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Information Technology for

Management: Digital Strategies for


Insight, Action, and Sustainable
Performance 10th Edition (eBook PDF)
Visit to download the full and correct content document:
https://ebooksecure.com/download/information-technology-for-management-digital-str
ategies-for-insight-action-and-sustainable-performance-10th-edition-ebook-pdf/
CONTENTS

Digital Technology Trends Transforming 4.3 Collaboration and Communication Technologies 127
Part 1 4.4 Sustainability and Ethical Issues 130
How Business Is Done
Case 4.2, Business Case: Google Maps API for Business 139
1 Doing Business in Digital Times 1 Case 4.3, Video Case: Fresh Direct Connects for Success 140
Case 1.1, Opening Case: McCain Foods’s Success Factors:
Dashboards, Innovation, and Ethics 2
5 Cybersecurity and Risk Management 141
Case 5.1, Opening Case: BlackPOS Malware Steals Target’s
1.1 Every Business Is a Digital Business 6
Customer Data 142
1.2 Business Process Management and Improvement 15
5.1 The Face and Future of Cyberthreats 144
1.3 The Power of Competitive Advantage 19
5.2 Cyber Risk Management 152
1.4 Enterprise Technology Trends 25
5.3 Mobile, App, and Cloud Security 163
1.5 How Your IT Expertise Adds Value to Your Performance
5.4 Defending Against Fraud 166
and Career 27
5.5 Compliance and Internal Control 169
Case 1.2, Business Case: Restaurant Creates Opportunities to
Case 5.2, Business Case: Lax Security at LinkedIn Exposed 177
Engage Customers 31
Case 5.3, Video Case: Botnets, Malware Security, and Capturing
Case 1.3, Video Case: What Is the Value of Knowing More and
Cybercriminals 179
Doing More? 32

2 Data Governance and IT Architecture Support Winning, Engaging, and Retaining Consumers
Long-Term Performance 33 Part 2
with Technology
Case 2.1, Opening Case: Detoxing Dirty Data with Data
Governance at Intel Security 34 6 Attracting Buyers with Search, Semantic, and
2.1 Information Management 37 Recommendation Technology 181
2.2 Enterprise Architecture and Data Governance 42 Case 6.1, Opening Case: Nike Golf Drives Web Traffic with Search
2.3 Information Systems: The Basics 47 Engine Optimization 182
2.4 Data Centers, Cloud Computing, and Virtualization 53 6.1 Using Search Technology for Business Success 186
2.5 Cloud Services Add Agility 62 6.2 Organic Search and Search Engine Optimization 198
Case 2.2, Business Case: Data Chaos Creates Risk 67 6.3 Pay-Per-Click and Paid Search Strategies 203
Case 2.3, Video Case: Cloud Computing: Three Case Studies 69 6.4 A Search for Meaning—Semantic Technology 205
6.5 Recommendation Engines 209
3 Data Management, Big Data Analytics, and Case 6.2, Business Case: Recommending Wine to Online
Records Management 70 Customers 217
Case 3.1, Opening Case: Coca-Cola Manages at the Point That Case 6.3, Video Case: Power Searching with Google 218
Makes a Difference 71
3.1 Database Management Systems 75 7 Social Networking, Engagement, and Social
3.2 Data Warehouse and Big Data Analytics 86 Metrics 221
3.3 Data and Text Mining 96 Case 7.1, Opening Case: The Connected Generation Influences
3.4 Business Intelligence 99 Banking Strategy 222
3.5 Electronic Records Management 102 7.1 Web 2.0—The Social Web 225
Case 3.2, Business Case: Financial Intelligence Fights Fraud 108 7.2 Social Networking Services and Communities 235
Case 3.3, Video Case: Hertz Finds Gold in Integrated Data 108 7.3 Engaging Consumers with Blogs and
Microblogs 245
4 Networks for Efficient Operations and 7.4 Mashups, Social Metrics, and Monitoring
Sustainability 110 Tools 250
Case 4.1, Opening Case: Sony Builds an IPv6 Network to Fortify 7.5 Knowledge Sharing in the Social
Competitive Edge 111 Workplace 255
4.1 Data Networks, IP Addresses, and APIs 113 Case 7.2, Business Case: Social Customer Service 259
4.2 Wireless Networks and Mobile Infrastructure 123 Case 7.3, Video Case: Viral Marketing: Will It Blend? 261

vii
viii Contents

8 Retail, E-commerce, and Mobile Commerce 11.4 Geospatial Data and Geographic Information
Systems 384
Technology 264
Case 11.2, Visualization Case: Are You Ready for Football? 387
Case 8.1, Opening Case: Macy’s Races Ahead with Mobile Retail
Case 11.3, Video Case: The Beauty of Data Visualization 387
Strategies 265
8.1 Retailing Technology 268
8.2 Business to Consumer (B2C) E-commerce 271
Managing Business Relationships, Projects,
8.3 Business to Business (B2B) E-commerce and Part 4
and Codes of Ethics
E-procurement 277
8.4 Mobile Commerce 279 12 IT Strategy and Balanced Scorecard 389
8.5 Mobile Transactions and Financial Services 286 Case 12.1, Opening Case: Intel’s IT Strategic Planning
Case 8.2, Business Case: Chegg’s Mobile Strategy 293 Process 390
Case 8.3, Video Case: Searching with Pictures Using MVS 294 12.1 IT Strategy and the Strategic Planning
Process 392
12.2 Aligning IT with Business Strategy 397
Optimizing Performance with Enterprise 12.3 Balanced Scorecard 400
Part 3
Systems and Analytics 12.4 IT Sourcing and Cloud Strategy 403
Case 12.2, Business Case: AstraZeneca Terminates $1.4B
9 Effective and Efficient Business Functions 297 Outsourcing Contract with IBM 409
Case 9.1, Opening Case: Ducati Redesigns Its Operations 299 Case 12.3, Data Analysis: Third-Party versus Company-Owned
9.1 Solving Business Challenges at All Management Offshoring 410
Levels 302
9.2 Manufacturing, Production, and Transportation 13 Project Management and SDLC 412
Management Systems 306 Case 13.1, Opening Case: Keeping Your Project on Track, Knowing
9.3 Sales and Marketing Systems 312 When It Is Doomed, and DIA Baggage System Failure 413
9.4 Accounting, Finance, and Regulatory Systems 315 13.1 Project Management Concepts 417
9.5 Human Resources Systems, Compliance, 13.2 Project Planning, Execution, and Budget 421
and Ethics 323
13.3 Project Monitoring, Control, and Closing 428
Case 9.2, Business Case: HSBC Combats Fraud in Split-second
Decisions 329
13.4 System Development Life Cycle 432
Case 13.2, Business Case: Steve Jobs’ Shared Vision Project
Case 9.3, Video Case: United Rentals Optimizes Its Workforce with
Management Style 436
Human Capital Management 330
Case 13.3, Demo Case: Mavenlink Project Management and
10 Strategic Technology and Enterprise Planning Software 437
Systems 331
Case 10.1, Opening Case: Strategic Technology Trend—
14 Ethical Risks and Responsibilities of IT
3D Printing 332
Innovations 438
Case 14.1, Opening Case: Google Glass and Risk, Privacy, and
10.1 Enterprise Systems 337
Piracy Challenges 439
10.2 Enterprise Social Platforms 341
14.1 Privacy Paradox, Privacy, and Civil Rights 442
10.3 Enterprise Resource Planning Systems 346
14.2 Responsible Conduct 448
10.4 Supply Chain Management Systems 352
14.3 Technology Addictions and the Emerging Trend of
10.5 Customer Relationship Management Systems 358
Focus Management 453
Case 10.2, Business Case: Avon’s Failed SAP Implementation:
14.4 Six Technology Trends Transforming Business 454
Enterprise System Gone Wrong 364
Case 14.2, Business Case: Apple’s CarPlay Gets
Case 10.3, Video Case: Procter & Gamble: Creating Conversations
Intelligent 458
in the Cloud with 4.8 Billion Consumers 365
Case 14.3, Video Case: Vehicle-to-Vehicle Technology to Prevent
11 Data Visualization and Geographic Information Collisions 459
Systems 367 Glossary G-1
Case 11.1, Opening Case: Safeway and PepsiCo Apply Data
Visualization to Supply Chain 369 Organizational Index O-1
11.1 Data Visualization and Learning 371
Name Index N-1
11.2 Enterprise Data Mashups 377
11.3 Digital Dashboards 380 Subject Index S-1
PREFACE

Business strategy and operations are driven by data, digi- to capture customer loyalty and wallet share and justify
tal technologies, and devices. Five years from now, we will significant investments in leading IT.
look back upon today as the start of a new era in business
More Project Management with Templates. In response
and technology. Just like the way e-business started with
to reviewers’ requests, we have greatly increased cover-
the emergence of the Web, this new era is created by the
age of project management and systems development
convergence of social, mobile, big data, analytics, cloud,
lifecycle (SDLC). Students are given templates for writing
sensor, software-as-a-service, and data visualization tech-
a project business case, statement of work (SOW), and
nologies. These technologies enable real-time insights,
work breakdown structure (WBS). Rarely covered, but
business decisions, and actions. Examples of how they
critical project management issues included in this edition
determine tomorrow’s business outcomes are:
are project post-mortem, responsibility matrix, go/no go
• Insight. Combining the latest capabilities in big decision factors, and the role of the user community.
data analytics, reporting, collaboration, search, and New Technologies and Expanded Topics. New to this
machine-to-machine (M2M) communication helps edition are 3D printing and bioprinting, project portfolio
enterprises build an agility advantage, cut costs, and management, the privacy paradox, IPv6, outsource rela-
achieve their visions. tionship management (ORM), and balanced scorecard.
• Action. Fully leveraging real-time data about opera- With more purchases and transactions starting online
tions, supply chains, and customers enables managers and attention being a scarce resource, students learn how
to make decisions and take action in the moment. search, semantic, and recommendation technologies func-
• Sustainable performance. Deploying cloud services, tion to improve revenue. The value of Internet of Things
managing projects and sourcing agreements, respect- (IoT) has grown significantly as a result of the compound
ing privacy and the planet, and engaging customers impact of connecting people, processes, data, and things.
across channels are now fundamental to sustaining Easier to Grasp Concepts. A lot of effort went into mak-
business growth. ing learning easier and longer-lasting by outlining content
• Business optimization. Embedding digital capability with models and text graphics for each opening case (our
into products, services, machines, and business pro- version of infographics) as shown in Figure P-1—from the
cesses optimizes business performance—and creates Chapter 12 opening case.
strategic weapons.

In this tenth edition, students learn, explore, and analyze Engaging Students to
the three dimensions of business performance improve-
ment: digital technology, business processes, and people. Assure Learning
The tenth edition of Information Technology for
Management engages students with up-to-date cover-
What Is New in the Tenth age of the most important IT trends today. Over the
Edition—and Why It Matters years, this IT textbook had distinguished itself with an
emphasis on illustrating the use of cutting edge business
Most Relevant Content. Prior to and during the writing technologies for achieving managerial goals and objec-
process, we attended practitioner conferences and con- tives. The tenth edition continues this tradition with more
sulted with managers who are hands-on users of leading hands-on activities and analyses.
technologies, vendors, and IT professionals to learn about Each chapter contains numerous case studies and
their IT/business successes, challenges, experiences, and real world examples illustrating how businesses increase
recommendations. For example, during an in-person productivity, improve efficiency, enhance communica-
interview with a Las Vegas pit boss, we learned how tion and collaboration, and gain a competitive edge
real-time monitoring and data analytics recommend through the use of ITs. Faculty will appreciate a variety
the minimum bets in order to maximize revenue per of options for reinforcing student learning, that include
minute at gaming tables. Experts outlined opportunities three Case Studies per chapter, including an opening
and strategies to leverage cloud services and big data case, a business case and a video case.

ix
x Preface

1. Enterprise Vision. Senior management &


leaders develop & communicate the enterprise’s
two-to-five-year strategic vision & mission and
identify the direction & focus for upcoming year.

2. Technology & Business Outlook. A team of


senior management, IT, and business unit
representatives develop the two-to-five-year
business outlook & technology outlook.

3. Current State Assessment & Gap Analysis.


Analysis of the current state of IT, enterprise
systems, & processes, which are compared with
results of step 2 to identify gaps and necessary
adjustments to IT investment plans.

Strategic
gic
directional
4. Strategic Imperatives, Strategies, & Budget for
statements
Next Year. Develop next year’s priorities, road
map, budget, & investment plan. Annual budget
approved.

egic
Strategic
plan
5. Governance Decisions & IT Road Map. The
budget guides the governance process, including
supplier selection and sourcing.

6. Balanced Scorecard Reviews.


Figure P-1 Model of Intel’s Performance is measured monthly.
6-step IT strategic planning
process, from Chapter 12.

Throughout each chapter are various learning aids, At the end of each chapter are a variety of features
which include the following: designed to assure student learning:
• Learning Outcomes are listed at the beginning of each • Critical Thinking Questions are designed to facilitate
chapter to help students focus their efforts and alert student discussion.
them to the important concepts that will be discussed. • Online and Interactive Exercises encourage students
• The Chapter Snapshot provides students with an over- to explore additional topics.
view of the chapter content. • Analyze and Decide questions help students apply IT
• IT at Work boxes spotlight real-world cases and inno- concepts to business decisions.
vative uses of IT.
• Definitions of Key Terms appear in the margins
throughout the book.
Details of New and Enhanced
• Tech Note boxes explore topics such as “4G and
5G Networks in 2018” and “Data transfers to main- Features of the Tenth Edition
frames.” The textbook consists of fourteen chapters organized
• Career Insight boxes highlight different jobs in the IT into four parts. All chapters have new sections as well as
for management field. updated sections, as shown in Table P-1.
Preface xi

TABLE P-1 Overview of New and Expanded IT Topics and Innovative Enterprises Discussed
in the Chapters

Enterprises in a Wide
Chapter New and Expanded IT and Business Topics Range of Industries

1: Doing Business in • Era of Mobile-Social-Cloud-Big Data • McCain Foods Ltd


Digital Times • Digital connectivity and convergence • Zipcar
• Internet of Things (IoT), or machine-to-machine • Pei Wei Asian Diner
(M2M) technology • Teradata
• Farm-to-fork traceability
• Business process management
• Near-field communication (NFC)

2: Data Governance and • Data governance and quality • Intel Security


IT Architecture Support • Master data management (MDM) • Liberty Wines
Long-Term Performance • Cloud services • Unilever
• Collaboration • Vanderbilt University
• Virtualization and business continuity Medical Center
• software-, platform-, infrastructure-, and data-
as-a-service

3: Data Management, • Big data analytics and machine-generated data • Coca-Cola


Big Data Analytics and • Business intelligence (BI) • Hertz
Records Management • Hadoop • First Wind
• NoSQL systems • Argo Corp.
• Active data warehouse apps • Wal-Mart
• Compliance • McDonalds
• Infinity Insurance
• Quicken Loans, Inc.
• U.S. military
• CarMax

4: Networks for Efficient • IPv6 • Sony


Operations and Sustain- • API • Google Maps
ability • 4G and 5G networks • Fresh Direct
• Net neutrality • Apple
• Location-aware technologies • Spotify
• Climate change • Caterpillar, Inc.
• Mobile infrastructure
• Sustainable development

5: Cyber Security and • BYOD and social risks • Target


Risk Management • Advanced persistent threats (APT), malware, • LinkedIn
and botnets • Boeing
• IT governance
• Cloud security
• Fraud detection and prevention

6: Attracting Buyers with • Search technology • Nike


Search, Semantic and • Search engine optimization (SEO) • Netflix
Recommendation • Google Analytics • Wine.com
Technology • Paid search strategies
(continued)
xii Preface

TABLE P-1 Overview of New and Expanded IT Topics and Innovative Enterprises Discussed
in the Chapters (continued)

Enterprises in a Wide
Chapter New and Expanded IT and Business Topics Range of Industries

7: Social Networking, • Social network services (SNS) • Citibank


Engagement and Social • Web 2.0 tools for business collaboration • American Express
Metrics • Crowdfunding • Facebook
• Privacy • Twitter
• Cisco

8: Retail, E-commerce • Innovation in traditional and web-based retail • Macys


and Mobile Commerce • Omni-channel retailing • Chegg
Technology • Visual search • Amazon
• Mobile payment systems

9: Effective and Efficient • Customer experience (CX) • Ducati Motor Holding


Business Functions • eXtensible Business Reporting Language • HSBC
(XBRL) • SAS
• Order fulfillment process • United Rentals
• Transportation management systems • First Choice Ski
• Computer-integrated manufacturing (CIM)
• SaaS
• TQM
• Auditing information systems

10: Strategic Technology • 3D printing, additive manufacturing • Avon


and Enterprise Systems • Enterprise social platforms • Procter & Gamble
• Yammer, SharePoint, and Microsoft Cloud • Organic Valley Family
of Farms
• Red Robin Gourmet
Burgers, Inc.
• Salesforce.com
• Food and Drug Administra-
tion (FDA)
• U.S. Army Materiel
Command (AMC)
• 1-800-Flowers

11: Data Visualization • Data visualization • Safeway


and Geographic Informa- • Mobile dashboards • PepsiCo
tion Systems • Geospatial data and geocoding • eBay
• Geographic Information Systems (GIS) • Tableau
• Supply chain visibility • Hartford Hospital
• Reporting tools; analytical tools • General Motors (GM)
• Self-service mashup capabilities

12: IT Strategy and • IT strategic planning process • Intel


Balanced Scorecard • Value drivers • AstraZeneca
• Outsource relationship management (ORM) • IBM
• Service level agreements (SLAs) • Commonwealth Bank of
• Outsourcing lifecycle Australia (CBA)
• Applications portfolio
(continued)
Preface xiii

TABLE P-1 Overview of New and Expanded IT Topics and Innovative Enterprises Discussed
in the Chapters (continued)

Enterprises in a Wide
Chapter New and Expanded IT and Business Topics Range of Industries

13: Project Management • Project management lifecycle • Denver International


and SDLC • Project Portfolio Management (PPM) Airport
• Project business case • U.S. Census
• Project business case, statement of work (SOW), • Mavenlink Project
work breakdown structure (WBS), milestone Management and Planning
schedule, and Gantt chart Software
• Triple constraint
• Critical path
• Systems feasibility studies

14: Ethical Risks and • Privacy paradox • Google Glass


Responsibilities of IT • Social recruitment and discrimination • Apple’s CarPlay
Innovations • Responsible conduct • SnapChat
• Vehicle-to-vehicle (V2V) technology • Target
• Ethics of 3D printing and bioprinting
• Tech addictions
• Tech trends

Supplementary Materials E-book


An extensive package of instructional materials is avail- Wiley E-Textbooks offer students the complete content of
able to support this tenth edition. These materials are the printed textbook on the device of their preference—
accessible from the book companion Web site at www. computer, iPad, tablet, or smartphone—giving students
wiley.com/college/turban. the freedom to read or study anytime, anywhere. Students
can search across content, take notes, and highlight key
• Instructor’s Manual. The Instructor’s Manual presents
materials. For more information, go to www.wiley.com/
objectives from the text with additional information
college/turban.
to make them more appropriate and useful for the
instructor. The manual also includes practical applica-
tions of concepts, case study elaboration, answers to
end-of-chapter questions, questions for review, ques- Acknowledgments
tions for discussion, and Internet exercises. Many individuals participated in focus groups or review-
• Test Bank. The test bank contains over 1,000 ques- ers. Our sincere thanks to the following reviewers of the
tions and problems (about 75 per chapter) consisting tenth edition who provided valuable feedback, insights,
of multiple-choice, short answer, fill-ins, and critical and suggestions that improved the quality of this text:
thinking/essay questions.
Joni Adkins, Northwest Missouri State University
• Respondus Test Bank. This electronic test bank is Ahmad Al-Omari, Dakota State University
a powerful tool for creating and managing exams Rigoberto Chinchilla, Eastern Illinois University
that can be printed on paper or published directly Michael Donahue, Towson University
to Blackboard, ANGEL, Desire2Learn, Moodle, and Samuel Elko, Seton Hill University
other learning systems. Exams can be created offline Robert Goble, Dallas Baptist University
using a familiar Windows environment, or moved from Eileen Griffin, Canisius College
one LMS to another. Binshan Lin, Louisiana State University in Shreveport
• PowerPoint Presentation. A series of slides designed Thomas MacMullen, Eastern Illinois University
around the content of the text incorporates key points James Moore, Canisius College
from the text and illustrations where appropriate. Beverly S. Motich, Messiah College
xiv Preface

Barin Nag, Towson University research and development of graphics for Chapter 7.
Luis A. Otero, Inter-American University of Puerto We are fortunate and thankful for the expert and encour-
Rico, Metropolitan Campus aging leadership of Margaret Barrett, Beth Golub, Ellen
John Pearson, Southern Illinois University Keohane, and Mary O’Sullivan. To them we extend our
Daniel Riding, Florida Institute of Technology sincere thanks for your guidance, patience, humor, and
Josie Schneider, Columbia Southern University support during the development of this most recent ver-
Derek Sedlack, South University sion of the book. Finally, we wish to thank our families
Eric Weinstein, The University of La Verne and colleagues for their encouragement, support, and
Patricia White, Columbia Southern University understanding as we dedicated time and effort to cre-
Gene A. Wright, University of Wisconsin–Milwaukee ating this new edition of Information Technology for
Management.
We are very thankful to our assistants, Samantha
Palisano and Olena Azarova. Samantha devoted many
Linda Volonino
hours of research, provided clerical support, and con-
Greg Wood
tributed to the writing of Chapter 6. Olena assisted with
Digital Technology Trends Transforming
Part 1 How Business Is Done

Chapter
Doing Business
1 in Digital Times

Chapter Snapshot Key Terms


Case 1.1 Opening Case: McCain Foods’ Success Assuring Your Learning
Factors—Dashboards, Innovation, and Ethics • Discuss: Critical Thinking Questions
1.1 Every Business Is a Digital Business • Explore: Online and Interactive Exercises
1.2 Business Process Management and • Analyze & Decide: Apply IT Concepts
Improvement to Business Decisions
1.3 The Power of Competitive Advantage Case 1.2 Business Case: Restaurant Creates
1.4 Enterprise Technology Trends Opportunities to Engage Customers
1.5 How Your IT Expertise Adds Value to Your Case 1.3 Video Case: What Is the Value of
Performance and Career Knowing More and Doing More?
References

Learning Outcomes
1. Describe the use of digital technology in every facet of 4. Describe enterprise technology trends and explain how
business and how digital channels are being leveraged. they influence strategy and operations.
2. Explain the types, sources, characteristics, and control 5. Assess how IT adds value to your career path and per-
of enterprise data, and what can be accomplished with formance, and the positive outlook for IT management
near real time data. careers.
3. Identify the five forces of competitive advantage and
evaluate how they are reinforced by IT.

Chapter Snapshot

Make no mistake. Businesses are experiencing a digital Think how much of your day you have your phone
transformation as digital technology enables changes nearby—and how many times you check it. Nearly
unimaginable a decade ago. High-performance organi- 80 percent of people carry their phone for all but two
zations are taking advantage of what is newly possible hours of their day; and 25 per cent of 18- to 44-year-olds
from innovations in mobile, social, cloud, big data, data cannot remember not having their phone with them
analytics, and visualization technologies. These digital (Cooper, 2013).
forces enable unprecedented levels of connectivity, or As a business leader, you will want to know what
connectedness, as listed in Figure 1.1. steps to take to get a jump on the mobile, social, cloud,

1
Big data are datasets whose
size and speed are beyond An estimated 15 billion
the ability of typical database devices are connected to
Over 1 million websites
the Internet—forecasted
software tools to capture, to hit 50 billion by 2020
engage in Facebook
e-commerce.
store, manage, and analyze. as more devices connect
Examples are machine- via mobile networks.
generated data and social
media texts.
More data are collected in
Data analytics refers to the Over 200 million social a day now than existed in
use of software and statistics Figure 1.1 We are in media users are mobile the world 10 years ago.
the era of mobile-social- only, never accessing it
to find meaningful insight Half of all data are in the
cloud-big data that from a desktop or laptop. cloud and generated
in the data, or better under-
shape business strate- Mobile use generates 30% by mobile and social
stand the data. gies and day-to-day of Facebook’s ad revenue. activities—known as big
data.
Data visualization (viz) tools operations.
make it easier to understand
data at a glance by display-
ing data in summarized big data, analytics, and visualization technologies that will move your businesses
formats, such as dashboards forward. Faced with opportunities and challenges, you need to know how to lever-
and maps, and by enabling age them before or better than your competitors.
drill-down to the detailed In this opening chapter, you read about the powerful impacts of digital technol-
data. ogy on management, business, government, entertainment, society, and those it will
have on the future. You learn of the latest digital trends taking place across indus-
tries and organizations—small and medium businesses, multinational corporations,
government agencies, the health-care industry, and nonprofits.

CASE 1.1 OPENING CASE


McCain Foods’ Success Factors: Dashboards, Innovation, and Ethics

COMPANY OVERVIEW You most likely have eaten McCain Foods products (Figure 1.2, Table 1.1). McCain
is a market leader in the frozen food industry—producing one-third of the world’s
supply of french fries. The company manufactures, distributes, and sells more than

McCain Foods, Ltd.

Brand Global Reach


Frozen food manufacturer Sales offices in 110 countries
Market leader in french 55 production plants on
fries 6 continents
22,000 employees

Corporate Culture Digital Technology


Good ethics is good Dashboards
business. Data analytics
Good food, better life. Real time reporting systems
Figure 1.2 McCain Foods,
Ltd. overview.

2
CASE 1.1 Opening Case 3

TABLE 1.1 Opening Case Overview

Company McCain Foods, Ltd. www.mccain.com

Industry The global company manufactures, sells, and distributes frozen


food products.

Product lines More than 100 oven-ready frozen food products

Digital technology Dashboards are implemented throughout the organization


from boardrooms to factory floors. Dashboards have drill-down
capabilities.

Business challenges The frozen food industry faced tough challenges from health
and nutrition trends that are emphasizing fresh foods. Industry
is highly competitive because it is expected to experience slow
growth through 2018.

Taglines “Good food. Better life.” and “It’s all good.”

100 oven-ready frozen foods—pizzas, appetizers, meals, and vegetables. McCain is


Business-to-business (B2B) a global business-to-business (B2B) manufacturer with 55 production facilities on 6
commerce. The selling of continents. The company sells frozen foods to other businesses—wholesalers, retail-
products and services to ers, and restaurants from sales offices in 110 countries. McCain supplies frozen fries
other businesses. to Burger King and supermarket chains (Figure 1.3).

Voisin/Phanie/SuperStock

Figure 1.3 Frozen food is


one of the most dynamic
and largest sectors of the
food industry.
4 Chapter 1 Doing Business in Digital Times
Supply chain. All businesses Food manufacturers must be able to trace all ingredients along their supply
involved in the production chain in case of contamination. Achieving end-to-end traceability is complex given
and distribution of a product the number of players in food supply chains. Several communication and tracking
or service. technologies make up McCain’s supply chain management (SCM) system to keep
workers informed of actual and potential problems with food quality, inventory,
and shipping as they occur. McCain’s SCM system ensures delivery of the best
products possible at the best value to customers. In addition, the company strives
to prevent food shortages worldwide by analyzing huge volumes of data to predict
crop yields.

FROZEN FOOD McCain Foods had to deal with three major challenges and threats:
INDUSTRY CHALLENGES
1. Drop in demand for frozen foods. McCain operated in an industry that was
facing tougher competition. Health-conscious trends were shifting customer
demand toward fresh food, which was slowing growth in the frozen foods
market.
2. Perishable inventory. Of all the types of manufacturing, food manufacturers face
© DustyPixel/iStockphoto

unique inventory management challenges and regulatory requirements. Their


inventory of raw materials and finished goods can spoil, losing all their value, or
food can become contaminated. Regulators require food manufacturers to able
to do recalls quickly and effectively. Food recalls have destroyed brands and
been financially devastating.
3. Technology-dependent. Food manufacturers face the pressures that are
Figure 1.4 McCain Foods common to all manufacturers. They need information reporting systems and
and Burger King jointly digital devices to manage and automate operations, track inventory, keep
developed Satisfries—a the right people informed, support decisions, and collaborate with business
french fry innovation with partners.
30 percent less fat and
McCain Foods worked with Burger King (BK) to develop lower-calorie fries
20 percent fewer calories
than BK’s current fries and called Satisfries (Figure 1.4). These crinkle-cut fries have 30 percent less fat and
40 percent less fat and 20 percent fewer calories than BK’s classic fries. This food innovation has shaken
30 percent fewer calories up the fast-food industry and given BK an advantage with end-consumers who are
than McDonald’s fries. demanding healthier options.

MCCAIN FOODS’ The McCain brothers, who founded the company, follow this simple philosophy:
BUSINESS AND IT “Good ethics is good business.” McCain prides itself on the quality and conve-
STRATEGIES nience of its products, which is reflected in the It’s All Good brand image. The It’s
All Good branding effort was launched in 2010 after surveys found that customers
were concerned about the quality and nutrition of frozen foods. Since then, many of
products have been improved and manufactured in healthier versions.
Managing with Digital Technology McCain had integrated its diverse
sources of data into a single environment for analysis. Insights gained from its data
analytics helped improve manufacturing processes, innovation, and competitive
advantage.
McCain Foods invested in data analytics and visualization technologies to
maximize its capability to innovate and gain insights from its huge volumes of data.
The company tracks, aggregates, and analyzes data from operations and business
customers in order to identify opportunities for innovation in every area of the busi-
ness. The results of data analytics are made available across the organization—from
CASE 1.1 Opening Case 5
executive boardrooms to the factory floors—on dashboards. Dashboards are data
visualizations (data viz) that display the current status of key performance indica-
tors (KPIs) in easy-to-understand formats (Figure 1.5). KPIs are business metrics
used to evaluate performance in terms of critical success factors, or strategic and
operational goals.

Dashboards Create Productive Competition Among Factory Workers


McCain implemented 22,000 reports and 3,000 personal reporting systems that
include dashboards. Dashboards display summarized data graphically in a clear and
concise way. By clicking a graph, the user can drill down to the detailed data. The
dashboards reach most of McCain’s 18,000 employees worldwide.
Dashboards have created healthy competition that has led to better perfor-
mance. Ten-foot dashboards hang on factory walls of plants around the world. They
are strategically placed near the cafeteria so employees can see the KPIs and per-
formance metrics of every plant. With this visibility, everyone can know in near real
time exactly how well they are doing compared to other plants. The competition
among factories has totally transformed the work environment—and organizational
culture—in the plants and increased production performance.

Better Predictions, Better Results The CEO, other executives, and managers
view their dashboards from mobile devices or computers. They are able to monitor
operations in factories and farms around the globe. Dashboards keep management
informed because they can discover answers to their own questions by drilling
down. Data are used to forecast and predict crop yields—and ultimately combine
weather and geopolitical data to predict and avoid food shortages. By integrating
all of its data into one environment and making the results available in near real
time to those who need it, the organization is increasing its bottom line and driving
innovation.

© Delices/Shutterstock

Figure 1.5 Data visualizations


of KPIs make them easy to
understand at a glance.
6 Chapter 1 Doing Business in Digital Times
Questions
1. All it takes is one compromised ingredient to contaminate food and
to put human lives at risk. Delays in communicating contaminated food
Food Safety Modernization increase the health risk and fines for violating the Food Safety Mod-
Act (FSMA), signed into law ernization Act. How can the SCM system help McCain Foods reduce
in early 2011, requires all the risks related to low-quality or contaminated frozen foods reaching
companies in food supply consumers?
chains to be able to trace 2. What three challenges or threats facing McCain Foods and what is the
foods back to the point of reason for each challenge or threat?
origin (farm) and forward to 3. How have dashboards on the factory floors impacted performance at
the consumer’s plate (fork). McCain Foods?
The term for the effort is 4. What might be the KPIs of a frozen food manufacturer such as McCain
farm-to-fork traceability. Foods?
Public health is the chief con- 5. Explain how visibility about operations and performance created
cern, followed by potential healthy competition among McCain’s factory workers.
liability and brand protection 6. Being able to make reliable predictions can improve business perfor-
issues. mance. Explain why.

Sources: Compiled from Smith (2013), Transparency Market Research (2013), and McCain Foods
Teradata video (2013).

1.1 Every Business Is a Digital Business


Digital business is a social, Today, a top concern of well-established corporations, global financial institutions,
born-on-the-Web retailers, and government agencies is how to design their digital
mobile, and Web-focused
business models in order to:
business.
Business model is how a • deliver an incredible customer experience;
business makes money. • turn a profit;
Digital business model • increase market share; and
defines how a business • engage their employees.
makes money digitally.
In the digital (online) space, the customer experience (CX) must measure up
Customer experience (CX) to the very best the Web has to offer. Stakes are high for those who get it right—or
is about building the digital get it wrong. Forrester research repeatedly confirms there is a strong relationship
infrastructure that allows cus- between the quality of a firm’s CX and loyalty, which in turn increases revenue
tomers to do whatever they (Schmidt-Subramanian et al., 2013).
want to do, through whatever This section introduces the most disruptive and valuable digital technologies,
channel they choose to do it. which you will continue to read about throughout this book.

DIGITAL TECHNOLOGIES Consumers expect to interact with businesses anytime anywhere via mobile
OF THE 2010S—IN THE apps or social channels using technology they carry in their pockets. Mobile apps
CLOUD, HANDHELD, have changed how, when, and where work is done. Employees can be more produc-
AND WEARABLE tive when they work and collaborate effortlessly from their handheld or wearable
devices.
Cloud computing is a style
of computing in which IT Cloud Computing
services are delivered on- Enterprises can acquire the latest apps and digital services as they are needed and
demand and accessible via without large upfront investments by switching from owning IT resources to cloud
the Internet. Common exam- computing (Figure 1.6). Cloud computing ranges from storing your files in Dropbox
ples are Dropbox, Gmail, to advanced cloud services. In short, with the cloud, resources no longer depend
and Google Drive. on buying that resource. For example, Amazon Elastic Compute Cloud, known as
1.1 Every Business Is a Digital Business 7

© DrAfter123/iStockphoto

© hanibaram/iStockphoto
Figure 1.6 Cloud computing is an important evolution in data storage, software, apps, and
delivery of IT services. An example is Apple iCloud—a cloud service used for online storage and
synchronization of mail, media files, contacts, calendar, and more.

EC2, eliminates the need to invest in hardware up front, so companies can develop
and deploy applications faster. EC2 enables companies to quickly add storage
capacity as their computing requirements change. EC2 reduces the time it takes to
acquire server space from weeks to minutes.

Machine-to-Machine Technology
Sensors can be embedded in most products. Objects that connect themselves to
the Internet include cars, heart monitors, stoplights, and appliances. Sensors are
designed to detect and react, such as Ford’s rain-sensing front wipers that use
an advanced optical sensor to detect the intensity of rain or snowfall and adjust
wiper speed accordingly. Machine-to-machine (M2M) technology enables sensor-
Internet of things (IoT) embedded products to share reliable real time data via radio signals. M2M and
refers to a set of capabilities the Internet of Things (IoT) are widely used to automate business processes in
enabled when physical things industries ranging from transportation to health care. By adding sensors to trucks,
are connected to the Internet turbines, roadways, utility meters, heart monitors, vending machines, and other
via sensors. equipment they sell, companies can track and manage their products remotely.

TECH NOTE 1.1 The Internet of Things

The phrase Internet of Things was coined by Kevin Ashton in 1999 while he was em-
ployed at Procter & Gamble. It refers to objects (e.g., cars, refrigerators, roadways)
that can sense aspects of the physical world, such as movement, temperature, light-
ing, or the presence or absence of people or objects, and then either act on it or re-
port it. Instead of most data (text, audio, video) on the Internet being produced and
used by people, more data are generated and used by machines communicating with
other machines—or M2M, as you read at the start of this chapter. Smart devices use
IP addresses and Internet technologies like Wi-Fi to communicate with each other
or directly with the cloud. Recent advances in storage and computing power avail-
able via cloud computing are facilitating adoption of the IoT.
The IoT opens new frontiers for improving processes in retail, health care,
manufacturing, energy, and oil and gas exploration. For instance, manufacturing
processes with embedded sensors can be controlled more precisely or monitored
8 Chapter 1 Doing Business in Digital Times

for hazards and then take corrective action, which reduces injuries, damage, and
costs. IoT combined with big data analytics can help manufacturers improve the
efficiency of their machinery and minimize energy consumption, which often is the
manufacturing industry’s second-biggest expense.
The health sector is another area where IoT can help significantly. For example,
a person with a wearable device that carries all records of his health could be monitored
constantly. This connectivity enables health services to take necessary measures for
maintaining the wellbeing of the person.

Big Data
There is no question that the increasing volume of data can be valuable, but only if
they are processed and available when and where they are needed. The problem is
that the amount, variety, structure, and speed of data being generated or collected
by enterprises differ significantly from traditional data. Big data are what high-
volume, mostly text data are called. Big data stream in from multiple channels and
sources, including:
• mobile devices and M2M sensors embedded in everything from airport
runways to casino chips. Later in this chapter, you will read more about the
Internet of Things.
• social content from texts, tweets, posts, blogs.
• clickstream data from the Web and Internet searches.
• video data and photos from retail and user-generated content.
• financial, medical, research, customer, and B2B transactions.
Big data are 80 to 90 per cent unstructured. Unstructured data do not have a pre-
dictable format like a credit card application form. Huge volumes of unstructured data
flooding into an enterprise are too much for traditional technology to process and ana-
lyze quickly. Big data tend to be more time-sensitive than traditional (or small) data.
The exploding field of big data and analytics is called data science. Data sci-
ence involves managing and analyzing massive sets of data for purposes such as
target marketing, trend analysis, and the creation of individually tailored products
and services. Enterprises that want to take advantage of big data use real time data
from tweets, sensors, and their big data sources to gain insights into their custom-
ers’ interests and preference, to create new products and services, and to respond
to changes in usage patterns as they occur. Big data analytics has increased the
demand for data scientists, as described in Career Insight 1.1.

CAREER INSIGHT 1 . 1 HOT CAREER


Data Scientist

Big data, analytics tools, powerful networks, and greater technology, medical testing, and so on. Demand for data
processing power have contributed to growth of the scientists is outpacing the supply of talent. It is projected
field of data science. Enterprises need people who are that the data scientist career option will grow 19 per
capable of analyzing and finding insights in data cap- cent by 2020—surpassed only by video game design-
tured from sensors, M2M apps, social media, wearable ers. Talent scarcity has driven up salaries. According to
1.1 Every Business Is a Digital Business 9

Glassdoor data (glassdoor.com, 2014), the median salary after joining the company in 2006. At that time, LinkedIn
for data scientists in the United States is $117,500. By had less than 8 million members. Goldman noticed that
contrast, a business analyst earns an average of $61,000. existing members were inviting their friends and col-
leagues to join, but they were not making connections
Profiles of Data Scientists at Facebook, LinkedIn, with other members at the rate executives had expected.
and Bitly A LinkedIn manager said, “It was like arriving at a con-
• Facebook’s Jeff Hammerbacher. Jeff helped ference reception and realizing you don’t know anyone.
Facebook make sense out of huge volumes of user So you just stand in the corner sipping your drink—and
data when he joined the company in 2006. Facebook’s you probably leave early.” Goldman began analyzing
data science team analyzes the self-reported data on the data from user profiles and looked for patterns that
each user’s Facebook page in order to target ads to predict whose networks a given profile would land
based on things the user actually likes. in. While most LinkedIn managers saw no value in
Goldman’s work, Reid Hoffman, LinkedIn’s cofounder
• LinkedIn’s DJ Patil. DJ worked at LinkedIn as
and CEO at the time, understood the power of analytics
chief data scientist. Many of the cool products on
because of his experiences at PayPal. With Hoffman’s
LinkedIn were built using data from self-reporting
approval, Goldman applied data analytics to test what
and machine learning.
would happen if member were presented with names
• Bitly’s Hilary Mason. Hilary was chief scientist at of other members they had not yet connected with, but
Bitly, which offers URL shortening and redirec- seemed likely to know. He displayed the three best new
tion services with real time link tracking. Bitly sees matches for each member based on his or her LinkedIn
behavior from billions of people a month by analyz- profile. Within days, the click-through rate on those
ing tens of millions of links shared per day, which are matches skyrocketed and things really took off. Thanks
clicked hundreds of millions times. The clickstreams to this one feature, LinkedIn’s growth increased dra-
generate an enormous amount of real time data. matically.
Using data analytics, Hillary and her team detected The LinkedIn example shows that good data sci-
and solved business problems that were not evident. entists do much more than simply try to solve obvious
business problems. Creative and critical thinking are
Data Science Is Both an Art and a Science part of their job—that is, part analyst and part artist.
In their 2012 Harvard Business Review article titled They dig through incoming data with the goal of dis-
“Data Scientist: The Sexiest Job of the 21st Century,” covering previously hidden insights that could lead to
authors Thomas Davenport and D. J. Patil define a data a competitive advantage or detect a business crisis in
scientist as a “high-ranking professional with the train- enough time to prevent it. Data scientists often need
ing and curiosity to make discoveries in the world of big to evaluate and select those opportunities and threats
data” (Davenport & Patil, 2012). They described how that would be of greatest value to the enterprise or
data scientist Jonathan Goldman transformed LinkedIn brand.

Sources: Kelly (2013), Lockhard & Wolf (2012), Davenport & Patil (2012), U.S. Department of Labor, Bureau of Labor Statistics (2014).

SOCIAL-MOBILE-CLOUD The relationship among social, mobile, and cloud technologies is shown in
MODEL Figure 1.7. The cloud consists of huge data centers accessible via the Internet and
forms the core by providing 24/7 access to storage, apps, and services. Handhelds
and wearables, such as Google Glass, Pebble, and Sony Smartwatch (Figure 1.8),
and their users form the edge. Social channels connect the core and edge. The
SoMoClo integration creates the technical and services infrastructure needed for
digital business. This infrastructure makes it possible to meet the expectations of
employees, customers, and business partners given that almost everyone is con-
nected (social), everywhere they go (mobile), and has 24/7 access to data, apps, and
other services (cloud).
Another random document with
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China to the Amazonian warriors of South America and the Fountain
of Youth which explorers of real enterprise were ready to discover.
Had there been any knowledge of the science of politics in
Spain, Columbus would have been a person of considerable
importance in his old age. The Radicals would have rallied around
him, and would have denounced the atrocious manner in which a
treacherous and reactionary monarchy had treated him. Columbian
clubs would have been established everywhere, and he would have
been made to serve as the stalking-horse of an unprincipled and
reckless faction.
[Æt. 67–70; 1503–1506]

When we compare the way in which the Italian republicans have


used the name and fame of Garibaldi as the most effective weapon
in striking at the monarchy which has made United Italy possible, we
cannot but despise the ignorance of politics shown by the Spaniards
in the beginning of the sixteenth century.
Columbus, though utterly worn out, was still able to write letters.
He wrote to the King, to the Queen, to everybody who had any
influence, asking that his honors and privileges should be restored,
and hinting that he was ready to be sent back to San Domingo as
Governor. No one paid any attention to him. Other men were fitting
out exploring expeditions, and Columbus, with his splendid dreams
and his peculiar mixture of religion and geography, was regarded as
a foolish old man who had outlived his original usefulness. He was
too sick to visit the court and personally explain why he had not
discovered the Panama Canal, and the King, having failed to keep
his own promises, was naturally not at all anxious to see him.
Perhaps Isabella would have still remained faithful to her old
protégé, but she was on her deathbed, and died without seeing him.
In May, 1505, Columbus managed to go to Segovia, where
Ferdinand held his court. He saw the King, but got very little pleasure
thereby. Ferdinand was now a widower and his own master; and his
manner plainly showed Columbus that, whatever the King might
promise, he never intended to keep his word and do justice to the
man who had given him a new world.
[Æt. 70; 1506]

The end was now drawing near, and Columbus made a codicil to
his will, expressing his last wishes. Beatrix Enriquez was still alive,
though whether she too had forsaken Columbus we are not told. It is
pleasant to find that the Admiral remembered her, and in the codicil
to his will ordered his son Diego to see that she was properly cared
for, adding, “and let this be done for the discharge of my conscience,
for it weighs heavy on my soul.” He had neglected to marry Beatrix,
and, unlike most men in like circumstances, the neglect burdened his
conscience. This codicil was almost the last act of his busy life; and
on the 20th of May, 1506, repeating the Latin words, In manus tuas,
Domine, commendo spiritum meum, he died with the calmness of a
brave man and the peace of a Christian. He had lived seventy years,
and had literally worn himself out in the service of the royal hound
whose miserable little soul rejoiced when he heard that the great
Italian was dead.
Columbus was buried almost as much as he was born. His first
burial was in the convent of St. Francisco. Seven years later he was
buried some more in the Carthusian convent in Seville. In 1536 he
was carried to San Domingo and buried in the Cathedral, and
afterward he was, to some extent, buried in Havana. Whether
Havana or San Domingo has at present the best claim to his grave,
is a disputed point.
CHAPTER XIX.
HIS CHARACTER AND ACHIEVEMENTS.

HITHERTO we have proceeded upon the assumption that


Columbus was a real historical person. It is one of the limitations of
biography that the writer must always assume the existence of the
subject of his sketch. There are, however, grave reasons for
doubting whether Christopher Columbus ever lived. There is the
matter of his birthplace. Is it credible that he was born in seven
distinct places? Nobody claims that George Washington was born in
all our prominent cities, or that Robinson Crusoe, who was perhaps
the most absolutely real person to be found in the whole range of
biography, was born anywhere except at York. Can we believe that
the whole of Columbus was simultaneously buried in two different
West Indian cities? If we can accept any such alleged fact as this,
we can no longer pretend that one of the two Italian cities which
boast the possession of the head of John the Baptist is the victim of
misplaced confidence.
And then the character of Columbus as portrayed by his
admiring biographers is quite incredible, and his alleged treatment by
the King and Queen whom he served is to the last degree
improbable. The story of Columbus is without doubt an interesting
and even fascinating one; but can we, as fearless and honest
philosophers, believe in the reality of that sweet Genoese vision—
the heroic and noble discoverer of the New World?
There are strong reasons for believing that the legend of
Christopher Columbus is simply a form of the Sun myth. We find the
story in the Italian, Spanish, and English languages, which shows,
not that Colombo, Colon, and Columbus ever lived, breathed, ate
dinner, and went to bed, but that the myth is widely spread among
the Indo-Germanic races. Columbus is said to have sailed from the
east to the west, and to have disappeared for a time beyond the
western horizon, only to be found again in Spain, whence he had
originally sailed. Even in Spain, he was said to have had his
birthplace in some vague locality farther east, and to have reached
Spain only when near his maturity.
This is a beautiful allegorical description of the course of the sun
as it would appear to an unlearned and imaginative Spaniard. He
would see the sun rising in the distant east, warming Spain with his
mature and noonday rays, setting beyond the western horizon in the
waters of the Atlantic, and again returning to Spain to begin another
voyage, or course, through the heavens. The clouds which at times
obscure the sun are vividly represented by the misfortunes which
darkened the career of Columbus, and his imprisonment in chains by
Bobadilla is but an allegorical method of describing a solar eclipse.
The colonists who died of fever under his rule, like the Greeks who
fell under the darts of the Sun God, remind us of the unwholesome
effects produced by the rays of a tropical sun upon decaying
vegetation; and the story that Columbus was buried in different
places illustrates the fact that the apparent place of sunset changes
at different points of the year.
There is very much to be said in favor of the theory that
Columbus is a personification of the Sun, but that theory cannot be
accepted either by a biographer or by any patriotic American. The
one would have to put his biography of the Great Admiral in the fire,
and the other would lose all certainty as to whether America had
ever been discovered. We must resolve to believe in the reality of
Columbus, no matter what learned sceptics may tell us; and we shall
find no difficulty in so doing if we found our belief on a good strong
prejudice instead of reasonable arguments.
Let us then permit no man to destroy our faith in Christopher
Columbus. We can find fault with him if we choose; we can refuse to
accept Smith’s or Brown’s or Jones’s respective estimates of his
character and deeds: but let us never doubt that Columbus was a
real Italian explorer; that he served an amiable Spanish Queen and a
miserable Spanish King; and that he sailed across a virgin ocean to
discover a virgin continent.
There prevails to a very large extent the impression that the
voyages of Columbus prove that he was a wonderfully skilful
navigator, and it is also commonly believed that the compass and the
astrolabe were providentially invented expressly in order to assist
him in discovering America. There was, of course, a certain amount
of practical seamanship displayed in keeping the Santa Maria and
her successors from being swamped by the waves of the Atlantic;
but it may be safely asserted that only a very slight knowledge of
navigation was either exhibited or needed by Columbus. The ships
of the period could do nothing except with a fair wind. When the wind
was contrary they drifted slowly to leeward, and when the wind was
fair a small-boy with a knowledge of the elements of steering could
have kept any one of them on her course. The compass was a
handy thing to have on board a ship, since it gave to the sailors the
comfortable feeling which an ignorant man always has in the
presence of any piece of mechanism which he fancies is of
assistance to him; but for all practical purposes the sun and the stars
were as useful to Columbus as was his compass with its
unintelligible freaks of variation. So, too, the astrolabe must have
impressed the sailors as a sort of powerful and beneficent fetish, but
the log-book of Columbus would have testified that the astrolabe was
more ornamental than useful.
The system of navigation followed by Columbus was to steer as
nearly west as practicable on the way to America, and to steer as
nearly east as possible on his way back to Spain. In the one case he
would be sure to hit some part of the New World if he sailed long
enough, and in the other case persistent sailing would be sure to
bring him within sight of either Europe or Africa. In neither case could
he so far overrun his reckoning as to arrive unexpectedly at some
point in the interior of a continent. The facts prove that this was
precisely the way in which Columbus navigated his ship. When
steering for America he never knew where he would find land, and
was satisfied if he reached any one of the countless large and small
West India islands; and on returning to Spain there was as much
probability that he would find himself at the Azores or at the mouth of
the Tagus as at any Spanish port.
The truth is, that neither the seamanship of Columbus nor the
invention of the compass or the astrolabe made his first voyage
successful. Probably any one of the thousands of contemporary
Italian sailors could have found the West Indies as easily as
Columbus found them, provided the hypothetical sailor had
possessed sufficient resolution to sail westward until the land should
stop his way. What we should properly be called upon to admire in
Columbus as a navigator of unknown seas is the obstinacy with
which he adhered to his purpose of sailing due west until land should
be found, no matter if it should take all summer. It was an obstinacy
akin to that with which our great Union General fought his last
campaign. Such obstinacy will sometimes accomplish greater results
than the most skilful navigator or the profoundest strategist could
accomplish. Had the man who discovered our country or the man
who saved it been less obstinate, American history would have been
widely different from what it has been.
As the astrolabe has been mentioned several times in the course
of this narrative, it may be well to describe it, especially as it is now
obsolete. It was an instrument of considerable size, made of some
convenient material—usually either metal or wood, or both—and
fitted with various contrivances for the purpose of observing the
heavenly bodies. When a navigator took an observation with the
astrolabe he immediately went below and “worked it up” with the
help of a slate and pencil, and in accordance with the rules of
arithmetic and algebra. The result was a series of figures which
greatly surprised him, and which he interpreted according to the
humor in which he happened to find himself. A skilful navigator who
could guess his latitude with comparative accuracy generally found
that an observation taken with the astrolabe would give him a result
not differing more than eighty or ninety degrees from the latitude in
which he had previously imagined his ship to be, and if he was an
ingenious man he could often find some way of reconciling his
observation with his guesses. Thus the astrolabe gave him
employment and exercised his imagination, and was a great blessing
to the lonesome and careworn mariner.
It is our solemn duty, as Americans, to take a warm interest in
Christopher Columbus, for the reason that he had the good taste and
judgment to discover our beloved country. Efforts have frequently
been made to deprive him of that honor. It has been urged that he
was not the first man who crossed the Atlantic, that he never saw the
continent of North America, and that he was not the original
discoverer of South America. Most of this is undoubtedly true. It is
now generally conceded the Norwegians landed on the coast of New
England about six hundred years before Columbus was born; that
Americus Vespuccius was the first European to discover the South
American continent; that Sebastian Cabot rediscovered North
America after the Norwegians had forgotten all about it; and that
Columbus never saw any part of what is now the United States of
America. For all that, Columbus is properly entitled to be called the
discoverer of the New World, including the New England, Middle,
Gulf, Western, and Pacific States. Who invented steamboats? And
who invented the magnetic telegraph? Every patriotic American echo
will answer, “Fulton and Morse.” There were nevertheless at least
four distinct men who moved vessels by machinery driven by steam
before Fulton built his steamboat, and nearly twice that number of
men had sent messages over a wire by means of electricity before
Morse invented the telegraph. The trouble with the steamboats
invented by the pre-Fultonians, and the telegraphs invented by the
predecessors of Morse, was that their inventions did not stay
invented. Their steamboats and telegraphs were forgotten almost as
soon as they were devised; but Fulton and Morse invented their
steamboats and telegraphs so thoroughly that they have stayed
invented ever since.
Now, the Norwegians discovered America in such an
unsatisfactory way that the discovery came to nothing. They did not
keep it discovered. They came and looked at New England, and,
deciding that they had no use for it, went home and forgot all about
it. Columbus, who knew nothing of the forgotten voyage of the
Norwegians, discovered the West India islands and the route across
the Atlantic in such a workmanlike and efficient way that his
discoveries became permanent. He was the first man to show
people the way to San Domingo and Cuba, and after he had done
this it was an easy thing for other explorers to discover the mainland
of North and South America. He thus discovered the United States
as truly as Fulton discovered the way to drive the City of Rome from
New York to Liverpool, or Morse discovered the method of sending
telegrams over the Atlantic cable.
We need not be in the least disturbed by the learned men who
periodically demonstrate that Leif Ericson, as they familiarly call him,
was the true discoverer of our country. We need never change “Hail
Columbia” into “Hail Ericsonia,” and there is not the least danger
Columbia College will ever be known as Leifia University. We can
cheerfully admit that Leif Ericson—or, to give him what was probably
his full name, Eliphalet B. Ericson—and his Norwegians landed
somewhere in New England, and we can even forgive the prompt
way in which they forgot all about it, by assuming that they landed on
Sunday or on a fast-day, and were so disheartened that they never
wanted to hear the subject spoken of again. We can grant all this,
and still cherish the memory of Columbus as the true and only
successful discoverer of America.
Most biographers have written of Columbus in much the same
way that a modern campaign biographer writes the life of the
Presidential candidate from whom he hopes to receives an office.
They forget that he was never nominated by any regular party
convention, and that it is therefore wrong to assume, without any
sufficient evidence, that he was the greatest and best man that ever
lived. He was undoubtedly a bold sailor, but he lived in an age when
bold sailors were produced in quantities commensurate with the
demands of exploration, and we cannot say that he was any bolder
or better sailor than the Cabots or his own brother Bartholomew. He
was certainly no braver soldier than Ojeda, and his conquests were
trifling in comparison with those of Cortez and Pizarro.
As a civil ruler he was a conspicuous failure. It is true that the
colonists over whom he was placed were, many of them, turbulent
scoundrels; but the unanimity with which they condemned his
administration, and the uniformity with which every commissioner
appointed to investigate his conduct as a ruler condemned him,
compel us to believe that he was not an able governor either of
Spanish colonists or contiguous Indians. He was not habitually cruel,
as was Pizarro, but he insisted upon enslaving the Indians for his
own profit, though Queen Isabella had forbidden him to enslave
them or to treat them harshly.
He could be magnanimous at times, but he would not undertake
a voyage of discovery except upon terms which would ensure him
money and rank, and he did not hesitate to claim for himself the
reward which was offered, during his first voyage, to the man who
should first see the land, and which was fairly earned by one of his
sailors.
As an explorer, he failed to find a path to India, and he died
under the delusion that Pekin was somewhere in Costa Rica. His
first voyage across the broad Atlantic seems to us a wonderful
achievement, but in either difficulty or danger it cannot be compared
with Stanley’s march across the African continent. We must concede
to Columbus a certain amount of boldness and perseverance, but we
cannot shut our eyes to the faults of his conduct and character.
And yet Columbus was a true hero. Whatever flaws there may
have been in the man, he was of a finer clay than his fellows, for he
could dream dreams that their dull imaginations could not conceive.
He belonged to the same land which gave birth to Garibaldi, and, like
the Great Captain, the Great Admiral lived in a high, pure
atmosphere of splendid visions, far removed from and above his
fellow-men. The greatness of Columbus cannot be argued away. The
glow of his enthusiasm kindles our own, even at the long distance of
four hundred years, and his heroic figure looms grander through
successive centuries.
THE END.
INDEX.

Aguado, Juan, appointed investigator, 185;


investigates, 188;
makes nothing by it, 195.
Angel, Luis de St., 56;
offers to advance money, 57.
Astrolabe, invented, 32;
description of, 276.

Black Crook, thought to have broken out in Spain, 194.


Bobadilla, Francisco de, arrives in Hispaniola, 221;
arrests Columbus, 228;
sends Columbus to Spain, 229.
Boyle, Father Bernardo, 133;
desires to burn somebody, 150, 163;
is disappointed, 174.

Caonabo, 160;
captured, 175;
dies, 193.
Cedo, Fermin, alleged scientific person, 158.
Cogoletto, alleged birthplace of Columbus, 1.
Columbus, Bartholomew, born and translated, 4;
is sent to England, 38;
arrives at Hispaniola, 171;
made Governor of Isabella, 191;
able commander, 209;
arrested, 228;
sails with fourth exploring expedition, 236;
defeats Porras, 261.
Columbus, Christopher, born, 1;
translated, 3;
anecdotes of boyhood, 5;
goes to Pavia, 9;
becomes sailor, 11;
engages in Neapolitan expedition, 12;
deceives sailors or posterity, 13;
does not arrive in Portugal, 16;
does arrive there, 18;
marries, 19;
makes maps, 20;
lives at Porto Santo, 21;
goes to Iceland or elsewhere, 28;
talks to King John, 35;
goes to Spain, 38;
deposited with Quintanilla, 41;
meets Scientific Congress, 43;
goes to Convent of Rabida, 49;
meets committee on exploration, 54;
starts for France, 56;
goes to Palos, 61;
sails on first voyage, 67;
keeps false reckoning, 72;
discovers San Salvador, 89;
sails for Spain, 97;
wrecked, 102;
founds colony, 105;
sees Mermaids, 110;
displays seamanship, 115;
arrives at Azores, 116;
arrives at Palos, 125;
flattens egg, 135;
sails on second voyage, 138;
discovers Dominica, 141;
returns to Spain, 191;
loses popularity, 196;
sails on third voyage, 200;
discovers Trinidad, 204;
invents ingenious theory, 205;
arrives at Hispaniola, 208;
arrested, 228;
sent to Spain, 229;
arrives in Spain, 230;
sails on fourth voyage, 237;
reaches Honduras, 240;
searches for Panama Canal, 240;
founds colony at Veragua, 243;
sails away, 250;
reaches Jamaica, 251;
manages lunar eclipse, 258;
reaches Hispaniola, 262;
returns to Spain, 264;
dies, 268;
is extensively buried, 268;
perhaps is a sun-myth, 269;
character, 284.
Columbus, Diego, born, 4;
Governor of Isabella, 162;
sent to Spain to wait for opening in Connecticut, 177;
returns to Hispaniola, 187;
arrested by Bobadilla, 227.
Columbus, Dominico, combs wool, 3.
Compass, variation of, 55.
Congress of Salamanca, 46;
its tediousness, 45.
Correo, Pedro, 21;
he winks, 25;
is talked to death, 34.

Enriquez, Beatrix, loves not wisely but too well, 41;


is mentioned in Columbus’s will, 267.
Ericson, Eliphalet B., discovers America, 281.
Eclipse, story of, 258.
Egg, story of, 135.

Ferdinand, King of Aragon, 40.

Guacanagari, his affection for Columbus, 101;


his suspicious leg, 150;
falls extensively in love, 152;
protects Spaniards, 175.

Isabella, Queen of Castile, 41.

John, King of Portugal, 29;


his dishonorable conduct, 34.

La Navidad, founded, 105;


destroyed, 148.
Ledesma, Pedro, swims ashore, 249.

Marchena, Juan Perez de, prior of a convent, 50;


makes a night of it with Columbus, 51.
Margarite, rebels, 174.
Mendez, Diego, tries to reach Hispaniola from Jamaica, 252;
succeeds, 254.
Mendoza, Cardinal de, gives dinner, 135.
Mexica, De, rebels, 219.

Ojeda, Alonzo de, is a just man, 158;


captures Caonabo, 175;
arrives at Xaragua, 215;
his interview with Roldan, 216.
Ovando, Nicholas de, sent to Hispaniola, 233;
refuses to let Columbus land, 237;
delays to send aid to Columbus, 255;
finally does send it, 262.

Perestrello, Mrs., mother-in-law of Columbus, 20;


her use of the stove-lid, 21.
Pinzon, Martin Alonzo, fits out ship to join Columbus, 56;
has a brilliant idea, 83;
deserts, 97;
met by Columbus, 108;
reaches Palos, 127;
displays good sense, 128.
Pinzon, Vincente Yanez, fits out ship to join Columbus, 56.
Porras, Francisco de, mutinies, 256;
defeated and captured, 261.
Prester John, who he was, 31;
who he was not, 166.

Quibian, attacks colony, 246.


Quintanilla, receives Columbus on deposit, 41.

Roldan, Francisco, rebels, 210;


compromises, 215;
outwits Ojeda, 216;
drowned, 239.

Ships, rigged by Indianians, 64.

Talavera, De, the Queen’s confessor, 43.


Triana, De, discovers land, 86;
is disgusted, 87.

Villejo, Alonzo de, risks his eyes, 229.


Transcriber’s Notes
“Æt.” is an abbreviation for the Latin “aetatis”, which
means “At the age of”. In the original book, this was printed
with Columbus’ age as running headers on the left-hand
pages, and the corresponding years were printed as running
headers on the right-hand pages. In this eBook, they have
been combined, aligned on the right margin, and included at
the beginning of each chapter, as well as whenever they
change. Consecutive duplicates within chapters have been
deleted. Apparent inconsistencies between the ages and the
years have not been changed.
Punctuation, hyphenation, and spelling were made
consistent when a predominant preference was found in the
original book; otherwise they were not changed.
Simple typographical errors were corrected; unbalanced
quotation marks were remedied when the change was
obvious, and otherwise left unbalanced.
The index was not checked for proper alphabetization or
correct page references, but a few errors were corrected.
Page 3: “Kolompo” was printed in Fraktur.
Page 239: The phrase “Panama Canal” is in the original
book, even though the year was 1502 and the book was
published in 1881.
*** END OF THE PROJECT GUTENBERG EBOOK CHRISTOPHER
COLUMBUS (1440-1506) ***

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