. This framework shows
information systems composed of people, organization, and technology elements and
is reinforced in student projects and case studies.
xix

Business
Problem
• Adopt omnichannel • Omnichannel retail strategy

strategy People • High level of inventory inaccuracy
• Select wireless
technology
• Revise inventory
Information Business
management Organization System Solutions
processes
• Train employees
P2LU • Increase sales
• Track individual items • Lower costs
on store shelves
• RFID tags • Increase inventory accuracy
and readers
Technology
• Tyco TrueVue
A diagram accompanying each chapter-opening case graphically illustrates how people, organization,
and technology elements work together to create an information system solution to the business challenges
discussed in the case.
Chapter Organization
Each chapter contains the following elements:
• A Chapter Outline based on Learning Objectives
• Lists of all the Case Studies and Video Cases for each chapter
• A chapter-opening case describing a real-world organization to establish the
theme and importance of the chapter
• A diagram analyzing the opening case in terms of the people, organization, and
technology model used throughout the text
• Two Interactive Sessions with Case Study Questions
• A Career Opportunities section showing students how to use the text for job hunting
and career preparation
• A Review Summary keyed to the Student Learning Objectives
• A list of Key Terms that students can use to review concepts
• Review questions for students to test their comprehension of chapter material
• Discussion questions raised by the broader themes of the chapter
• A series of Hands-on MIS Projects consisting of two Management Decision
Problems, a hands-on application software project, and a project to develop
Internet skills
• A Collaboration and Teamwork Project to develop teamwork and presentation
skills with options for using open source collaboration tools
• A chapter-ending case study for students to apply chapter concepts
• Two assisted-graded writing questions with prebuilt grading rubrics
• Chapter references
KEY FEATURES
We have enhanced the text to make it more interactive, leading edge, and appealing
to both students and instructors. The features and learning tools are described in the
following sections.
xx

Business-Driven with Real-World Business Cases and Examples
The text helps students see the direct connection between information systems and
business performance. It describes the main business objectives driving the use of
information systems and technologies in corporations all over the world: operational
excellence, new products and services, customer and supplier intimacy, improved
decision making, competitive advantage, and survival. In-text examples and case
studies show students how specific companies use information systems to achieve
these objectives.
We use current (2017) examples from business and public organizations through-
out the text to illustrate the important concepts in each chapter. All the case studies
describe companies or organizations that are familiar to students, such as Uber, the
NFL, Facebook, Crayola, Walmart, Amazon, Google, Macy’s, and GE.
Interactivity
There’s no better way to learn about MIS than by doing MIS! We provide different
kinds of hands-on projects where students can work with real-world business sce-
narios and data and learn firsthand what MIS is all about. These projects heighten
student involvement in this exciting subject.
• Online Video Case Package. Students can watch short videos online, either in-
class or at home or work, and then apply the concepts of the book to the analysis
of the video. Every chapter contains at least two business video cases that explain
how business firms and managers are using information systems and explore con-
cepts discussed in the chapter. Each video case consists of one or more videos
about a real-world company, a background text case, and case study questions.
These video cases enhance students’ understanding of MIS topics and the rele-
vance of MIS to the business world. In addition, there are 10 Instructional Videos
that describe developments and concepts in MIS keyed to respective chapters.
• Online Conceptual Videos [the digital edition only]. Forty-five video animations
where the authors walk students through three concepts from each chapter.
• Interactive Sessions. Two short cases in each chapter have been redesigned as
Interactive Sessions to be used in the classroom (or on Internet discussion boards)
to stimulate student interest and active learning. Each case concludes with case
study questions. The case study questions provide topics for class discussion,
Internet discussion, or written assignments.
• Hands-On MIS Projects. Every chapter concludes with a Hands-On MIS Proj-
ects section containing three types of projects: two Management Decision Prob-
lems; a hands-on application software exercise using Microsoft Excel, Access, or
web page and blog creation tools; and a project that develops Internet business
skills. A Dirt Bikes USA running case in MyLabMIS provides additional hands-
on projects for each chapter.
INTERACTIVE SESSION: PEOPLE “Socializing” with Customers

More than 2 billion people worldwide use social social campaigns are designed to teach first-
media, making it an obvious platform for compa- time homeowners or young renters about home Each chapter contains
nies seeking to engage consumers, amplify product improvement, the company is also hoping they will
messages, discover trends and influencers, build encourage consumers to think differently about
two Interactive Sessions
brand awareness, and take action on customer the brand beyond its products and services. Man- on, People, Organiza-
requests and recommendations. More than 30 mil- agement believes millennials who are becoming tions, or Technology
lion businesses have active Facebook brand pages, first-time homeowners want to know the deeper using real-world
enabling users to interact with the brand through meaning of what a company is trying to stand for,
companies to illustrate
blogs, comment pages, contests, and offerings not just the products and services it offers.
on the brand page. The “like” button gives users An estimated 90 percent of customers are chapter concepts and
a chance to share with their social network their influenced by online reviews, and nearly half of issues.
feelings about content and other objects they are U.S. social media users actively seek customer ser-
viewing and websites they are visiting. With like vice through social media. As a result, marketing
buttons on many millions of websites, Facebook is now placing much more emphasis on customer
can track user behavior on other sites and then sell satisfaction and service. Social media monitoring
this information to marketers. Facebook also sells helps marketers and business owners understand
xxi

Case Study Questions
CASE STUDY QUESTIONS
encourage students to 1. Assess the people, organization, and 3. Give an example of a business decision in this
apply chapter concepts technology issues for using social media case study that was facilitated by using social
to real-world companies technology to engage with customers. media to interact with customers.
in class discussions, 2. What are the advantages and disadvantages 4. Should all companies use social media
student presentations, of using social media for advertising, brand technology for customer service and marketing?
or writing assignments. building, market research, and customer Why or why not? What kinds of companies are
service? best suited to use these platforms?
Hands-On MIS Projects

MANAGEMENT DECISION PROBLEMS
The projects in this section give you hands-on experience in analyzing data quality
problems, establishing companywide data standards, creating a database for inven-
tory management, and using the web to search online databases for overseas business
Two real-world business resources. Visit MyLab MIS to access this chapter’s Hands-On MIS Projects.
scenarios per chapter
6-8 Emerson Process Management, a global supplier of measurement, analytical,
provide opportunities
and monitoring instruments and services based in Austin, Texas, had a new
for students to apply
chapter concepts and data warehouse designed for analyzing customer activity to improve service
practice management and marketing. However, the data warehouse was full of inaccurate and redun-
decision making. dant data. The data in the warehouse came from numerous transaction pro-
cessing systems in Europe, Asia, and other locations around the world. The
team that designed the warehouse had assumed that sales groups in all these
areas would enter customer names and addresses the same way. In fact, compa-
nies in different countries were using multiple ways of entering quote, billing,
shipping, and other data. Assess the potential business impact of these data
quality problems. What decisions have to be made and steps taken to reach a
solution?
Students practice using

software in real-world
settings for achieving
operational excellence
and enhancing decision
making.
xxii

IMPROVING DECISION MAKING: USING WEB TOOLS TO CONFIGURE AND
PRICE AN AUTOMOBILE
Software skills: Internet-based software
Business skills: Researching product information and pricing
3-11 In this exercise, you will use software at car-selling websites to find product infor- Each chapter features
mation about a car of your choice and use that information to make an important a project to develop
purchase decision. You will also evaluate two of these sites as selling tools. Internet skills for
You are interested in purchasing a new Ford Escape (or some other car accessing information,
of your choice). Go to the website of CarsDirect (www.carsdirect.com) and begin conducting research,
your investigation. Locate the Ford Escape. Research the various Escape models; and performing online
choose one you prefer in terms of price, features, and safety ratings. Locate and calculations and analysis.
read at least two reviews. Surf the website of the manufacturer, in this case Ford
(www.ford.com). Compare the information available on Ford’s website with that
of CarsDirect for the Ford Escape. Try to locate the lowest price for the car you
want in a local dealer’s inventory. Suggest improvements for CarsDirect.com and
Ford.com.
• Collaboration and Teamwork Projects. Each chapter features a collaborative proj-

ect that encourages students working in teams to use Google Drive, Google Docs,
or other open source collaboration tools. The first team project in Chapter 1 asks
students to build a collaborative Google site.
Career Opportunities and Resources

Every student who reads this text wants to know: How will this book help my career?
Our new Career Opportunities feature shows you how to use this text as a tool for job-
hunting and career-building. Job interviewers will typically ask about why you want
the job, along with your ability to communicate, multitask, work in a team, show
leadership, solve problems, and meet goals. These are general skills and behaviors
you’ll need to succeed in any job, and you should be prepared to provide examples
from your course work and job experiences that demonstrate these skills. But there
are also business knowledge and professional skills that employers will ask you about.
Career Opportunities will show you how to use what you have learned in this text to
demonstrate these skills.
The Career Opportunities section, identified by this icon is the last major section
of each chapter under the heading “How will MIS help my career?”. There you will
find a description of an entry-level job for a recent college graduate based on a real-
world job description from major online job sites related to the topics covered in that
chapter. The name of the company offering the job and its location have been changed.
Each chapter’s job posting describes the required educational background and spe-
cific job skills, and suggests some of the business-related questions that might arise
during the job interview. The authors provide tips for answering the questions and
preparing for the interview. Career Opportunities also show where students can find
out more information about the technical and business knowledge required for the job
in this text and on the web and social media.
Below are the job descriptions used in this edition based on postings from both
large and small businesses. A few of these jobs call for an MIS major, others for MIS
course work, but many postings are not that specific. Some require some previous
internship or job experience, but many are entry level positions suitable for new college
graduates, and some of these positions provide on-the-job training. However, all
require knowledge of business information systems and applications and the ability to
work in a digital environment.
xxiii

Chapter Career Opportunity Job Description
1 Business Information Systems in Your Career Financial Client Support and Sales Assistant
2 Global E-business and Collaboration Entry Level Sales Support Specialist
3 Achieving Competitive Advantage with Information Systems Entry Level Business Development Representative
4 Ethical and Social Issues in Information Systems Junior Privacy Analyst
5 IT Infrastructure: Hardware and Software Entry Level IT Consultant
6 Foundations of Business Intelligence: Databases and Information Entry Level Data Analyst
Management
7 Telecommunications , the Internet, and Wireless Technology Automotive Digital Advisor
8 Securing Information Systems Entry Level Identity Access and Management Support Specialist
9 Achieving Operational Excellence and Customer Intimacy: Enterprise Manufacturing Management Trainee
Applications
10 E-Commerce: Digital Markets, Digital Goods Junior E-Commerce Data Analyst
11 Improving Decision Making and Managing Knowledge Entry Level Data Analyst
12 Building Information Systems and Managing Projects Entry Level Junior Business Systems Analyst
Students can use Career Opportunities to shape their resumes and career plans as
well as to prepare for interviews. For instructors, Career Opportunities are potential
projects for student research and in-class discussion.
Along with Career Opportunities, we have provided in MyLabMIS additional
Career Resources, including job-hunting guides and instructions on how to build
a Digital Portfolio demonstrating the business knowledge, application software
proficiency, and Internet skills acquired from using the text. The portfolio can be
included in a resume or job application or used as a learning assessment tool for
instructors.
Assessment and AACSB Assessment Guidelines

The Association to Advance Collegiate Schools of Business (AACSB) is a not-for-
profit corporation of educational institutions, corporations, and other organizations
that seeks to improve business education primarily by accrediting university busi-
ness programs. As a part of its accreditation activities, the AACSB has developed
an Assurance of Learning Program designed to ensure that schools do in fact teach
students what they promise. Schools are required to state a clear mission, develop a
coherent business program, identify student learning objectives, and then prove that
students do in fact achieve the objectives.
We have attempted in this book to support AACSB efforts to encourage assess-
ment-based education. The front papers of this edition identify student learning objec-
tives and anticipated outcomes for our Hands-On MIS projects. The authors will
provide custom advice on how to use this text in colleges with different missions and
assessment needs. Please e-mail the authors or contact your local Pearson representa-
tive for contact information.
Customization and Flexibility: Learning Track Modules

Our Learning Tracks feature gives instructors the flexibility to provide in-depth
coverage of the topics they choose. There are 53 Learning Tracks in MyLabMIS
available to instructors and students. This supplementary content takes students
xxiv

deeper into MIS topics, concepts, and debates and reviews basic technology concepts
in hardware, software, database design, telecommunications, and other areas.
Author-Certified Test Bank and Supplements

• Author-Certified Test Bank. The authors have worked closely with skilled test item
writers to ensure that higher-level cognitive skills are tested. Test bank multiple-
choice questions include questions on content but also include many questions
that require analysis, synthesis, and evaluation skills.
• Annotated Slides. The authors have prepared a comprehensive collection of 50
PowerPoint slides for each chapter to be used in your lectures. Many of these slides
are the same as used by Ken Laudon in his MIS classes and executive education
presentations. Each of the slides is annotated with teaching suggestions for asking
students questions, developing in-class lists that illustrate key concepts, and rec-
ommending other firms as examples in addition to those provided in the text. The
annotations are like an Instructor’s Manual built into the slides and make it easier
to teach the course effectively.
Student Learning-Focused
Student Learning Objectives are organized around a set of study questions to focus
student attention. Each chapter concludes with a Review Summary and Review
Questions organized around these study questions, and each major chapter section is
based on a Learning Objective.
INSTRUCTOR RESOURCES
At the Instructor Resource Center, www.pearsonhighered.com/irc, instructors can
easily register to gain access to a variety of instructor resources available with this
text in downloadable format. If assistance is needed, our dedicated technical support
team is ready to help with the media supplements that accompany this text. Visit
support.pearson.com/getsupport for answers to frequently asked questions and user
support.
The following supplements are available with this text:
• Instructor’s Resource Manual
• Test Bank
• TestGen® Computerized Test Bank
• PowerPoint Presentation
• Image Library
• Lecture Notes
Video Cases and Instructional Videos

Instructors can download step-by-step instructions for accessing the video cases from
the Instructor Resources Center. Video Cases and Instructional Videos are listed at
the beginning of each chapter as well as in the Preface.
Learning Tracks Modules

There are 53 Learning Tracks in MyLabMIS providing additional coverage topics for
students and instructors. See page xxvii for a list of the Learning Tracks available for
this edition.
xxv

Video Cases and Instructional Videos
Chapter Video
Chapter 1: Business Information Systems in Business in the Cloud: Facebook, Google, and eBay Data Centers
Your Career UPS Global Operations with the DIAD and Worldport
Instructional Video: Tour IBM’s Raleigh Data Center
Chapter 2: Global E-business and Walmart’s Retail Link Supply Chain
Collaboration CEMEX: Becoming a Social Business
Instructional Video: US Foodservice Grows Market with Oracle CRM on Demand
Chapter 3: Achieving Competititve GE Becomes a Digital Firm: The Emerging Industrial Internet
Advantage with Information Systems, National Basketball Association: Competing on Global Delivery with Akamai OS Streaming
Chapter 4: Ethical and Social Issues in What Net Neutrality Means for You
Information Systems Facebook and Google Privacy: What Privacy?
The United States v. Terrorism: Data Mining for Terrorists and Innocents
Instructional Video: Viktor Mayer Schönberger on the Right to Be Forgotten
Chapter 5: IT Infrastructure: Hardware Rockwell Automation Fuels the Oil and Gas Industry with the Internet of Things (IoT)
and Software ESPN.com: The Future of Sports Coverage in the Cloud
Netflix: Building a Business in the Cloud
Chapter 6: Foundations of Business Dubuque Uses Cloud Computing and Sensors to Build a Smarter City
Intelligence: Databases and Information Brooks Brothers Closes in on Omnichannel Retail
Management Maruti Suzuki Business Intelligence and Enterprise Databases
Chapter 7: Telecommunications, the Telepresence Moves out of the Boardroom and into the Field
Internet, and Wireless Technology Virtual Collaboration with IBM Sametime
Chapter 8: Securing Information Systems Stuxnet and Cyberwarfare
Cyberespionage: The Chinese Threat
Instructional Video: Sony PlayStation Hacked; Data Stolen from 77 Million Users
Instructional Video: Meet the Hackers: Anonymous Statement on Hacking SONY
Chapter 9: Achieving Operational Life Time Fitness Gets in Shape with Salesforce CRM
Excellence and Customer Intimacy: Evolution Homecare Manages Patients with Microsoft CRM
Enterprise Applications Instructional Video: GSMS Protects Products and Patients by Serializing Every Bottle of Drugs
Chapter 10: E-commerce: Digital Markets, Walmart Takes on Amazon: A Battle of IT and Management Systems
Digital Goods Groupon: Deals Galore
Etsy: A Marketplace and Community
Instructional Video: Walmart’s eCommerce Fulfillment Center Network
Instructional Video: Behind the Scenes of an Amazon Warehouse
Chapter 11: Improving Decision Making How IBM’s Watson Became a Jeopardy Champion
and Managing Knowledge Business Intelligence Helps the Cincinnati Zoo Work Smarter
Chapter 12: Building Information Systems IBM: Business Process Management in a SaaS Environment
and Managing Projects IBM Helps the City of Madrid with Real-Time BPM Software
Instructional Video: What is PaaS? What is Predix?
Instructional Video: BPM: Business Process Management Customer Story
xxvi

Learning Tracks
Chapter Learning Tracks

Chapter 1: Business Information Systems in Your Career How Much Does IT Matter?
The Changing Business Environment for IT
The Business Information Value Chain
The Mobile Digital Platform
Occupational and Career Outlook for Information Systems Majors 2014–2020
Chapter 2: Global E-business and Collaboration Systems From a Functional Perspective
IT Enables Collaboration and Teamwork
Challenges of Using Business Information Systems
Organizing the Information Systems Function
Chapter 3: Achieving Competitive Advantage with Challenges of Using Information Systems for Competitive Advantage
Information Systems Primer on Business Process Design and Documentation
Primer on Business Process Management
Chapter 4: Ethical and Social Issues in Information Systems Developing a Corporate Code of Ethics for IT
Chapter 5: IT Infrastructure: Hardware and Software How Computer Hardware and Software Work
Service Level Agreements
Cloud Computing
The Open Source Software Initiative
The Evolution of IT Infrastructure
Technology Drivers of IT Infrastructure
Fourth Generation Languages
Chapter 6: Foundations of Business Intelligence: Databases Database Design, Normalization, and Entity-Relationship Diagramming
and Information Management Introduction to SQL
Hierarchical and Network Data Models
Chapter 7: Telecommunications, the Internet, and Wireless Broadband Network Services and Technologies
Technology Cellular System Generations
Wireless Applications for Customer Relationship Management, Supply Chain
Management, and Healthcare
Introduction to Web 2.0
LAN Topologies
Chapter 8: Securing Information Systems The Booming Job Market in IT Security
The Sarbanes-Oxley Act
Computer Forensics
General and Application Controls for Information Systems
Management Challenges of Security and Control
Software Vulnerability and Reliability
Chapter 9: Achieving Operational Excellence and Customer SAP Business Process Map
Intimacy: Enterprise Applications Business Processes in Supply Chain Management and Supply Chain Metrics
Best-Practice Business Processes in CRM Software
Chapter 10: E-commerce: Digital Markets, Digital Goods E-Commerce Challenges: The Story of Online Groceries
Build an E-commerce Business Plan
Hot New Careers in E-Commerce
E-commerce Payment Systems
Building an E-commerce Web Site
Chapter 11: Improving Decision Making and Managing Building and Using Pivot Tables
Knowledge The Expert System Inference Engine
Case-Based Reasoning
Fuzzy Logic
Challenges of Knowledge Management Systems
Chapter 12: Building Information Systems and Managing Capital Budgeting Methods for Information Systems Investments
Projects Enterprise Analysis: Business Systems Planning and Critical Success Factors
Unified Modeling Language
Information Technology Investments and Productivity
xxvii

MyLabMIS
Available in MyLabMIS
• MIS Video Exercises – Videos illustrating MIS concepts, paired with brief quizzes
• MIS Decision Simulations – interactive exercises allowing students to play the
role of a manager and make business decisions
• Auto-Graded writing exercises
• Assisted-Graded writing exercises – taken from the end of chapter, with a rubric
provided
• Chapter Warm Ups, Chapter Quizzes – objective-based quizzing to test knowledge
• Discussion Questions – threaded discussion topics taken from the end of chapter
• Dynamic Study Modules – on the go adaptive quizzing, also available on a mobile
phone
• Learning Catalytics – bring-your-own-device classroom response question banks
of critical thinking and collaboration interactive quizzes
• Enhanced eText – an accessible, mobile-friendly eText with interactive elements,
including Conceptual Animations, which walk students through key concepts in
the chapter by making figures come to life
• Excel & Access Grader Projects – live in the application auto-graded Grader proj-
ects provided inside MyLabMIS to support classes covering Office tools
xxviii

Acknowledgments
The production of any book involves valued contributions from a number of persons.
We would like to thank all of our editors for encouragement, insight, and strong sup-
port for many years. We thank our editor Samantha McAfee Lewis and project man-
ager Katrina Ostler for their role in managing the project.
Our special thanks go to our supplement authors for their work, including the
following MyLabMIS content contributors: John Hupp, Columbus State University;
Robert J. Mills, Utah State University; John P. Russo, Wentworth Institute of Tech-
nology; and Michael L. Smith, SUNY Oswego. We are indebted to Erica Laudon for
her contributions to Career Opportunities and to Megan Miller for her help during
production. We thank Diana R. Craig for her assistance with database and software
topics.
Special thanks to colleagues at the Stern School of Business at New York Univer-
sity; to Professor Werner Schenk, Simon School of Business, University of Rochester;
to Professor Mark Gillenson, Fogelman College of Business and Economics, Uni-
versity of Memphis; to Robert Kostrubanic, Indiana-Purdue University Fort Wayne;
to Professor Lawrence Andrew of Western Illinois University; to Professor Detlef
Schoder of the University of Cologne; to Professor Walter Brenner of the University
of St. Gallen; to Professor Lutz Kolbe of the University of Gottingen; 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, for more than
a decade-long discussion of information systems and organizations. And a special
remembrance and dedication to Professor Rob Kling, University of Indiana, for
being our friend and colleague over so many years.
We also want to especially thank all our reviewers whose suggestions helped
improve our texts. Reviewers for this edition include:
Brad Allen, Plymouth State University
Wanda Curtsinger, Texas A&M University
Dawit Demissie, University of Albany
Anne Formalarie, Plymouth State University
Bin Gu,University of Texas–Austin
Essia Hamouda, University of California–Riverside
Linda Lau, Longwood University
Kimberly L. Merritt, Oklahoma Christian University
James W. Miller, Dominican University
Fiona Nah, University of Nebraska–Lincoln
M. K. Raja, University of Texas Arlington
Thomas Schambach, Illinois State University
Shawn Weisfeld, Florida Institute of Technology
K.C.L.
J.P.L.
xxix

This page intentionally left blank
Essentials of
Management
Information
Systems

This page intentionally left blank
P A R T
I
Chapter 1
Business Information Systems in
Your Career
Chapter 2
Information
Global E-business and Collabo-
ration Systems in the
Chapter 3
Achieving Competitive Advan-
tage with Information Systems
Digital Age
Part I introduces the major themes and the problem-solving
Chapter 4
Ethical and Social Issues in approaches that are used throughout this book. While survey-
Information Systems
ing the role of information systems in today's businesses, this
part raises a series of 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? What ethical and
social issues do widespread use of information systems raise?
M01A_LAUD2756_13_SE_P01.indd 1 23/11/17 12:03 pm

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Newala, too, suffers from the distance of its water-supply—at least

the Newala of to-day does; there was once another Newala in a lovely
valley at the foot of the plateau. I visited it and found scarcely a trace
of houses, only a Christian cemetery, with the graves of several
missionaries and their converts, remaining as a monument of its
former glories. But the surroundings are wonderfully beautiful. A
thick grove of splendid mango-trees closes in the weather-worn
crosses and headstones; behind them, combining the useful and the
agreeable, is a whole plantation of lemon-trees covered with ripe
fruit; not the small African kind, but a much larger and also juicier
imported variety, which drops into the hands of the passing traveller,
without calling for any exertion on his part. Old Newala is now under
the jurisdiction of the native pastor, Daudi, at Chingulungulu, who,
as I am on very friendly terms with him, allows me, as a matter of
course, the use of this lemon-grove during my stay at Newala.
FEET MUTILATED BY THE RAVAGES OF THE “JIGGER”
(Sarcopsylla penetrans)
The water-supply of New Newala is in the bottom of the valley,

some 1,600 feet lower down. The way is not only long and fatiguing,
but the water, when we get it, is thoroughly bad. We are suffering not
only from this, but from the fact that the arrangements at Newala are
nothing short of luxurious. We have a separate kitchen—a hut built
against the boma palisade on the right of the baraza, the interior of
which is not visible from our usual position. Our two cooks were not
long in finding this out, and they consequently do—or rather neglect
to do—what they please. In any case they do not seem to be very
particular about the boiling of our drinking-water—at least I can
attribute to no other cause certain attacks of a dysenteric nature,
from which both Knudsen and I have suffered for some time. If a
man like Omari has to be left unwatched for a moment, he is capable
of anything. Besides this complaint, we are inconvenienced by the
state of our nails, which have become as hard as glass, and crack on
the slightest provocation, and I have the additional infliction of
pimples all over me. As if all this were not enough, we have also, for
the last week been waging war against the jigger, who has found his
Eldorado in the hot sand of the Makonde plateau. Our men are seen
all day long—whenever their chronic colds and the dysentery likewise
raging among them permit—occupied in removing this scourge of
Africa from their feet and trying to prevent the disastrous
consequences of its presence. It is quite common to see natives of
this place with one or two toes missing; many have lost all their toes,
or even the whole front part of the foot, so that a well-formed leg
ends in a shapeless stump. These ravages are caused by the female of
Sarcopsylla penetrans, which bores its way under the skin and there
develops an egg-sac the size of a pea. In all books on the subject, it is
stated that one’s attention is called to the presence of this parasite by
an intolerable itching. This agrees very well with my experience, so
far as the softer parts of the sole, the spaces between and under the
toes, and the side of the foot are concerned, but if the creature
penetrates through the harder parts of the heel or ball of the foot, it
may escape even the most careful search till it has reached maturity.
Then there is no time to be lost, if the horrible ulceration, of which
we see cases by the dozen every day, is to be prevented. It is much
easier, by the way, to discover the insect on the white skin of a
European than on that of a native, on which the dark speck scarcely
shows. The four or five jiggers which, in spite of the fact that I
constantly wore high laced boots, chose my feet to settle in, were
taken out for me by the all-accomplished Knudsen, after which I
thought it advisable to wash out the cavities with corrosive
sublimate. The natives have a different sort of disinfectant—they fill
the hole with scraped roots. In a tiny Makua village on the slope of
the plateau south of Newala, we saw an old woman who had filled all
the spaces under her toe-nails with powdered roots by way of
prophylactic treatment. What will be the result, if any, who can say?
The rest of the many trifling ills which trouble our existence are
really more comic than serious. In the absence of anything else to
smoke, Knudsen and I at last opened a box of cigars procured from
the Indian store-keeper at Lindi, and tried them, with the most
distressing results. Whether they contain opium or some other
narcotic, neither of us can say, but after the tenth puff we were both
“off,” three-quarters stupefied and unspeakably wretched. Slowly we
recovered—and what happened next? Half-an-hour later we were
once more smoking these poisonous concoctions—so insatiable is the
craving for tobacco in the tropics.
Even my present attacks of fever scarcely deserve to be taken
seriously. I have had no less than three here at Newala, all of which
have run their course in an incredibly short time. In the early
afternoon, I am busy with my old natives, asking questions and
making notes. The strong midday coffee has stimulated my spirits to
an extraordinary degree, the brain is active and vigorous, and work
progresses rapidly, while a pleasant warmth pervades the whole
body. Suddenly this gives place to a violent chill, forcing me to put on
my overcoat, though it is only half-past three and the afternoon sun
is at its hottest. Now the brain no longer works with such acuteness
and logical precision; more especially does it fail me in trying to
establish the syntax of the difficult Makua language on which I have
ventured, as if I had not enough to do without it. Under the
circumstances it seems advisable to take my temperature, and I do
so, to save trouble, without leaving my seat, and while going on with
my work. On examination, I find it to be 101·48°. My tutors are
abruptly dismissed and my bed set up in the baraza; a few minutes
later I am in it and treating myself internally with hot water and
lemon-juice.
Three hours later, the thermometer marks nearly 104°, and I make
them carry me back into the tent, bed and all, as I am now perspiring
heavily, and exposure to the cold wind just beginning to blow might
mean a fatal chill. I lie still for a little while, and then find, to my
great relief, that the temperature is not rising, but rather falling. This
is about 7.30 p.m. At 8 p.m. I find, to my unbounded astonishment,
that it has fallen below 98·6°, and I feel perfectly well. I read for an
hour or two, and could very well enjoy a smoke, if I had the
wherewithal—Indian cigars being out of the question.
Having no medical training, I am at a loss to account for this state
of things. It is impossible that these transitory attacks of high fever
should be malarial; it seems more probable that they are due to a
kind of sunstroke. On consulting my note-book, I become more and
more inclined to think this is the case, for these attacks regularly
follow extreme fatigue and long exposure to strong sunshine. They at
least have the advantage of being only short interruptions to my
work, as on the following morning I am always quite fresh and fit.
My treasure of a cook is suffering from an enormous hydrocele which
makes it difficult for him to get up, and Moritz is obliged to keep in
the dark on account of his inflamed eyes. Knudsen’s cook, a raw boy
from somewhere in the bush, knows still less of cooking than Omari;
consequently Nils Knudsen himself has been promoted to the vacant
post. Finding that we had come to the end of our supplies, he began
by sending to Chingulungulu for the four sucking-pigs which we had
bought from Matola and temporarily left in his charge; and when
they came up, neatly packed in a large crate, he callously slaughtered
the biggest of them. The first joint we were thoughtless enough to
entrust for roasting to Knudsen’s mshenzi cook, and it was
consequently uneatable; but we made the rest of the animal into a
jelly which we ate with great relish after weeks of underfeeding,
consuming incredible helpings of it at both midday and evening
meals. The only drawback is a certain want of variety in the tinned
vegetables. Dr. Jäger, to whom the Geographical Commission
entrusted the provisioning of the expeditions—mine as well as his
own—because he had more time on his hands than the rest of us,
seems to have laid in a huge stock of Teltow turnips,[46] an article of
food which is all very well for occasional use, but which quickly palls
when set before one every day; and we seem to have no other tins
left. There is no help for it—we must put up with the turnips; but I
am certain that, once I am home again, I shall not touch them for ten
years to come.
Amid all these minor evils, which, after all, go to make up the
genuine flavour of Africa, there is at least one cheering touch:
Knudsen has, with the dexterity of a skilled mechanic, repaired my 9
× 12 cm. camera, at least so far that I can use it with a little care.
How, in the absence of finger-nails, he was able to accomplish such a
ticklish piece of work, having no tool but a clumsy screw-driver for
taking to pieces and putting together again the complicated
mechanism of the instantaneous shutter, is still a mystery to me; but
he did it successfully. The loss of his finger-nails shows him in a light
contrasting curiously enough with the intelligence evinced by the
above operation; though, after all, it is scarcely surprising after his
ten years’ residence in the bush. One day, at Lindi, he had occasion
to wash a dog, which must have been in need of very thorough
cleansing, for the bottle handed to our friend for the purpose had an
extremely strong smell. Having performed his task in the most
conscientious manner, he perceived with some surprise that the dog
did not appear much the better for it, and was further surprised by
finding his own nails ulcerating away in the course of the next few
days. “How was I to know that carbolic acid has to be diluted?” he
mutters indignantly, from time to time, with a troubled gaze at his
mutilated finger-tips.
Since we came to Newala we have been making excursions in all
directions through the surrounding country, in accordance with old
habit, and also because the akida Sefu did not get together the tribal
elders from whom I wanted information so speedily as he had
promised. There is, however, no harm done, as, even if seen only
from the outside, the country and people are interesting enough.
The Makonde plateau is like a large rectangular table rounded off
at the corners. Measured from the Indian Ocean to Newala, it is
about seventy-five miles long, and between the Rovuma and the
Lukuledi it averages fifty miles in breadth, so that its superficial area
is about two-thirds of that of the kingdom of Saxony. The surface,
however, is not level, but uniformly inclined from its south-western
edge to the ocean. From the upper edge, on which Newala lies, the
eye ranges for many miles east and north-east, without encountering
any obstacle, over the Makonde bush. It is a green sea, from which
here and there thick clouds of smoke rise, to show that it, too, is
inhabited by men who carry on their tillage like so many other
primitive peoples, by cutting down and burning the bush, and
manuring with the ashes. Even in the radiant light of a tropical day
such a fire is a grand sight.
Much less effective is the impression produced just now by the
great western plain as seen from the edge of the plateau. As often as
time permits, I stroll along this edge, sometimes in one direction,
sometimes in another, in the hope of finding the air clear enough to
let me enjoy the view; but I have always been disappointed.
Wherever one looks, clouds of smoke rise from the burning bush,
and the air is full of smoke and vapour. It is a pity, for under more
favourable circumstances the panorama of the whole country up to
the distant Majeje hills must be truly magnificent. It is of little use
taking photographs now, and an outline sketch gives a very poor idea
of the scenery. In one of these excursions I went out of my way to
make a personal attempt on the Makonde bush. The present edge of
the plateau is the result of a far-reaching process of destruction
through erosion and denudation. The Makonde strata are
everywhere cut into by ravines, which, though short, are hundreds of
yards in depth. In consequence of the loose stratification of these
beds, not only are the walls of these ravines nearly vertical, but their
upper end is closed by an equally steep escarpment, so that the
western edge of the Makonde plateau is hemmed in by a series of
deep, basin-like valleys. In order to get from one side of such a ravine
to the other, I cut my way through the bush with a dozen of my men.
It was a very open part, with more grass than scrub, but even so the
short stretch of less than two hundred yards was very hard work; at
the end of it the men’s calicoes were in rags and they themselves
bleeding from hundreds of scratches, while even our strong khaki
suits had not escaped scatheless.
NATIVE PATH THROUGH THE MAKONDE BUSH, NEAR

MAHUTA
I see increasing reason to believe that the view formed some time
back as to the origin of the Makonde bush is the correct one. I have
no doubt that it is not a natural product, but the result of human
occupation. Those parts of the high country where man—as a very
slight amount of practice enables the eye to perceive at once—has not
yet penetrated with axe and hoe, are still occupied by a splendid
timber forest quite able to sustain a comparison with our mixed
forests in Germany. But wherever man has once built his hut or tilled
his field, this horrible bush springs up. Every phase of this process
may be seen in the course of a couple of hours’ walk along the main
road. From the bush to right or left, one hears the sound of the axe—
not from one spot only, but from several directions at once. A few
steps further on, we can see what is taking place. The brush has been
cut down and piled up in heaps to the height of a yard or more,
between which the trunks of the large trees stand up like the last
pillars of a magnificent ruined building. These, too, present a
melancholy spectacle: the destructive Makonde have ringed them—
cut a broad strip of bark all round to ensure their dying off—and also
piled up pyramids of brush round them. Father and son, mother and
son-in-law, are chopping away perseveringly in the background—too
busy, almost, to look round at the white stranger, who usually excites
so much interest. If you pass by the same place a week later, the piles
of brushwood have disappeared and a thick layer of ashes has taken
the place of the green forest. The large trees stretch their
smouldering trunks and branches in dumb accusation to heaven—if
they have not already fallen and been more or less reduced to ashes,
perhaps only showing as a white stripe on the dark ground.
This work of destruction is carried out by the Makonde alike on the
virgin forest and on the bush which has sprung up on sites already
cultivated and deserted. In the second case they are saved the trouble
of burning the large trees, these being entirely absent in the
secondary bush.
After burning this piece of forest ground and loosening it with the
hoe, the native sows his corn and plants his vegetables. All over the
country, he goes in for bed-culture, which requires, and, in fact,
receives, the most careful attention. Weeds are nowhere tolerated in
the south of German East Africa. The crops may fail on the plains,
where droughts are frequent, but never on the plateau with its
abundant rains and heavy dews. Its fortunate inhabitants even have
the satisfaction of seeing the proud Wayao and Wamakua working
for them as labourers, driven by hunger to serve where they were
accustomed to rule.
But the light, sandy soil is soon exhausted, and would yield no
harvest the second year if cultivated twice running. This fact has
been familiar to the native for ages; consequently he provides in
time, and, while his crop is growing, prepares the next plot with axe
and firebrand. Next year he plants this with his various crops and
lets the first piece lie fallow. For a short time it remains waste and
desolate; then nature steps in to repair the destruction wrought by
man; a thousand new growths spring out of the exhausted soil, and
even the old stumps put forth fresh shoots. Next year the new growth
is up to one’s knees, and in a few years more it is that terrible,
impenetrable bush, which maintains its position till the black
occupier of the land has made the round of all the available sites and
come back to his starting point.
The Makonde are, body and soul, so to speak, one with this bush.
According to my Yao informants, indeed, their name means nothing
else but “bush people.” Their own tradition says that they have been
settled up here for a very long time, but to my surprise they laid great
stress on an original immigration. Their old homes were in the
south-east, near Mikindani and the mouth of the Rovuma, whence
their peaceful forefathers were driven by the continual raids of the
Sakalavas from Madagascar and the warlike Shirazis[47] of the coast,
to take refuge on the almost inaccessible plateau. I have studied
African ethnology for twenty years, but the fact that changes of
population in this apparently quiet and peaceable corner of the earth
could have been occasioned by outside enterprises taking place on
the high seas, was completely new to me. It is, no doubt, however,
correct.
The charming tribal legend of the Makonde—besides informing us
of other interesting matters—explains why they have to live in the
thickest of the bush and a long way from the edge of the plateau,
instead of making their permanent homes beside the purling brooks
and springs of the low country.
“The place where the tribe originated is Mahuta, on the southern
side of the plateau towards the Rovuma, where of old time there was
nothing but thick bush. Out of this bush came a man who never
washed himself or shaved his head, and who ate and drank but little.
He went out and made a human figure from the wood of a tree
growing in the open country, which he took home to his abode in the
bush and there set it upright. In the night this image came to life and
was a woman. The man and woman went down together to the
Rovuma to wash themselves. Here the woman gave birth to a still-
born child. They left that place and passed over the high land into the
valley of the Mbemkuru, where the woman had another child, which
was also born dead. Then they returned to the high bush country of
Mahuta, where the third child was born, which lived and grew up. In
course of time, the couple had many more children, and called
themselves Wamatanda. These were the ancestral stock of the
Makonde, also called Wamakonde,[48] i.e., aborigines. Their
forefather, the man from the bush, gave his children the command to
bury their dead upright, in memory of the mother of their race who
was cut out of wood and awoke to life when standing upright. He also
warned them against settling in the valleys and near large streams,
for sickness and death dwelt there. They were to make it a rule to
have their huts at least an hour’s walk from the nearest watering-
place; then their children would thrive and escape illness.”
The explanation of the name Makonde given by my informants is
somewhat different from that contained in the above legend, which I
extract from a little book (small, but packed with information), by
Pater Adams, entitled Lindi und sein Hinterland. Otherwise, my
results agree exactly with the statements of the legend. Washing?
Hapana—there is no such thing. Why should they do so? As it is, the
supply of water scarcely suffices for cooking and drinking; other
people do not wash, so why should the Makonde distinguish himself
by such needless eccentricity? As for shaving the head, the short,
woolly crop scarcely needs it,[49] so the second ancestral precept is
likewise easy enough to follow. Beyond this, however, there is
nothing ridiculous in the ancestor’s advice. I have obtained from
various local artists a fairly large number of figures carved in wood,
ranging from fifteen to twenty-three inches in height, and
representing women belonging to the great group of the Mavia,
Makonde, and Matambwe tribes. The carving is remarkably well
done and renders the female type with great accuracy, especially the
keloid ornamentation, to be described later on. As to the object and
meaning of their works the sculptors either could or (more probably)
would tell me nothing, and I was forced to content myself with the
scanty information vouchsafed by one man, who said that the figures
were merely intended to represent the nembo—the artificial
deformations of pelele, ear-discs, and keloids. The legend recorded
by Pater Adams places these figures in a new light. They must surely
be more than mere dolls; and we may even venture to assume that
they are—though the majority of present-day Makonde are probably
unaware of the fact—representations of the tribal ancestress.
The references in the legend to the descent from Mahuta to the
Rovuma, and to a journey across the highlands into the Mbekuru
valley, undoubtedly indicate the previous history of the tribe, the
travels of the ancestral pair typifying the migrations of their
descendants. The descent to the neighbouring Rovuma valley, with
its extraordinary fertility and great abundance of game, is intelligible
at a glance—but the crossing of the Lukuledi depression, the ascent
to the Rondo Plateau and the descent to the Mbemkuru, also lie
within the bounds of probability, for all these districts have exactly
the same character as the extreme south. Now, however, comes a
point of especial interest for our bacteriological age. The primitive
Makonde did not enjoy their lives in the marshy river-valleys.
Disease raged among them, and many died. It was only after they
had returned to their original home near Mahuta, that the health
conditions of these people improved. We are very apt to think of the
African as a stupid person whose ignorance of nature is only equalled
by his fear of it, and who looks on all mishaps as caused by evil
spirits and malignant natural powers. It is much more correct to
assume in this case that the people very early learnt to distinguish
districts infested with malaria from those where it is absent.
This knowledge is crystallized in the
ancestral warning against settling in the
valleys and near the great waters, the
dwelling-places of disease and death. At the
same time, for security against the hostile
Mavia south of the Rovuma, it was enacted
that every settlement must be not less than a
certain distance from the southern edge of the
plateau. Such in fact is their mode of life at the
present day. It is not such a bad one, and
certainly they are both safer and more
comfortable than the Makua, the recent
intruders from the south, who have made USUAL METHOD OF
good their footing on the western edge of the CLOSING HUT-DOOR
plateau, extending over a fairly wide belt of
country. Neither Makua nor Makonde show in their dwellings
anything of the size and comeliness of the Yao houses in the plain,
especially at Masasi, Chingulungulu and Zuza’s. Jumbe Chauro, a
Makonde hamlet not far from Newala, on the road to Mahuta, is the
most important settlement of the tribe I have yet seen, and has fairly
spacious huts. But how slovenly is their construction compared with
the palatial residences of the elephant-hunters living in the plain.
The roofs are still more untidy than in the general run of huts during
the dry season, the walls show here and there the scanty beginnings
or the lamentable remains of the mud plastering, and the interior is a
veritable dog-kennel; dirt, dust and disorder everywhere. A few huts
only show any attempt at division into rooms, and this consists
merely of very roughly-made bamboo partitions. In one point alone
have I noticed any indication of progress—in the method of fastening
the door. Houses all over the south are secured in a simple but
ingenious manner. The door consists of a set of stout pieces of wood
or bamboo, tied with bark-string to two cross-pieces, and moving in
two grooves round one of the door-posts, so as to open inwards. If
the owner wishes to leave home, he takes two logs as thick as a man’s
upper arm and about a yard long. One of these is placed obliquely
against the middle of the door from the inside, so as to form an angle
of from 60° to 75° with the ground. He then places the second piece
horizontally across the first, pressing it downward with all his might.
It is kept in place by two strong posts planted in the ground a few
inches inside the door. This fastening is absolutely safe, but of course
cannot be applied to both doors at once, otherwise how could the
owner leave or enter his house? I have not yet succeeded in finding
out how the back door is fastened.
MAKONDE LOCK AND KEY AT JUMBE CHAURO

This is the general way of closing a house. The Makonde at Jumbe
Chauro, however, have a much more complicated, solid and original
one. Here, too, the door is as already described, except that there is
only one post on the inside, standing by itself about six inches from
one side of the doorway. Opposite this post is a hole in the wall just
large enough to admit a man’s arm. The door is closed inside by a
large wooden bolt passing through a hole in this post and pressing
with its free end against the door. The other end has three holes into
which fit three pegs running in vertical grooves inside the post. The
door is opened with a wooden key about a foot long, somewhat
curved and sloped off at the butt; the other end has three pegs
corresponding to the holes, in the bolt, so that, when it is thrust
through the hole in the wall and inserted into the rectangular
opening in the post, the pegs can be lifted and the bolt drawn out.[50]
MODE OF INSERTING THE KEY
With no small pride first one householder and then a second

showed me on the spot the action of this greatest invention of the
Makonde Highlands. To both with an admiring exclamation of
“Vizuri sana!” (“Very fine!”). I expressed the wish to take back these
marvels with me to Ulaya, to show the Wazungu what clever fellows
the Makonde are. Scarcely five minutes after my return to camp at
Newala, the two men came up sweating under the weight of two
heavy logs which they laid down at my feet, handing over at the same
time the keys of the fallen fortress. Arguing, logically enough, that if
the key was wanted, the lock would be wanted with it, they had taken
their axes and chopped down the posts—as it never occurred to them
to dig them out of the ground and so bring them intact. Thus I have
two badly damaged specimens, and the owners, instead of praise,
come in for a blowing-up.
The Makua huts in the environs of Newala are especially
miserable; their more than slovenly construction reminds one of the
temporary erections of the Makua at Hatia’s, though the people here
have not been concerned in a war. It must therefore be due to
congenital idleness, or else to the absence of a powerful chief. Even
the baraza at Mlipa’s, a short hour’s walk south-east of Newala,
shares in this general neglect. While public buildings in this country
are usually looked after more or less carefully, this is in evident
danger of being blown over by the first strong easterly gale. The only
attractive object in this whole district is the grave of the late chief
Mlipa. I visited it in the morning, while the sun was still trying with
partial success to break through the rolling mists, and the circular
grove of tall euphorbias, which, with a broken pot, is all that marks
the old king’s resting-place, impressed one with a touch of pathos.
Even my very materially-minded carriers seemed to feel something
of the sort, for instead of their usual ribald songs, they chanted
solemnly, as we marched on through the dense green of the Makonde
bush:—
“We shall arrive with the great master; we stand in a row and have
no fear about getting our food and our money from the Serkali (the
Government). We are not afraid; we are going along with the great
master, the lion; we are going down to the coast and back.”
With regard to the characteristic features of the various tribes here
on the western edge of the plateau, I can arrive at no other
conclusion than the one already come to in the plain, viz., that it is
impossible for anyone but a trained anthropologist to assign any
given individual at once to his proper tribe. In fact, I think that even
an anthropological specialist, after the most careful examination,
might find it a difficult task to decide. The whole congeries of peoples
collected in the region bounded on the west by the great Central
African rift, Tanganyika and Nyasa, and on the east by the Indian
Ocean, are closely related to each other—some of their languages are
only distinguished from one another as dialects of the same speech,
and no doubt all the tribes present the same shape of skull and
structure of skeleton. Thus, surely, there can be no very striking
differences in outward appearance.
Even did such exist, I should have no time
to concern myself with them, for day after day,
I have to see or hear, as the case may be—in
any case to grasp and record—an
extraordinary number of ethnographic
phenomena. I am almost disposed to think it
fortunate that some departments of inquiry, at
least, are barred by external circumstances.
Chief among these is the subject of iron-
working. We are apt to think of Africa as a
country where iron ore is everywhere, so to
speak, to be picked up by the roadside, and
where it would be quite surprising if the
inhabitants had not learnt to smelt the
material ready to their hand. In fact, the
knowledge of this art ranges all over the
continent, from the Kabyles in the north to the
Kafirs in the south. Here between the Rovuma
and the Lukuledi the conditions are not so
favourable. According to the statements of the
Makonde, neither ironstone nor any other
form of iron ore is known to them. They have
not therefore advanced to the art of smelting
the metal, but have hitherto bought all their
THE ANCESTRESS OF
THE MAKONDE
iron implements from neighbouring tribes.
Even in the plain the inhabitants are not much
better off. Only one man now living is said to
understand the art of smelting iron. This old fundi lives close to
Huwe, that isolated, steep-sided block of granite which rises out of
the green solitude between Masasi and Chingulungulu, and whose
jagged and splintered top meets the traveller’s eye everywhere. While
still at Masasi I wished to see this man at work, but was told that,
frightened by the rising, he had retired across the Rovuma, though
he would soon return. All subsequent inquiries as to whether the
fundi had come back met with the genuine African answer, “Bado”
(“Not yet”).
BRAZIER
Some consolation was afforded me by a brassfounder, whom I

came across in the bush near Akundonde’s. This man is the favourite
of women, and therefore no doubt of the gods; he welds the glittering
brass rods purchased at the coast into those massive, heavy rings
which, on the wrists and ankles of the local fair ones, continually give
me fresh food for admiration. Like every decent master-craftsman he
had all his tools with him, consisting of a pair of bellows, three
crucibles and a hammer—nothing more, apparently. He was quite
willing to show his skill, and in a twinkling had fixed his bellows on
the ground. They are simply two goat-skins, taken off whole, the four
legs being closed by knots, while the upper opening, intended to
admit the air, is kept stretched by two pieces of wood. At the lower
end of the skin a smaller opening is left into which a wooden tube is
stuck. The fundi has quickly borrowed a heap of wood-embers from
the nearest hut; he then fixes the free ends of the two tubes into an
earthen pipe, and clamps them to the ground by means of a bent
piece of wood. Now he fills one of his small clay crucibles, the dross
on which shows that they have been long in use, with the yellow
material, places it in the midst of the embers, which, at present are
only faintly glimmering, and begins his work. In quick alternation
the smith’s two hands move up and down with the open ends of the
bellows; as he raises his hand he holds the slit wide open, so as to let
the air enter the skin bag unhindered. In pressing it down he closes
the bag, and the air puffs through the bamboo tube and clay pipe into
the fire, which quickly burns up. The smith, however, does not keep
on with this work, but beckons to another man, who relieves him at
the bellows, while he takes some more tools out of a large skin pouch
carried on his back. I look on in wonder as, with a smooth round
stick about the thickness of a finger, he bores a few vertical holes into
the clean sand of the soil. This should not be difficult, yet the man
seems to be taking great pains over it. Then he fastens down to the
ground, with a couple of wooden clamps, a neat little trough made by
splitting a joint of bamboo in half, so that the ends are closed by the
two knots. At last the yellow metal has attained the right consistency,
and the fundi lifts the crucible from the fire by means of two sticks
split at the end to serve as tongs. A short swift turn to the left—a
tilting of the crucible—and the molten brass, hissing and giving forth
clouds of smoke, flows first into the bamboo mould and then into the
holes in the ground.
The technique of this backwoods craftsman may not be very far
advanced, but it cannot be denied that he knows how to obtain an
adequate result by the simplest means. The ladies of highest rank in
this country—that is to say, those who can afford it, wear two kinds
of these massive brass rings, one cylindrical, the other semicircular
in section. The latter are cast in the most ingenious way in the
bamboo mould, the former in the circular hole in the sand. It is quite
a simple matter for the fundi to fit these bars to the limbs of his fair
customers; with a few light strokes of his hammer he bends the
pliable brass round arm or ankle without further inconvenience to
the wearer.
SHAPING THE POT
SMOOTHING WITH MAIZE-COB
CUTTING THE EDGE

FINISHING THE BOTTOM
LAST SMOOTHING BEFORE

BURNING
FIRING THE BRUSH-PILE

LIGHTING THE FARTHER SIDE OF
THE PILE
TURNING THE RED-HOT VESSEL
NYASA WOMAN MAKING POTS AT MASASI

Pottery is an art which must always and everywhere excite the
interest of the student, just because it is so intimately connected with
the development of human culture, and because its relics are one of
the principal factors in the reconstruction of our own condition in
prehistoric times. I shall always remember with pleasure the two or
three afternoons at Masasi when Salim Matola’s mother, a slightly-
built, graceful, pleasant-looking woman, explained to me with
touching patience, by means of concrete illustrations, the ceramic art
of her people. The only implements for this primitive process were a
lump of clay in her left hand, and in the right a calabash containing
the following valuables: the fragment of a maize-cob stripped of all
its grains, a smooth, oval pebble, about the size of a pigeon’s egg, a
few chips of gourd-shell, a bamboo splinter about the length of one’s
hand, a small shell, and a bunch of some herb resembling spinach.
Nothing more. The woman scraped with the
shell a round, shallow hole in the soft, fine
sand of the soil, and, when an active young
girl had filled the calabash with water for her,
she began to knead the clay. As if by magic it
gradually assumed the shape of a rough but
already well-shaped vessel, which only wanted
a little touching up with the instruments
before mentioned. I looked out with the
MAKUA WOMAN closest attention for any indication of the use
MAKING A POT. of the potter’s wheel, in however rudimentary
SHOWS THE a form, but no—hapana (there is none). The
BEGINNINGS OF THE embryo pot stood firmly in its little
POTTER’S WHEEL
depression, and the woman walked round it in
a stooping posture, whether she was removing
small stones or similar foreign bodies with the maize-cob, smoothing
the inner or outer surface with the splinter of bamboo, or later, after
letting it dry for a day, pricking in the ornamentation with a pointed
bit of gourd-shell, or working out the bottom, or cutting the edge
with a sharp bamboo knife, or giving the last touches to the finished
vessel. This occupation of the women is infinitely toilsome, but it is
without doubt an accurate reproduction of the process in use among
our ancestors of the Neolithic and Bronze ages.
There is no doubt that the invention of pottery, an item in human
progress whose importance cannot be over-estimated, is due to
women. Rough, coarse and unfeeling, the men of the horde range
over the countryside. When the united cunning of the hunters has
succeeded in killing the game; not one of them thinks of carrying
home the spoil. A bright fire, kindled by a vigorous wielding of the
drill, is crackling beside them; the animal has been cleaned and cut
up secundum artem, and, after a slight singeing, will soon disappear
under their sharp teeth; no one all this time giving a single thought
to wife or child.
To what shifts, on the other hand, the primitive wife, and still more
the primitive mother, was put! Not even prehistoric stomachs could
endure an unvarying diet of raw food. Something or other suggested
the beneficial effect of hot water on the majority of approved but
indigestible dishes. Perhaps a neighbour had tried holding the hard
roots or tubers over the fire in a calabash filled with water—or maybe
an ostrich-egg-shell, or a hastily improvised vessel of bark. They
became much softer and more palatable than they had previously
been; but, unfortunately, the vessel could not stand the fire and got
charred on the outside. That can be remedied, thought our
ancestress, and plastered a layer of wet clay round a similar vessel.
This is an improvement; the cooking utensil remains uninjured, but
the heat of the fire has shrunk it, so that it is loose in its shell. The
next step is to detach it, so, with a firm grip and a jerk, shell and
kernel are separated, and pottery is invented. Perhaps, however, the
discovery which led to an intelligent use of the burnt-clay shell, was
made in a slightly different way. Ostrich-eggs and calabashes are not
to be found in every part of the world, but everywhere mankind has
arrived at the art of making baskets out of pliant materials, such as
bark, bast, strips of palm-leaf, supple twigs, etc. Our inventor has no
water-tight vessel provided by nature. “Never mind, let us line the
basket with clay.” This answers the purpose, but alas! the basket gets
burnt over the blazing fire, the woman watches the process of
cooking with increasing uneasiness, fearing a leak, but no leak
appears. The food, done to a turn, is eaten with peculiar relish; and
the cooking-vessel is examined, half in curiosity, half in satisfaction
at the result. The plastic clay is now hard as stone, and at the same
time looks exceedingly well, for the neat plaiting of the burnt basket
is traced all over it in a pretty pattern. Thus, simultaneously with
pottery, its ornamentation was invented.
Primitive woman has another claim to respect. It was the man,
roving abroad, who invented the art of producing fire at will, but the
woman, unable to imitate him in this, has been a Vestal from the
earliest times. Nothing gives so much trouble as the keeping alight of
the smouldering brand, and, above all, when all the men are absent
from the camp. Heavy rain-clouds gather, already the first large
drops are falling, the first gusts of the storm rage over the plain. The
little flame, a greater anxiety to the woman than her own children,
flickers unsteadily in the blast. What is to be done? A sudden thought
occurs to her, and in an instant she has constructed a primitive hut
out of strips of bark, to protect the flame against rain and wind.
This, or something very like it, was the way in which the principle
of the house was discovered; and even the most hardened misogynist
cannot fairly refuse a woman the credit of it. The protection of the
hearth-fire from the weather is the germ from which the human
dwelling was evolved. Men had little, if any share, in this forward
step, and that only at a late stage. Even at the present day, the
plastering of the housewall with clay and the manufacture of pottery
are exclusively the women’s business. These are two very significant
survivals. Our European kitchen-garden, too, is originally a woman’s
invention, and the hoe, the primitive instrument of agriculture, is,
characteristically enough, still used in this department. But the
noblest achievement which we owe to the other sex is unquestionably
the art of cookery. Roasting alone—the oldest process—is one for
which men took the hint (a very obvious one) from nature. It must
have been suggested by the scorched carcase of some animal
overtaken by the destructive forest-fires. But boiling—the process of
improving organic substances by the help of water heated to boiling-
point—is a much later discovery. It is so recent that it has not even
yet penetrated to all parts of the world. The Polynesians understand
how to steam food, that is, to cook it, neatly wrapped in leaves, in a
hole in the earth between hot stones, the air being excluded, and
(sometimes) a few drops of water sprinkled on the stones; but they
do not understand boiling.
To come back from this digression, we find that the slender Nyasa
woman has, after once more carefully examining the finished pot,
put it aside in the shade to dry. On the following day she sends me
word by her son, Salim Matola, who is always on hand, that she is
going to do the burning, and, on coming out of my house, I find her
already hard at work. She has spread on the ground a layer of very
dry sticks, about as thick as one’s thumb, has laid the pot (now of a
yellowish-grey colour) on them, and is piling brushwood round it.
My faithful Pesa mbili, the mnyampara, who has been standing by,
most obligingly, with a lighted stick, now hands it to her. Both of
them, blowing steadily, light the pile on the lee side, and, when the
flame begins to catch, on the weather side also. Soon the whole is in a
blaze, but the dry fuel is quickly consumed and the fire dies down, so
that we see the red-hot vessel rising from the ashes. The woman
turns it continually with a long stick, sometimes one way and
sometimes another, so that it may be evenly heated all over. In
twenty minutes she rolls it out of the ash-heap, takes up the bundle
of spinach, which has been lying for two days in a jar of water, and
sprinkles the red-hot clay with it. The places where the drops fall are
marked by black spots on the uniform reddish-brown surface. With a
sigh of relief, and with visible satisfaction, the woman rises to an
erect position; she is standing just in a line between me and the fire,
from which a cloud of smoke is just rising: I press the ball of my
camera, the shutter clicks—the apotheosis is achieved! Like a
priestess, representative of her inventive sex, the graceful woman
stands: at her feet the hearth-fire she has given us beside her the
invention she has devised for us, in the background the home she has
built for us.
At Newala, also, I have had the manufacture of pottery carried on
in my presence. Technically the process is better than that already
described, for here we find the beginnings of the potter’s wheel,
which does not seem to exist in the plains; at least I have seen
nothing of the sort. The artist, a frightfully stupid Makua woman, did
not make a depression in the ground to receive the pot she was about
to shape, but used instead a large potsherd. Otherwise, she went to
work in much the same way as Salim’s mother, except that she saved
herself the trouble of walking round and round her work by squatting
at her ease and letting the pot and potsherd rotate round her; this is
surely the first step towards a machine. But it does not follow that
the pot was improved by the process. It is true that it was beautifully
rounded and presented a very creditable appearance when finished,
but the numerous large and small vessels which I have seen, and, in
part, collected, in the “less advanced” districts, are no less so. We
moderns imagine that instruments of precision are necessary to
produce excellent results. Go to the prehistoric collections of our
museums and look at the pots, urns and bowls of our ancestors in the
dim ages of the past, and you will at once perceive your error.
MAKING LONGITUDINAL CUT IN
BARK
DRAWING THE BARK OFF THE LOG
REMOVING THE OUTER BARK

BEATING THE BARK
WORKING THE BARK-CLOTH AFTER BEATING, TO MAKE IT

SOFT
MANUFACTURE OF BARK-CLOTH AT NEWALA

To-day, nearly the whole population of German East Africa is
clothed in imported calico. This was not always the case; even now in
some parts of the north dressed skins are still the prevailing wear,
and in the north-western districts—east and north of Lake
Tanganyika—lies a zone where bark-cloth has not yet been
superseded. Probably not many generations have passed since such
bark fabrics and kilts of skins were the only clothing even in the
south. Even to-day, large quantities of this bright-red or drab
material are still to be found; but if we wish to see it, we must look in
the granaries and on the drying stages inside the native huts, where
it serves less ambitious uses as wrappings for those seeds and fruits
which require to be packed with special care. The salt produced at
Masasi, too, is packed for transport to a distance in large sheets of
bark-cloth. Wherever I found it in any degree possible, I studied the
process of making this cloth. The native requisitioned for the
purpose arrived, carrying a log between two and three yards long and
as thick as his thigh, and nothing else except a curiously-shaped
mallet and the usual long, sharp and pointed knife which all men and
boys wear in a belt at their backs without a sheath—horribile dictu!
[51]
Silently he squats down before me, and with two rapid cuts has
drawn a couple of circles round the log some two yards apart, and
slits the bark lengthwise between them with the point of his knife.
With evident care, he then scrapes off the outer rind all round the
log, so that in a quarter of an hour the inner red layer of the bark
shows up brightly-coloured between the two untouched ends. With
some trouble and much caution, he now loosens the bark at one end,
and opens the cylinder. He then stands up, takes hold of the free
edge with both hands, and turning it inside out, slowly but steadily
pulls it off in one piece. Now comes the troublesome work of
scraping all superfluous particles of outer bark from the outside of
the long, narrow piece of material, while the inner side is carefully
scrutinised for defective spots. At last it is ready for beating. Having
signalled to a friend, who immediately places a bowl of water beside
him, the artificer damps his sheet of bark all over, seizes his mallet,
lays one end of the stuff on the smoothest spot of the log, and
hammers away slowly but continuously. “Very simple!” I think to
myself. “Why, I could do that, too!”—but I am forced to change my
opinions a little later on; for the beating is quite an art, if the fabric is
not to be beaten to pieces. To prevent the breaking of the fibres, the
stuff is several times folded across, so as to interpose several
thicknesses between the mallet and the block. At last the required
state is reached, and the fundi seizes the sheet, still folded, by both
ends, and wrings it out, or calls an assistant to take one end while he
holds the other. The cloth produced in this way is not nearly so fine
and uniform in texture as the famous Uganda bark-cloth, but it is
quite soft, and, above all, cheap.
Now, too, I examine the mallet. My craftsman has been using the
simpler but better form of this implement, a conical block of some
hard wood, its base—the striking surface—being scored across and
across with more or less deeply-cut grooves, and the handle stuck
into a hole in the middle. The other and earlier form of mallet is
shaped in the same way, but the head is fastened by an ingenious
network of bark strips into the split bamboo serving as a handle. The
observation so often made, that ancient customs persist longest in
connection with religious ceremonies and in the life of children, here
finds confirmation. As we shall soon see, bark-cloth is still worn
during the unyago,[52] having been prepared with special solemn
ceremonies; and many a mother, if she has no other garment handy,
will still put her little one into a kilt of bark-cloth, which, after all,
looks better, besides being more in keeping with its African
surroundings, than the ridiculous bit of print from Ulaya.
MAKUA WOMEN

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(eTextbook PDF) for Essentials of MIS

13th Edition by Kenneth

KENNETH C. LAUDON JANE P. LAUDON

Library of Congress Cataloging-in-Publication Data

On file with the library of Congress.

ISBN 10: 0-13-480275-6

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Kenneth C. Laudon is a Professor of Information Systems at New York

Jane Price Laudon is a management consultant in the information systems

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I Information Systems in the Digital Age 1

II Information Technology Infrastructure 153

III Key System Applications for the Digital Age 313

IV Building and Managing Systems 433

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3 Achieving Competitive Advantage with

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Business Problem-Solving Case Business Problem-Solving Case

II Information Technology 6 Foundations of Business Intelligence: Databases

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Business Problem Solving Case

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What’s New in This Edition

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The 13th Edition: The Comprehensive Solution for the

THE CORE TEXT

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• Adopt omnichannel • Omnichannel retail strategy

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INTERACTIVE SESSION: PEOPLE “Socializing” with Customers

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Hands-On MIS Projects

Students practice using

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• Collaboration and Teamwork Projects. Each chapter features a collaborative proj-

Career Opportunities and Resources

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Assessment and AACSB Assessment Guidelines

Customization and Flexibility: Learning Track Modules

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Author-Certified Test Bank and Supplements

Video Cases and Instructional Videos

Learning Tracks Modules

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Chapter Learning Tracks

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part raises a series of 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? What ethical and

social issues do widespread use of information systems raise?

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