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Essentials of MIS
Over the past two decades, mass adoption of information technology and systems has revolutionized
the way business is conducted across the world. Essentials of MIS takes an in-depth look at how
companies use the latest technologies to achieve their objectives and solve key business challenges.
Its rich coverage includes up-to-date case studies from familiar names, such as Uber, Facebook, and
Amazon, and the Career Opportunities section in every chapter illustrates how the skills discussed
are relevant to employers.
Covering the most current and essential topics in MIS, the fifteenth edition features cases, figures,
and tables that have been revised and updated to offer a cohesive and comprehensive view of this
rapidly changing field.

Key Highlights
• Cloud computing, Big Data, and the Internet of Things: The coverage of these topics now
includes more details on cloud services, private and public clouds, hybrid clouds, and managing

Essentials of MIS
cloud services.

FIFTEENTH
EDITION
• Sustainability and ESG: This edition features new coverage of how information systems
promote sustainability and environmental, social, and governance (ESG) goals. Chapter 1 now
includes ESG leadership as a major objective of information systems, while many of the case
studies discuss sustainability issues.
• Updated and expanded coverage of AI: Chapter 11 has been rewritten to include expanded
FIFTEENTH EDITION
coverage of machine learning, deep learning, natural language systems, computer vision systems,
and robotics, reflecting the surging interest in business uses of AI and “intelligent” techniques.

Laudon • Laudon • Traver

• Impact of the coronavirus pandemic: This edition examines the impact of the coronavirus Kenneth C. Laudon
pandemic on business uses of information systems through up-to-date coverage of topics such as
working remotely, supply chain disruptions, and global supply chains. Jane P. Laudon
Available separately for purchase is MyLab MIS for Essentials of Management Information Systems, the Carol G. Traver
teaching and learning platform that empowers instructors to personalize learning for every student.
When combined with Pearson’s trusted educational content, this optional suite helps deliver the
desired learning outcomes.

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 • Dynamic Study Modules help students study chapter topics and the language of MIS
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in real time. These are available as graded assignments prior to class, and are
accessible on smartphones, tablets, and computers.

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• The Gradebook offers an easy way for you and your students to see their
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Item Analysis lets you quickly see trends by analyzing details like the number of
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And because it's correlated with the AACSB Standards, you can track students'
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preparing students to be leaders.

• Pearson eTextbook enhances learning—both in and out of the classroom. Students

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 Integrating Business with Technology
By completing the projects in this text, students will be able to demonstrate business knowledge, appli-
cation software proficiency, and Internet skills. These projects can be used by instructors as learning
assessment tools and by students as demonstrations of business, software, and problem-solving skills to
future employers. Here are some of the skills and competencies students using this text will be able to
demonstrate:
Business Application skills: Use of both business and software skills in real-world business applications.
Demonstrates both business knowledge and proficiency in spreadsheet, database, and web page/blog
creation tools.
Internet skills: Ability to use Internet tools to access information, conduct research, or perform online
calculations and analysis.
Analytical, writing and presentation skills: Ability to research a specific topic, analyze a problem, think
creatively, suggest a solution, and prepare a clear written or oral presentation of the solution, working either
individually or with others in a group.
* Dirt Bikes Running Case in MyLab MIS

Business Application Skills

Business Skills Software Skills Chapter

Finance and Accounting

Payroll accounting Spreadsheet formulas Chapter 1
SUM, AVERAGE functions
Absolute and relative addressing
Financial statement analysis Spreadsheet formulas Chapter 2*
Spreadsheet charts
Budgeting Spreadsheet formulas Chapter 2
Spreadsheet charts
Pricing hardware and software Spreadsheet formulas Chapter 5
Technology Rent vs. Buy Decision Spreadsheet formulas Chapter 5*
Total Cost of Ownership (TCO) analysis SUM, VLOOKUP
Analyzing wireless services and costs Spreadsheet formulas Chapter 7
Financial statement analysis Spreadsheet formulas Chapter 10
Spreadsheet downloading and formatting

Human Resources
Analyzing security events Spreadsheet sorting, data filtering Chapter 8
Employee training and skills tracking Database design Chapter 12*
Database querying and reporting

Manufacturing and Production

Inventory management Database design, querying, and reporting Chapter 6
Analyzing supplier performance and pricing Spreadsheet date functions Chapter 9
Data filtering, AVERAGE function
Bill of materials cost sensitivity analysis Spreadsheet data tables Chapter 11*
Spreadsheet formulas

Sales and Marketing

Sales trend analysis Database querying and reporting Chapter 3
Blog creation and design Blog creation tool Chapter 4
Marketing decisions Spreadsheet pivot tables Chapter 11

A01_LAUD0360_15_GE_FM_finalppv2.indd 2 4/11/2023 12:06:24 PM

 Customer reservation system Database querying and reporting Chapter 12
Customer profiling Database design Chapter 6*
Database querying and reporting

Internet Skills
Using online software tools for job hunting and career development Chapter 1

Using online interactive mapping software to plan efficient transportation routes Chapter 2

Researching product information Chapter 3

Evaluating websites for auto sales

Analyzing web browser privacy protection Chapter 4

Researching travel costs using online travel sites Chapter 5

Searching online databases for products and services Chapter 6

Using web search engines for business research Chapter 7

Researching and evaluating business outsourcing services Chapter 8

Researching and evaluating supply chain management services Chapter 9

Evaluating e-commerce hosting services Chapter 10

Using shopping bots to compare product price, features, and availability Chapter 11

Analyzing websites design Chapter 12

Analytical, Writing, and Presentation Skills*

Business Problem Chapter
Management analysis of a business Chapter 1

Value chain and competitive forces analysis Chapter 3

Business strategy formulation

Formulating a corporate privacy policy Chapter 4

Employee productivity analysis Chapter 7

Disaster recovery planning Chapter 8

Locating and evaluating suppliers Chapter 9

Developing an e-commerce strategy Chapter 10

A01_LAUD0360_15_GE_FM_finalppv2.indd 3 4/11/2023 12:06:24 PM

 This page is intentionally left blank

A01_LAUD0360_15_GE_FM_finalppv2.indd 4 4/11/2023 12:06:24 PM

 ­Fifteenth Edition Global Edition

Essentials of
Management
Information Systems
Kenneth C. Laudon
New York University

Jane P. Laudon
Azimuth Information Systems

Carol Guercio Traver

Azimuth Interactive, Inc.

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A01_LAUD0360_15_GE_FM_finalppv2.indd 7 4/11/2023 12:06:24 PM

 ­Brief Contents
Preface 18

I Information Systems in the Digital Age 31

1 Business Information Systems in Your Career 32
2 Global E-business and Collaboration 70
3 Achieving Competitive Advantage with Information Systems 110
4 Ethical and Social Issues in Information Systems 146

II Information Technology Infrastructure 185

5 IT Infrastructure: Hardware and Software 186
6 Foundations of Business Intelligence: Databases and Information Management 224
7 Telecommunications, the Internet, and Wireless Technology 260
8 Securing Information Systems 302

III Key System Applications for the Digital Age 345

9 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications 346
10 E-commerce: Digital Markets, Digital Goods 378
11 Improving Decision Making and Managing Artificial Intelligence 420

IV Building and Managing Systems 461

12 Making the Business Case for Information Systems and Managing Projects 462

Glossary 500
Index 515

A01_LAUD0360_15_GE_FM_finalppv2.indd 8 4/11/2023 12:06:24 PM

 ­Contents
Preface 18
I Information Systems in the
Digital Age 31
1 Business Information Systems in Your
Career 32
Chapter-Opening Case
Smart Shelves Reinvent the Retail Space 33
1-1 Understand why information systems are essential
for running and managing a business. 35
How Information Systems are Transforming
Business 35 • Key Challenges in Management
Information Systems 36 • Globalization Challenges
and Opportunities: A Flattened World 36 • Business
Drivers of Information Systems 38
1-2 Define an information system, explain how it
works, and identify its people, organizational,
and technology components. 41
What is An Information System? 41 • It Isn’t
Simply Technology: The Role of People and
Organizations 43 • Dimensions of Information
Systems 44
Spotlight On: Technology
UPS Competes Globally with Information
Technology 48
1-3 Apply a four-step method for business problem
solving to solve information system-related
problems. 49
The Problem-Solving Approach 50 • A Model of the
Problem-Solving Process 50 • The Role of Critical
Thinking in Problem Solving 53 • The Connections
among Business Objectives, Problems, and Solutions 53
1-4 Describe the information systems skills and
knowledge that are essential for business
careers. 54
How Information Systems Will Affect Business
Careers 54 • Information Systems and Business
Careers: Wrap-Up 57 • How This Book Prepares You
for the Future 57
Spotlight On: People
Will a Robot Steal Your Job? 58
1-5 Understand how MIS can help your
career. 61
The Company 61 • Position Description 61 • Job
Requirements 61 • Interview Questions 61 • Author
Tips 62
A01_LAUD0360_15_GE_FM_finalppv2.indd 9
Review Summary 62 •
Key Terms 63 • Review
Questions 63 • Discussion
Questions 64 • Hands-On
MIS Projects 64
Management Decision
Problem 64 • Achieving Operational Excellence:
Creating an Executive Payroll Register with Spreadsheet
Software 65 • Improving Decision Making: Using
the Internet to Locate Jobs Requiring Information
Systems Knowledge 65 • Collaboration and Teamwork
Project 65
Business Problem-Solving Case
Adyen and Fintech: Driving Change in the Financial
Services Industry 66
Chapter 1 References 68
2 Global E-business and
Collaboration 70
Chapter-Opening Case
Microsoft Teams Helps Toyota Motor North
America (TMNA) Do Even Better 71
­2-1 Identify the major features of a business that
are important for understanding the role of
information systems. 73
Organizing a Business: Basic Business Functions 73 •
Business Processes 74 • Managing a Business and
Firm Hierarchies 76 • The Business Environment 77
• The Role of Information Systems in a Business 78
2-2 Explain how information systems serve
different management groups in a business, and
how systems that link the enterprise improve
organizational performance. 78
Systems for Different Management Groups 79
Spotlight On: Organizations
Carbon Lighthouse Lights Up with the
Internet of Things (IoT), Big Data, and Cloud
Computing 83
Systems for Linking the Enterprise 85 • E-business,
E-commerce, and E-government 87
2-3 Understand why systems for collaboration,
social business, and knowledge management are
so important and the technologies they use. 88
What is Collaboration? 88 • What is Social Business?
89 • Business Benefits of Collaboration and Social
Business 90 • Building a Collaborative Culture and
Business Processes 90 • Tools and Technologies for
Collaboration and Social Business 92
9
4/11/2023 12:06:25 PM
 Spotlight On: Technology
Zoom: Quality Videoconferencing for Every Budget 94
Systems for Knowledge Management 97
2-4 Describe the role of the information systems
function in a business. 98
The Information Systems Department 98 •
Information Systems Services 99
2-5 Understand how MIS can help your
career. 100
The Company 100 • Position Description 100 • Job
Requirements 100 • Interview Questions 101 •
Author Tips 101
Review Summary 101 •
Key Terms 102 • Review
Questions 103 •
Discussion Questions 103
• Hands-On MIS
Projects 104
Management Decision Problem 104 • Improving
Decision Making: Using a Spreadsheet to
Create a Town Budget 104 • Achieving Operational
Excellence: Using Internet Software to Plan Efficient
Transportation Routes 105 • Collaboration and
Teamwork Project 105
Business Problem-Solving Case
How Much Does Technology Help
Collaboration? 106
Chapter 2 References 108
3 Achieving Competitive Advantage with
Information Systems 110
Chapter-Opening Case
N26: A Bank Without Branches 111
3-1 Demonstrate how Porter’s competitive forces
model, the value chain model, synergies, core
competencies, and network-based strategies
help companies use information systems for
competitive advantage. 113
Porter’s Competitive Forces Model 113 •
Information System Strategies for Dealing
with Competitive Forces 114
Spotlight On: People
Customer Experience Management: A New Strategic
Weapon 117
The Internet’s Impact on Competitive
Advantage 119 • The Business Value Chain
Model 120 • Synergies, Core Competencies,
and Network-Based Strategies 123 • Disruptive
Technologies: Riding the Wave 125
­3-2 Describe how information systems help
businesses compete globally. 126
10
A01_LAUD0360_15_GE_FM_finalppv2.indd 10
The Internet and Globalization 127 • Global
Business and System Strategies 127 • Global System
Configuration 128
3-3 Describe how information systems help
businesses compete using quality and
design. 129
What is Quality? 129 • How Information Systems
Improve Quality 130
3-4 Explain the role of business process
management (BPM) in enhancing
competitiveness. 132
What is Business Process Management? 132
Spotlight On: Organizations
GCB Bank: A Digital Transformation 135
3-5 Understand how MIS can help your
career. 136
The Company 136 • Position Description 136 •
Job Requirements 137 • Interview Questions 137 •
Author Tips 137
Review Summary 137 •
Key Terms 138 •
Review Questions 139 •
Discussion Questions 139 •
Hands-On MIS
Projects 140
Management Decision Problem 140 • Improving
Decision Making: Using a Database to Analyze Sales
Performance 140 • Improving Decision Making: Using
Web Tools to Configure and Price an Automobile 141
• Collaboration and Teamwork Project 141
Business Problem-Solving Case
Offline, Online, and Back: The Evolution of the UK
Grocery Market 142
Chapter 3 References 144
4 Ethical and Social Issues in Information
Systems 146
Chapter-Opening Case
Apps That Track: A Double-Edged Sword 147
4-1 Identify the ethical, social, and political issues
raised by information systems. 149
A Model for Thinking about Ethical, Social, and
Political Issues 150 • Five Moral Dimensions of the
Information Age 151 • Key Technology Trends that
Raise Ethical Issues 152
4-2 Describe principles for conduct that can be
used to guide ethical decisions. 154
Basic Concepts: Responsibility, Accountability,
Liability, and Due Process 154 • Ethical
Analysis 155 • Ethical Principles 155 • Professional
Codes of Conduct 156 • Some ­Real-World Ethical
Dilemmas 156
4/11/2023 12:06:25 PM
 4-3 Explain how contemporary information
systems technologies and the Internet pose
challenges to the protection of individual
privacy and intellectual property. 157
Information Rights: Privacy and Freedom in the
Internet Age 157 • Property Rights: Intellectual
Property 163
4-4 Discuss the issues that contemporary
information systems raise with respect to
system quality, accountability and control, and
the quality of everyday life. 166
System Quality: Data Quality and System
Errors 166 • Accountability and Control: Software
and Internet Liability Issues 167
Spotlight On: Organizations
Section 230: Should the Law That “Created” Today’s
Internet Be Repealed or Revised? 168
Quality of Life: Equity, Access, Boundaries, and
Health 170
4-5 Understand how MIS can help your
career. 174
The Company 174
­ potlight On: Technology
S Using Technology Service Providers 212 • Managing
Immersed in the Metaverse: What Will It Mean for
the Future? 175
Position Description 176 • Job Requirements 177 •
Interview Questions 177 • Author Tips 177
Review Summary 177 •
Key Terms 178 • Review
Questions 178 • Discussion
Questions 179 • Hands-On
MIS Projects 179
Management Decision Problem 179 • Achieving
Operational Excellence: Creating a Simple Blog 179 •
Improving Decision Making: Analyzing Web Browser
Privacy 180 • Collaboration and Teamwork Project 180
Business Problem-Solving Case
Facebook’s Many Ethical Challenges 181
Chapter 4 References 183
II Information Technology
Infrastructure 185
5 IT Infrastructure: Hardware and
Software 186
Chapter-Opening Case
Southeast Asia’s Grab Leverages Information
Technology to Enhance Its Services 187
5-1 Identify the components of IT
infrastructure. 188
A01_LAUD0360_15_GE_FM_finalppv2.indd 11
IT Infrastructure Components 189
5-2 Describe the major computer hardware, data
storage, input, and output technologies used
in business and major hardware trends. 191
Types of Computers 191 • Storage, Input, and Output
Technology 193 • Contemporary Hardware Trends 193
Spotlight On: People
The Mobile Platform Visits Disney Theme Parks 195
Spotlight On: Technology
“Smart” Cities Become Smarter with Edge
Computing 201
5-3 Describe the major types of computer
software used in business and major software
trends. 204
Operating System Software 204 • Application Software
and Desktop Productivity Tools 206 • HTML
and HTML5 207 • Web Services 208 • Software
Trends 209
5-4 Identify the principal issues in managing
hardware and software technology. 211
Capacity Planning and Scalability 211 • Total Cost
of Ownership (TCO) of Technology Assets 211 •
Mobile Platforms 213 • Managing Software
Localization for Global Business 214
5-5 Understand how MIS can help your
career. 214
The Company 214 • Position Description 214 • Job
Requirements 214 • Interview Questions 215 •
Author Tips 215
Review Summary 215 •
Key Terms 217 • Review
Questions 217 • Discussion
Questions 218 • Hands-On
MIS Projects 218
Management Decision Problem 218 • Improving
Decision Making: Using a Spreadsheet to Evaluate
Total Cost of Ownership (TCO) for PC Desktop
Systems 218 • Improving Decision Making: Using
Web Research to Budget for a Sales Conference 219 •
Collaboration and Teamwork Project 219
Business Problem-Solving Case
How Green Is the Cloud? 220
Chapter 5 References 222
­6 Foundations of Business Intelligence:
Databases and Information
Management 224
Chapter-Opening Case
Data Insights Send Envision Virgin Racing to the
Finish Line 225
11
4/11/2023 12:06:26 PM
 6-1 Define a database and explain how a relational
database organizes data. 227
Entities and Attributes 228 • Organizing Data
in a Relational Database 228 • Establishing
Relationships 230
6-2 Describe the principles of a database
management system. 233
Operations of a Relational DBMS 234 • Capabilities
of Database Management Systems 234 • Nonrelational
Databases, Cloud Databases, and Blockchain 236
Spotlight On: Technology
New Cloud Database Tools Help Vodafone Fiji Make
Better Decisions 238
6-3 Identify the principal tools and technologies for
accessing information from databases to improve
business performance and decision making. 240
The Challenge of Big Data 241 • Business Intelligence
Technology Infrastructure 241 • Analytical Tools:
Relationships, Patterns, Trends 244 • Databases and
the Web 247
6-4 Explain why data governance and data quality
assurance are essential for managing a firm’s
data resources. 248
Ensuring Data Quality 248
6-5 Understand how MIS can help your career. 249
The Company 249 • Position Description 249
Spotlight On: Organizations
Higher Data Quality Helps Vyaire Save Lives 250
Job Requirements 251 • Interview Questions 251 •
Author Tips 251
Review Summary 252 •
Key Terms 253 •
Review Questions 253 •
Discussion Questions 254
• Hands-On MIS
Projects 254
Management Decision Problem 254 • Achieving
Operational Excellence: Building a Relational Database
for Inventory Management 254 • Improving Decision
Making: Searching Online Databases for Overseas Business
Resources 255 • Collabora­tion and Teamwork Project 255
Business Problem-Solving Case
Pursuing Sustainability with Blockchain 256
Chapter 6 References 258
7 Telecommunications, the Internet, and
Wireless Technology 260
Chapter-Opening Case
Digital Twin Helps Doosan Optimize Its Wind
Farms 261
12
A01_LAUD0360_15_GE_FM_finalppv2.indd 12
7-1 Identify the principal components of
telecommunications networks and key
networking technologies. 263
Networking and Communication Trends 263 •
What is a Computer Network? 264 • Key Digital
Networking Technologies 266
7-2 Compare the different types of networks. 268
Signals: Digital Versus Analog 268 • Types of
Networks 269 • Transmission Media and
Transmission Speed 270
7-3 Explain how the Internet and Internet
technology work, and how they support
communication and e-business. 270
What is the Internet? 271 • Internet Addressing and
Architecture 271
­ potlight On: Technology
S
Can Low Earth Orbit (LEO) Satellite Internet
Systems Solve the Digital Divide? 274
Internet Services and Communication Tools 275
Spotlight On: People
Monitoring Employees on Networks: Unethical or
Good Business? 278
The Web 281
7-4 Identify the principal technologies
and standards for wireless networking,
communication, and Internet access. 287
Cellular Systems 287 • Wireless Computer Networks
and Internet Access 288 • RFID and Wireless Sensor
Networks 290
7-5 Understand how MIS can help your
career. 292
The Company 292 • Position Description 292 • Job
Requirements 293 • Interview Questions 293 •
Author Tips 293
Review Summary 294 •
Key Terms 295 • Review
Questions 296 • Discussion
Questions 296 •
Hands-On MIS
Projects 296
Management Decision Problem 296 • Improving
Decision Making: Using Spreadsheet Software
to Evaluate Wireless Services 297 • Achieving
Operational Excellence: Using Search Engines
for Business Research 297 • Collaboration and
Teamwork Project 297
Business Problem-Solving Case
Google, Apple, and Meta Battle for Your Internet
Experience 298
Chapter 7 References 300
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8 Securing Information Systems 302
Chapter-Opening Case
Ransomware Everywhere: Cyberattacks in the Asia-
Pacific 303
8-1 Explain why information systems are vulnerable
to destruction, error, and abuse. 304
Why Systems Are Vulnerable 305 • Malicious
Software (Malware) 307 • Hackers and Computer
Crime 309 • Internal Threats: Employees 314 •
Software Vulnerability 314
Spotlight On: Technology
Race Against Time: The Scramble to Fix the
Log4Shell Zero-Day Vulnerability 315
8-2 Describe the business value of security and
control. 317
Legal and Regulatory Requirements for Electronic
Records Management 317 • Electronic Evidence and
Computer Forensics 318
8-3 Identify the components of an organizational
framework for security and control. 319
Information Systems Controls 319 • Risk
Assessment 320 • Security Policy 321 • Disaster
Recovery Planning and Business Continuity
Planning 322 • The Role of Auditing 322
8-4 Identify the most important tools and technologies
for safeguarding information resources. 323
Identity and Access Management and
Authentication 323 • Firewalls, Intrusion Detection and
Prevention Systems, and Anti-Malware Software 324 •
Securing Wireless Networks 326 • Encryption and
Public Key Infrastructure 327 • Securing Tran­
sactions with Blockchain 328 • Ensuring System
Availability 329 • Achieving Digit­al Resiliency 329 •
Internet of Things, Cloud Computing, and Mobile
Platform Security Issues 330
Spotlight On: Organizations
DHL: Digital Resilience Strategy 331
­Ensuring Software Quality 334
8-5 Understand how MIS can help your career. 334
The Company 334 • Position Description 334 •
Job Requirements 335 • Interview Questions 335 •
Author Tips 335
Review Summary 335 •
Key Terms 336 • Review
Questions 337 •
Discussion Questions 338
• Hands-On MIS
Projects 338
Management Decision Problem 338 • Improving
Decision Making: Using Spreadsheet Software to
A01_LAUD0360_15_GE_FM_finalppv2.indd 13
Analyze Security Events 338 • Improving Decision
Making: Evaluating Security Outsourcing Services 339 •
Collaboration and Teamwork Project 339
Business Problem-Solving Case
Solarwinds Shines a Light on Software Supply Chain
Attacks 340
Chapter 8 References 342
III Key System Applications for
the Digital Age 345
9 Achieving Operational Excellence
and Customer Intimacy: Enterprise
Applications 346
Chapter-Opening Case
Lenzing Sustainably Balances Supply and Demand 347
9-1 Explain how enterprise systems help businesses
achieve operational excellence. 348
What are Enterprise Systems? 349 • Enterprise
Software 350 • Business Value of Enterprise
Systems 351
9-2 Describe how supply chain management
systems coordinate planning, production, and
logistics with suppliers. 352
The Supply Chain 352 • Information Systems and
Supply Chain Management 353 • Supply Chain
Management Software 355 • Global Supply Chains
and the Internet 355 • Business Value of Supply Chain
Management Systems 357
9-3 Explain how customer relationship
management systems help firms achieve
customer intimacy. 357
What is Customer Relationship Management? 358 •
Customer Relationship Management Software 358 •
Operational and Analytical CRM 362 • Business Value
of Customer Relationship Management Systems 362
Spotlight On: Organizations
MillerKnoll Uses Salesforce.com to Transform Its
Business Strategy 363
9-4 Describe the challenges that enterprise
applications pose and how enterprise
applications are taking advantage of new
technologies. 364
Enterprise Application Challenges 364 •
Next-Generation Enterprise Applications 365
Spotlight On: Technology
Versum’s ERP Transformation 367
9-5 Understand how MIS can help your
career. 368
13
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 The Company 368 • Position Description 369 • Job
Requirements 369 • Interview Questions 369 •
Author Tips 369
Review Summary 370 •
Key Terms 371 • Review
Questions 371 • Discussion
Questions 371 • Hands-On
MIS Projects 372
Management Decision Problem 372 • Improving
Decision Making: Using Spreadheet Software to Select
Suppliers 372 • Achieving Operational Excellence:
Evaluating Supply Chain Management Services 373 •
Collaboration and Teamwork Project 373
Business Problem-Solving Case
­The Coronavirus Pandemic Disrupts Supply Chains
Around the World 374
Chapter 9 References 376
10 E-commerce: Digital Markets, Digital
Goods 378
Chapter-Opening Case:
Chewy Blends B2C and B2B E-commerce 379
10-1 Identify the unique features of e-commerce,
digital markets, and digital goods. 380
E-commerce Today: Social, Local, Mobile 381 •
Why E-commerce is Different 383 • Key Concepts
in E-commerce: Digital Markets and Digital Goods in
a Global Marketplace 386 • Digital Markets 387 •
Digital Goods 388
10-2 Compare the principal e-commerce business
and revenue models. 389
Types of E-commerce 389 • E-commerce Business
Models 389
Spotlight On: Technology
Lemonade Disrupts the Insurance Industry with
“Insurtech” 392
E-commerce Revenue Models 394
10-3 Explain how e-commerce has transformed
marketing. 395
Behavioral Targeting 396 • Social Network Marketing
and Social E-commerce 399
Spotlight On: Organizations
Engaging “Socially” with Customers on TikTok 401
10-4 Describe how e-commerce has affected
business-to-business transactions. 403
Electronic Data Interchange (EDI) 403 • New Ways of
B2B Buying and Selling 404
10-5 Describe the role m-commerce has in business
and the most important m-commerce
applications. 406
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A01_LAUD0360_15_GE_FM_finalppv2.indd 14
Location-Based Services and Applications 407 •
Mobile App Payment Systems 407
10-6 Identify the issues that must be addressed when
building an e-commerce presence. 408
Develop an E-commerce Presence Map 409 • Develop
a Timeline: Milestones 410
10-7 Understand how MIS can help your career. 410
The Company 410 • Position Description 410 •
Job Requirements 411 • Interview Questions 411 •
Author Tips 411
Review Summary 411 • Key Terms 412 • Review
Questions 413 • Discussion Questions 413 •
Hands-On MIS Projects 414
Management Decision
Problem 414 • Improving
Decision Making: Using
Spreadsheet Software to
Analyze an E-commerce
Business 414 • Achieving
Operational Excellence:
Evaluating E-commerce Hosting Services 415 •
Collaboration and Teamwork Project 415
Business Problem-Solving Case
Uber Discovers That Becoming the Uber of
Everything Is Not So Easy 416
Chapter 10 References 418
11 Improving Decision Making and
Managing Artificial Intelligence 420
Chapter-Opening Case
Big Data Analytics: A New Way to Fight Wildfires 421
11-1 Identify the different types of decisions and explain
how the decision-making process works. 423
Business Value of Improved Decision
Making 423 • Types of Decisions 423 • The
Decision-Making Process 425 • High-Velocity
Automated Decision Making 426 • Quality of
Decisions and Decision Making 426
­11-2 Describe how business intelligence and business
analytics support decision making. 426
What is Business Intelligence? 427 • The Business
Intelligence Environment 427 • Business Intelligence
and Analytics Capabilities 430 • Business
Intelligence Users 433
11-3 Define artificial intelligence (AI) and explain
how it differs from human intelligence. 437
Evolution of AI 437
11-4 Identify the major types of AI techniques and
show how they benefit organizations. 437
Expert Systems 438 • Machine Learning 439 •
Neural Networks 442 • Genetic Algorithms 445
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 • Natural Language Processing, Computer Vision
Systems, and Robotics 446
Spotlight On: Technology
What Happened to Watson Health? 447
Spotlight On: People
Do You Know Who Is Using Your Face? 449
Intelligent Agents 450
11-5 Understand how MIS can help your career. 451
The Company 451 • Position Description 451 •
Job Requirements 451 • Interview Questions 452 •
Author Tips 452
Review Summary 452 •
Key Terms 453 • Review
Questions 454 • Discussion
Questions 454 •
Hands-On MIS
Projects 455
Management Decision Problem 455 • Improving
Decision Making: Using Pivot Tables to Analyze
Sales Data 455 • Improving Decision Making: Using
Intelligent Agents for Comparison Shopping 455 •
Collaboration and Teamwork Project 456
Business Problem-Solving Case
Should an Algorithm Make Our Decisions? 457
Chapter 11 References 459
IV Building and Managing
Systems 461
12 Making the Business Case for
Information Systems and Managing
Projects 462
Chapter-Opening Case:
Al-Asasyah Implements a Modern ERP
Solution 463
12-1 Explain how managers should build a business
case for the acquisition and development of a
new information system. 465
The Information Systems Plan 466 • Portfolio Analysis
and Scoring Models 467 • Determining Solution Costs
and Benefits 468
12-2 Identify the core problem-solving steps
for developing a new information system. 471
Defining and Understanding the Problem 471 •
Developing Alternative Solutions 472 • Evaluating
and Choosing Solutions 473 • Implementing the
Solution 473
12-3 Compare the alternative methods for building
information systems. 475
Traditional Systems Development Life Cycle 476 •
Prototyping 476 • E­ nd-User Development 477 •
Application Software Packages, Software Services, and
Outsourcing 478 • Mobile Application Development:
Designing for a Multiscreen World 480 • Rapid
Application Development for E-business 481
Spotlight On: Technology
McAfee Turns to Automated Software Testing 482
­12-4 Describe how information systems projects
should be managed. 483
Project Management Objectives 484 • Managing
Project Risk and System-Related Change 484
12-5 Understand how MIS can help your
career 488
The Company 488 • Position Description 488 • Job
Requirements 488
Spotlight On: Organizations
Sauder Woodworking Gets ERP Implementation
Right 489
Interview Questions 490 • Author Tips 490
Review Summary 491 •
Key Terms 492 • Review
Questions 492 • Discussion
Questions 493 •
Hands-On MIS
Projects 493
Management Decision Problem 493 • Improving
Decision Making: Using a Database to Clarify
Business Strategy 494 • Achieving Operational
Excellence: Analyzing Website Design and Information
Requirements 494 • Collaboration and Teamwork
Project 494
Business Problem-Solving Case
Can Blockchain Digitize the Global Supply
Chain? 495
Chapter 12 References 498
Glossary 500
Index 515

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 ­Business Cases
Here are some of the business firms described in the cases in this book:
Chapter 1: Business Information Systems in Your Career
Smart Shelves Reinvent the Retail Space
UPS Competes Globally with Information Technology
Will a Robot Steal Your Job?
Adyen and Fintech: Driving Change in the Financial Services Industry
Chapter 2: Global E-business and Collaboration
Microsoft Teams Helps Toyota Motor North America (TMNA) Do Even Better
Carbon Lighthouse Lights Up with the Internet of Things (IoT), Big Data, and Cloud
Computing
Zoom: Quality Videoconferencing for Every Budget
How Much Does Technology Help Collaboration?
Chapter 3: Achieving Competitive Advantage with Information Systems
N26: A Bank Without Branches
Customer Experience Management: A New Strategic Weapon
GCB Bank: A Digital Transformation
Offline, Online, and Back: The Evolution of the UK Grocery Market
Chapter 4: Ethical and Social Issues in Information Systems
Apps That Track: A Double-Edged Sword
Section 230: Should the Law That “Created” Today’s Internet Be Repealed or Revised?
Immersed in the Metaverse: What Will It Mean for the Future?
Facebook’s Many Ethical Challenges
Chapter 5: IT Infrastructure: Hardware and Software
Southeast Asia’s Grab Leverages Information Technology to Enhance Its Services
The Mobile Platform Visits Disney Theme Parks
“Smart” Cities Become Smarter with Edge Computing
How Green Is the Cloud?
Chapter 6: Foundations of Business Intelligence: Databases and Information
Management
Data Insights Send Envision Virgin Racing to the Finish Line
New Cloud Database Tools Help Vodafone Fiji Make Better Decisions
Higher Data Quality Helps Vyaire Save Lives
Pursuing Sustainability with Blockchain
Chapter 7: Telecommunications, the Internet, and Wireless Technology
Digital Twin Helps Doosan Optimize Its Wind Farms
Can Low Earth Orbit (LEO) Satellite Internet Systems Solve the Digital Divide?
Monitoring Employees on Networks: Unethical or Good Business?
Google, Apple, and Meta Battle for Your Internet Experience

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 Chapter 8: Securing Information Systems
Ransomware Everywhere: Cyberattacks in the Asia-Pacific
Race Against Time: The Scramble to Fix the Log4Shell Zero-Day Vulnerability
DHL: Digital Resilience Strategy
SolarWinds Shines a Light on Software Supply Chain Attacks
­ hapter 9: Achieving Operational Excellence and Customer Intimacy:
C
Enterprise Applications
Lenzing Sustainably Balances Supply and Demand
MillerKnoll Uses Salesforce.com to Transform Its Business Strategy
Versum’s ERP Transformation
The Coronavirus Pandemic Disrupts Supply Chains Around the World
Chapter 10: E-commerce: Digital Markets, Digital Goods
Chewy Blends B2C and B2B E-commerce
Lemonade Disrupts the Insurance Industry with “Insurtech”
Engaging “Socially” with Customers on TikTok
Uber Discovers That Becoming the Uber of Everything Is Not So Easy
Chapter 11: Improving Decision Making and Managing Artificial Intelligence
Big Data Analytics: A New Way to Fight Wildfires
What Happened to Watson Health?
Do You Know Who Is Using Your Face?
Should an Algorithm Make Our Decisions?
Chapter 12: Making the Business Case for Information Systems and Managing
Projects
Al-Asasyah Implements a Modern ERP Solution
McAfee Turns to Automated Software Testing
Sauder Woodworking Gets ERP Implementation Right
Can Blockchain Digitize the Global Supply Chain?

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 Preface
New to This Edition
Essentials of Management Information Systems, 15th edition, has been thoroughly
updated to cover the latest industry and technology changes that impact the course
and to provide new interactive learning opportunities.
MyLab MIS
The goal of Essentials of Management Information Systems is to provide students and
instructors with an authoritative, up-to-date, interactive, and engaging introduction
to the MIS field. MyLab MIS for Essentials of Management Information Systems is an
extension of this goal in an interactive digital environment.
MyLab is the teaching and learning platform that empowers you to reach every stu-
dent. By combining trusted author content with digital tools and a flexible platform,
MyLab personalizes the learning experience and improves results for each student.
MyLab MIS features videos, animations, and interactive quizzes to foster stu-
dent comprehension of concepts, theories, and issues. The MyLab MIS environment
reflects the new learning styles of students, which are more social, interactive, and
usable on digital devices such as smartphones and tablets.

­WHAT’S INCLUDED
• Pearson eTextbook – Enhances learning both in and out of the classroom. Stu-
dents can highlight, take notes, and review key vocabulary all in one place, even
when offline. Seamlessly integrated interactivities and Figure Videos bring con-
cepts to life via MyLab or the app.
• Figure Videos – Have author Ken Laudon walk students through important con-
cepts in each chapter (23 total) using a contemporary animation platform.
• New Video Cases – A brand new collection of video cases (one per chapter) draws
from Pearson’s extensive library of business and technology video clips. The cases
cover key concepts and experiences in the MIS world, illustrating how real-world
businesses and managers are using information technology and systems. Video cases
are listed at the beginning of each chapter.
• MIS Simulations – Foster critical decision making skills with these interactive
exercises that allow students to play the role of a manager and make business
decisions.
• Chapter Warm Ups, Chapter Quizzes – These objective-based quizzes evaluate
comprehension.
• Excel & Access Activities provided inside MyLab MIS support classes covering
Office tools. In addition, Hands-On MIS Projects from the book are available.
• Running Case on Dirt Bikes USA provides additional hands-on projects for each
chapter.
• Dynamic Study Modules help students study chapter topics and the language of
MIS on their own by continuously assessing their knowledge application and per-
formance in real time. These are available as graded assignments prior to class,
and are accessible on smartphones, tablets, and computers.
• Learning Catalytics is a student response tool that helps you generate class discussion,
customize your lecture, and promote peer-to-peer learning based on ­real-time analytics.
Learning Catalytics uses students’ devices to engage them in more interactive tasks.

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 PEARSON eTEXTBOOK
Essentials of Management Information Systems is also available as a stand-alone
­eTextbook which extends the learning experience, anytime and anywhere: The mobile
app lets students use their eTextbook whenever they have a moment in their day, on
Android and iPhone mobile phones and tablets. Students can also take notes and
highlight or bookmark important content. Both the MyLab MIS and eTextbook
platforms provide an affordable, simple-to-use mobile reading experience that lets
instructors and students extend learning beyond class time.

­NEW AND UPDATED TOPICS

The 15th edition features all new opening, closing, and “Spotlight on” cases as well
as new in-text examples of organizations using IT applications. There are 4 cases per
chapter. The text, figures, tables, and cases have been updated through July 2022 with
the latest sources from industry and MIS research. New topics and coverage include:
• Cloud computing, Big Data, and the Internet of Things (IoT): We have added more
coverage of these topics throughout the text and learning package because of their
importance in the MIS world. Chapter 1 now contains an introduction to these
topics, followed by in-depth coverage in Chapters 2, 5, 6, 7, and 11. Case studies
on Big Data can be found in Chapters 1, 4, 6, 7, and 11. There are case studies on
IoT in Chapters 1, 2, 5, 6, and 7.
We have updated and expanded coverage of cloud computing in Chapter 5 (IT
Infrastructure) with more detail on types of cloud services, private and public clouds,
hybrid clouds, and managing cloud services. Cloud computing is 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 software
services). There are case studies on cloud computing in Chapters 2, 5, 6, and 12.
• Sustainability and ESG: We have added new coverage of how information systems
promote sustainability and Environmental, Social, and Governance (ESG) goals.
Chapter 1 now includes ESG leadership as a major objective of information sys-
tems. Case studies on sustainability can be found in Chapters 2, 5, 6, 9, and 11.
• Updated and expanded coverage of artificial intelligence (AI): Chapter 11 has been
rewritten to include new expanded coverage of machine learning, “deep learn-
ing,” natural language systems, computer vision systems, and robotics, reflecting
the surging interest in business uses of AI and “intelligent” techniques.
• System impacts of the coronavirus pandemic: Up-to-date coverage of the impact of
the coronavirus pandemic on business uses of information systems. Two “Spotlight
on” cases (Chapters 2 and 6) and the Chapters 9 and 12 ending cases cover topics
such as working remotely, supply chain disruptions, and rethinking global supply
chains.
• Expanded coverage of blockchain, including a new Chapter 6 case study on block-
chain and sustainability. New and/or expanded coverage of the following topics:
• Digital resiliency
• Cryptocurrencies
• Metaverse
• Customer experience management
• Low-code and no-code development
• Automated testing
• Windows 11
• JavaScript
• Zero trust
The Laudon text, MyLab MIS, and eTextbook provide the most up-to-date and
comprehensive overview of information systems used by business firms today. After
using this learning package, we expect students will be able to participate in, and
even lead, management discussions of information systems for their firms and under-
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 stand how to use information technology in their jobs to achieve bottom-line busi-
ness results. Regardless of whether students are accounting, finance, management,
operations management, marketing, or information systems majors, the knowledge
and information in this book will be valuable throughout their business careers.

NEW VIDEO CASES

The Video Cases are all new to this edition and based on Pearson’s collection of busi-
ness and technology video clips. They are available in MyLab MIS.

Chapter Video

1. Business Information Systems in Your Career The New HQ Is in the Cloud: Salesforce President

2. Global E-business and Collaboration How Slack Is Preparing for the Future of Work

3. Achieving Competitive Advantage with Information Systems Celonis Tops $11 Billion Valuation with New Round of Funding

4. Ethical and Social Issues in Information Systems Australia Passes Law Forcing Tech Giants to Pay for News

5. IT Infrastructure: Hardware and Software IBM Expands Cloud to Daimler

6. Foundations of Business Intelligence: Databases and Information Management Stitch Fix CEO Sees Business of Personalization as Key to Success;
Stitch Fix President on Booming Growth Amid Pandemic

7. Telecommunications, the Internet, and Wireless Technology Nokia CEO Suri Sees 5G Market Maturity in 2021

8. Securing Information Systems Fastly Internet Outage Exposes Vulnerability of Major Websites; Ransomware Is a Worldwide
Problem: Palo Alto Networks

9. Achieving Operational Excellence and Customer Intimacy: Enterprise Applications Software Startup Freshworks Not in a Rush to Raise Capital

10. E-commerce: Digital Markets, Digital Goods Shopify Earnings Soar Even as Economies Reopen;
Shopify is Writing the Future of Commerce, Says President

11. Improving Decision Making and Managing Artificial Intelligence Predictive Tech Can Save $3B-$4B A Year: Tom Siebel

12. M aking the Business Case for Information Systems and Managing Projects Software Design Is “Really on a Tear,” Figma CEO Says

­Solving Teaching and Learning Challenges

MyLab MIS is the teaching and learning platform that empowers you to reach every stu-
dent. By combining trusted authors’ content with digital tools and a flexible platform,
MyLab MIS personalizes the learning experience and improves results for each student.
And with MIS Sims and Excel and Access Activities, students understand how MIS con-
cepts will help them succeed in their future careers.
MyLab MIS and the Pearson eTextbook offer unique digital interactive features
that hold student attention spans longer and make learning more effective, including
23 Figure Videos that walk students through key concepts in each chapter, a collection
of online video cases, and interactive quizzes. All of this is available anytime, any-
where, on any digital device. The result is a comprehensive learning environment that
will heighten student engagement and learning in the MIS course.
The Laudon learning package is more current, real-world, and authoritative than
­competitors’. Essentials of MIS, 15e; MyLab MIS; and Pearson eTextbook help ­students
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 understand MIS concepts and issues through extensive use of real-world company exam-
ples, a wide variety of text and video cases based on real-world organizations, and numer-
ous line art illustrations, interactive animations, and hands-on software projects.
The Laudons are known for their outstanding real-world case studies, which describe
how well-known business firms are using IT to solve problems and achieve objectives. Stu-
dents are often asked to analyze the business problem and propose alternative solutions.
The Laudons also provide hands-on MIS software and management decision-making
problems in each chapter that are based on real-world companies and business scenarios.
The Laudon text and learning package now has a very strong career focus, which
incentivizes students to learn by showing exactly how each chapter will help them pre-
pare for future jobs. In addition to Career Opportunities, MyLab MIS features Career
Resources, including how to incorporate MIS knowledge into resumes, cover letters, and
job interviews.

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. 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 are the Video Cases, a case study for each chapter built around one or two videos
available on the Pearson Clips platform. Videos are keyed to the topics of each chapter.
Chapter Organization
Each chapter contains the following elements:
• A list of Learning Objectives
• Lists of 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 “Spotlight on” case studies with Case Study Questions

Business
Challenges

• Devise technology • Mounting competition from

strategy online retailers
People • Opportunities from new
• Select technologies
technology

• Revise job functions

• Revise business Information Business
processes Organization System Solutions

AWM Smart Shelf • Increase sales

• View and track products • Improve service
in real time • Improve operations
• Smartphones • Personalize shopper
• Object-recognition experiences
technology Technology
• HD cameras
• Sensors

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.
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 •A­ Career Opportunities section showing students how to use the text for job hunt-
ing 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 one Management Decision Prob-
lem, 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
• Chapter references

Student Learning-Focused
Student Learning Objectives are organized to focus student attention. Each major
chapter section is based on a Learning Objective and each chapter concludes with a
Review Summary and Review Questions organized around these Learning Objectives.

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.

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, survival and promoting ESG leadership. In-
text examples and case studies show students how specific companies use informa-
tion systems to achieve these objectives.
We use current (2022) examples from business and public organizations through-
out the text to illustrate the important concepts in each chapter. Most of the case stud-
ies describe companies or organizations that are familiar to students, such as Uber,
Facebook, Tesco, Amazon, PayPal, Coca Cola, Disney, DHL, and Zoom.

Hands-On Text Activities

Real-world business scenarios and data help students to learn firsthand what MIS is
all about. These projects heighten student involvement in this exciting subject.
• “Spotlight on” Cases. Two short cases in each chapter can be used to stimulate stu-
dent interest and active learning. Each case concludes with case study questions.
The case study questions provide topics for discussion or written assignments.
• Hands-On MIS Projects. Every chapter concludes with a Hands-On MIS Projects
section containing three types of projects: one Management Decision Problem; 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. Files for
these projects are available in MyLab MIS. As mentioned, the Dirt Bikes USA run-
ning case in MyLab MIS provides additional hands-on projects for each chapter.
• 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.

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 Carbon Lighthouse Lights Up with the Internet of
SPOTLIGHT ON: ORGANIZATIONS Things (IoT), Big Data, and Cloud Computing
According to the US Environmental Protection
Agency (EPA), more carbon emissions come from
operating commercial, residential, and commercial
properties than from transportation. Emissions
from cars, trucks, and aircraft account for only
comes from generation of electric power, (manu-
facturing) industry, commercial and residential
property, and agriculture.
San Francisco–based Carbon Lighthouse is
tackling this problem head-on by focusing on re-
Each chapter contains ducing carbon emissions produced by commer-
cial and industrial buildings. The company offers
two Spotlight on energy savings services that make it profitable
cases on People, for building owners to reduce their energy con-
sumption using their existing equipment. Carbon
Organizations, or Lighthouse has reduced more than 260,000 met-
Technology, using ric tons of emissions, equivalent to the energy
produced by 18 power plants, while providing
real-world companies
to illustrate chapter How is this possible? Many businesses com-
plain that it costs more money to be environmen-
concepts and issues. tally responsible. This does not have to be so.
Acting on findings from advanced data analytics,
commercial and building owners can reduce car-
bon emissions while producing cost savings.
Carbon Lighthouse uses a software platform
called Carbon Lighthouse Unified Engineering
square feet of clients’ commercial and industrial
real estate and 5 billion data points. CLUES col-
lects the building data in real time as it is gener-
ated. It then develops models that lead to insights
about how to reduce the client’s carbon emis-
sions and how much money will be saved. Carbon
Lighthouse uses Amazon’s cloud services to run
its computers and store data such as building ad-
dresses and square footage, along with time-series
data such as the data collected on-site at buildings.
When a new client contracts for Carbon
Lighthouse services, the company sends a sen-
sor kit to start new data streaming from the cli-
Case Study Questions
encourage students
CASE STUDY QUESTIONS
to apply chapter 1. Identify the problem described in this case
concepts to real-world study. Is it a people problem, an organizational
problem, or a technology problem? Explain
companies in class your answer.
discussions, student 2. What role have the IoT, Big Data analytics,
presentations, or and cloud computing played in developing a
solution for this problem?
writing assignments.
Students can practice
using software in real-
world settings for
achieving operational
excellence and
enhancing decision
making.
A01_LAUD0360_15_GE_FM_finalppv2.indd 23
better. Internet of Things (IoT) sensors, Big Data,
cloud computing, and powerful data analysis soft-
ware rather than expensive capital upgrades allow
Carbon Lighthouse to unlock hidden returns in
existing building mechanical systems and translate
energy efficiency into tangible long-term savings.
One of Carbon Lighthouse’s clients is L&B
Realty Advisors, a Dallas-based real estate invest-
ment advisor with $9 billion under management.
L&B has over 50 years’ experience acquiring,
managing, and selling real estate for its clients.
For L&B, sustainability is a key consideration
when evaluating and managing investments.
L&B worked with Carbon Lighthouse on its One
Biscayne Tower property. The building was al-
ready rated as highly energy-efficient, with engi-
neering staff using a dashboard to track overall
utility consumption.
Carbon Lighthouse first established a data
stream that fed detailed heating, ventilation, and
air conditioning (HVAC); lighting; and occupancy
data into the CLUES platform. The company then
worked with the L&B property and engineering
teams to assess One Biscayne Tower’s existing build-
ing systems and look for energy savings and opera-
tional improvements. CLUES analysis of the data
stream identified and quantified new HVAC control
optimizations as well as lighting retrofits that prop-
erty and building engineering teams had long sought
to implement. (A lighting retrofit is an upgrade to
light fixtures or lamps, increasing energy efficiency.)
The annual expense savings from these energy
conservation measures for One Biscayne Tower
are financially guaranteed by Carbon Lighthouse.
And as CLUES collects more data, its algorithms
become more accurate and provide additional
zone isolation and central plant measures for One
Biscayne Tower, generating more energy efficiency
and cost savings than projected.
The building engineering and property man-
ager knew what lighting fixtures and aesthetic
output they wanted, but they did not have the
3. Describe Carbon Lighthouse’s problem-
solving methodology for reducing both carbon
emissions and costs.
23
4/11/2023 12:06:28 PM
 Chapter 111

IMPROVING DECISION MAKING: USING WEB TOOLS TO CONFIGURE

AND PRICE AN AUTOMOBILE
Software skills: Internet-based software
Each chapter features Business skills: Researching product information and pricing
a project to develop 3-10 In this exercise, you will use software at car-selling websites to find product in-
Internet skills for formation about a car of your choice and then use that information to make an
accessing information, important purchase decision. You will also evaluate two of these sites as selling
tools.
conducting research, You are interested in purchasing a lightly used, low-mileage Honda CR-V (or
and performing online some other car of your choice). Go to the Carsdirect.com website, and begin your
calculations and investigation. Research the various used Honda CR-V models for sale; choose
one you prefer in terms of price, features, and safety ratings. Then visit the
analysis. Carvana.com website. Compare the information on pricing and available inven-
tory at Carvana’s website with that of Carsdirect for the Honda CR-V. Try to
locate the lowest price for the car you want in inventory along with financing
and vehicle pickup or delivery. Compare the buying experience at both websites.
Which website do you prefer for this type of purchase? Explain your answer.

Developing Career Skills

For students to succeed in a rapidly changing job market, they should be aware of
their career options and how to go about developing a variety of skills. With MyLab
MIS and Essentials of Management Information Systems 15e, we focus on these skills
in the following ways.

CAREER OPPORTUNITIES AND RESOURCES

Every student who reads this text wants to know: How will this book help my career?
The Career Opportunities feature shows how to use this book and MyLab MIS as tools
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 demon-
strate these skills.
The Career Opportunities section, identified by this icon is the last major sec-
tion of each chapter under the heading “Understand how MIS can help your 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 top-
ics covered in that chapter. The name of the company offering the job and its loca-
tion have been changed. Each chapter’s job posting describes the required educational
background and specific job skills, and suggests some of the business-related ques-
tions 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 covered by the Career Opportunities sections. They are
based on real-world job postings from both large and small businesses. Many are new to
this edition. 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 experi-
ence, 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.
24

A01_LAUD0360_15_GE_FM_finalppv2.indd 24 4/11/2023 12:06:29 PM

 Chapter Career Opportunity Job Description

1. Business Information Systems in Your Career Client Support Assistant

2. Global E-business and Collaboration Customer Success Analyst

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 Coordinating Product Manager

6. Foundations of Business Intelligence: Databases and Information Management Entry Level Data Analyst

7. Telecommunications, the Internet, and Wireless Technology Web Developer

8. Securing Information Systems Identity and Access Management Support Specialist

9. Achieving Operational Excellence and Customer Intimacy: Enterprise Applications Supply Chain Analyst

10. E-commerce: Digital Markets, Digital Goods Junior E-Commerce Associate

11. Improving Decision Making and Managing Artificial Intelligence Sales Coordinator

12. M aking the Business Case for Information Systems and Managing Projects 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.
In MyLab MIS we have provided 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.
Instructor Teaching Resources
Supplements available to Features of the Supplement
instructors at
www.pearson.com

Instructor’s Manual • Chapter-by-chapter summaries

• Examples and activities not in the main book
• Teaching outlines
• Teaching tips
• Solutions to all questions and problems in the book

Test Bank The authors have worked closely with skilled test item writers to ensure that higher-level cognitive skills are tested. Test bank
authored by Professor Kenneth Laudon, New York University multiple-choice questions include questions on content but also include many questions that require analysis, synthesis, and
evaluation skills.
AACSB Assessment Guidelines
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 assessment-based education. The end papers of this
edition identify student learning objectives 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 email the authors or
contact your local Pearson representative for contact information.

25

A01_LAUD0360_15_GE_FM_finalppv2.indd 25 4/11/2023 12:06:29 PM

 Supplements available to Features of the Supplement
instructors at
www.pearson.com

Computerized TestGen TestGen allows instructors to:

• Customize, save, and generate classroom tests
• Edit, add, or delete questions from the Test Item Files
• Analyze test results
• Organize a database of tests and student results

PowerPoints
authored by Professor Kenneth Laudon, New York University
The authors have prepared a comprehensive collection of 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
recommending 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.
PowerPoints meet accessibility standards for students with disabilities. Features include but are not limited to:
• Keyboard and Screen Reader access
• Alternative text for images
• High color contrast between background and foreground colors

26

A01_LAUD0360_15_GE_FM_finalppv2.indd 26 4/11/2023 12:06:29 PM

 About the Authors
Kenneth C. Laudon has been a Professor of Information Systems at New
York University’s Stern School of Business. He holds a B.A. in Economics from Stan-
ford and a Ph.D. from Columbia University. He has authored twelve books dealing
with electronic commerce, information systems, organizations, and society. Professor
Laudon has also written more than forty articles concerned with the social, organiza-
tional, and management impacts of information systems, privacy, ethics, and multime-
dia technology. At NYU’s Stern School of Business, Ken Laudon has taught courses
on Managing the Digital Firm, Information Technology and Corporate Strategy, Pro-
fessional Responsibility (Ethics), and Electronic Commerce and Digital Markets.

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 professionals
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 University and the New York University Stern School of
Business. She maintains a lifelong interest in languages and civilizations of Asia.

Carol Guercio Traver is a graduate of Yale Law School and Vassar Col-
lege. She has had many years of experience representing major corporations, as well
as small and medium-sized businesses, as an attorney with a leading international
law firm, with specific expertise in technology law, Internet law, privacy law, intellec-
tual property law, and general corporate law. Carol is the co-author of E-commerce:
business. technology. society (Pearson), as well as several other texts on information
technology, and has been the lead project manager/editor on a number of technology-
related projects. Carol is the co-founder and president of Azimuth Interactive, one of
the first edtech firms and a provider of digital media and publisher services for the
education industry.

27

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 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 editors, Ellen Thibault, Jenifer Niles, and Con-
tent Producer, Purnima Narayanan, for their roles in managing the project. Thanks
also to Product Manager Marcus Scherer for his contributions and to Gowthaman
­Sadhanandham and his Integra team for their production work.
We want to thank our supplement authors for their work, including the follow-
ing MyLab MIS content contributors: Robert J. Mills, Utah State University; Chris
Parent, Rivier University; Maureen Steddin; Roberta Roth, University of Northern
Iowa; Gipsi Sera, Indiana University; and John Hupp, Columbus State University.
We are indebted to Todd Traver for his help with security topics, to Erica Laudon
for her contributions to Career Opportunities, and to Megan Miller for her help
during production. We thank Christopher Traver for his help with database topics and
software projects.
Special thanks to Professor Mark Gillenson, Fogelman College of Business and
Economics, University of Memphis for his contributions to the discussion of agile
development and testing.
We also want to especially thank all our reviewers whose suggestions helped
improve our texts. Reviewers for recent editions include:
Abdullah Albizri, Montclair State University Channa J. Kumarage, Saint Cloud State
Robert M. Benavides, Collin College University
­Gordon Bloom, Virginia Commonwealth Weiqi Li, University of Michigan-Flint
University Liu Liu, Old Dominion University
Brett Cabradillia, Coastal Carolina Susan Mahon, Collin College
Community College Robert Morphew, Texas Woman’s University
Qiyang Chen, Montclair State University John Newman, Coppin State University
Amita Chin, Virginia Commonwealth Jose Ng, Montclair State University
University Richard Peterson, Montclair State
Lynn Collen, St. Cloud State University University
Reet Cronk, Harding University Robin Poston, University of Memphis
Uldarico Rex Dumdum, Marywood University Dr. Michael Raisinghani, Texas Woman’s
Mahmoud Elhussini, Montclair State University
University Patricia Ryan, Southeast Missouri State
Anne Formalarie, Plymouth State University University
Sue Furnas, Collin College Ethné Swartz, Montclair State University
Scott Hamerink, Oakland University Amir Talaei-Khoei, University of Nevada
Terry Howard, University of Detroit Mercy Reno
Dae Youp Kang, University of Memphis Paulus Van Vliet, University of Nebraska at
Rajkumar Kempaiah, College of Mount Omaha
Saint Vincent

Global Edition Acknowledgments

Pearson would like to thank the following people for their work on the Global Edition:
Contributors Reviewers
Bernard Bouwman Nash Milic, American University of Sharjah
Joyce Chan, City University of Hong Kong Bernd Schenk, University of Liechtenstein
June Clarke, Sheffield Hallam University Yuen Yee Yen, Multimedia University
Imran Medi, Asia Pacific University of
Technology and Innovation
Yasser Mohamed Ibrahim Sabri, Cairo
University
Bernd Schenk, University of Liechtenstein
PK Senyo, University of Southampton
Jon and Diane Sutherland
28

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   29

Essentials of
Management
Information
Systems

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A01_LAUD0360_15_GE_FM_finalppv2.indd 30 4/11/2023 12:06:29 PM
 P A R T
I
Chapter 1
Business Information Systems in
Your Career
Chapter 2
Information
Global E-business and
Collaboration Systems in the
Chapter 3
Achieving Competitive
Advantage with Information
Digital Age
Systems ­Part I introduces the major themes and the problem-solving

Chapter 4
Ethical and Social Issues in
Information Systems
approaches that are used throughout this book. While surveying
the role of information systems in today’s businesses, this part
examines a series of major questions: What is an information

system? Why are information systems so essential in businesses

today? What are the different types of information systems that

can be found in organizations? 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?

31

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 ­1
­C H A P T E R

Business Information
Systems in Your Career

­L EARNING OBJECTIVES
After completing this chapter, you will be able to:

1-1 Understand why information systems are essential for running and
managing a business.
1-2 Define an information system, explain how it works, and identify its
people, organizational, and technology components.
1-3 Apply a four-step method for business problem solving to solve
information system-related problems.
­1-4 Describe the information systems skills and knowledge that are
essential for business careers.
1-5 Understand how MIS can help your career.

CHAPTER CASES
■ Smart Shelves Reinvent the Retail Space
■ UPS Competes Globally with Information Technology
■ Will a Robot Steal Your Job?
■ Adyen and Fintech: Driving Change in the Financial Services
MyLab MIS Industry
■ Video Case:
The New HQ Is in
the Cloud: Salesforce
President
■ Hands-on MIS Projects:
1-8, 1-9, 1-10, 1-11

32

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 SMART SHELVES REINVENT THE RETAIL SPACE
Although there has been an upsurge in online shopping, physical retail stores
are not going away. Some traditional retailers are fighting back by using innova-
tive information technologies such as computer vision, facial recognition, artifi-
cial intelligence, Big Data analysis, and the Internet of Things (IoT) to provide
new ways to ­entice people into physical stores as well as enhance their in-store
experiences. Retailers are also employing many of the same technologies to make
the process used to fulfill online orders for curbside pickup or home delivery
more efficient.
Shelves have become more than just a surface for storing and displaying
­objects. New systems for “smart” shelves use proximity sensors, 3D cameras,
microphones, RFID tags and readers, and weight sensors to enable interactions
between shoppers in physical stores and the shelves they’re standing in front of.
These systems can create a highly personalized shopping experience that funda-
mentally improves the way shoppers move inside physical stores.
For instance, retailers such as Walmart, ShopRite, and Stop & Shop and
brands such as Pepsi, Hasbro, and Hershey are using Smart Shelf by AWM to
replicate the benefits of the online experience in physical retail environments.
Smart Shelf is powered by an integrated set of physical products, including
super-wide-angle ­low-light HD cameras and LED displays, coupled with AWM’s
Automated Inventory Intelligence, Product Mapper, Content Management, and
Retail Data Engine (RDE) software solutions. Smart Shelf can be implemented in
a wide range of store sizes and formats, from micromarkets to convenience stores
to larger-format retailers.
Smart Shelf enables retailers to provide real-time on-shelf marketing to consum-
ers, with up-to-the-minute advertising and pricing. The shelves’ LED digital displays
use dynamic video and animation to create an immersive environment, drawing
shoppers toward them. As the shopper moves nearer, proximity sensors shift the dis-
play to content-specific promotions and then, as the shopper gets even closer, change
the display again to show price tags and product information directly beneath the
product. Retailers can choose the spe-
cific distances that trigger the shifts in
display.
Smart Shelf is also able to per-
sonalize shoppers’ experiences when
they are in stores based on the items
they pick up, even if they don’t pur-
chase them. For example, if a cus-
tomer picks up a box of cookies and
© Monopoly1919/Shutterstock

then puts it back, the retailer can

use the system to offer a discount
on the shelf beneath that item the
next time the shopper encounters it
in the store. When retailers connect
Smart Shelf to their mobile apps,

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 34 Part I: Information Systems in the Digital Age

they can help shoppers locate products themselves through their mobile devices.
According to AWM, Smart Shelf has helped some retailers increase sales by more
than 30 percent.
AWM also offers a consumer behavior tracking application it calls a Demographic
Engine, which includes facial recognition technology, that triggers delivery of content
based on demographic criteria like age, gender, and ethnicity. To protect consumer
privacy, the system does not collect images or tie data to personally identifiable in-
formation. Nonetheless, some remain alarmed about the privacy implications of such
software.
Smart Shelf also helps retailers improve operational efficiencies. Retailers deploy-
ing Smart Shelf can view and track their products in real time, highlighting specific
shelves that need restocking. It also can be employed by stores to make the process of
fulfilling online orders more efficient, directing pickers to items even if the products
have been moved from their proper location. The system also helps retailers track
how long pickers take to retrieve items. According to AWM Chief Executive Kevin
Howard, it can cut stores’ fulfillment costs by 60 percent. However, labor experts note
that the system raises concerns about employee monitoring.
The global market for smart shelves such as those offered by AWM is expected
to grow from $3 billion in 2022 to more than $8 billion by 2027, as physical retail-
ers strive to offer a better shopping experience and compete more effectively with
online retailers. In the process, technology is redefining the role of the shelf in retail
marketing.
Sources: Smartshelf.com, accessed November 30, 2022; MarketsandMarkets, “Smart Shelves Market Worth
$8.3 Billion by 2027,” Marketsandmarkets.com, August 16, 2022; Caroline Hayes, “The Doors Never Close
on Digital Shopping,” Eandt.theiet.org, August 16, 2021; Sapna Maheshwari, “It’s Hard Work to Make
Ordering Groceries Online So Easy,” New York Times, June 4, 2021; Brian Wreckler, “The Definitive Guide
to Interactive Retail Smart Shelves,” Perchinteractive.con, January 11, 2021; Jared Council, “Retailers Hope
In-Store Tech Will Keep Shoppers in Stores,” Wall Street Journal, January 15, 2020.

The companies and technologies described here show how essential information
systems are today. Today, retail stores are struggling to stay alive and relevant as
more shoppers gravitate to online shopping and the Internet. One solution is to use
­leading-edge innovative information technology to provide new ways of drawing buy-
ers into physical stores and making the in-store buying experience more efficient, safe,
and pleasant. The information flows that drive these reimagined retail businesses
have become much more digital, making use of mobile tools and object-recognition
technology.
The chapter-opening diagram calls attention to important points raised by this
case and this chapter. To compete more effectively against online retailers and take
advantage of new technology solutions, brick-and-mortar retail stores are using inno-
vative systems based on artificial intelligence, Big Data analysis, computer vision and
facial recognition technology, IoT sensors, and smartphones. The use of leading-edge
digital technologies to drive business operations and management decisions is a key
topic today in the management information systems (MIS) world and will be discussed
throughout this text. At the same time, the use of some of these technologies raises
ethical concerns, in this case, about consumer privacy and employee monitoring, top-
ics that also will be further discussed throughout the text.
It is also important to note that deploying information technology has changed
the way retailers using AWM Smart Shelf run their businesses. To effectively use new
digital tools, these companies had to redesign jobs and procedures for gathering, in-
putting, and accessing information. These changes had to be carefully planned to
make sure they enhanced efficiency, service, and profitability.

M01_LAUD0360_15_GE_C01.indd 34 3/16/2023 3:41:13 PM

 Chapter ­1: Business Information Systems in Your Career 35

Business
Challenges

• Devise technology • Mounting competition from

strategy online retailers
People • Opportunities from new
• Select technologies
technology

• Revise job functions

• Revise business Information Business
Organization
processes System Solutions

AWM Smart Shelf • Increase sales

• View and track products • Improve service
in real time • Improve operations
• Smartphones • Personalize shopper
• Object-recognition experiences
technology Technology
• HD cameras
• Sensors

Here are some questions to think about: How do AWM’s systems change retail
operations? How do they improve the customer experience? What ethical concerns do
they raise?

1-1 Understand why information systems are

essential for running and managing a business.
Over the past two decades, tremendous changes have taken place in the way business
is conducted, driven in large part by investments in information technology and infor-
mation systems. Global spending on information technology (IT) and IT services was
estimated to reach about $4.4 trillion in 2022. In addition, businesses worldwide were
expected to spend an additional $975 billion on business and management consulting
and information technology services, much of which involves redesigning firms’ busi-
ness operations to take advantage of these new technologies (Gartner, 2023; Statista,
2022).

HOW INFORMATION SYSTEMS ARE TRANSFORMING

BUSINESS
You can see the results of this spending around you every day. Smartphones, tablet
computers, email, and online videoconferencing have all become essential tools of
business. In 2022, around 175 million businesses worldwide had registered .com or
.net Internet sites. More than 2.6 billion people worldwide bought something online,
spending about $5.7 trillion. What this means is that if you and your business aren’t
connected to the Internet and the mobile platform, chances are you are not being as
effective as you could be (VeriSign, 2022; Insider Intelligence/eMarketer, 2022a).
United Parcel Service (UPS) moves more than 25 million packages a day world-
wide; FedEx moves more than 16.5 million, with 6.3 million of those overnight. The
growth of e-commerce has had a significant impact on shipping volume, particularly
in the wake of the pandemic. For instance, Amazon accounted for about 12 percent
of UPS’s revenue in 2021. Businesses are attempting to sense and respond to rap-
idly changing customer demand, reduce inventories to the lowest possible levels, and
achieve higher levels of operational efficiency. Supply chains have become faster
paced, with companies of all sizes depending on the delivery of just-in-time inventory

M01_LAUD0360_15_GE_C01.indd 35 3/16/2023 3:41:13 PM

 36 Part I: Information Systems in the Digital Age

to help them compete. Companies today manage their inventories in near real time
to reduce their overhead costs and get to market faster. If you are not part of this new
supply chain management economy, chances are your business is not as efficient as it
could be. The importance of supply chains and supply chain management has been
highlighted even further by supply chain disruptions introduced by the pandemic.
More than 3.6 billion people worldwide use a social network such as Facebook,
Twitter, Instagram, or Pinterest, including 97 percent of Fortune 500 firms, who use
them to communicate with their customers. This means your customers are empow-
ered and able to talk to each other about your business products and services. Do you
have a solid online customer relationship program in place? Do you know what your
customers are saying about your firm? Is your marketing department listening?
Digital advertising spending worldwide was expected to reach almost $570 billion
in 2022, growing at more than 20 percent a year from 2014 through 2021. Almost
three-quarters of this spending was expected to be for mobile advertising. In contrast,
traditional advertising during this period either declined or was flat. Is your advertis-
ing reaching web and mobile customers?
Various laws require many businesses to retain email messages for a specified pe-
riod, depending on the law. These and similar laws, as well as all of the data being
generated by billions of Internet-linked sensors comprising the Internet of Things
(IoT), online consumer data, and social media data, are spurring the explosive growth
of digital information known as Big Data. At the same time, the retention of all this
data has created privacy concerns and has led to the passage of laws about how such
data must be safeguarded. Does your compliance department meet the minimal re-
quirements for storing financial, health, and occupational information? If it doesn’t,
your entire business may be at risk (Insider Intelligence/eMarketer, 2022b, 2022c;
Porteous, 2021; TitanHQ, 2021).
Briefly, it’s a constantly evolving world of doing business, one that will greatly
affect your future career. Along with the changes in business come changes in jobs
and careers. No matter whether you are a finance, accounting, management, market-
ing, operations management, or information systems major, how you work, where you
work, and how well you are compensated will all be affected by business information
systems. The purpose of this book is to help you understand and benefit from today’s
business realities and opportunities.

KEY CHALLENGES IN MANAGEMENT INFORMATION

SYSTEMS
What makes management information systems the most exciting topic in business today
is the continual change in technology, management use of the technology, and the impact
on business success. New start-up firms arrive in traditional industries using the latest
technologies and business models. These changes present challenges to all business man-
agers who need to decide how to adapt their firm to new developments. What are the ben-
efits and costs of these new developments in hardware, software, and business practice?
Table 1.1 summarizes the major challenges in business uses of information systems.
These challenges confront all managers, not just information systems professionals.
These challenges will appear throughout the book in many chapters, so it might be a
good idea to take some time now to discuss them with your professor and classmates.

GLOBALIZATION CHALLENGES AND OPPORTUNITIES:

A FLATTENED WORLD
Prior to 1500 CE, there was no truly global economic system of trade that connected
all the continents, although there were active regional trade markets. After the six-
teenth century, a global trading system began to emerge based on advances in naviga-
tion and ship technology. The world trade that ensued after these developments has

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 Chapter ­1: Business Information Systems in Your Career 37

TABLE 1.1
Key Challenges in MIS

Change Management Challenge

Technology

Cloud computing platform Companies are increasingly turning to a flexible collection of computers on the Internet to perform tasks
emerges as a major business traditionally performed at corporate data centers. Major business applications can be delivered online as an
area of innovation. Internet service (software as a service [SaaS]). What are the costs and benefits of cloud computing and how
much of the firm’s IT infrastructure should be moved to cloud providers?

Big Data and the Internet of
Things (IoT)
Businesses look for insights in huge volumes of data from web traffic, email messages, social media content,
and Internet-connected devices (sensors). More powerful data analytics and interactive dashboards can
provide real-time performance information to managers to enhance decision making. Does your firm have
the ability to analyze and use Big Data and analytics? How can you use IoT to provide better products and
services?

Artificial intelligence (AI) Computer programs can find patterns in large databases that can help managers understand their business
and provide better products. Where could your company use AI, and where can you find the expertise? What
benefits can you expect? How much will it cost?

The mobile platform
Business and personal computing is increasingly moving to smartphones, tablet computers, car infotainment
systems, and wearable devices. Thousands of applications are now available to support collaboration, coordi-
nation of work, communication with colleagues and customers, and online purchases on mobile devices. More
than 90 percent of Internet users access the web with mobile devices. Is your firm making the best use of
mobile capabilities for its employees and customers? How could your firm improve? What are the costs and
benefits?

Management and People

Return on investment (ROI) Although firms spend millions on information systems and services, they typically have little understanding of
how much benefit they receive. How can your firm measure and understand the benefit it is receiving from
IS/IT expenditures? Are there alternative sources of these services that would cost less?

Online collaboration and social Millions of business professionals use Google Apps, Google Drive, Microsoft 365, Yammer, Zoom, and IBM
networking Connections to support blogs, project management, online meetings, personal profiles, and online communi-
ties. Is your firm making a coordinated effort to use new technologies to improve coordination, collaboration,
and knowledge sharing? Which of the many alternatives should it be using?

Organizations

Security and privacy Security lapses and protecting customer privacy are major public issues that affect all businesses. How does
your company know its data are secure? How much does it spend on security now? What privacy policies
does your firm have in place? How should the firm expand its privacy protections as new laws emerge?

Social business Businesses use social network platforms, including Facebook, Twitter, Instagram, and internal corporate social
tools, to deepen interactions with employees, customers, and suppliers. What use is your company making of
social business tools? Where should it go from there? Is your company getting real value from these platforms?

Remote work (telework) surges The Internet, cloud computing, smartphones, and tablet computers make it possible for growing numbers of
people to work away from the traditional office. This ability proved critical during the height of the Covid-19 pan-
demic, when more than 70 percent of workers worked from home. Going forward, what will your firm’s policies
and technologies be for remote work, and what are the risks for productivity?

brought the peoples and cultures of the world much closer together. The Industrial
Revolution was a worldwide phenomenon energized by expansion of trade among na-
tions, making nations both competitors and collaborators in business. The Internet
has greatly heightened the competitive tensions among nations as global trade
expands and strengthened the benefits that flow from trade and also created signifi-
cant dislocations in labor markets.

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 38 Part I: Information Systems in the Digital Age

In 2005, journalist Thomas Friedman wrote an influential book declaring that the
world was now flat, by which he meant that the Internet and global communications
had greatly expanded the opportunities for people to communicate with one another
and reduced the economic and cultural advantages of industrialized countries. The
United States and European countries were in a fight for their economic lives, accord-
ing to Friedman, competing for jobs, markets, resources, and even ideas with highly
educated, motivated populations in emerging economies (Friedman, 2007). This glo-
balization presents you and your business with both challenges and opportunities.
A growing percentage of the economy of the United States and other industrial-
ized countries in Europe and Asia depends on imports and exports. In 2021, 26 percent
of the US economy resulted from foreign trade of goods and services, both imports
and exports. In certain countries in Europe and Asia, the number exceeds 50 percent
(Organisation for Economic Co-operation and Development [OECD], 2022).
It’s not just goods that move across borders. So too do jobs, some of them ­high-level
jobs that pay well and require a college degree. Between 1991 and 2019, the United States
lost a net 3.5 million manufacturing jobs to offshore, low-wage producers, so manufac-
turing is now a much smaller part of US employment than it once was. US multinational
companies employ more than 14 million people outside the United States, many of them
in service jobs in information technology, customer call centers, human resources, finan-
cial services, consulting, engineering, architecture, and even medical services, such as
radiology (Amadeo, 2021; U.S. Bureau of Economic Analysis, 2021; Rose, 2021).
On the plus side, the US economy has continued to create millions of new jobs, es-
pecially in 2021 as the country began to emerge from the pandemic. From 2020 to 2030,
employment is projected to grow by almost 12 million jobs. Employment in information
systems and the other service occupations listed previously has rapidly expanded in sheer
numbers, wages, productivity, and quality of work. Outsourcing has actually accelerated
the development of new information systems by reducing the cost of building and main-
taining them. In 2021, job openings in information systems and technologies far exceeded
the supply of applicants (U.S. Bureau of Labor Statistics, 2021a).
The challenge for you as a business student is to develop high-level skills through
education and on-the-job experience that cannot be outsourced. The challenge for
your business is to avoid markets for goods and services that can be produced offshore
much less expensively. The opportunities are equally immense. You can learn how to
profit from the lower costs available in world markets and the chance to serve a mar-
ketplace with billions of customers. You have the opportunity to develop h ­ igher-level
and more profitable products and services. Throughout this book, you will find ex-
amples of companies and individuals who either failed or succeeded in using informa-
tion systems to adapt to this new global environment.
What does globalization have to do with management information systems? The
answer is simple: everything. The emergence of the Internet into a full-blown inter-
national communications system has drastically reduced the costs of operating and
transacting on a global scale. Communication between a factory floor in South Korea
and a distribution center in Belgium is now instant and virtually free. Customers now
can shop in a worldwide marketplace, obtaining price and quality information reli-
ably 24 hours a day. Firms producing goods and services on a global scale achieve
extraordinary cost reductions by finding low-cost suppliers and managing produc-
tion facilities in other countries. Firms such as Google and eBay can replicate their
business models and services in multiple countries without having to redesign their
expensive, fixed-cost information systems infrastructure.

BUSINESS DRIVERS OF INFORMATION SYSTEMS

What makes information systems so essential today? Why are businesses investing so
much in information systems and technologies? They do so to achieve seven impor-
tant business objectives: operational excellence; new products, services, and business

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 Chapter ­1: Business Information Systems in Your Career 39

models; customer and supplier intimacy; improved decision making; competitive ad-
vantage; and survival. In addition, businesses today are increasingly being pressured
by various stakeholders, such as employees, customers, governmental authorities, and
investors, to show leadership in pursuing broader environmental, social, and gover-
nance (ESG) goals. ESG is becoming a strategic business imperative, and information
systems are central in enabling companies to meet their ESG goals.

Operational Excellence
Businesses continuously seek to improve the efficiency of their operations to achieve
higher profitability. Information systems and technologies are some of the most im-
portant tools available to managers for achieving higher levels of efficiency and pro-
ductivity in business operations, especially when coupled with changes in business
practices and management behavior.
Walmart, the largest retailer on earth, exemplifies the power of information systems
coupled with sophisticated business practices and supportive management to achieve
world-class operational efficiency. In fiscal 2022, Walmart generated $600 billion in
worldwide sales—in large part because of its Retail Link and Global Replenishment
System, which digitally links its suppliers to every one of Walmart’s stores worldwide. As
soon as a customer purchases an item, the supplier monitoring the item knows to ship a
replacement to the shelf. Walmart is the most efficient retail store in its industry.
Amazon, the world’s largest online retailer, which was expected to generate an
estimated $655 billion in retail e-commerce sales worldwide in 2022, invested an as-
tounding $56 billion in technology and content in 2021 so that it can continue to en-
hance the customer experience and improve process efficiency while operating at an
ever-increasing scale (Amazon.com Inc., 2022; Insider Intelligence/eMarketer, 2022d).

New Products, Services, and Business Models

Information systems and technologies are a major enabling tool for firms to create
new products and services as well as entirely new business models. A business model
describes how a company produces, delivers, and sells a product or service to cre-
ate wealth. Today’s music industry is vastly different from the industry a decade ago.
Apple transformed an old business model of music distribution based on vinyl re-
cords, tapes, and CDs into an online, legal download distribution model based on
its own operating system and iTunes store. Apple has prospered from a continuing
stream of innovations, including the iPod, iTunes and Apple Music music services,
iPhone, and iPad.

Customer and Supplier Intimacy

When a business really knows its customers and serves them well, the way they want
to be served, its customers generally respond by returning and purchasing more. This
raises revenues and profits. Likewise with suppliers: the more a business engages its
suppliers, the better the suppliers can provide vital inputs. This lowers the business’s
costs. How really to know your customers, or suppliers, is a central problem for busi-
nesses with millions of offline and online customers.
High-end hotel chains such as Ritz-Carlton exemplify the use of information
systems and technologies to achieve customer intimacy. Every time a new prospect
shares their information or a guest checks into a Ritz-Carlton hotel, their information
is stored in a cloud-based relationship management system. When that guest returns
to the hotel or logs into their online account, the system cross-references their data
profile and tailors that customer’s guest experience to their exact preferences (such
as room temperature, check-in and check out times, and room location) and history.
This highly personalized experience makes the customer feel valued, included, and
part of the Ritz-Carlton brand. The hotels also analyze their customer data to iden-
tify their best customers and develop individualized marketing campaigns based on
customers’ preferences.

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 40 Part I: Information Systems in the Digital Age

Hong Kong–headquartered TAL Apparel, one of the world’s largest contract ap-
parel manufacturers, exemplifies the use of information systems to enable supplier
intimacy. TAL Apparel produces shirts, blouses, knits, pants, outerwear, and suits for
many of the most famous garment brands, including UK retailer Charles Tyrwhitt,
US retailer Brooks Brothers, and global online retailer and catalog merchant L.L.
Bean. The company also helps its clients manage their supply chains. Every time its
clients sell a dress shirt, for example, the record of the sale appears immediately on
TAL’s computers in Hong Kong. TAL runs the numbers through a computer model
it developed and decides how many replacement shirts to make and in what styles,
colors, and sizes. TAL then sends the shirts to the retailer. TAL’s systems reduce in-
ventory costs and ensure that what customers want is actually on retailers’ shelves.

Improved Decision Making

Many business managers operate in an information fog bank, never really having the
right information at the right time to make an informed decision. Instead, managers
rely on forecasts, best guesses, and luck. The result is over- or underproduction of
goods and services, misallocation of resources, and poor response times. These poor
outcomes raise costs and lose customers. Information systems and technologies have
now made it possible for managers to use real-time data from the marketplace when
making decisions.
For instance, Privi Organics Ltd., a leading Indian company that manufactures
and exports aroma chemical products worldwide, uses the Oracle Human Capital
Management system for real-time insight into individual employee information. The
system helps managers make faster human resource decisions by integrating all em-
ployee records across the organization. A digital dashboard helps management moni-
tor hiring status in multiple locations, such as the number of open positions and the
time taken to fill these positions.

Competitive Advantage
When firms achieve one or more of these business objectives—operational excel-
lence; new products, services, and business models; customer/supplier intimacy; and
improved decision making—chances are they have already achieved a competitive
advantage. Doing things better than your competitors, charging less for superior
products, and responding to customers and suppliers in real time all add up to higher
sales and higher profits that your competitors cannot match. Apple, Walmart, and
UPS are industry leaders because they know how to use information systems for this
purpose.

Survival
Business firms also invest in information systems and technologies because they are
necessities of doing business. Sometimes these necessities are driven by industry-level
changes. For instance, after Barclays introduced the first automated teller machines
(ATMs) in London to attract customers through higher service levels, its competitors
rushed to provide ATMs to their customers to keep up. Today, virtually all banks
around the world have regional ATMs and link to national and international ATM
networks, such as CIRRUS. Providing ATM services to retail banking customers is
simply a requirement of being in and surviving in the retail banking business.
Most nations have statutes and regulations that create a legal duty for compa-
nies and their employees to retain records, including digital records. For instance,
the European Council’s Regulation on Registration, Evaluation, Authorization,
and Restriction of Chemicals (REACH) and the U.S. Toxic Substances Control Act,
which regulates the exposure of employees to toxic chemicals, require firms to retain
records on employee exposure for a certain period of time. The US Sarbanes–Oxley
Act requires public companies to retain audit working papers and records, including
all email messages, for five years. Many other governments throughout the world also

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 Chapter ­1: Business Information Systems in Your Career 41

impose significant information retention and reporting requirements on businesses.

Firms turn to information systems and technologies to provide the capability to re-
spond to information retention and reporting requirements.

Environmental, Social, and Governance (ESG) Leadership

Over the past decade or so, there has been a growing awareness of the important role
that businesses play in, and the impact that they have, on society. With that growing
awareness has come pressure from employees, customers, investors, and governmen-
tal authorities with respect to business conduct in three primary areas: the environ-
ment, social responsibility, and corporate governance, often referred to as ESG.
Environmental criteria encompass such aspects as energy use, carbon footprint,
sustainability, recycling practices, pollution, and natural resource conservation.
Social criteria focus on whether the company is a good corporate citizen and social
actor in terms of its employees, suppliers, customers, and the community. Governance
criteria relate primarily to the actions of the company’s leadership, executive pay, in-
ternal controls, and shareholder rights. ESG also includes a company’s actions with
respect to diversity, equity, and inclusion (DEI). Many aspects of ESG are intertwined
with one another.
Showing leadership in these areas can add business value by facilitating growth,
reducing costs, minimizing regulatory and legal issues, increasing employee produc-
tivity, and optimizing assets and investments. For instance, many consumers are no
longer willing to support companies that don’t prioritize ESG. Many investors are
now basing investment decision on an assessment of a company’s ESG performance.
Information systems are central in enabling companies to achieve ESG goals. For
instance, a major industrial company advised by consulting firm PWC has elevated
sustainability to being a strategic priority. One step it recently took to achieve its
goal of zero net emissions by 2050 was to implement a cloud-based ERP system for
its entire supply chain, which is helping its suppliers to track, report, and reduce their
carbon impact. This was an important step because the bulk of the company’s car-
bon footprint is in its supply chain, not within the company itself. We discuss other
instances of information systems being used for ESG purposes throughout the text.

1-2 Define an information system, explain how it

works, and identify its people, organizational, and
technology components.
So far we’ve used information systems and technologies informally without defining
the terms. Information technology (IT) consists of all the hardware and software that
a firm needs to use to achieve its business objectives. This includes not only comput-
ers, storage technology, and mobile devices but also software, such as the Windows
or Linux operating systems, the Microsoft Office desktop productivity suite, and the
many thousands of computer programs that can be found in a typical large firm.
Information systems are more complex and can be understood best by looking at
them from both a technology and a business perspective.

WHAT IS AN INFORMATION SYSTEM?

An information system (IS) can be defined technically as a set of interrelated compo-
nents that collect (or retrieve), process, store, and distribute information to support
decision making, coordinating, and control in an organization. In addition, informa-
tion systems may also help managers and workers analyze problems, visualize com-
plex subjects, and create new products.
Information systems contain information about significant people, places, and
things within the organization or in the environment surrounding it. By information,

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 42 Part I: Information Systems in the Digital Age

331 Brite Dish Soap 1.29

863 BL Hill Coffee 4.69 Sales Region: Northwest
173 Meow Cat .79 Store: Superstore #122
331 Brite Dish Soap 1.29 Information ITEM NO. DESCRIPTION UNITS SOLD
663 Country Ham 3.29 System 331 Brite Dish Soap 7,156
524 Fiery Mustard 1.49
113 Ginger Root .85 YTD SALES
331 Brite Dish Soap 1.29 $9,231.24
.
.
. Inf
orm
ati
D ata on

­Figure 1.1
Data and Information
Raw data from a supermarket checkout counter can be processed and organized to produce meaningful information, such
as the total unit sales of dish detergent or the total sales revenue from dish detergent for a specific store or sales territory.

we mean data that have been shaped into a form that is meaningful and useful to
human beings. Data, in contrast, are streams of raw facts representing events occur-
ring in organizations or the physical environment before they have been organized
and arranged into a form that people can understand and use.
A brief example contrasting information and data may prove useful. Examine
Figure 1.1, which provides an example of an information system used by a super-
market. Supermarket checkout counters scan bar codes on products. The bar codes
contain data about the product, such as a numerical identifier, name, and price
(“331 Brite Dish Soap, 1.29), shown in the left portion of the diagram. An informa-
tion system enables these pieces of data to be totaled and analyzed to provide mean-
ingful information, displayed in the right portion of the diagram, such as the total
number of bottles of dish detergent sold at a particular store, which brands of dish
detergent were selling the most rapidly at that store or sales territory, or the total
amount spent on that brand of dish detergent at that store or sales region.
Three activities in an information system produce the information that organiza-
tions need to make decisions, control operations, analyze problems, and create new
products or services. These activities are input, processing, and output. Examine
Figure 1.2, which illustrates how these activities work together within an informa-
tion system. Input captures or collects raw data from within the organization or
from its external environment. Processing converts this raw input into a meaningful
form by classifying, arranging, and performing calculations on it. Output transfers
the processed information to the people who will use it or to the activities for which
it will be used. Information systems also provide feedback, which is output that is
returned to appropriate members of the organization to help them evaluate or cor-
rect the input stage. Figure 1.2 also illustrates that an organization’s information
systems do not operate within a vacuum: they are impacted by various elements in
the environment that surround them, such as the organization’s suppliers, custom-
ers, competitors, and stockholders as well as governmental agencies that regulate
the organization.
In the AWM Smart Shelf system, input includes the digital results from scanning
on-shelf products and store shelf identification codes, along with scanned images of
items customers have selected for purchase. A computer stores and processes these
data to keep track of the items on each shelf, the items each customer purchases or
examines, and a history of the customer’s purchases and items of interest. The system
then determines what items on what shelves need restocking and what items should be

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 Chapter ­1: Business Information Systems in Your Career 43

Figure 1.2
ENVIRONMENT Functions of an
Suppliers Customers Information System
An information system
contains information about
ORGANIZATION an organization and its
surrounding environment.
INFORMATION SYSTEM
Three basic activities—input,
processing, and output—
Processing produce the information
Classify organizations need.
Input Output
Arrange Feedback is output returned
Calculate to appropriate people or
activities in the organization
Feedback
to evaluate and refine the
input. Environmental actors,
such as customers, suppliers,
competitors, stockholders,
and regulatory agencies,
Regulatory Stockholders Competitors interact with the organization
Agencies and its information systems.

recommended to each customer. The system provides meaningful information such

as all the items sold in a particular store or on a particular store shelf on a specific
day, what items have been purchased by a specific customer, and which items need
restocking.
Although computer-based information systems use computer technology to pro-
cess raw data into meaningful information, there is a sharp distinction between a com-
puter and a computer program and an information system. Computers and related
software programs are the technical foundation, the tools and materials, of modern
information systems. Computers provide the equipment for storing and processing
information. Computer programs, or software, are sets of operating instructions that
direct and control computer processing. Knowing how computers and computer pro-
grams work is important in designing solutions to organizational problems, but com-
puters are only part of an information system.
A house is an appropriate analogy. Houses are built with hammers, nails, and
wood, but these alone do not make a house. The architecture, design, setting, land-
scaping, and all of the decisions that lead to the creation of these features are part of
the house and are crucial for solving the problem of putting a roof over one’s head.
Computers and programs are the hammer, nails, and lumber of computer-based
information systems, but alone they cannot produce the information a particular
organization needs. To understand information systems, you must understand the
problems they are designed to solve, their architectural and design elements, and the
organizational processes that lead to these solutions.

I­ T ISN’T SIMPLY TECHNOLOGY: THE ROLE OF PEOPLE

AND ORGANIZATIONS
To understand information systems fully, you will need to be aware of the broader
organizational, people, and information technology dimensions of systems and their
power to provide solutions to challenges and problems in the business environment.
Examine Figure 1.3, which highlights the interconnected nature of these dimensions,
showing that organizations, technology, and people are all interrelated components
underlying the effective use of information systems. We refer to this broader under-
standing of information systems, which encompasses an understanding of the people

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 44 Part I: Information Systems in the Digital Age

Figure 1.3
Information Systems
Are More Than
Computers
Using information systems
effectively requires an
understanding of the Organizations Technology
organization, people, and
information technology Information
shaping the systems. An Systems
information system provides
a solution to important
business problems or
challenges facing the firm. People

and organizational dimensions of systems as well as the technical dimensions of

systems, as information systems literacy. Information systems literacy includes a be-
havioral as well as a technical approach to studying information systems. Computer
literacy, in contrast, focuses primarily on knowledge of information technology.
The field of management information systems (MIS) tries to achieve this broader
information systems literacy. MIS deals with behavioral issues as well as technical
issues surrounding the development, use, and impact of information systems that
managers and employees in the firm use.

DIMENSIONS OF INFORMATION SYSTEMS

Let’s examine each of the dimensions of information systems—organizations, people,
and information technology.

Organizations
Information systems are an integral part of organizations, and although we tend to
think about information technology changing organizations and business firms, it is,
in fact, a two-way street. The history and culture of business firms also affect how the
technology is used and how it should be used. To understand how a specific business
firm uses information systems, you need to know something about the structure, his-
tory, and culture of the company.
Organizations have a structure that is composed of different levels and specialties.
Their structures reveal a clear-cut division of labor. A business firm is organized as
a hierarchy, or a pyramid structure, of rising authority and responsibility. The upper
levels of the hierarchy consist of managerial, professional, and technical employees,
whereas the lower levels consist of operational personnel. Experts are employed and
trained for different business functions, such as sales and marketing, manufacturing
and production, finance and accounting, and human resources. The firm builds in-
formation systems to serve these different specialties and levels of the firm. Chapter 2
provides more detail on these business functions and organizational levels and the
ways in which information systems support them.
An organization accomplishes and coordinates work through this structured hier-
archy and through its business processes, which are logically related tasks and behaviors
for accomplishing work. Developing a new product, fulfilling an order, and hiring a
new employee are examples of business processes.
Most organizations’ business processes include formal rules that have been devel-
oped over a long time for accomplishing tasks. These rules guide employees in a variety
of procedures, from writing an invoice to responding to customer complaints. Some of

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Another random document with
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“I might as well bring the horse inside now,” he said. “Perhaps I may
be obliged to spend a week here. He will be out of sight, too.”
Going out he brought in the horse, and then tightly closed the
entrance. Then his eyes fell on the water-vessel.
“I wish I had some water,” he said; “and no doubt the horse thinks
the same. But there is a stream ten miles north—Alkali Creek. The
water is not very good, but it is wet. I will go after I’ve searched
awhile.”
Unsaddling the horse, and leaving him to roam at will about the
chamber, he again took up the torch and went to the entrance of the
inner one.
This was a mere slit in the hillside, barely large enough for him to
enter. However, his pliant body enabled him to glide through, and
standing in the entrance, he threw the light over the apartment.
It was empty, just as he had expected. It was unchanged, too—
further evidence that there had been no one there since he had left.
His spirits rose at every step, and his way was becoming certain.
This chamber was somewhat larger than the other, and was lighter,
the chinks above being larger. It was also scantily furnished, and in
the same manner as the first.
A pile of blankets lay in one corner, and were evidently long unused.
A single gun stood by them—a rifle. Otherwise the room was empty.
Pedro, after satisfying himself as to other occupants, with his
habitual energy began at once to work. Drawing his revolver, he
hastily uncapped the tubes, then, lighted by his torch, commenced to
sound the wall, the ceiling, the floor—in fact, everything which might
conceal the treasure he knew was there.
Outside the sun still shone upon the bare plain, blinding with its heat
the few small animals which stole about, the only moving objects on
the plain.
The only moving objects? Not so; there was another one—a man
riding a black horse. Several miles away from the hillock, he was
coming, at a slow walk, from the south; going north and to the
hillock.
An hour passed. Pedro was working steadily inside, at intervals
muttering disjointed sentences. The solitary rider drew near, and
halted close to the hillock.
He was dressed in a tight-fitting suit of buck-skin, and in his black,
conical hat, a black plume drooped. Armed to the teeth, he was a
desperate-appearing person. His face, bearing the marks of license
to strong and evil passions, was pale in the extreme—even ghastly.
He halted before the entrance, and just then Pedro exclaimed below
—he was excited about something. Then he rode round to the
opposite side of the hillock, and drawing up, facing it, sat like a
statue on his black horse.

A fierce cry came from the cavern—a cry of wild delight. This was
followed by a series of disjointed exclamations, expressive of the
wildest joy. Then came hurried tramping to and fro—then dead
silence. Outside the rider still sat on his sable steed, and remained
grim and quiet, never changing a muscle. All was quiet in the Land of
Silence.

It was toward the middle of the afternoon when Pedro burst out of
the entrance gesticulating extravagantly, and fairly shouting under
the influence of some strong emotion. In his hand he held his horse-
blanket, tied into a rude bag; it was loaded with something that
chinked musically.
“Found! found!” he cried. “What fortune—what extraordinary luck!
Only three hours’ searching, too. Oh, holy mother! what shall I do
with all this wealth? Pedro, Pedro Felipe, you are as rich as the
richest. Blessed be all the saints! what fortune, what fortune!”
This grave, demure man of forty, fairly danced in excitement, and
shook the bag violently.
Chink, chink! a musical rattle that. More than one man has gone
crazy over less. Huzzah! huzzah! the treasure is found.
He has feasted his eyes on it before; but, wild with excitement, can
not keep his eyes off from it. In his agitation he had forgotten his
horse, and with the bag on his shoulder, had been starting on foot for
Mexico. But now he sunk on his knees, and opening the blanket-bag,
shook it.
Heavens! what a sight. Rolling out in a sparkling cascade came coin,
gold and silver, ornaments of the same metals, costly watches,
splendid rings, and guards, and above all, gleaming, sparkling
diamonds. Diamonds set in magnificent rings; diamonds garnishing
costly brooches; diamonds cut and rough, large and tiny; what a
fortune, what beautiful, bewitching riches was there.
Spread out on the ground, Pedro gazed fascinated upon his precious
treasure, and well he might. Here a deep amethyst glimmered and
shone, hob-nobbing, as it were, with a brilliant diamond; yonder a
sparkling seal clung closely with a shining watch guard. Diamonds
were sprinkled about pell-mell among all sorts and sizes of costly
jewels, expensive watches, and piles of golden and silver coin of
large denominations; here a solitary ruby flashed and shimmered;
but, above all, outstripping all, was a huge topaz, mocking the sun by
its deep, transparent yellow tint; it was a gem among gems.
Pedro had not formed any idea of the value of his treasure—his
brain was so demented he could not have counted twenty correctly.
But he saw the coins were all among the highest ever sent from the
mint, and nearly all gold; but he had not the slightest idea of the
value of the jewels—he only knew he was immensely rich.
“Ah, my yellow, shining, pretty pets!” he exclaimed, filling the bag
again. “My darlings! you have made me the richest man in the wide
world. Brave, yellow, sparkling boys!”
A horse stamped close by. He listened intently.
Another stamp and a shrill neigh from a strange horse. Pedro turned
sick, his brain reeled, and a deadly nausea seized him.
Suddenly recovering, he threw the bag into the entrance, and drew
his jeweled dagger—his rifle was inside.
“Who’s there?” he hoarsely said, peering off into the plain. “Speak!
man or ghost! who is near—who is there?”
Nothing—no one; the plain is bare. All is quiet in the Land of Silence.
“Murder! help! who’s there? Oh, heaven, my gold!”
He saw the plain was bare, and that he was alone. He drew a breath
of relief—might he not have been deceived?
Perhaps. He prayed so. But stay—the hillock hid a part of the plain
from view. He would ascend it and discover evil if it was at hand.
With a hoarse cry he brandished his dagger, and with two gigantic
strides stood on the summit.
But only for a moment, he stood there with a pale, terrified face,
staring eye and shaking limbs. Then reeling, with a loud cry he
rushed down into the cave and closed the entrance, terrified almost
beyond his senses.
What was the matter—what had happened? Enough. There, on his
old black horse, under his plumed black hat, sat the ghost of the
Trailer.
 CHAPTER VI.
KISSIE FINDS A FRIEND.
Pedro sat behind the closed entrance, lowering savagely through the
glimmering chinks, and almost beside himself with astonishment,
vague fear, and wonder. He had recovered his gun and was
clutching it, ready to fire at the smallest rustle above; his precious
treasure formed a costly seat, on which he squatted; afraid of the
cave, afraid of the darkness, the ghost, his own horse, and even of
himself.
Do not infer from this that Pedro was a coward. On the contrary, he
was brave—a bolder man never drew breath. He was far-famed for
his bravery. But, “put yourself in his place,” and cease to wonder at
his alarm.
An hour passed, during which he fancied he heard a slight noise
overhead. But if there was one, it was slight, scarcely discernible. He
began to regain his habitual equanimity, and to try and laugh down
his fears. But the latter was no easy task. To see the perfect form of
a man he had shot through the heart a year ago—to see him
mounted on the same steed he had dropped him from—to see his
wicked, gleaming eye fixed upon him in deadly, unrelenting hate—
and above all, to meet him at this place, in the country noted for its
specters, was enough, as he strongly declared, “to scare the Old
Nick out of ten years’ wickedness.”
Plucking up courage, he advanced to open the trap and peer out.
Just then he heard a footfall above—he drew back again, seized with
fear.
The footfall became two, then three, then grew into a succession of
patters. He knew the sound—it was a horse. He did not stop to
conjecture—he did not hesitate or draw a timid breath; but angry at
himself for being alarmed, boldly threw open the trap, and with ready
rifle, peered out.
His eyes fell upon a fair young girl coming directly toward him on a
sorrel mustang, the latter apparently wandering aimlessly at an easy
amble. Her eyes were fixed on the distant plain beyond the hillock,
and were wandering, as if she saw nothing to attract her attention.
“It is strange she does not see it!” observed Pedro—“very strange.
But stay! the hillock is higher than its head, and so she does not
perceive it. But she will—she will.”
But she did not, and came on directly toward the entrance. Suddenly,
when quite close, the mustang snorted, tossed her head, and shied
away from something in front of her.
“Ah!” he muttered, “then it was no optical illusion—it is, in truth, a
spirit.”
But he was deceived. If the mustang saw the form behind the hill, the
lady did not, and being higher than her steed had a better
opportunity for discovering it.
“Be quiet, Dimple!” commanded the lady. “It is only some large
burrow—it is nothing to alarm you. Be quiet, I say!”
Pedro stared. From where she was now (the mustang having darted
to a point which allowed a full view of the hillock) she could have
easily seen the form had he been there. But she did not, and of
course he was not in sight—the pony was alarmed at the yawning
entrance, which showed gloomily against the yellow hillock.
Pedro’s fears were over. Wondering why a lady—a white and
beautiful American lady—should be alone on this wild, sterile plain,
he resolved to make himself known. Perhaps she was in distress—
mayhap she had just escaped from captivity and needed assistance.
Gallantry was one of his predominating traits.
Casting aside his weapons, and wearing an easy, good-natured air,
which became him, he stepped carelessly out in full view. Lifting his
sombrero, he said, with an assuring smile:
“Senorita, your servant.”
Snort! The mustang was twenty yards away in five seconds, and the
lady, unseated, was on the ground, wildly alarmed, but not injured;
the timid mustang had thrown her in its sudden fright.
She arose and fled toward her mustang, but the treacherous animal
galloped away, and halting a hundred yards distant, tossed her head
and regarded the strange man wildly. Seeing she could not recover
her steed in her present state of mind, she turned to Pedro, doubting
and fearing him. He saw she mistrusted him, and again raising his
sombrero, again bowed low.
“Fear not, senorita—fear not; I am a friend.”
“A friend? Who are you?”
“Pedro Felipe, senorita. Do you need assistance?”
“Oh, yes, sir; I am in great trouble. I am lost from my friends. I was
chased by Indians last night. I am very hungry and tired; I have not
tasted food since yesterday at noon.”
Pedro, eying her admiringly, noticed her sweet face was pale and
worn. Ever ready to assist a fellow-creature, he started toward the
entrance.
“Enter, senorita, enter. But stay,” he added, in a low tone; “do you
see any thing on the other side of the hill?”
“No, sir—nothing. No one is visible.”
“It is well. Senorita, if you will come in here you will find food, such as
it is. There are blankets, also, if you need rest.”
But she hung back. She feared to enter that strange, yawning hole
with this man, even if he did look and act like an honest man.
“My pony, Dimple,” she said, hesitatingly. “I am afraid she will go
astray.”
“Never fear, senorita—I will bring her back to you, if she does.”
“But—but—”
“Ah I perceive, senorita—you wrong me. I have been too long a
companion and servant of my kind master in Mexico—Senor
Martinez—to harm a lady. I—”
“Why! are you the Pedro that lives at that grand old place? Why, our
farm was quite close to it! My father is Mr. Wheeler.”
“Ah! then I am fortunate in having an opportunity to serve you. Your
party is on their way north, is it not?”
“Yes, sir. Do you know any of them?”
“Only Simpson, the guide. He is an old friend of mine. Many is the
time we have fled from Apaches. I started from the hacienda on the
morning you started for the north. I saw your party, several days ago,
down on the Santa Cruz river.”
“Then you will help me to find my friends?”
“Assuredly, senorita. Come in and rest. My accommodations are
poor, but they are better than none. Come in, senorita.”
No longer she feared to enter that forbidding aperture, but led by
Pedro, walked in. The mustang, seeing her mistress disappear,
came slowly toward the entrance.
“Why, what a dismal, gloomy place,” said Kissie, timidly halting in the
entrance. “What is it—who lives here?”
“It is an old outlaw den,” replied Pedro. “But no outlaws occupy it
now—its only resident is your servant.”
Much she marveled, but she did not ask any questions, as she was
faint from lack of nourishment. Pedro, for security’s sake, led her into
the second chamber, and shaking up the tattered, musty blankets,
bade her rest while he procured food, he going out for the purpose.
She reclined on the soft blankets, greatly surprised at the strange
events in which she had participated. But she did so unaccompanied
by any feelings of alarm or of grief, for now she had found a haven of
rest.
She sunk into a dreamy doze, delicious for its being indulged in
perfect safety. She had heard of the man outside—she was aware
he was a far-famed and respected scout and warrior; she knew he
would protect her. She could hear him in the next room stirring
about, whistling under his breath, and the savory odor of roasting
meat floated to her nostrils. A lingering trace of uneasiness alone
remained—she knew her friends would be alarmed about her.
This latter feeling was not strong enough to seriously alarm her, as
she conceived it an easy task for them to find her. Mingling with it
was a delicious sense of security and peace, of rest and
nourishment, and the savory smell of the adjoining cookery.
Gradually these blended into one feeling; Pedro’s whistle outside
became more melodious and softer—the dull, gloomy air of the dark
apartment soothed her, and she fell asleep.
Pedro, as he cooked his bit of venison (he had killed an antelope
when on the Gila), reflected and pondered, and his thoughts shaped
themselves into words.
“She is asleep—I can hear her breathe. It is strange, very strange,
that she did not see it. It was no mistake of mine, that I know. What,
then, was it? The Trailer’s ghost.
“Pshaw! I killed him a year ago, and saw him fall dead with my own
eyes. It can not—it can not be.
“But I saw him. Ah, that is only too certain. Sitting on his old black
horse, under that waving black plume, and in the same old dress. I
saw him—I know I saw him. Pedro Felipe, there is no fighting away
the fact—you are haunted.”
He shuddered, strong man as he was, and going to the entrance,
looked out. Still the hot breeze came from the south, still the hot sun
stared down upon the yellow plain, still all was quiet. Only the
mustang was in sight, browsing at a little distance, with his head
turned toward the east.
“I must lariat that mustang,” said Pedro. “There are too many Indians
about for him to show our retreat. Yes, I will lariat him.”
Perhaps one motive for doing so was, that going out he might peer
over the hill. He dreaded a second appearance of the apparition, and
though he would not acknowledge it to himself, cordially feared it. It
was not to his discredit, however.
He took his lariat, or lasso, from his saddle, which lay on the floor,
the horse lying near. Then he stepped out, still keeping one corner of
his eye toward the summit of the hill.
Suddenly he stopped.
“What if she should awake and discover my treasure!” he thought,
trembling for its safety, though he knew she was perfectly to be
trusted.
It was lying in a corner still, in the bag. He threw the water-bucket, a
blanket and his saddle over it.
“That will suffice for the present,” he said; then casting an eye toward
the inner room, went out with his lariat.
The mustang still browsed, tail toward him. It was an excellent
opportunity for a capture, and he would profit by it. So, making a
running-noose at one end, he coiled his lariat, and taking the coil in
his hand, began to swing it over his head. At the same time he
allowed the noose full play, by this means increasing its size until it
became several feet in diameter. Such is the apparently simple
manner of throwing the lasso.
The noose became larger and wider, the amount of rope in his hand
became less; in another moment the noose would be over the
animal’s head.
It did not leave his hand. Just before he had got ready to let it fly, a
voice close by said:
“Aim well, Pedro Felipe.”
He started, dropped his rope, and stared round. He was alone—no
one had spoken. Was it imagination?—the mustang still browsed—
she had not heard it. It was a false alarm.
Again he picked up his rope. Again the voice spoke, this time
harshly.
“Take care, Pedro!”
Dropping his rope, he flew to the summit and looked over the plain.
No one was in sight—no apparition, no Indian, no human being.
Then with a pale face he darted toward the entrance, with the
ejaculated words:
“The voice of the Trailer!”
The trap-door rung harshly as he slammed it to from the inside. The
mustang heard the sound, tossed his head, and galloped away a
short distance, then stopped and looked at the hillock.
It was bare—no one was in sight. Relieved of her sudden fear, she
dropped her head and grazed again. The sun slowly set over the
Land of Silence.
Who spoke?
The man with the black plume in his conical hat.
 CHAPTER VII.
“APACHES!”
The pursuing band wound away over the plain, now, at four hours
from sunrise, invisible from the banks of the Gila.
They were, as has been said, divided into two separate parties. That
of Cimarron Jack was in advance, the riders urging on their steeds at
a swift amble. The wagons behind under charge of Burt Scranton,
rattled along merrily, drawn by horses kept at a slow trot.
“I say,” said Jack, as they trotted on, “we are nearly into the Land of
Silence, now, ain’t we?”
This remark was addressed to the guide. He nodded.
“And now we’ve got to look out for Apaches.”
“No ’Patchies hyar.”
“Yes, there are.”
“I know better. Never come inter this kentry. Too dry.”
“Well, there are Apaches prowling about now—that I know to be a
fact.”
“Know more’n I do, then.”
“You bet I do. Hooray! three cheers for the man who can clean out a
whole jail-full of prize-fighters; a tiger for the stoutest, smartest man
in the world. I can thrash a jungle-full of gorillas, myself. I tell you. I’m
the man that can’t be fazed, myself; and I’m the cock of the walk.”
“I’m sick of thet durned braggin’,” growled Simpson. “Heerd northin’
else sence I fust see’d yer.”
“And you are liable to continue hearing it, too.”
“Durn me ef I kain’t stop it.”
“Yes you can—with a big copper.”
“Well, I kin.”
“Le’s see you try it.”
“Hark!” suddenly cried Carpenter. “Was not that a gun-shot?”
The friendly disputants ceased their strife, and halting and turning in
their saddles, listened long and earnestly. The train was not in sight,
having descended into a sort of dry slough which ran across the
plain.
“False alarm,” declared Simpson, turning to continue the trail. But
Cimarron Jack disagreed with him.
“Tim, I saw Apache Jack up by Comanche Rock day before
yesterday, and he warned me of a band of Apaches who were out on
a maraud, down in this direction. What he says is gospel.”
“Durned ef it ain’t! I giv’ in,” said Simpson. His confidence in Apache
Jack was unlimited.
“The old boy was looking rather fazed,” continued Jack. “He told me
he had only just given them the slip, after a run of thirty miles.”
“Hark!” sharply commanded Mr. Wheeler. “I’m sure I heard a gun
behind.”
“I thought I did, too,” said Sam.
A puff of white smoke arose from the crest of a small knoll, half a
league behind; then a man was seen to spring on the summit and
wave his hat frantically.
The eagle eye and electric brain of Cimarron Jack took in the
situation at once. He struck his steel spurs sharply into the blood-
bay’s flanks.
“Come on!” he shouted, galloping toward the gesticulating man.
“There’s something wrong with the train. Come on! follow the tiger-
cat!”
They followed, pell-mell, plying the spur. As if cognizant of the
importance of speed, the horses bent their heads and fairly flew;
while their riders kept their eyes upon the man on the knoll.
Suddenly he disappeared and a new object came in sight. Afar off on
the plain, beyond the invisible train, came a man on a galloping
animal. He was followed by another and more, all shooting out from
behind a distant ridge.
“’Patchees!” yelled Simpson. “They air a-makin’ fur the train!”
The guide was right. The train was halted behind the knoll, and the
Apaches were galloping toward it. They had evidently been following
the trail, as they were coming from the south-east.
“Hurry!” cried Sam. “We will have to fly to save the train.” And as he
spoke he bent over his “clay-bank’s” neck as if to accelerate his
speed.
The knoll was quite near now, being not more than three hundred
yards distant. The coming savages were at least a mile away. The
whites had the start.
A minute more and they dashed up in a body to the knoll.
It was as they had expected; the train was grouped behind it, every
one being in hapless confusion with the exception of Burt, who was
loudly swearing at the utter disregard of his orders by the two
Robidoux.
Duncan was scuttling about among his tin dishes and kettles in his
wagon, trying to find his favorite weapon—a dull butcher-knife, with a
blade like a hand-saw. The utmost confusion prevailed.
However, the arrival of the main body in some degree quieted the
teamsters and restored order.
Suddenly the coming Apaches, now about a half-mile distant, drew
up their mustangs, and grouping, stared keenly at the train. They
had seen the horsemen suddenly arrive to sustain the small band
they were swooping down upon.
Cimarron Jack was in his element. Taking, with the characteristic
promptness of a veteran Indian-fighter, advantage of their hesitation,
he sprung from his horse.
“Now, fly ’round!” he commanded. “Stir your stumps, you fellows!”
pointing to the Canadians. “You, Louis, drive your team ahead ten
feet!”
The man obeyed, quieted by the magnetic influence which Jack
always possessed when in danger.
“Now, Duncan—blast your nervous, excitable hide! drive alongside
Louis!”
But Duncan paid no attention, searching, in an agony of haste, for
his lost knife.
Burt promptly performed his task. The other Canadian, with more
coolness than the other drivers, seeing what was desired, waited for
no orders, but drove his wagon in a line with the others.
“Now all hands get to work and unhitch the horses. Don’t be in a
hurry; buckles can’t be managed without coolness and deliberation.”
The men went to work with dispatch, yet coolly, and in a few
moments the horses were detached from the wagons.
“Now, you drivers take the horses aside, and the rest of us will draw
the wagons together.”
The Canadians did as commanded, and the remainder drew the
wagons together; then the horses were tied firmly to the wheels on
the side next the knoll. Now they were in quite a snug and secure
fort, with a barricade of wagons in front, and a small hill behind.
After this short but highly necessary work was finished, Cimarron
Jack looked closely at his rifle, desiring the others to do the same.
He carefully reloaded his “Colt’s six-shooters,” and laid them before
him on the wheel-hub.
“Now, boys,” he said, “we are in tolerable circumstances for the
present, but there is no knowing how long we will remain so. Rot
those cussed devils out there! there’s an army of ’em!”
“Fifteen,” corrected Simpson.
“Fifteen to seven. Oh, that ain’t as bad as it might be.”
“What a large fellow that is, yonder, to one side,” observed
Carpenter, indicating a powerful, stalwart savage, prominent among
the rest.
“Cheyenne,” remarked the guide, taking a huge bite from a “plug o’
Navy,” which he always carried.
“Comanche!” corrected Jack. “He’s no Apache—he isn’t built like
one. Tear my lion’s heart out, but I believe I know him,” he suddenly
added.
“Durned ef I don’t, too!” declared Simpson, watching him narrowly.
“It’s Red-Knife, the renegade.”
“K’rect!”
“Who is he?” inquired Mr. Wheeler.
“Red-Knife, the Comanche renegade—a notorious, murdering old
rat!” replied Jack. “He’s the worst Indian on the plains, and ‘give up’
is something he does not know. Kicked out of his own tribe he joined
the Apaches, and since has gained a reputation for cruelty and
cunning far above any of the others.”
“We are in danger, then.”
“Danger! Well, I should remark. But look yonder—what in the name
of Cimarron Jack, the cock of the walk, does that painted devil
mean?”
All eyes were turned at once toward the savages. Before stationary,
they were now prancing and capering about, spreading like a bird’s
wing, then folding again, ever prancing and curveting. Only the chief,
Red-Knife, remained at rest. After seeing his brother Ishmaelites
wheel and curve about him for some time, he dismounted, cast his
weapons on the ground and slowly stalked toward the barricade.
“He’s a fool!” whispered Burt to Sam, as he drew within rifle-range.
“Fust thing he’ll know, he’ll find hisself dead, if ever Simpson or
t’other draws bead on him.”
“He’s going to palaver,” remarked Jack.
The savage drew quite close, until he halted within long pistol-range.
Then, spreading his arms and throwing back his head, he cried out:
“Are the pale-faces women, that they seek to hide? Are they
coyotes, that they burrow when danger comes? Are they fools, that
they know not that Red-Knife is the chief of the plains—that he is not
to be foiled?”
He spoke in the Spanish tongue with a good tone and accent. Long
intercourse with the Mexicans had improved his tongue.
He received no answer; he went on.
“Are the pale-faces dumb, that they do not reply? Ugh! they are
dogs.”
“He thinks we are greasers—he does, by Cimarron Jack, the god of
war! Well, let him discover his mistake—he will do so before long,”
remarked Jack.
“Le’s pepper him, Jack,” said the guide.
“No; let him talk. If he thinks we are Mexicans he will charge—then
we will give him a little lead to digest.”
“Will the pale faces surrender?” cried the chief. “Will they yield?”
“Oh, yer jist go back ter yer daubed fools, and quit yer gab!” cried the
guide.
The savage understood English slightly, and after some reflection,
deciphered the command. He started back a pace or so, somewhat
taken aback by finding he was taunting Americans. Then he
resumed, swaggering:
“Come out from your hiding-place, women! Come like men into the
plain and talk to Red-Knife. He is a brave—he has taken many
scalps; the whites are dogs and are cowards.”
“I’ll put a stopper to his mouth!” declared Jack, bending and creeping
through the wagons. Then, standing in full view before the chief, he
cried, brandishing his rifle:
“Get back to your howling crew, you Comanche renegade dog! Get
back, or I’ll send you in a hurry.”
He spoke in the chief’s own tongue, and he recognized Jack.
Knowing his deadly precision with the rifle, well acquainted with his
reckless daring and warlike proclivities, he prepared to retreat to his
companions. But he could not resist the temptation of another taunt.
“Squaw from the bitter river” (Cimarron Fork), “dog from a dog’s
country, coyote with a forked tongue—Red-Knife will dance with his
warriors and his braves around your fire-stake. The squaws shall spit
upon him, the pappooses will pierce his flesh with darts, and the
coyotes will tear his flesh.”
He turned and fled, dodging and darting from side to side to avoid
Jack’s bullet, which he knew would speed after him. It did.
Enraged, Cimarron Jack leveled his rifle and glanced over the sights.
The gun belched its smoke and fire, the chief dodged at the very
moment, and the bullet razed the black feather which nodded on his
painted head, and sped harmlessly on.
The guide, Sam, and Burt also fired, but their bullets were wild—the
chief’s erratic and rapid motion rendered it almost impossible to
strike him. Running like a deer, he speedily regained his mustang
and his band, and mounting, spoke several hasty words to his
clustered braves, gesticulating wildly.
The next moment they separated—one band of seven starting away
toward the north, while the other, with the chief, rode west a few
yards, and drawing as near as they dared, halted, facing the whites.
“Now it has come right down to business, and we’ll have to look
sharp,” growled Jack.
“Why so—what is wrong?” simply inquired Louis Robidoux.
Jack glanced scornfully over him from head to foot.
“Have you any eyes in your head?” he asked, with curling lip. “If you
have, just use ’em. Can’t you see they are going to make a
surround?”
Under his yellow hair, the Canadian’s face flushed, and he scowled
at Jack.
“Use me more respectfully, or you may rue it,” he growled.
“Dry up! You had better be a trifle more respectful yourself, or you
will rue it. I am Cimarron Jack, the fellow who teaches grizzlies how
to wrestle, collar-and-elbow; I am the fellow who can hold a kicking
mule by the off-hind-foot with my thumb and little finger. I tell you, the
man in the moon doesn’t dare to make faces at me of a still night. He
knows I can shoot mighty straight, he does.”
“Quit yer braggin’ and mind yer eye,” admonished the guide, surlily.
“It’s no time ter brag, now.”
“Yes, Cimarron Jack; pray do not breed discord at this critical
moment,” said Mr. Wheeler. “See, the hill now hides the savages
from our view—the band that rode away.”
“Who’s breeding discord, I’d like to know? I don’t let any mule-
whacker say boo, to me, I tell you. However, young bantam,” turning
to the driver, “you and I see more of each other, mind that. For the
present, there is too much to look after to fool with you.”
 CHAPTER VIII.
GIVE AND TAKE.
Cimarron Jack, with these words, turned his back to the sulky
Canadian, and carefully reconnoitered the position of the Indians.
The chief’s band still remained drawn up in line, facing them like
soldiers on a dress-parade; the other was not in sight.
“This won’t do,” remarked Jack. “We must keep an eye on those
devils who rode round back of us. First thing we know the whole
gang will come whooping on us. That ’ll never do—we must keep
them off.”
“But how are we going to do that?” inquired the Canadian.
Jack became nettled.
“Why, peep over the top of the hill, to be sure.”
“But they will shoot us—Red-Knife’s band.”
“Oh, they will try? I know I’m the crack shot of these plains, and I
can’t hit a man three quarters of a mile off with a carbine that won’t
kill at three hundred yards. They darsn’t come within half a mile to
shoot, so we are safe from that quarter. There’s no time to be lost;
those red fools may be crawling up the other side of the hill for all we
know.”
So saying, he coolly left the wagons, and deliberately walked up the
hillside. He was greeted with a volley from Red-Knife’s band, but the
bullets fell far short; the short Mexican carbines were useless at long
range.
He slackened his pace as he drew near the summit, and dropping on
all-fours, crept up to the top, and peered quickly but cautiously over.
Then, with a short oath, he rose to his feet, and with a surprised look
gazed over the plain.