Professional Documents
Culture Documents
Full Chapter Management Information Systems Managing The Digital Firm Global Edition Laudon PDF
Full Chapter Management Information Systems Managing The Digital Firm Global Edition Laudon PDF
https://textbookfull.com/product/management-information-systems-
managing-the-digital-firm-fourteenth-edition-laudon/
https://textbookfull.com/product/management-information-systems-
managing-the-digital-firm-kenneth-c-laudon/
https://textbookfull.com/product/information-systems-today-
managing-in-the-digital-world-seventh-global-edition-joseph-s-
valacich/
https://textbookfull.com/product/information-systems-today-
managing-the-digital-world-joseph-valacich/
Managing and Using Information Systems Galletta
https://textbookfull.com/product/managing-and-using-information-
systems-galletta/
https://textbookfull.com/product/the-strategic-management-of-
information-systems-building-a-digital-strategy-4th-edition-joe-
peppard/
https://textbookfull.com/product/biota-grow-2c-gather-2c-cook-
loucas/
https://textbookfull.com/product/digital-business-transformation-
organizing-managing-and-controlling-in-the-information-age-rocco-
agrifoglio/
https://textbookfull.com/product/information-systems-outsourcing-
the-era-of-digital-transformation-rudy-hirschheim/
Fifteenth Edition Fifteenth
Management Information Systems Edition
Information
information systems, the knowledge and information that this
book contains will be valuable throughout the business career.
Fifteenth
empowering Capella.
Edition
in.pearson.com
Kenneth C. Laudon
Online resources available at
www.pearsoned.co.in/kennethclaudon/
Laudon
Laudon
Size: 203x254mm Spine: 00mm ISBN: 9789352865475 Title Sub Title Edition Authors / Editors Name With CD Red Band Territory line URL Price mQuest
About Pearson
Pearson is the world’s learning company, with presence across 70 countries
worldwide. Our unique insights and world-class expertise comes from a long
history of working closely with renowned teachers, authors and thought
leaders, as a result of which, we have emerged as the preferred choice for
millions of teachers and learners across the world.
We believe learning opens up opportunities, creates fulfilling careers and
hence better lives. We hence collaborate with the best of minds to deliver you
class-leading products, spread across the Higher Education and K12 spectrum.
Superior learning experience and improved outcomes are at the heart of
everything we do. This product is the result of one such effort.
Your feedback plays a critical role in the evolution of our products and you
can contact us – reachus@pearson.com. We look forward to it.
FIFTEENTH EDITION
FIFTEENTH EDITION
Kenneth C. Laudon
New York University
Jane P. Laudon
Azimuth Information Systems
Adapted by
Sahil Raj
School of Management Studies, Punjabi University, Patiala
Authorized adaptation from the global edition, entitled Management Information Systems: Managing The
Digital Firm, 15th Edition, ISBN 9781292211756 by Kenneth C. Laudon and Jane P. Laudon, published
by Pearson Education, Inc, Copyright © 2018.
All rights reserved. This book is sold subject to the condition that it shall not, by way of trade or
otherwise, be lent, resold, hired out, or otherwise circulated without the publisher’s prior written
consent in any form of binding or cover other than that in which it is published and without a similar
condition including this condition being imposed on the subsequent purchaser and without limiting
the rights under copyright reserved above, no part of this publication may be reproduced, stored
in or introduced into a retrieval system, or transmitted in any form or by any means (electronic,
mechanical, photocopying, recording or otherwise), without the prior written permission of both the
copyright owner and the publisher of this book.
No part of this eBook may be used or reproduced in any manner whatsoever without the publisher’s prior written
consent.
This eBook may or may not include all assets that were part of the print version. The publisher reserves the right to
remove any material in this eBook at any time.
ISBN 978-93-528-6547-5
eISBN 978-93-528-6885-8
First Impression
This edition is manufactured in India and is authorized for sale only in India, Bangladesh, Bhutan,
Pakistan, Nepal, Sri Lanka and the Maldives. Circulation
of this edition outside of these territories is UNAUTHORIZED.
Head Office: 15th Floor, Tower-B, World Trade Tower, Plot No. 1, Block-C, Sector 16,
Noida 201 301, Uttar Pradesh, India.
Registered Office: 4th Floor, Software Block, Elnet Software City, TS-140, Block 2 & 9,
Rajiv Gandhi Salai, Taramani, Chennai 600 113, Tamil Nadu, India.
Fax: 080-30461003, Phone: 080-30461060
in.pearson.com; Email: companysecretary.india@pearson.com
Printed in India
vii
PART THREE Key System Applications for the Digital Age 355
Chapter 9 Achieving Operational Excellence and Customer Intimacy: Enterprise
Applications 356
Chapter 10 E-commerce: Digital Markets, Digital Goods 392
Chapter 11 Managing Knowledge 442
Chapter 12 Enhancing Decision Making 482
Glossary 629
Indexes 643
viii
The Internet and Organizations 98 • Implications for the Design and
Understanding of Information Systems 98
3-3 How do Porter's competitive forces model, the value chain
model, synergies, core competencies, and network economics
help companies develop competitive strategies using information
systems? 99
Porter's Competitive Forces Model 99 • Information System Strategies for
Dealing with Competitive Forces 101 • The Internet's Impact on Competitive
Advantage 104
Interactive Session: Technology Smart Products, Smart Companies 106
The Business Value Chain Model 108 • Synergies, Core Competencies,
and Network-Based Strategies 110
3-4 What are the challenges posed by strategic information systems, and
how should they be addressed? 115
Sustaining Competitive Advantage 115 • Aligning IT with Business
Objectives 116 • Managing Strategic Transitions 117
Review Summary 117 • Key Terms 118 • Review Questions 119 •
Discussion Questions 119
Hands-On MIS Projects 120
Collaboration and Teamwork Project 120
Case Study: Deutsche Bank: The Cost of Legacy Systems 121
References: 124
PART THREE Key System Applications for the Digital Age 355
Chapter 9 Achieving Operational Excellence and Customer Intimacy:
Enterprise Applications 356
Opening Case: Alimentation Couche-Tard Competes Using Enterprise
Systems 357
9-1 How do enterprise systems help businesses achieve operational
excellence? 360
What are Enterprise Systems? 360 • Enterprise Software 361 • Business
Value of Enterprise Systems 362
9-2 How do supply chain management systems coordinate planning,
production, and logistics with suppliers? 363
The Supply Chain 364 • Information Systems and Supply Chain
Management 365 • Supply Chain Management Software 366 • Global
Supply Chains and the Internet 368 • Business Value of Supply Chain
Management Systems 370
Interactive Session: Technology Optimizing Operations at QuarkCity:
A Move Away from Legacy Systems 371
14-3 How can firms assess the business value of information systems? 573
Information System Costs and Benefits 573 • Capital Budgeting for
Information Systems 575 • Limitations of Financial Models 575
14-4 What are the principal risk factors in information systems projects, and
how can they be managed? 575
Dimensions of Project Risk 576 • Change Management and the Concept
of Implementation 576
Interactive Session: Management Can the National Health Service Go
Paperless? 577
Controlling Risk Factors 581 • Designing for the Organization 584
Interactive Session: Organizations Reliance Installing the 4G Project in India
585
Project Management Software Tools 587
Review Summary 588 • Key Terms 588 • Review Questions 589 •
Discussion Questions 589
Hands-On MIS Projects 589
Collaboration and Teamwork Project 590
Case Study: A Shaky Start for Healthcare.gov 591
References: 584
xxii
xxiii
Currency
The 15th edition features all new opening, closing, and Interactive Session
cases. The text, figures, tables, and cases have been updated through September
2016 with the latest sources from industry and MIS research.
New Topics
• Big Data and the Internet of Things: In-depth coverage of big data,
big data analytics, and the Internet of Things (IoT) in Chapters 1, 6, 7,
and 12. Includes big data analytics, analyzing IoT data streams, Hadoop,
in-memory computing, non-relational databases, and analytic platforms.
• Cloud Computing: Updated and expanded coverage of cloud computing
in Chapter 5 (IT infrastructure) with more detail on types of cloud ser-
vices, private and public 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 secu-
rity), Chapter 9 (cloud-based CRM and ERP), Chapter 10 (e-commerce),
and Chapter 13 (cloud-based systems development).
• Social, Mobile, Local: New e-commerce content in Chapter 10 describ-
ing how social tools, mobile technology, and location-based services are
transforming marketing and advertising.
xxiv
Chapter Organization
Each chapter contains the following elements:
• A Chapter Outline based on Learning Objectives
• Lists of all the Case Studies
• A chapter-opening case describing a real-world organization to establish
the theme and importance of the chapter
Business
Challenges
• Monitor service level
and costs • Costly, unwieldy IT infrastructure
A diagram accompanying
• Plan new IT • Low-cost provider
each chapter-opening case infrastructure
Management
• Highly competitive industry
graphically illustrates how • Make IT infrastructure
management, organization, investments
and technology elements
work together to create • Create new services Information Business
Organization
and business System Solutions
an information system processes
solution to the business
challenges discussed in the Seat Allocation System • Improve customer
case. • Provide online seat selection service
• On-premises Technology
service • Increase revenue
reservation system
• Microsoft Azure cloud
computing services
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.
In-text examples and case studies show students how specific companies use
information systems to achieve these objectives.
We use only current (2016) examples from business and public organiza-
tions throughout the text to illustrate the important concepts in each chap-
ter. All the case studies describe companies or organizations that are familiar
to students, such as Nike, Rugby Football Union, Facebook, Walmart, Fiat,
Unilever, and GE.
Interactivity
There’s no better way to learn about MIS than by doing MIS! We provide differ-
ent kinds of hands-on projects where students can work with real-world busi-
ness scenarios and data and learn firsthand what MIS is all about. These proj-
ects heighten student involvement in this exciting subject.
• Interactive Sessions. Two short cases in each chapter have been rede-
signed 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.
396 Part Three Key System Applications for the Digital Age
Management
Beyond merely Decision Problems
soliciting advice, firms can be actively helped in solving some
business problems by using crowdsourcing. For instance, BMW launched a
11-8 U.S. Pharma Corporation is headquartered in New Jersey but has research sites in Germany, France, the
crowdsourcing project to enlist the aid of customers in designing an urban vehicle
United Kingdom, Switzerland, and Australia. Research and development of new pharmaceuticals is key to
for 2025.ongoing
Kickstarter.com is arguably
profits, and one of researches
U.S. Pharma the most famous e-commerce
and tests thousandscrowd-
of possible drugs. The company’s
funding researchers
sites where visitors
need toinvest
share in start-up companies.
information Other
with others examples
within include
and outside the company, including the U.S.
Two real-world business Caterpillar Foodworking
and DrugwithAdministration,
customers to design better
the World machinery,
Health IKEA for
Organization, anddesign-
the International Federation of Phar-
scenarios per chapter ing furniture, and Pepsico
maceutical using Super
Manufacturers Bowl viewersAlso
& Associations. to build an is
critical online video.
access to health information sites, such as the
Marketing throughLibrary
U.S. National social media is still and
of Medicine, in its
to early stages,
industry and companies
conferences are
and professional journals. Design a knowl-
provide opportunities for edge portal
experimenting for U.S.
in hopes of Pharma’s
finding aresearchers. Include Social
winning formula. in yourinteractions
design specifications
and relevant internal systems
students to apply chapter and databases, external sources of information, and internal and external communication and collabora-
tion tools. Design a home page for your portal.
concepts and practice man-
11-9 Canadian Tire is one of Canada’s largest companies, with 50,000 employees and 1,100 stores and gas bars
agement decision making. (gas stations) across Canada selling sports, leisure, home products, apparel, and financial services as well
as automotive and petroleum products. The retail outlets are independently owned and operated. Cana-
dian Tire has been using daily mailings and thick product catalogs to inform its dealers about new prod-
M10_LAUD9710_15_SE_C10.indd 397
ucts, merchandise setups, best practices, product ordering, and problem resolution, and it is looking17/10/16 for a 1:56 PM
better way to provide employees with human resources and administrative documents. Describe the prob-
lems created by this way of doing business and how knowledge management systems might help.
Improving Decision Making: Building a Simple Expert System for Retirement Planning
Software skills: Spreadsheet formulas and IF function or expert system tool
Business skills: Benefits eligibility determination
11-10 Expert systems typically use a large number of rules. This project has been simplified to reduce the num-
ber of rules, but it will give you experience working with a series of rules to develop an application.
When employees at your company retire, they are given cash bonuses. These cash bonuses are
based on the length of employment and the retiree’s age. To receive a bonus, an employee must be at least
Students practice using 50 years of age and have worked for the company for more than five years. The following table summarizes
the criteria for determining bonuses.
software in real-world
settings for achieving LENGTH OF EMPLOYMENT BONUS
operational excellence and <5 years No bonus
enhancing decision making. 5–10 years 20 percent of current annual salary
11–15 years 30 percent of current annual salary
16–20 years 40 percent of current annual salary
21–25 years 50 percent of current annual salary
26 or more years 100 percent of current annual salary
(CHERNETES, PSEUDOSCORPIONES.)