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Contents 7

3-3 How do Porter’s competitive forces model, the value chain model,
synergies, core competencies, and network economics help companies
develop competitive strategies using information systems? 126
Porter’s Competitive Forces Model 126 • Information System Strategies for
Dealing with Competitive Forces 128
Interactive Session | Organizations Will AI Replace Managers? 130
The Internet’s Impact on Competitive Advantage 132 • The Business Value
Chain Model 133
Interactive Session | Technology Singapore as a Smart Nation 134
Synergies, Core Competencies, and Network-Based Strategies 137
3-4 What are the challenges posed by strategic information systems, and
how should they be addressed? 141
Sustaining Competitive Advantage 141 • Aligning IT with Business
Objectives 141 • Managing Strategic Transitions 142
3-5 How will MIS help my career? 143
The Company 143 • Position Description 143 • Job Requirements 143 •
Interview Questions 144 • Author Tips 144
Review Summary 144 • Key Terms 145 • Review Questions 145 •
Discussion Questions 146
Hands-On MIS Projects 146
Collaboration and Teamwork Project 147
Case Study: Offline, Online, and Back: The Evolution of the UK Grocery Mar-
ket 148
References: 150

Chapter 4 Ethical and Social Issues in Information Systems 152


Opening Case: Are Cars Becoming Big Brother on Wheels? 153
4-1 What ethical, social, and political issues are raised by information
systems? 155
A Model for Thinking about Ethical, Social, and Political Issues 156 • Five
Moral Dimensions of the Information Age 158 • Key Technology Trends that
Raise Ethical Issues 158
4-2 What specific principles for conduct can be used to guide ethical
decisions? 161
Basic Concepts: Responsibility, Accountability, and Liability 161 • Ethical
Analysis 161 • Candidate Ethical Principles 162 • Professional Codes of
Conduct 163 • Some Real-World Ethical Dilemmas 163
4-3 Why do contemporary information systems technology and the Internet
pose challenges to the protection of individual privacy and intellectual
property? 163
Information Rights: Privacy and Freedom in the Internet Age 164 • Property
Rights: Intellectual Property 170
4-4 How have information systems affected laws for establishing account-
ability and liability and the quality of everyday life? 174
Computer-Related Liability Problems 174 • System Quality: Data Quality and
System Errors 175 • Quality of Life: Equity, Access, and Boundaries 176
8 Contents

Interactive Session | Organizations Will AI Kill Jobs? 180


Health Risks: RSI, CVS, and Cognitive Decline 181
Interactive Session | Technology Volkswagen Pollutes Its Reputation with Soft-
ware to Evade Emissions Testing 183
4-5 How will MIS help my career? 184
The Company 184 • Position Description 184 • Job Requirements 184 •
Interview Questions 185 • Author Tips 185
Review Summary 185 • Key Terms 186 • Review Questions 186 •
Discussion Questions 187
Hands-On MIS Projects 187
Collaboration and Teamwork Project 188
Case Study: Facebook Privacy: Your Life for Sale 189
References: 192

PART TWO Information Technology Infrastructure 193


Chapter 5 IT Infrastructure and Emerging Technologies 194
Opening Case: Southeast Asia’s Grab Leverages Information Technology to En-
hance Its Services 195
5-1 What is IT infrastructure, and what are the stages and drivers of
IT infrastructure evolution? 197
Defining IT Infrastructure 197 • Evolution of IT Infrastructure 199 •
Technology Drivers of Infrastructure Evolution 203
5-2 What are the components of IT infrastructure? 207
Computer Hardware Platforms 208 • Operating System Platforms 210 •
Enterprise Software Applications 210 • Data Management and
Storage 211 • Networking/Telecommunications Platforms 211 •
Internet Platforms 211 • Consulting and System Integration Services 212
5-3 What are the current trends in computer hardware platforms? 212
The Mobile Digital Platform 212 • Consumerization of IT and BYOD 212
Interactive Session | Technology Open Source Innovation: The New Competitive
Advantage 213
Quantum Computing 215 • Virtualization 215 • Cloud Computing 215
Interactive Session | Organizations Glory Finds Solutions in the Cloud 218
Edge Computing 220 • Green Computing 221 • High-Performance and
Power-Saving Processors 222
5-4 What are the current computer software platforms and trends? 222
Linux and Open Source Software 222 • Software for the Web: Java, HTML,
and HTML5 223 • Web Services and Service-Oriented Architecture 224 •
Software Outsourcing and Cloud Services 225
5-5 What are the challenges of managing IT infrastructure and
management solutions? 228
Contents 9

Dealing with Platform and Infrastructure Change 228 • Management and


Governance 229 • Making Wise Infrastructure Investments 229
5-6 How will MIS help my career? 232
The Company 232 • Position Description 232 • Job Requirements 232 •
Interview Questions 233 • Author Tips 233
Review Summary 233 • Key Terms 234 • Review Questions 235 •
Discussion Questions 236
Hands-On MIS Projects 236
Collaboration and Teamwork Project 237
Case Study: Is BYOD Good for Business? 238
References: 241

Chapter 6 Foundations of Business Intelligence: Databases and


Information Management 242
Opening Case: Data Management Enables Smarter Energy Generation in
Australia 243
6-1 What are the problems of managing data resources in a traditional file
environment? 245
File Organization Terms and Concepts 245 • Problems with the Traditional
File Environment 246
6-2 What are the major capabilities of database management systems
(DBMS), and why is a relational DBMS so powerful? 248
Database Management Systems 249 • Capabilities of Database Management
Systems 251 • Designing Databases 254 • Non-relational Databases,
Cloud Databases, and Blockchain 256
6-3 What are the principal tools and technologies for accessing
information from databases to improve business performance
and decision making? 259
The Challenge of Big Data 259 • Business Intelligence Infrastructure 260
Interactive Session | Technology Societe Generale Builds an Intelligent System
to Manage Information Flow 262
Analytical Tools: Relationships, Patterns, Trends 263 • Databases and
the Web 267
6-4 Why are information policy, data administration, and data quality
assurance essential for managing the firm’s data resources? 268
Establishing an Information Policy 268 • Ensuring Data Quality 269
Interactive Session | Organizations Data-Driven Policing Goes Global 271
6-5 How will MIS help my career? 272
The Company 272 • Position Description 272 • Job Requirements 273 •
Interview Questions 273 • Author Tips 273
Review Summary 273 • Key Terms 274 • Review Questions 275 •
Discussion Questions 276
Hands-On MIS Projects 276
Collaboration and Teamwork Project 277
Case Study: How Reliable Is Big Data? 278
References: 280
10 Contents

Chapter 7 Telecommunications, the Internet, and Wireless


Technology 282
Opening Case: Alibaba: Redefining Traditional Retailing 283
7-1 What are the principal components of telecommunications networks
and key networking technologies? 285
Networking and Communication Trends 285 • What Is a Computer
Network? 286 • Key Digital Networking Technologies 288
7-2 What are the different types of networks? 291
Signals: Digital Versus Analog 291 • Types of Networks 291 • Transmission
Media and Transmission Speed 293
7-3 How do the Internet and Internet technology work, and how do they
support communication and e-business? 293
What Is the Internet? 293 • Internet Addressing and Architecture 294
Interactive Session | Organizations The Global Battle over Net
Neutrality 297
Internet Services and Communication Tools 299
Interactive Session | Management Singapore Shuts Down 2G Network 302
The Web 303
7-4 What are the principal technologies and standards for wireless
networking, communication, and Internet access? 311
Cellular Systems 311 • Wireless Computer Networks and Internet Access 312 •
RFID and Wireless Sensor Networks 314
7-5 How will MIS help my career? 317
The Company 317 • Position Description 317 • Job Requirements 317 •
Interview Questions 318 • Author Tips 318
Review Summary 318 • Key Terms 319 • Review Questions 320 •
Discussion Questions 320
Hands-On MIS Projects 320
Collaboration and Teamwork Project 321
Case Study: Google, Apple, and Facebook Battle for Your Internet
Experience 322
References: 325

Chapter 8 Securing Information Systems 326


Opening Case: Cyberattacks in the Asia-Pacific Target the Weakest Link: Peo-
ple 327
8-1 Why are information systems vulnerable to destruction, error, and
abuse? 329
Why Systems are Vulnerable 330 • Malicious Software: Viruses, Worms, Trojan
Horses, and Spyware 331 • Hackers and Computer Crime 334 • Internal
Threats: Employees 338 • Software Vulnerability 339
8-2 What is the business value of security and control? 340
Legal and Regulatory Requirements for Electronic Records Management 340
Interactive Session | Technology Meltdown and Spectre Haunt the World’s
Computers 341
Electronic Evidence and Computer Forensics 343
Contents 11

8-3 What are the components of an organizational framework for security


and control? 344
Information Systems Controls 344 • Risk Assessment 345 • Security
Policy 346 • Disaster Recovery Planning and Business Continuity
Planning 347 • The Role of Auditing 347
8-4 What are the most important tools and technologies for safeguarding
information resources? 348
Identity Management and Authentication 348 • Firewalls, Intrusion Detection
Systems, and Anti-malware Software 350 • Securing Wireless Networks 352 •
Encryption and Public Key Infrastructure 352 • Securing Transactions with
Blockchain 354 • Ensuring System Availability 355 • Security Issues for
Cloud Computing and the Mobile Digital Platform 355
Interactive Session | Management Phishing for Money: Dangerous Emails 356
Ensuring Software Quality 358
8-5 How will MIS help my career? 359
The Company 359 • Position Description 359 • Job Requirements 359 •
Interview Questions 359 • Author Tips 360
Review Summary 360 • Key Terms 361 • Review Questions 362 •
Discussion Questions 362
Hands-On MIS Projects 362
Collaboration and Teamwork Project 364
Case Study: Information Security Threats and Policies in Europe 365
References: 367

PART THREE Key System Applications for the Digital Age 369
Chapter 9 Achieving Operational Excellence and Customer Intimacy:
Enterprise Applications 370
Opening Case: Warehouse Management at Norauto: Conversational Com-
merce 371
9-1 How do enterprise systems help businesses achieve operational
excellence? 373
What are Enterprise Systems? 373 • Enterprise Software 374 • Business
Value of Enterprise Systems 375
9-2 How do supply chain management systems coordinate planning,
production, and logistics with suppliers? 376
Interactive Session | Management Physical Flow in Alibaba 377
The Supply Chain 378 • Information Systems and Supply Chain
Management 380 • Supply Chain Management Software 381 •
Global Supply Chains and the Internet 382 • Business Value of Supply
Chain Management Systems 384
9-3 How do customer relationship management systems help firms
achieve customer intimacy? 384
What Is Customer Relationship Management? 385 • Customer Relationship
Management Software 385 • Operational and Analytical CRM 389 •
Business Value of Customer Relationship Management Systems 389
12 Contents

9-4 What are the challenges that enterprise applications pose,


and how are enterprise applications taking advantage of new
technologies? 390
Enterprise Application Challenges 390
Interactive Session | Organizations Kenya Airways Flies High with Customer
Relationship Management 391
Next-Generation Enterprise Applications 393
9-5 How will MIS help my career? 395
The Company 395 • Position Description 395 • Job Requirements 395 •
Interview Questions 395 • Author Tips 396
Review Summary 396 • Key Terms 397 • Review Questions 397 •
Discussion Questions 398
Hands-On MIS Projects 398
Collaboration and Teamwork Project 399
Case Study: Fast Fashion, Big Data, and Zara 400
References: 402

Chapter 10 E-commerce: Digital Markets, Digital Goods 404


Opening Case: Uber Storms Europe. Europe Strikes Back. 405
10-1 What are the unique features of e-commerce, digital markets, and
digital goods? 407
E-commerce Today 408 • The New E-commerce: Social, Mobile, Local 409 •
Why E-commerce Is Different 411 • Key Concepts in E-commerce: Digital
Markets and Digital Goods in a Global Marketplace 414
10-2 What are the principal e-commerce business and revenue
models? 417
Types of E-commerce 417 • E-commerce Business Models 418
Interactive Session | Organizations Deliveroo: Australian Food Delivery
App 421
E-commerce Revenue Models 422
10-3 How has e-commerce transformed marketing? 424
Behavioral Targeting 425 • Social E-commerce and Social Network
Marketing 428
Interactive Session | Management Socializing with Customers 431
10-4 How has e-commerce affected business-to-business transactions? 432
Electronic Data Interchange (EDI) 433 • New Ways of B2B Buying and
Selling 434
10-5 What is the role of m-commerce in business, and what are the most
important m-commerce applications? 436
Location-Based Services and Applications 437 • Other Mobile Commerce
Services 438
10-6 What issues must be addressed when building an e-commerce
presence? 438
Develop an E-commerce Presence Map 438 • Develop a Timeline:
Milestones 439
Contents 13

10-7 How will MIS help my career? 440


The Company 440 • Job Description 440 • Job Requirements 441 •
Interview Questions 441 • Author Tips 441
Review Summary 442 • Key Terms 442 • Review Questions 443 •
Discussion Questions 444
Hands-On MIS Projects 444
Collaboration and Teamwork Project 445
Case Study: An iDEAL Solution to the Single Online EU Market 446
References: 448

Chapter 11 Managing Knowledge and Artificial Intelligence 450


Opening Case: Roche: Managing Diabetes with Big Data and Mobile Apps 451
11-1 What is the role of knowledge management systems in
business? 453
Important Dimensions of Knowledge 454 • The Knowledge
Management Value Chain 455 • Types of Knowledge Management
Systems 458
11-2 What are artificial intelligence (AI) and machine learning? How do
businesses use AI? 459
Evolution of AI 459 • Major Types of AI 460 • Expert Systems 460 •
Machine Learning 462 • Neural Networks 464 • Genetic Algorithms 467 •
Natural Language Processing, Computer Vision Systems, and
Robotics 468 • Intelligent Agents 469
11-3 What types of systems are used for enterprise-wide knowledge
management, and how do they provide value for businesses? 470
Enterprise Content Management Systems 471 • Locating and Sharing
Expertise 472 • Learning Management Systems 473
11-4 What are the major types of knowledge work systems, and how
do they provide value for firms? 473
Knowledge Workers and Knowledge Work 473
Interactive Session | Management Singapore Sports Institute Uses Analytics for
SEA Games 474
Requirements of Knowledge Work Systems 475 • Examples of Knowledge
Work Systems 476
Interactive Session | Technology Will Robots Replace People in Manufactur-
ing? 478
11-5 How will MIS help my career? 479
The Company 479 • Position Description 480 • Job Requirements 480 •
Interview Questions 480 • Author Tips 480
Review Summary 481 • Key Terms 482 • Review Questions 482 •
Discussion Questions 483
Hands-On MIS Projects 483
Collaboration and Teamwork Project 484
Case Study: GE Bets on the Internet of Things and Big Data Analytics 485
References: 488
14 Contents

Chapter 12 Enhancing Decision Making 490


Opening Case: Eastspring: Targeted Enterprise System Building 491
12-1 What are the different types of decisions, and how does the decision-
making process work? 493
Business Value of Improved Decision Making 493 • Types of Decisions 494 •
The Decision-Making Process 495
12-2 How do information systems support the activities of managers and
management decision making? 496
Managerial Roles 496 • Real-World Decision Making 498 • High-Velocity
Automated Decision Making 499
12-3 How do business intelligence and business analytics support decision
making? 500
What Is Business Intelligence? 500 • The Business Intelligence
Environment 500 • Business Intelligence and Analytics Capabilities 502
Interactive Session | Technology Siemens Makes Business Processes
More Visible 503
12-4 How do different decision-making constituencies in an organization
use business intelligence, and what is the role of information systems in
helping people working in a group make decisions more efficiently? 507
Decision Support for Operational and Middle Management 507 • Decision
Support for Senior Management: Balanced Scorecard and Enterprise
Performance Management Methods 510
Interactive Session | Management Fujitsu Selects a SaaS Solution to Simplify
the Sales Process 512
Group Decision-Support Systems (GDSS) 513
12-5 How will MIS help my career? 514
The Company 514 • Position Description 514 • Job Requirements 514 •
Interview Questions 515 • Author Tips 515
Review Summary 515 • Key Terms 516 • Review Questions 517 •
Discussion Questions 517
Hands-On MIS Projects 517
Collaboration and Teamwork Project 518
Case Study: Better for Business, Better for the Environment 519
References: 521

PART FOUR Building and Managing Systems 523


Chapter 13 Building Information Systems 524
Opening Case: Building a Healthy Case-Management System 525
13-1 How does building new systems produce organizational change? 527
Systems Development and Organizational Change 527
Interactive Session | Organizations Business Process Redesign at DP
World 529
Business Process Redesign 530
Contents 15

13-2 What are the core activities in the systems development


process? 534
Systems Analysis 534 • Systems Design 535 • Completing the Systems
Development Process 536
13-3 What are the principal methodologies for modeling and designing
systems? 539
Structured Methodologies 539 • Object-Oriented Development 541 •
Computer-Aided Software Engineering 543
13-4 What are alternative methods for building information
systems? 543
Traditional Systems Life Cycle 543 • Prototyping 544 • End-User
Development 546 • Application Software Packages, Software Services,
and Outsourcing 546
13-5 What are new approaches for system building in the digital
firm era? 549
Rapid Application Development (RAD), Agile Development, and DevOps 549 •
Component-Based Development and Web Services 550 • Mobile Application
Development: Designing for a Multiscreen World 551
13-6 How will MIS help my career? 552
The Company 552 • Position Description 552
Interactive Session | Technology Systems Development Is Different for
Mobile Apps 553
Job Requirements 554 • Interview Questions 554 • Author Tips 555
Review Summary 555 • Key Terms 556 • Review Questions 557 •
Discussion Questions 557
Hands-On MIS Projects 558
Collaboration and Teamwork Project 559
Case Study: Hitachi Consulting Moves Human Resources to the
Cloud 560
References: 562

Chapter 14 Managing Projects 564


Opening Case: Al-Asasyah Implements a Modern ERP Solution 565
14-1 What are the objectives of project management, and why is it so
essential in developing information systems? 567
Runaway Projects and System Failure 567 • Project Management
Objectives 568
14-2 What methods can be used for selecting and evaluating information
systems projects and aligning them with the firm’s business
goals? 569
Management Structure for Information Systems Projects 569 • Linking Systems
Projects to the Business Plan 570 • Portfolio Analysis 572 • Scoring
Models 573
14-3 How can firms assess the business value of information systems? 574
Information System Costs and Benefits 574 • Capital Budgeting for
Information Systems 574 • Limitations of Financial Models 575
16 Contents

14-4 What are the principal risk factors in information systems projects, and
how can they be managed? 576
Dimensions of Project Risk 576 • Change Management and the Concept
of Implementation 577 • Controlling Risk Factors 579 • Designing for the
Organization 582 • Project Management Software Tools 583
Interactive Session | Management Hilti AG: Putting Things Together with New
Project Management Tools 584
14-5 How will MIS help my career? 585
The Company 585
Interactive Session | Technology Arup Moves Project Management to the
Cloud 586
Position Description 587 • Job Requirements 587 • Interview
Questions 588 • Author Tips 588
Review Summary 588 • Key Terms 589 • Review Questions 589 •
Discussion Questions 590
Hands-On MIS Projects 590
Collaboration and Teamwork Project 591
Case Study: Pennsylvania’s Unemployment Compensation Modernization
System: Unfinished Business 592
References: 594

Chapter 15 Managing Global Systems 596


Opening Case: The Bel Group: Laughing All the Way to Success 597
15-1 What major factors are driving the internationalization of
business? 599
Developing an International Information Systems Architecture 599 •
The Global Environment: Business Drivers and Challenges 601 • State
of the Art 604
15-2 What are the alternative strategies for developing global
businesses? 604
Global Strategies and Business Organization 605 • Global Systems to
Fit the Strategy 606 • Reorganizing the Business 607
15-3 What are the challenges posed by global information systems and
management solutions for these challenges? 607
A Typical Scenario: Disorganization on a Global Scale 608 • Global Systems
Strategy 608 • The Management Solution: Implementation 611
15-4 What are the issues and technical alternatives to be considered when
developing international information systems? 612
Computing Platforms and Systems Integration 613 • Connectivity 613 •
Software Localization 614
15-5 How will MIS help my career? 615
The Company 615
Interactive Session | Technology The Global Internet Goes Multimedia 616
Position Description 617 • Job Requirements 617 • Interview
Questions 617
Interactive Session | Management AbbVie Builds a Global Systems
Contents 17

Infrastructure 618
Author Tips 619
Review Summary 620 • Key Terms 620 • Review Questions 621 •
Discussion Questions 621
Hands-On MIS Projects 621
Collaboration and Teamwork Project 622
Case Study: Acquisition of Souq.com: Amazon’s Entry into the Middle East 623
References: 625

Glossary 626

Indexes 638
BUSINESS CASES AND INTERACTIVE SESSIONS
Here are some of the business firms you will find described in the cases and Interactive Sessions of
this book:

Chapter 1: Information Systems in Global Business Today


Premier League: The Power of IT Analytics
Can You Run the Company with Your iPhone?
Digital Transformation of Healthcare at Singapore’s JurongHealth Services
Changes in the Financial Industry: Adyen and Fintech

Chapter 2: Global E-business and Collaboration


Enterprise Social Networking Helps Sanofi Pasteur Innovate and Improve Quality
How City Football Group and SAP Manage a Winning Combination
Collaborating the Glasscubes Way
Can a Rugby Union Teach Businesses How to Turn Customers into Supporters?

Chapter 3: Information Systems, Organizations, and Strategy


Tate & Lyle Devise a Global IT Strategy
Will AI Replace Managers?
Singapore as a Smart Nation
Offline, Online, and Back: The Evolution of the UK Grocery Market

Chapter 4: Ethical and Social Issues in Information Systems


Are Cars Becoming Big Brother on Wheels?
Will AI Kill Jobs?
Volkswagen Pollutes Its Reputation with Software to Evade Emissions Testing
Facebook Privacy: Your Life for Sale

Chapter 5: IT Infrastructure and Emerging Technologies


Southeast Asia’s Grab Leverages Information Technology to Enhance Its Services
Open Source Innovation: The New Competitive Advantage
Glory Finds Solutions in the Cloud
Is BYOD Good for Business?

Chapter 6: Foundations of Business Intelligence: Databases and Information


Management
Data Management Enables Smarter Energy Generation in Australia
Societe Generale Builds an Intelligent System to Manage Information Flow
Data-Driven Policing Goes Global
How Reliable Is Big Data?

Chapter 7: Telecommunications, the Internet, and Wireless Technology


Alibaba: Redefining Traditional Retailing
The Global Battle over Net Neutrality
Singapore Shuts Down 2G Network
Google, Apple, and Facebook Battle for Your Internet Experience
Chapter 8: Securing Information Systems
Cyberattacks in the Asia-Pacific Target the Weakest Link: People
Meltdown and Spectre Haunt the World’s Computers
Phishing for Money: Dangerous Emails
Information Security Threats and Policies in Europe

Chapter 9: Achieving Operational Excellence and Customer Intimacy: Enterprise


Applications
Warehouse Management at Norauto: Conversational Commerce
Physical Flow in Alibaba
Kenya Airways Flies High with Customer Relationship Management
Fast Fashion, Big Data, and Zara

Chapter 10: E-commerce: Digital Markets, Digital Goods


Uber Storms Europe. Europe Strikes Back.
Deliveroo: Australian Food Delivery App
Socializing with Customers
An iDEAL Solution to the Single Online EU Market?

Chapter 11: Managing Knowledge and Artificial Intelligence


Roche: Managing Diabetes with Big Data and Mobile Apps
Singapore Sports Institute Uses Analytics for SEA Games
Will Robots Replace People in Manufacturing?
GE Bets on the Internet of Things and Big Data Analytics

Chapter 12: Enhancing Decision Making


Eastspring: Targeted Enterprise System Building
Siemens Makes Business Processes More Visible
Fujitsu Selects a SaaS Solution to Simplify the Sales Process
Better for Business, Better for the Environment

Chapter 13: Building Information Systems


Building a Healthy Case-Management System
Business Process Redesign at DP World
Systems Development Is Different for Mobile Apps
Hitachi Consulting Moves Human Resources to the Cloud

Chapter 14: Managing Projects


Al-Asasyah Implements a Modern ERP Solution
Hilti AG: Putting Things Together with New Project Management Tools
Arup Moves Project Management to the Cloud
Pennsylvania’s Unemployment Compensation Modernization System: Unfinished Business

Chapter 15: Managing Global Systems


The Bel Group: Laughing All the Way to Success
The Global Internet Goes Multimedia
AbbVie Builds a Global Systems Infrastructure
Acquisition of Souq.com: Amazon’s Entry into the Middle East
PREFACE

New To This Edition


Management Information Systems, 16th edition has new features and content to
make your MIS course more exciting, current, and relevant.

New Features
• New Career Opportunities section in each chapter, identified by ,
shows students specifically how this book can help them find a job and
build their careers. The last major section of each chapter presents a
description of an entry-level job for a recent college graduate based on a
real-world job description. The job requirements are related to the topics
covered in that chapter. The job description shows the required educa-
tional background and skills, lists business-related questions that might
arise during the job interview, and provides author tips for answering the
questions and preparing for the interview.
• New Conceptual Videos collection includes 45 conceptual videos of
3 to 5 minutes in length. Ken Laudon walks students through three of
the most important concepts in each chapter using a contemporary ani-
mation platform. Available only in the MyLab MIS digital edition.
• New Video Cases collection: 36 video cases (two or more per chapter)
and 10 additional instructional videos covering key concepts and experi-
ences in the MIS world. The video cases illustrate how real-world cor-
porations and managers are using information technology and systems.
Video Cases are listed at the beginning of each chapter.
• Learning Tracks: 49 Learning Tracks in MyLab MIS for additional cov-
erage of selected topics. This edition includes new Learning Tracks for
case-based reasoning and fuzzy logic.

New Topics
The 16th edition features all new opening, closing, and Interactive Session
cases. The text, figures, tables, and cases have been updated through September
2018 with the latest sources from industry and MIS research. New topics and
coverage include:
• Updated coverage of artificial intelligence (AI): Chapter 11 has
been rewritten to include new 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.
• Big Data and the Internet of Things: In-depth coverage of big data, big
data analytics, and the Internet of Things (IoT) in Chapters 1, 6, 7, and 12.
Includes big data analytics, analyzing IoT data streams, Hadoop, in-memory
computing, nonrelational databases, data lakes, and analytic platforms.

20
Preface 21

• Cloud Computing: 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, managing
cloud services, and a new Interactive Session on using cloud services.
Cloud computing also covered in Chapter 6 (databases in the cloud),
Chapter 8 (cloud security), Chapter 9 (cloud-based CRM and ERP),
Chapter 10 (e-commerce), and Chapter 13 (cloud-based systems
development).
• Social, Mobile, Local: New e-commerce content in Chapter 10 describ-
ing how social tools, mobile technology, and location-based services are
transforming marketing and advertising.
• Social Business: Expanded coverage of social business, introduced in
Chapter 2 and discussed throughout the text. Detailed discussions of en-
terprise (internal corporate) social networking as well as social network-
ing in e-commerce.
• Machine learning
• Natural language processing
• Computer vision systems
• Robotics
• “Deep learning”
• Supervised learning
• Unsupervised learning
• Edge computing
• 5G networks
• General Data Protection Regulation (GDPR)
• Mobile device management (MDM)
• Office 365
• Blockchain
• Data lake
• Distributed database
• FinTech

The core Laudon text and MyLab MIS provide the most up-to-date and compre-
hensive overview of information systems used by business firms today. After
reading this book, we expect students will be able to participate in, and even
lead, management discussions of information systems for their firms and un-
derstand how to use information technology in their jobs to achieve bottom-line
business results. Regardless of whether students are accounting, finance, man-
agement, operations management, marketing, or information systems majors,
the knowledge and information in this book will be valuable throughout their
business careers.
The MyLab MIS platform provides an interactive digital environment
that supports the unique strengths of our work. Our goal with Management
Information Systems: Managing the Digital Firm is to provide students with an
introduction to the MIS field that is authoritative, up-to-date, interactive, and
engaging for students and professors. The MyLab MIS edition extends these
22 Preface

features to a digital platform that emphasizes videos, animations, interactive


quizzes, and student 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.

Reach Every Student with MyLab MIS


MyLab is the teaching and learning platform that empowers you to reach every
student. By combining trusted authors’ content with digital tools and a flex-
ible platform, MyLab MIS personalizes the learning experience and improves
results for each student, helping them understand how MIS concepts will help
them succeed in their future careers.

Solving Teaching and Learning Challenges


The Laudon learning package is more current, real-world, and authoritative
than competitors. Laudon MIS16 and MyLab MIS help students understand MIS
concepts and issues through extensive use of examples of real-world compa-
nies, a wide variety of short and long text and video cases based on real-world
organizations, and numerous 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. Students 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 prepare 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 MyLab MIS edition offers unique digital interactive features that hold
student attention spans longer and make learning more effective, including 45
animated conceptual learning modules that walk students through key con-
cepts in each chapter; 36 online video cases, and interactive quizzes. All of
this is available anytime, anywhere, on any digital device. The result is a com-
prehensive learning environment that will heighten student engagement and
learning in the MIS course.

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 management, organiza-
tion, and technology elements and is reinforced in student projects and case
studies. The core text consists of 15 chapters with hands-on projects covering
the most essential topics in MIS. An important part of the core text is the Video
Case Study and Instructional Video Package: 36 video case studies (two to three
Preface 23

per chapter) plus 10 instructional videos that illustrate business uses of infor-
mation systems, explain new technologies, and explore concepts. Videos are
keyed to the topics of each chapter.

Business
Problem

• Vast topographically challenging location


• Select race Management • Opportunities from new technology
technology A diagram accompanying
each chapter-opening case
graphically illustrates how
management, organization,
• Revise race Information Business and technology elements
tracking process Organization System Solutions work together to create an
• Obtain external
data
information system solution
Wireless Race Tracking • Increase fan involvement
System
to the business challenges
• Expand fan bases
• Tracking sensors • Monitor rider progress discussed in the case.
• Mobile app and location
• Cloud computing • Predict race outcome
service Technology
• Data analytics • Generate rider profiles
• Social media • Generate real-time race statistics

Chapter Organization
Each chapter contains the following elements:
• A Chapter Outline based on Learning Objectives
• Lists of all the Case Studies and Video Cases for each chapter
• A chapter-opening case describing a real-world organization to establish
the theme and importance of the chapter
• A diagram analyzing the opening case in terms of the management,
organization, and technology model used throughout the text
• Two Interactive Sessions with Case Study Questions
• A Career Opportunities section showing students how to use the text for
job hunting and career preparation
• A Review Summary keyed to the Student Learning Objectives
• A list of Key Terms that students can use to review concepts
• Review questions for students to test their comprehension of chapter
material
• Discussion questions raised by the broader themes of the chapter
• A series of Hands-on MIS Projects consisting of two Management
Decision Problems, a hands-on application software project, and a
project to develop Internet skills
• A Collaboration and Teamwork Project to develop teamwork and
presentation skills with options for using open source collaboration
tools
• A chapter-ending case study for students to apply chapter concepts
• Two assisted-graded writing questions with prebuilt grading rubrics
• Chapter references
24 Preface

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

Key Features
We have enhanced the text to make it more interactive, leading edge, and ap-
pealing 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 inti-
macy, improved decision making, competitive advantage, and survival. In-text
examples and case studies show students how specific companies use informa-
tion systems to achieve these objectives.
We use current (2018) examples from business and public organizations
throughout the text to illustrate the important concepts in each chapter. All the
case studies describe companies or organizations that are familiar to students,
such as Uber, the Premier League, Facebook, Tesco, Amazon, Google, and GE.

Interactivity
There’s no better way to learn about MIS than by doing MIS! We provide dif-
ferent kinds of hands-on projects where students can work with real-world
business scenarios and data and learn firsthand what MIS is all about. These
projects heighten student involvement in this exciting subject.
• MyLab MIS Online Video Case Package. Students can watch short
videos online, either in-class or at home, and then apply the concepts of
the book to the analysis of the video. Every chapter contains at least two
business video cases that explain how business firms and managers are
using information systems and explore concepts discussed in the chap-
ter. Each video case consists of one or more videos about a real-world
company, a background text case, and case study questions. These video
cases enhance students’ understanding of MIS topics and the relevance of
MIS to the business world. In addition, there are 10 Instructional Videos
that describe developments and concepts in MIS keyed to respective
chapters.
• MyLab MIS Online Conceptual Videos. Forty-five video animations
where the authors walk students through three concepts from each
chapter.
• Interactive Sessions. Two short cases in each chapter have been
redesigned as Interactive Sessions to be used in the classroom (or on
Internet discussion boards) to stimulate student interest and active
learning. Each case concludes with case study questions. The case study
questions provide topics for class discussion, Internet discussion, or
written assignments.
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