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TOCGlossaryIndex
INFORMATION SYSTEMS
MANAGING THE DIGITAL FIRM
FIFTEENTH EDITION
GLOBAL EDITION
Kenneth C. Laudon
New York University
Jane P. Laudon
Azimuth Information Systems
Brief Contents
PART THREE Key System Applications for the Digital Age 363
Chapter 9 Achieving Operational Excellence and Customer Intimacy: Enterprise
Applications 364
Chapter 10 E-commerce: Digital Markets, Digital Goods 398
Chapter 11 Managing Knowledge 444
Chapter 12 Enhancing Decision Making 480
Glossary 619
Indexes 631
4
Complete Contents
5
6 Contents
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? 123
Porter's Competitive Forces Model 123 • Information System Strategies for
Dealing with Competitive Forces 125 • The Internet's Impact on Competitive
Advantage 128 • The Business Value Chain Model 129
Interactive Session: Technology Smart Products, Smart Companies 130
Synergies, Core Competencies, and Network-Based Strategies 134
3-4 What are the challenges posed by strategic information systems, and
how should they be addressed? 138
Sustaining Competitive Advantage 138 • Aligning IT with Business
Objectives 139 • Managing Strategic Transitions 140
Review Summary 140 • Key Terms 141 • Review Questions 141 • Discussion
Questions 142
Hands-On MIS Projects 142
Collaboration and Teamwork Project 143
Case Study: Deutsche Bank: The Cost of Legacy Systems 144
References: 147
File Organization Terms and Concepts 242 • Problems with the Traditional File
Environment 243
6-2 What are the major capabilities of database management systems
(DBMS), and why is a relational DBMS so powerful? 245
Database Management Systems 245 • Capabilities of Database Management
Systems 248 • Designing Databases 250 • Non-relational Databases and
Databases in the Cloud 253
6-3 What are the principal tools and technologies for accessing information
from databases to improve business performance and decision
making? 254
The Challenge of Big Data 254 • Business Intelligence Infrastructure 255
Interactive Session: Organizations Data-Driven Crime Fighting Goes Global
256
Analytical Tools: Relationships, Patterns, Trends 260 • Databases and the Web 263
6-4 Why are information policy, data administration, and data quality
assurance essential for managing the firm's data resources? 264
Establishing an Information Policy 264 • Ensuring Data Quality 265
Interactive Session: Management Societe Generale Builds an Intelligent
System to Manage Information Flow 267
Review Summary 268 • Key Terms 269 • Review Questions 270 • Discussion
Questions 270
Hands-On MIS Projects 270
Collaboration and Teamwork Project 272
Case Study: Lego's Enterprise Software Spurs Growth 272
References: 275
7-4 What are the principal technologies and standards for wireless
networking, communication, and Internet access? 306
Cellular Systems 306 • Wireless Computer Networks and Internet
Access 307 • RFID and Wireless Sensor Networks 309
Review Summary 312 • Key Terms 313 • Review Questions 314 • Discussion
Questions 314
Hands-On MIS Projects 314
Collaboration and Teamwork Project 315
Case Study: RFID Propels the Angkasa Library Management System 316
References: 319
PART THREE Key System Applications for the Digital Age 363
Chapter 9 Achieving Operational Excellence and Customer Intimacy:
Enterprise Applications 364
Opening Case: Alimentation Couche-Tard Competes Using Enterprise Systems
365
9-1 How do enterprise systems help businesses achieve operational
excellence? 367
What are Enterprise Systems? 368 • Enterprise Software 369 • Business Value
of Enterprise Systems 370
9-2 How do supply chain management systems coordinate planning,
production, and logistics with suppliers? 371
The Supply Chain 371 • Information Systems and Supply Chain
Management 372 • Supply Chain Management Software 373 • Global Supply
Chains and the Internet 375 • Business Value of Supply Chain Management
Systems 376
9-3 How do customer relationship management systems help firms achieve
customer intimacy? 377
What is Customer Relationship Management? 377
Interactive Session: Management Unilever Unifies Globally with Enhanced
ERP 378
Customer Relationship Management Software 381 • Operational and Analytical
CRM 383
Interactive Session: Organizations DP World Takes Port Management to the
Next Level with RFID 385
Business Value of Customer Relationship Management Systems 387
9-4 What are the challenges that enterprise applications pose, and how are
enterprise applications taking advantage of new technologies? 387
Enterprise Application Challenges 387 • Next-Generation Enterprise
Applications 388
Review Summary 390 • Key Terms 391 • Review Questions 391 • Discussion
Questions 392
Hands-On MIS Projects 392
Collaboration and Teamwork Project 393
Case Study: Customer Relationship Management Helps Celcom Become Number
One 394
References: 397
E-commerce Today 402 • The New E-commerce: Social, Mobile, Local 403
• Why E-commerce is Different 405 • Key Concepts in E-commerce: Digital
Markets and Digital Goods in a Global Marketplace 408
10-2 What are the principal e-commerce business and revenue models? 412
Types of E-commerce 412 • E-commerce Business Models 412 • E-commerce
Revenue Models 415
10-3 How has e-commerce transformed marketing? 417
Behavioral Targeting 418 • Social E-Commerce and Social Network
Marketing 422
Interactive Session: Technology Getting Social with Customers 424
10-4 How has e-commerce affected business-to-business transactions? 426
Electronic Data Interchange (EDI) 426 • New Ways of B2B Buying and
Selling 427
10-5 What is the role of m-commerce in business, and what are the most
important m-commerce applications? 429
Location-Based Services and Applications 430
Interactive Session: Organizations Can Instacart Deliver? 431
Other Mobile Commerce Services 433
10-6 What issues must be addressed when building an e-commerce
presence? 433
Develop an E-Commerce Presence Map 434 • Develop a Timeline:
Milestones 435
Review Summary 435 • Key Terms 436 • Review Questions 437 • Discussion
Questions 437
Hands-On MIS Projects 437
Collaboration and Teamwork Project 438
Case Study: Walmart and Amazon Duke It Out for E-commerce Supremacy 439
References: 442
14-4 What are the principal risk factors in information systems projects, and
how can they be managed? 566
Dimensions of Project Risk 566 • Change Management and the Concept of
Implementation 567
Interactive Session: Management Can the National Health Service Go
Paperless? 568
Controlling Risk Factors 571
Interactive Session: Technology Hilti AG: Putting Things Together with New
Project Management Tools 575
Designing for the Organization 577 • Project Management Software Tools 577
Review Summary 578 • Key Terms 579 • Review Questions 579 • Discussion
Questions 580
Hands-On MIS Projects 580
Collaboration and Teamwork Project 581
Case Study: A Shaky Start for Healthcare.gov 581
References: 585
16
Business Cases and Interactive Sessions 17
3-D printing Uses machines to make solid objects, layer by layer, attribute A piece of information describing a particular entity.
from specifications in a digital file. Also known as additive augmented reality (AR) A technology for enhancing
manufacturing. visualization. Provides a live direct or indirect view of a physical
3G networks Cellular networks based on packet-switched real-world environment whose elements are augmented by
technology with speeds ranging from 144 Kbps for mobile users virtual computer-generated imagery.
to more than 2 Mbps for stationary users, enabling users to authentication The ability of each party in a transaction to
transmit video, graphics, and other rich media in addition to ascertain the identity of the other party.
voice. automation Using the computer to speed up the performance of
4G networks The next evolution in wireless communication is existing tasks.
entirely packet switched and capable of providing between 1 Mbps backward chaining A strategy for searching the rule base in an
and 1 Gbps speeds; up to 10 times faster than 3G networks. expert system that acts like a problem solver by beginning with a
acceptable use policy (AUP) Defines acceptable uses of the hypothesis and seeking out more information until the
firm’s information resources and computing equipment, hypothesis is either proved or disproved.
including desktop and laptop computers, wireless devices, balanced scorecard method Framework for operationalizing a
telephones, and the Internet, and specifies consequences for firm’s strategic plan by focusing on measurable financial,
noncompliance. business process, customer, and learning and growth outcomes of
acceptance testing Provides the final certification that the system firm performance.
is ready to be used in a production setting. bandwidth The capacity of a communications channel as measured
accountability The mechanisms for assessing responsibility for by the difference between the highest and lowest frequencies
decisions made and actions taken. that can be transmitted by that channel.
advertising revenue model Website generating revenue by behavioral models Descriptions of management based on
attracting a large audience. behavioral scientists’ observations of what managers actually do
affiliate revenue model An e-commerce revenue model in which in their jobs.
websites are paid as “affiliates” for sending their visitors to other behavioral targeting Tracking the click-streams (history of clicking
sites in return for a referral fee. behavior) of individuals across multiple websites for the purpose
agency theory Economic theory that views the firm as a nexus of of understanding their interests and intentions, and exposing
contracts among self-interested individuals who must be them to advertisements which are uniquely suited to their
supervised and managed. interests.
agent-based modeling Modeling complex phenomena as systems benchmarking Setting strict standards for products, services, or
of autonomous agents that follow relatively simple rules for activities and measuring organizational performance against
interaction. those standards.
agile development Rapid delivery of working software by breaking best practices The most successful solutions or problem-solving
a large project into a series of small sub-projects that are methods that have been developed by a specific organization or
completed in short periods of time using iteration and continuous industry.
feedback. big data Data sets with volumes so huge that they are beyond the
analytic platform Preconfigured hardware-software system that is ability of typical relational DBMS to capture, store, and analyze.
specifically designed for high-speed analysis of large datasets. The data are often unstructured or semi-structured.
analytical CRM Customer relationship management applications biometric authentication Technology for authenticating system
dealing with the analysis of customer data to provide information users that compares a person’s unique characteristics such as
for improving business performance. fingerprints, face, or retinal image against a stored set profile of
Android A mobile operating system developed by Android, Inc. these characteristics.
(purchased by Google) and later the Open Handset Alliance as a bit A binary digit representing the smallest unit of data in a
flexible, upgradeable mobile device platform. computer system. It can only have one of two states, representing
antivirus software Software designed to detect, and often 0 or 1.
eliminate, malware from an information system. blog Popular term for “weblog,” designating an informal yet
application controls: Specific controls unique to each structured website where individuals can publish stories,
computerized application that ensure that only authorized data opinions, and links to other websites of interest.
are completely and accurately processed by that application. blogosphere Totality of blog-related websites.
application server Software that handles all application operations Bluetooth Standard for wireless personal area networks that can
between browser-based computers and a company’s back-end transmit up to 722 Kbps within a 10-meter area.
business applications or databases. botnet A group of computers that have been infected with bot
apps Small pieces of software that run on the Internet, on your malware without users’ knowledge, enabling a hacker to use
computer, or on your cell phone and are generally delivered over the amassed resources of the computers to launch distributed
the Internet. denial-of-service attacks, phishing campaigns, or spam.
artificial intelligence (AI) The effort to develop computer-based broadband High-speed transmission technology. Also designates a
systems that can behave like humans, with the ability to learn single communications medium that can transmit multiple
languages, accomplish physical tasks, use a perceptual apparatus, channels of data simultaneously.
and emulate human expertise and decision making. bugs Software program code defects.
619
620 Glossary
bullwhip effect Distortion of information about the demand for a chief security officer (CSO) Heads a formal security function for
product as it passes from one entity to the next across the supply the organization and is responsible for enforcing the firm’s
chain. security policy.
business continuity planning Planning that focuses on how the choice Simon’s third stage of decision making, when the individual
company can restore business operations after a disaster strikes. selects among the various solution alternatives.
business driver A force in the environment to which businesses Chrome OS Google’s lightweight computer operating system for
must respond and that influences the direction of business. users who do most of their computing on the Internet; runs on
business ecosystem Loosely coupled but interdependent networks computers ranging from netbooks to desktop computers.
of suppliers, distributors, outsourcing firms, transportation churn rate Measurement of the number of customers who stop
service firms, and technology manufacturers. using or purchasing products or services from a company. Used
business functions Specialized tasks performed in a business as an indicator of the growth or decline of a firm’s customer base.
organization, including manufacturing and production, sales and classical model of management Traditional description of
marketing, finance and accounting, and human resources. management that focused on its formal functions of planning,
business intelligence Applications and technologies to help users organizing, coordinating, deciding, and controlling.
make better business decisions. click fraud Fraudulently clicking on an online ad in pay per click
business model An abstraction of what an enterprise is and how advertising to generate an improper charge per click.
the enterprise delivers a product or service, showing how the client The user point-of-entry for the required function in client/
enterprise creates wealth. server computing. Normally a desktop computer, workstation, or
business performance management (BPM) Attempts to laptop computer.
systematically translate a firm’s strategies (e.g., differentiation, client/server computing A model for computing that splits
low-cost producer, market share growth, and scope of operation) processing between clients and servers on a network, assigning
into operational targets. functions to the machine most able to perform the function.
business process management (BPM) An approach to business cloud computing Model of computing in which computer processing,
which aims to continuously improve and manage business storage, software, and other services are provided as a shared pool of
processes. virtualized resources over a network, primarily the Internet.
business process redesign Type of organizational change in collaboration Working with others to achieve shared and explicit
which business processes are analyzed, simplified, and goals.
redesigned. community provider A website business model that creates a
business processes The unique ways in which organizations digital online environment where people with similar interests
coordinate and organize work activities, information, and can transact (buy and sell goods); share interests, photos, videos;
knowledge to produce a product or service. communicate with like-minded people; receive interest-related
business-to-business (B2B) electronic commerce Electronic information; and even play out fantasies by adopting online
sales of goods and services among businesses. personalities called avatars.
business-to-consumer (B2C) electronic commerce Electronic communities of practice (COPs) Informal social networks of
retailing of products and services directly to individual professionals and employees within and outside the firm who
consumers. have similar work-related activities and interests and share their
BYOD Stands for “bring your own device,”and refers to employees knowledge.
using their own computing devices in the workplace. competitive forces model Model used to describe the interaction
byte A string of bits, usually eight, used to store one number or of external influences, specifically threats and opportunities, that
character in a computer system. affect an organization’s strategy and ability to compete.
cable Internet connections Internet connections that use digital complementary assets Additional assets required to derive value
cable lines to deliver high-speed Internet access to homes and from a primary investment.
businesses. component-based development Building large software systems
capital budgeting The process of analyzing and selecting various by combining preexisting software components.
proposals for capital expenditures. computer abuse The commission of acts involving a computer
carpal tunnel syndrome (CTS) Type of RSI in which pressure on that may not be illegal but are considered unethical.
the median nerve through the wrist’s bony carpal tunnel computer crime The commission of illegal acts through the use of
structure produces pain. a computer or against a computer system.
case-based reasoning (CBR) Artificial intelligence technology computer forensics The scientific collection, examination,
that represents knowledge as a database of cases and solutions. authentication, preservation, and analysis of data held on or
change agent In the context of implementation, the individual retrieved from computer storage media in such a way that the
acting as the catalyst during the change process to ensure information can be used as evidence in a court of law.
successful organizational adaptation to a new system or computer hardware Physical equipment used for input,
innovation. processing, and output activities in an information system.
change management Managing the impact of organizational computer literacy Knowledge about information technology,
change associated with an innovation, such as a new information focusing on understanding of how computer-based technologies
system. work.
chat Live, interactive conversations over a public network. computer software Detailed, preprogrammed instructions that
chatbot Software agent designed to simulate a conversation with control and coordinate the work of computer hardware
one or more human users via textual or auditory methods. components in an information system.
chief data officer (CDO) Responsible for enterprise-wide computer virus Rogue software program that attaches itself to
governance and utilization of information to maximize the value other software programs or data files in order to be executed,
the organization can realize from its data. often causing hardware and software malfunctions.
chief information officer (CIO) Senior manager in charge of the computer vision syndrome (CVS) Eyestrain condition related to
information systems function in the firm. computer display screen use; symptoms include headaches,
chief knowledge officer (CKO) Senior executive in charge of the blurred vision, and dry and irritated eyes.
organization’s knowledge management program. computer-aided design (CAD) Information system that
chief privacy officer (CPO) Responsible for ensuring the automates the creation and revision of designs using
company complies with existing data privacy laws. sophisticated graphics software.
Glossary 621
computer-aided software engineering (CASE) Automation of information policy, data planning, maintenance of data
step-by-step methodologies for software and systems dictionaries, and data quality standards.
development to reduce the amounts of repetitive work the data cleansing Activities for detecting and correcting data in a
developer needs to do. database or file that are incorrect, incomplete, improperly
consumer-to-consumer (C2C) Consumers selling goods and formatted, or redundant. Also known as data scrubbing.
services electronically to other consumers. data definition DBMS capability that specifies the structure and
consumerization of IT New information technology originating in content of the database.
the consumer market that spreads to business organizations. data dictionary An automated or manual tool for storing and
controls All of the methods, policies, and procedures that organizing information about the data maintained in a database.
ensure protection of the organization’s assets, accuracy data element A field.
and reliability of its records, and operational adherence to data flow diagram (DFD) Primary tool for structured analysis
management standards. that graphically illustrates a system’s component process and the
conversion The process of changing from the old system to the flow of data between them.
new system. data governance Policies and processes for managing the
cookies Tiny file deposited on a computer hard drive when an availability, usability, integrity, and security of the firm’s data.
individual visits certain websites. Used to identify the visitor and data inconsistency The presence of different values for same
track visits to the website. attribute when the same data are stored in multiple locations.
cooptation Bringing the opposition into the process of designing data management technology Software governing the
and implementing a solution without giving up control of the organization of data on physical storage media.
direction and nature of the change. data manipulation language A language associated with a
copyright A statutory grant that protects creators of intellectual database management system that end users and programmers
property against copying by others for any purpose for a use to manipulate data in the database.
minimum of 70 years. data mart A small data warehouse containing only a portion of
core competency Activity at which a firm excels as a world-class the organization’s data for a specified function or population of
leader. users.
core systems Systems that support functions that are absolutely data mining Analysis of large pools of data to find patterns and
critical to the organization. rules that can be used to guide decision making and predict
cost transparency The ability of consumers to discover the actual future behavior.
costs merchants pay for products. data quality audit A survey and/or sample of files to determine
counterimplementation A deliberate strategy to thwart the accuracy and completeness of data in an information system.
implementation of an information system or an innovation in an data redundancy The presence of duplicate data in multiple data
organization. files.
cross-selling Marketing complementary products to customers. data visualization Technology for helping users see patterns and
crowdsourcing Using large Internet audiences for advice, market relationships in large amounts of data by presenting the data in
feedback, new ideas, and solutions to business problems. Related graphical form.
to the “wisdom of crowds” theory. data warehouse A database, with reporting and query tools, that
culture The set of fundamental assumptions about what products stores current and historical data extracted from various
the organization should produce, how and where it should operational systems and consolidated for management reporting
produce them, and for whom they should be produced. and analysis.
customer lifetime value (CLTV) Difference between revenues data workers People such as secretaries or bookkeepers who
produced by a specific customer and the expenses for acquiring process the organization’s paperwork.
and servicing that customer minus the cost of promotional database A group of related files.
marketing over the lifetime of the customer relationship, database (rigorous definition) A collection of data organized to
expressed in today’s dollars. service many applications at the same time by storing and
customer relationship management (CRM) Business and managing data so that they appear to be in one location.
technology discipline that uses information systems to coordinate database administration Refers to the more technical and
all of the business processes surrounding the firm’s interactions operational aspects of managing data, including physical database
with its customers in sales, marketing, and service. design and maintenance.
customer relationship management systems Information database management system (DBMS) Special software to
systems that track all the ways in which a company interacts create and maintain a database and enable individual business
with its customers and analyze these interactions to optimize applications to extract the data they need without having to
revenue, profitability, customer satisfaction, and customer create separate files or data definitions in their computer
retention. programs.
customization The modification of a software package to meet an database server A computer in a client/server environment that is
organization’s unique requirements without destroying the responsible for running a DBMS to process SQL statements and
package software’s integrity. perform database management tasks.
customization In e-commerce, changing a delivered product or decisional roles Mintzberg’s classification for managerial roles
service based on a user’s preferences or prior behavior. where managers initiate activities, handle disturbances, allocate
cybervandalism Intentional disruption, defacement, or destruction resources, and negotiate conflicts.
of a website or corporate information system. decision-support systems (DSS) Information systems at the
cyberwarfare State-sponsored activity designed to cripple and organization’s management level that combine data and
defeat another state or nation by damaging or disrupting its sophisticated analytical models or data analysis tools to support
computers or networks. semi-structured and unstructured decision making.
data Streams of raw facts representing events occurring in deep packet inspection (DPI) Technology for managing
organizations or the physical environment before they have been network traffic by examining data packets, sorting out low-
organized and arranged into a form that people can understand priority data from higher priority business-critical data, and
and use. sending packets in order of priority.
data administration A special organizational function for demand planning Determining how much product a business
managing the organization’s data resources, concerned with needs to make to satisfy all its customers’ demands.
622 Glossary
denial-of-service (DoS) attack Flooding a network server or web dynamic pricing Pricing of items based on real-time interactions
server with false communications or requests for services in between buyers and sellers that determine what a item is worth
order to crash the network. at any particular moment.
design Simon’s second stage of decision making, when the e-government Use of the Internet and related technologies to
individual conceives of possible alternative solutions to a digitally enable government and public sector agencies’
problem. relationships with citizens, businesses, and other arms of
DevOps Organizational strategy to create a culture and environment government.
to promote rapid and agile development practices by emphasizing efficient customer response system System that directly links
close collaboration between software developers and the IT consumer behavior back to distribution, production, and supply
operational staff. chains.
digital asset management systems Classify, store, and distribute electronic business (e-business) The use of the Internet and
digital objects such as photographs, graphic images, video, and digital technology to execute all the business processes in the
audio content. enterprise. Includes e-commerce as well as processes for the
digital certificate An attachment to an electronic message to internal management of the firm and for coordination with
verify the identity of the sender and to provide the receiver with suppliers and other business partners.
the means to encode a reply. electronic commerce (e-commerce) The process of buying and
digital dashboard Displays all of a firm’s key performance selling goods and services electronically involving transactions
indicators as graphs and charts on a single screen to provide using the Internet, networks, and other digital technologies.
one-page overview of all the critical measurements necessary to electronic data interchange (EDI) The direct computer-to-
make key executive decisions. computer exchange between two organizations of standard
digital divide Large disparities in access to computers and the business transactions, such as orders, shipment instructions, or
Internet among different social groups and different locations. payments.
digital firm Organization where nearly all significant business email The computer-to-computer exchange of messages.
processes and relationships with customers, suppliers, and employee relationship management (ERM) Software dealing
employees are digitally enabled, and key corporate assets are with employee issues that are closely related to CRM, such as
managed through digital means. setting objectives, employee performance management,
digital goods Goods that can be delivered over a digital network. performance-based compensation, and employee training.
Digital Millennium Copyright Act (DMCA) Adjusts copyright encryption The coding and scrambling of messages to prevent
laws to the Internet Age by making it illegal to make, distribute, their being read or accessed without authorization.
or use devices that circumvent technology-based protections of end-user development The development of information systems
copyrighted materials. by end users with little or no formal assistance from technical
digital subscriber line (DSL) A group of technologies providing specialists.
high-capacity transmission over existing copper telephone lines. end-user interface The part of an information system through
direct cutover strategy A risky conversion approach where the which the end user interacts with the system, such as online
new system completely replaces the old one on an appointed screens and commands.
day. end users Representatives of departments outside the information
direct goods Goods used in a production process. systems group for whom applications are developed.
disaster recovery planning Planning for the restoration of enterprise applications Systems that can coordinate activities,
computing and communications services after they have been decisions, and knowledge across many different functions, levels,
disrupted. and business units in a firm. Include enterprise systems, supply
disintermediation The removal of organizations or business chain management systems, and knowledge management
process layers responsible for certain intermediary steps in a systems.
value chain. enterprise content management (ECM) Help organizations
disruptive technologies Technologies with disruptive impact on manage structured and semi-structured knowledge, providing
industries and businesses, rendering existing products, services, corporate repositories of documents, reports, presentations, and
and business models obsolete. best practices and capabilities for collecting and organizing email
distributed denial-of-service (DDoS) attack Numerous and graphic objects.
computers inundating and overwhelming a network from enterprise software Set of integrated modules for applications
numerous launch points. such as sales and distribution, financial accounting, investment
documentation Descriptions of how an information system works management, materials management, production planning, plant
from either a technical or end-user standpoint. maintenance, and human resources that allow data to be used by
domain name English-like name that corresponds to the unique multiple functions and business processes.
32-bit numeric Internet Protocol (IP) address for each computer enterprise systems Integrated enterprise-wide information
connected to the Internet. systems that coordinate key internal processes of the firm.
Domain Name System (DNS) A hierarchical system of servers enterprise-wide knowledge management systems
maintaining a database enabling the conversion of domain names General-purpose, firmwide systems that collect, store, distribute,
to their numeric IP addresses. and apply digital content and knowledge.
domestic exporter Form of business organization characterized by entity A person, place, thing, or event about which information
heavy centralization of corporate activities in the home county of must be kept.
origin. entity-relationship diagram A methodology for documenting
downtime Period of time in which an information system is not databases illustrating the relationship between various entities in
operational. the database.
drill down The ability to move from summary data to lower and ergonomics The interaction of people and machines in the work
lower levels of detail. environment, including the design of jobs, health issues, and the
drive-by download Malware that comes with a downloaded file a end-user interface of information systems.
user intentionally or unintentionally requests. e-tailer Online retail stores from the giant Amazon to tiny local
due process A process in which laws are well-known and stores that have websites where retail goods are sold.
understood and there is an ability to appeal to higher authorities ethical no-free-lunch rule Assumption that all tangible and
to ensure that laws are applied correctly. intangible objects are owned by someone else, unless there is a
Glossary 623
specific declaration otherwise, and that the creator wants Gantt chart Visually representats the timing, duration, and
compensation for this work. resource requirements of project tasks.
ethics Principles of right and wrong that can be used by individuals general controls Overall control environment governing the
acting as free moral agents to make choices to guide their design, security, and use of computer programs and the security
behavior. of data files in general throughout the organization’s information
evil twins Wireless networks that pretend to be legitimate to entice technology infrastructure.
participants to log on and reveal passwords or credit card genetic algorithms Problem-solving methods that promote the
numbers. evolution of solutions to specified problems using the model of
exchange Third-party Net marketplace that is primarily transaction living organisms adapting to their environment.
oriented and that connects many buyers and suppliers for spot geoadvertising services Delivering ads to users based on their
purchasing. GPS location.
executive support systems (ESS) Information systems at the geographic information system (GIS) System with software
organization’s strategic level designed to address unstructured that can analyze and display data using digitized maps to enhance
decision making through advanced graphics and planning and decision-making.
communications. geoinformation services Information on local places and things
expert system Knowledge-intensive computer program that based on the GPS position of the user.
captures the expertise of a human in limited domains of geosocial services Social networking based on the GPS location of
knowledge. users.
explicit knowledge Knowledge that has been documented. global culture The development of common expectations, shared
Extensible Markup Language (XML) General-purpose language artifacts, and social norms among different cultures and peoples.
that describes the structure of a document and can perform Golden Rule Putting oneself in the place of others as the object of a
presentation, communication, and storage of data, allowing data decision.
to be manipulated by the computer. Gramm-Leach-Bliley Act Requires financial institutions to ensure
external integration tools Project management technique that the security and confidentiality of customer data.
links the work of the implementation team to that of users at all green computing (green IT) Refers to practices and technologies
organizational levels. for designing, manufacturing, using, and disposing of computers,
extranet Private intranet that is accessible to authorized outsiders. servers, and associated devices such as monitors, printers, storage
Fair Information Practices (FIP) A set of principles originally devices, and networking and communications systems to
set forth in 1973 that governs the collection and use of minimize impact on the environment.
information about individuals and forms the basis of most U.S. group decision-support system (GDSS) An interactive
and European privacy laws. computer-based system to facilitate the solution to unstructured
fault-tolerant computer systems Systems that contain extra problems by a set of decision makers working together as a
hardware, software, and power supply components that can back group.
a system up and keep it running to prevent system failure. hacker A person who gains unauthorized access to a computer
feasibility study As part of the systems analysis process, the way network for profit, criminal mischief, or personal pleasure.
to determine whether the solution is achievable, given the Hadoop Open source software framework that enables distributed
organization’s resources and constraints. parallel processing of huge amounts of data across many
feedback Output that is returned to the appropriate members of the inexpensive computers.
organization to help them evaluate or correct input. hertz Measure of frequency of electrical impulses per second, with
field A grouping of characters into a word, a group of words, or a 1 Hertz equivalent to 1 cycle per second.
complete number, such as a person’s name or age. HIPAA Law outlining rules for medical security, privacy, and the
File Transfer Protocol (FTP) Tool for retrieving and transferring management of healthcare records.
files from a remote computer. hotspot A specific geographic location in which an access point
file A group of records of the same type. provides public Wi-Fi network service.
firewall Hardware and software placed between an organization’s HTML5 Next evolution of HTML, which makes it possible to embed
internal network and an external network to prevent outsiders images, video, and audio directly into a document without add-on
from invading private networks. software.
foreign key Field in a database table that enables users find related hubs Very simple devices that connect network components,
information in another database table. sending a packet of data to all other connected devices.
formal control tools Project management technique that helps hybrid AI systems Integration of multiple AI technologies into a
monitor the progress toward completion of a task and fulfillment single application to take advantage of the best features of these
of goals. technologies.
formal planning tools Project management technique that hybrid cloud Computing model where firms use both their own IT
structures and sequences tasks, budgeting time, money, and infrastructure and also public cloud computing services.
technical resources required to complete the tasks. Hypertext Markup Language (HTML) Page description
forward chaining A strategy for searching the rule base in an language for creating web pages.
expert system that begins with the information entered by the Hypertext Transfer Protocol (HTTP) The communications
user and searches the rule base to arrive at a conclusion. standard used to transfer pages on the web. Defines how
franchiser Form of business organization in which a product is messages are formatted and transmitted.
created, designed, financed, and initially produced in the home identity management Business processes and software tools for
country, but for product-specific reasons relies heavily on foreign identifying the valid users of a system and controlling their
personnel for further production, marketing, and human access to system resources.
resources. identity theft Theft of key pieces of personal information, such as
free/fremium revenue model An e-commerce revenue model in credit card or Social Security numbers, in order to obtain
which a firm offers basic services or content for free while merchandise and services in the name of the victim or to obtain
charging a premium for advanced or high-value features. false credentials.
fuzzy logic Rule-based AI that tolerates imprecision by using Immanuel Kant’s categorical imperative A principle that states
nonspecific terms called membership functions to solve that if an action is not right for everyone to take it is not right for
problems. anyone.
624 Glossary
implementation All the organizational activities surrounding the intelligence The first of Simon’s four stages of decision making,
adoption, management, and routinization of an innovation, such when the individual collects information to identify problems
as a new information system. occurring in the organization.
in-memory computing Technology for very rapid analysis intelligent agent Software program that uses a built-in or learned
and processing of large quantities of data by storing the data knowledge base to carry out specific, repetitive, and predictable
in the computer’s main memory rather than in secondary tasks for an individual user, business process, or software
storage. application.
indirect goods Goods not directly used in the production process, intelligent techniques Technologies that aid human decision
such as office supplies. makers by capturing individual and collective knowledge,
inference engine The strategy used to search through the rule discovering patterns and behaviors in large quantities of data, and
base in an expert system; can be forward or backward chaining. generating solutions to problems that are too large and complex
information Data that have been shaped into a form that is for human beings to solve on their own.
meaningful and useful to human beings. internal integration tools Project management technique that
information asymmetry Situation where the relative bargaining ensures that the implementation team operates as a cohesive
power of two parties in a transaction is determined by one party unit.
in the transaction possessing more information essential to the international information systems architecture The basic
transaction than the other party. information systems required by organizations to coordinate
information density The total amount and quality of information worldwide trade and other activities.
available to all market participants, consumers, and merchants. Internet Global network of networks using universal standards to
information policy Formal rules governing the maintenance, connect millions of different networks.
distribution, and use of information in an organization. Internet of Things Pervasive web in which each object or machine
information requirements A detailed statement of the has a unique identity and is able to use the Internet to link with
information needs that a new system must satisfy; identifies who other machines or send data. Also known as the Industrial
needs what information, and when, where, and how the Internet.
information is needed. Internet Protocol (IP) address Four-part numeric address
information rights The rights that individuals and organizations indicating a unique computer location on the Internet.
have with respect to information that pertains to themselves. Internet service provider (ISP) A commercial organization with
information system Interrelated components working together to a permanent connection to the Internet that sells temporary
collect, process, store, and disseminate information to support connections to subscribers.
decision making, coordination, control, analysis, and Internet2 Research network with new protocols and transmission
visualization in an organization. speeds that provides an infrastructure for supporting high-
information systems audit Identifies all the controls tht govern bandwidth Internet applications.
individual information systems and assesses their effectiveness. interorganizational systems Information systems that automate
information systems department The formal organizational the flow of information across organizational boundaries and link
unit that is responsible for the information systems function in a company to its customers, distributors, or suppliers.
the organization. interpersonal roles Mintzberg’s classification for managerial roles
information systems literacy Broad-based understanding of where managers act as figureheads and leaders for the
information systems that includes behavioral knowledge about organization.
organizations and individuals using information systems as well intranet An internal network based on Internet and World Wide
as technical knowledge about computers. Web technology and standards.
information systems managers Leaders of the various specialists intrusion detection system Tools to monitor the most
in the information systems department. vulnerable points in a network to detect and deter unauthorized
information systems plan A road map indicating the direction intruders.
of systems development: the rationale, the current situation, the iOS Operating system for the Apple iPad, iPhone, and iPod Touch.
management strategy, the implementation plan, and the IPv6 New IP addressing system using 128-bit IP addresses. Stands for
budget. Internet Protocol version 6.
information technology (IT) All the hardware and software IT governance Strategy and policies for using information
technologies a firm needs to achieve its business objectives. technology within an organization, specifying the decision rights
information technology (IT) infrastructure Computer and accountabilities to ensure that information technology
hardware, software, data, storage technology, and networks supports the organization’s strategies and objectives.
providing a portfolio of shared IT resources for the organization. iterative A process of repeating over and over again the steps to
informational roles Mintzberg’s classification for managerial roles build a system.
where managers act as the nerve centers of their organizations, Java Programming language that can deliver only the software
receiving and disseminating critical information. functionality needed for a particular task, such as a small applet
informed consent Consent given with knowledge of all the facts downloaded from a network; can run on any computer and
needed to make a rational decision. operating system.
input The capture or collection of raw data from within the joint application design (JAD) Process to accelerate the
organization or from its external environment for processing in generation of information requirements by having end users and
an information system. information systems specialists work together in intensive
instant messaging Chat service that allows participants to create interactive design sessions.
their own private chat channels so that a person can be alerted just-in-time strategy Scheduling system for minimizing inventory
whenever someone on his or her private list is online to initiate by having components arrive exactly at the moment they are
a chat session with that particular individual. needed and finished goods shipped as soon as they leave the
intangible benefits Benefits that are not easily quantified; they assembly line.
include more efficient customer service or enhanced decision key field A field in a record that uniquely identifies instances of
making. that record so that it can be retrieved, updated, or sorted.
intellectual property Intangible property created by individuals key performance indicators Measures proposed by senior
or corporations that is subject to protections under trade secret, management for understanding how well the firm is performing
copyright, and patent law. along specified dimensions.
Glossary 625
keylogger Spyware that records every keystroke made on a market creator An e-commerce business model in which firms
computer to steal personal information or passwords or to launch provide a digital online environment where buyers and sellers
Internet attacks. can meet, search for products, and engage in transactions.
knowledge Concepts, experience, and insight that provide a market entry costs The cost merchants must pay to bring their
framework for creating, evaluating, and using information. goods to market.
knowledge base Model of human knowledge that is used by expert marketspace A marketplace extended beyond traditional
systems. boundaries and removed from a temporal and geographic
knowledge discovery Identification of novel and valuable patterns location.
in large databases. mashups Composite software applications that depend on high-
knowledge management The set of processes developed in an speed networks, universal communication standards, and open
organization to create, gather, store, maintain, and disseminate source code.
the firm’s knowledge. mass customization The capacity to offer individually tailored
knowledge management systems Systems that support the products or services using mass production resources.
creation, capture, storage, and dissemination of firm expertise massive open online course (MOOC) Online course made
and knowledge. available via the web to very large numbers of participants.
knowledge workers People such as engineers or architects who menu costs Merchants’ costs of changing prices.
design products or services and create knowledge for the metropolitan area network (MAN) Network that spans a
organization. metropolitan area, usually a city and its major suburbs. Its
knowledge work systems Information systems that aid geographic scope falls between a WAN and a LAN.
knowledge workers in the creation and integration of new microblogging Blogging featuring very short posts, such as using
knowledge into the organization. Twitter.
learning management system (LMS) Tools for the micropayment systems Payment for a very small sum of money,
management, delivery, tracking, and assessment of various types often less than $10.
of employee learning. middle management People in the middle of the organizational
legacy system A system that has been in existence for a long time hierarchy who are responsible for carrying out the plans and
and that continues to be used to avoid the high cost of replacing goals of senior management.
or redesigning it. minicomputer Middle-range computer used in systems for
legitimacy The extent to which one’s authority is accepted on universities, factories, or research laboratories.
grounds of competence, vision, or other qualities. mobile commerce (m-commerce) The use of wireless devices,
liability The existence of laws that permit individuals to recover the such as smartphones or tablets to conduct both business-to-
damages done to them by other actors, systems, or organizations. consumer and business-to-business e-commerce transactions over
Linux Reliable and compactly designed operating system that is an the Internet.
offshoot of UNIX and that can run on many different hardware mobile web app Internet-enabled app with specific functionality
platforms and is available free or at very low cost. Used as for mobile devices that is accessed through a mobile device’s web
alternative to UNIX. browser.
local area network (LAN) A telecommunications network that mobile website Version of a regular website that is scaled down in
requires its own dedicated channels and that encompasses a content and navigation for easy access and search on a small
limited distance, usually one building or several buildings in mobile screen.
close proximity. modem A device for translating a computer’s digital signals into
location-based services GPS map services available on analog form for transmission over analog networks or for
smartphones. translating analog signals back into digital form for reception by a
location analytics Ability to gain insights from the location computer.
(geographic) component of data, including loation data from Moore’s Law Assertion that the number of components on a chip
mobile phones, output from sensors or scanning devices, and doubles each year.
data from maps. multicore processor Integrated circuit to which two or more
long tail marketing Refers to the ability of firms to profitably processors have been attached for enhanced performance,
market goods to very small online audiences, largely because of reduced power consumption, and more efficient simultaneous
the lower costs of reaching very small market segements (people processing of multiple tasks.
who fall into the long tail ends of a Bell curve). multinational Form of business organization that concentrates
machine learning Study of how computer programs can improve financial management, and control out of a central home base
their performance without explicit programming. while decentralizing production, sales and marketing.
mainframe Largest category of computer, used for major business multitiered (N-tier) client/server architecture Client/server
processing. network which the work of the entire network is balanced over
maintenance Changes in hardware, software, documentation, or several different levels of servers.
procedures to a production system to correct errors, meet new multitouch Interface that features the use of one or more finger
requirements, or improve processing efficiency. gestures to manipulate lists or objects on a screen without using a
malware Malicious software programs such as computer viruses, mouse or keyboard.
worms, and Trojan horses. nanotechnology Technology that builds structures and processes
managed security service provider (MSSP) Company that based on the manipulation of individual atoms and molecules.
provides security management services for subscribing clients. native advertising Placing ads within social network newsfeeds or
management information systems (MIS) Specific category of traditional editorial content, such as a newspaper article.
information system providing reports on organizational native app Standalone application designed to run on a specific
performance to help middle management monitor and control platform and device and is installed directly on the mobile device
the business. near field communication (NFC) Short-range wireless
management information systems (MIS): The study of connectivity standard that uses electromagnetic radio fields to
information systems focusing on their use in business and enable two compatible devices to exchange data when brought
management. within a few centimeters of each other.
managerial roles Expectations of the activities that managers net marketplace A single digital marketplace based on Internet
should perform in an organization. technology linking many buyers to many sellers.
626 Glossary
network The linking of two or more computers to share data or organization (technical definition) A stable, formal, social
resources, such as a printer. structure that takes resources from the environment and
network economics Model of strategic systems at the industry processes them to produce outputs.
level based on the concept of a network where adding another organizational and management capital Investments
participant entails zero marginal costs but can create much larger in organization and management such as new business
marginal gains. processes, management behavior, organizational culture, or
network operating system (NOS) Special software that routes training.
and manages communications on the network and coordinates organizational impact analysis Study of the way a proposed
network resources. system will affect organizational structure, attitudes, decision
networking and telecommunications technology Physical making, and operations.
devices and software that link various computer hardware organizational learning Creation of new standard operating
components and transfer data from one physical location to procedures and business processes that reflect organizations’
another. experience.
neural network Hardware or software that attempts to emulate the output The distribution of processed information to the people who
processing patterns of the biological brain. will use it or to the activities for which it will be used.
non-relational database management system Database outsourcing The practice of contracting computer center
management system for working with large quantities of operations, telecommunications networks, or applications
structured and unstructured data that would be difficult to development to external vendors.
analyze with a relational model. packet switching Technology that breaks messages into small,
nonobvious relationship awareness (NORA) Technology that fixed bundles of data and routes them in the most economical
can find obscure hidden connections between people or other way through any available communications channel.
entities by analyzing information from many different sources to paradigm shift Radical reconceptualization of the nature of the
correlate relationships. business and the nature of the organization.
normalization The process of creating small stable data structures parallel strategy A safe and conservative conversion approach
from complex groups of data when designing a relational where both the old system and its potential replacement are run
database. together for a time until everyone is assured that the new one
object Software building block that combines data and the functions correctly.
procedures acting on the data. particularism Making judgments and taking action on the basis of
object-oriented development Approach to systems development narrow or personal characteristics, in all its forms (religious,
that uses the object as the basic unit of systems analysis and nationalistic, ethnic, regionalism, geopolitical position).
design. The system is modeled as a collection of objects and the partner relationship management (PRM) Automation of
relationship between them. the firm’s relationships with its selling partners using customer
offshore outsourcing Outsourcing systems development work or data and analytical tools to improve coordination and customer
maintenance of existing systems to external vendors in another sales.
country. password Secret word or string of characters for authenticating
on-demand computing Firms off-loading peak demand for users so they can access a resource such as a computer system.
computing power to remote, large-scale data processing centers, patch Small pieces of software to repair the software flaws without
investing just enough to handle average processing loads and disturbing the proper operation of the software.
paying for only as much additional computing power as the patent A legal document that grants the owner an exclusive
market demands. Also called utility computing. monopoly on the ideas behind an invention for 20 years; designed
online analytical processing (OLAP) Capability for to ensure that inventors of new machines or methods are rewarded
manipulating and analyzing large volumes of data from multiple for their labor while making widespread use of their inventions.
perspectives. peer-to-peer Network architecture that gives equal power to all
online transaction processing Transaction processing mode in computers on the network; used primarily in small networks.
which transactions entered online are immediately processed by personal area network (PAN) Computer network used for
the computer. communication among digital devices that are close to one
open source software Software that provides free access to its person.
program code, allowing users to modify the program code to personalization Ability of merchants to target marketing messages
make improvements or fix errors. to specific individuals by adjusting the message for a person’s
operating system Software that manages the resources and name, interests, and past purchases.
activities of the computer. PERT chart Network diagram depicting project tasks and their
operational CRM Customer-facing applications, such as sales force interrelationships.
automation, call center and customer service support, and pharming Phishing technique that redirects users to a bogus web
marketing automation. page, even when an individual enters the correct web page
operational intelligence Business analytics that delivers insight address.
into data, streaming events and business operations. phased approach Introduces the new system in stages either by
operational management People who monitor the day-to-day functions or by organizational units.
activities of the organization. phishing Form of spoofing involving setting up fake websites or
opt-in Model of informed consent permitting prohibiting an sending email messages that resemble those of legitimate
organization from collecting any personal information unless the businesses that ask users for confidential personal data.
individual specifically takes action to approve information pilot study strategy A strategy to introduce the new system to a
collection and use. limited area of the organization until it is proven to be fully
opt-out Model of informed consent permitting the collection of functional; only then can the conversion to the new system
personal information until the consumer specifically requests across the entire organization take place.
that the data not be collected. pivot table Spreadsheet tool for reorganizing and summarizing two
organization (behavioral definition) A collection of rights, or more dimensions of data in a tabular format.
privileges, obligations, and responsibilities that are delicately platform Business providing information systems, technologies,
balanced over a period of time through conflict and conflict and services that thousands of other firms in different industries
resolution. use to enhance their own capabilities.
Glossary 627
podcasting Publishing audio broadcasts via the Internet so that protocol A set of rules and procedures that govern transmission
subscribing users can download audio files onto their personal between the components in a network.
computers or portable music players. prototype The preliminary working version of an information
portal Web interface for presenting integrated personalized content system for demonstration and evaluation purposes.
from a variety of sources. Also refers to a website service that prototyping The process of building an experimental system
provides an initial point of entry to the web. quickly and inexpensively for demonstration and evaluation so
portfolio analysis An analysis of the portfolio of potential that users can better determine information requirements.
applications within a firm to determine the risks and benefits, public cloud A cloud maintained by an external service provider,
and to select among alternatives for information systems. accessed through the Internet, and available to the general
post-implementation audit Formal review process conducted public.
after a system has been placed in production to determine how public key encryption Uses two keys: one shared (or public) and
well the system has met its original objectives. one private.
predictive analytics The use of data mining techniques, historical public key infrastructure (PKI) System for creating public and
data, and assumptions about future conditions to predict private keys using a certificate authority (CA) and digital
outcomes of events, such as the probability a customer will certificates for authentication.
respond to an offer or purchase a specific product. pull-based model Supply chain driven by actual customer orders
predictive search Part of a search alogrithm that predicts what a or purchases so that members of the supply chain produce and
user query is looking as it is entered based on popular searches. deliver only what customers have ordered.
price discrimination Selling the same goods, or nearly the same push-based model Supply chain driven by production master
goods, to different targeted groups at different prices. schedules based on forecasts or best guesses of demand for
price transparency The ease with which consumers can find out products, and products are “pushed” to customers.
the variety of prices in a market. quantum computing Use of principles of quantum physics to
primary activities Activities most directly related to the represent data and perform operations on the data, with the
production and distribution of a firm’s products or services. ability to be in many different states at once and to perform
primary key Unique identifier for all the information in any row of many different computations simultaneously.
a database table. query language Software tool that provides immediate online
privacy The claim of individuals to be left alone, free from answers to requests for information that are not predefined.
surveillance or interference from other individuals, organizations, radio frequency identification (RFID) Technology using tiny
or the state. tags with embedded microchips containing data about an item
private cloud A proprietary network or a data center that ties and its location to transmit short-distance radio signals to special
together servers, storage, networks, data, and applications as a RFID readers that then pass the data on to a computer for
set of virtualized services that are shared by users inside a processing.
company. ransomware Malware that extorts money from users by taking
private exchange Another term for a private industrial network. control of their computers or displaying annoying pop-up
private industrial networks Web-enabled networks linking messages.
systems of multiple firms in an industry for the coordination of Rapid Application Development (RAD) Process for
trans-organizational business processes. developing systems in a very short time period by using
process specifications Describe the logic of the processes prototyping, state-of-the-art software tools and close teamwork
occurring within the lowest levels of a data flow diagram. among users and systems specialists.
processing The conversion, manipulation, and analysis of raw rationalization of procedures The streamlining of standard
input into a form that is more meaningful to humans. operating procedures, eliminating obvious bottlenecks, so that
product differentiation Competitive strategy for creating brand automation makes operating procedures more efficient.
loyalty by developing new and unique products and services that record A group of related fields.
are not easily duplicated by competitors. referential integrity Rules to ensure that relationships between
production The stage after the new system is installed and the coupled database tables remain consistent.
conversion is complete; during this time the system is reviewed relational DBMS A type of logical database model that treats data
by users and technical specialists to determine how well it has as if they were stored in two-dimensional tables. It can relate data
met its original goals. stored in one table to data in another as long as the two tables
production or service workers People who actually produce the share a common data element.
products or services of the organization. Repetitive stress injury (RSI) Occupational disease that occurs
profiling The use of computers to combine data from multiple when muscle groups are forced through repetitive actions with
sources and create electronic dossiers of detailed information on high-impact loads or thousands of repetitions with low-impact
individuals. loads.
program-data dependence The close relationship between data Request for proposal (RFP) A detailed list of questions
stored in files and the software programs that update and submitted to vendors of software or other services to determine
maintain those files. Any change in data organization or format how well the vendor’s product can meet the organization’s
requires a change in all the programs associated with those files. specific requirements.
programmers Highly trained technical specialists who write responsibility Accepting the potential costs, duties, and obligations
computer software instructions. for the decisions one makes.
programming The process of translating the system specifications responsive web design Ability of a website to automatically
prepared during the design stage into program code. change screen resolution and image size as a user switches to
project Planned series of related activities for achieving a specific devices of different sizes, such as a laptop, tablet computer, or
business objective. smartphone. Eliminates the need for separate design and
project management Application of knowledge, tools, and development work for each new device.
techniques to achieve specific targets within a specified budget revenue model A description of how a firm will earn revenue,
and time period. generate profits, and produce a return on investment.
project portfolio management Helps organizations evaluate richness Measurement of the depth and detail of information that a
and manage portfolios of projects and dependencies among business can supply to the customer as well as information the
them. business collects about the customer.
628 Glossary
risk assessment Determining the potential frequency of the service-oriented architecture (SOA) Software architecture of a
occurrence of a problem and the potential damage if the firm built on a collection of software programs that communicate
problem were to occur. Used to determine the cost/benefit of a with each other to perform assigned tasks to create a working
control. software application
Risk aversion principle Principle that one should take the action shopping bot Software with varying levels of built-in intelligence to
that produces the least harm or incurs the least cost. help electronic commerce shoppers locate and evaluate products
router Specialized communications processor that forwards packets or service they might wish to purchase.
of data from one network to another network. six sigma A specific measure of quality, representing 3.4 defects
routines Precise rules, procedures and practices that have been per million opportunities; used to designate a set of
developed to cope with expected situations. methodologies and techniques for improving quality and
RSS Technology using aggregator software to pull content from reducing costs.
websites and feed it automatically to subscribers’ computers. smart card A credit-card-size plastic card that stores digital
safe harbor Private self-regulating policy and enforcement information and that can be used for electronic payments in
mechanism that meets the objectives of government regulations place of cash.
but does not involve government regulation or enforcement. smartphone Wireless phone with voice, text, and Internet
sales revenue model Selling goods, information, or services to capabilities.
customers as the main source of revenue for a company. sniffer Type of eavesdropping program that monitors information
Sarbanes-Oxley Act Law passed in 2002 that imposes traveling over a network.
responsibility on companies and their management to protect social business Use of social networking platforms, including
investors by safeguarding the accuracy and integrity of Facebook, Twitter, and internal corporate social tools, to engage
financial information that is used internally and released employees, customers, and suppliers.
externally. social CRM Tools enabling a business to link customer
scalability The ability of a computer, product, or system to expand conversatins, data, and relationships from social networking sites
to serve a larger number of users without breaking down. to CRM processes.
scope Defines what work is and is not included in a project. social engineering Tricking people into revealing their passwords
scoring model A quick method for deciding among alternative by pretending to be legitimate users or members of a company in
systems based on a system of ratings for selected objectives. need of information.
search costs The time and money spent locating a suitable product social graph Map of all significant online social relationships,
and determining the best price for that product. comparable to a social network describing offline relationships.
search engine A tool for locating specific sites or information on social networking sites Online community for expanding users’
the Internet. business or social contacts by making connections through their
search engine marketing Use of search engines to deliver in their mutual business or personal connections.
results sponsored links, for which advertisers have paid. social search Effort to provide more relevant and trustworthy
search engine optimization (SEO) The process of changing a search results based on a person’s network of social contacts.
website’s content, layout, and format in order to increase the social shopping Use of websites featuring user-created web pages
ranking of the site on popular search engines and to generate to share knowledge about items of interest to other shoppers.
more site visitors. sociotechnical design Design to produce information systems that
Secure Hypertext Transfer Protocol (S-HTTP) Protocol used blend technical efficiency with sensitivity to organizational and
for encrypting data flowing over the Internet; limited to human needs.
individual messages. sociotechnical view Seeing systems as composed of both technical
Secure Sockets Layer (SSL) Enables client and server computers and social elements.
to manage encryption and decryption activities as they Software as a service (SaaS) Services for delivering and
communicate with each other during a secure web session. providing access to software remotely as a web-based service.
security Policies, procedures, and technical measures used to software-defined networking (SDN) Using a central control
prevent unauthorized access, alteration, theft, or physical damage program separate from network devices to manage the flow of
to information systems. data on a network.
security policy Statements ranking information risks, identifying software-defined storage (SDS) Software to manage provisioning
acceptable security goals, and identifying the mechanisms for and management of data storage independent of the underlying
achieving these goals. hardware.
semantic search Search technology capable of understanding software localization Process of converting software to operate in
human language and behavior. a second language.
semi-structured decisions Decisions in which only part of the software package A prewritten, precoded, commercially available
problem has a clear-cut answer provided by an accepted set of programs that eliminates the need to write software
procedure. programs for certain functions.
senior management People occupying the topmost hierarchy in spam Unsolicited commercial email.
an organization who are responsible for making long-range spoofing Tricking or deceiving computer systems or other
decisions. computer users by hiding one’s identity or faking the identity of
sensitivity analysis Models that ask “what-if” questions repeatedly another user on the Internet.
to determine the impact of changes in one or more factors on the spyware Technology that aids in gathering information about a
outcomes. person or organization without their knowledge.
sentiment analysis Mining text comments in an email message, SQL injection attack Attacks against a website that take
blog, social media conversation, or survey form to detect advantage of vulnerabilities in poorly coded SQL (a standard and
favorable and unfavorable opinions about specific subjects. common database software application) applications in order to
server Computer specifically optimized to provide software and introduce malicious program code into a company’s systems and
other resources to other computers over a network. networks.
service level agreement (SLA) Formal contract between strategic transitions A movement from one level of sociotechnical
customers and their service providers that defines the specific system to another. Often required when adopting strategic
responsibilities of the service provider and the level of service systems that demand changes in the social and technical
expected by the customer. elements of an organization.
Glossary 629
streaming A publishing method for music and video files that flows tangible benefits Benefits that can be quantified and assigned a
a continuous stream of content to a user’s device without being monetary value; they include lower operational costs and
stored locally on the device. increased cash flows.
structure chart System documentation showing each level of taxonomy Method of classifying things according to a
design, the relationship among the levels, and the overall place in predetermined system.
the design structure; can document one program, one system, or teams Formal groups whose members collaborate to achieve specific
part of one program. goals.
structured Refers to the fact that techniques are carefully drawn teamware Group collaboration software that is customized for
up, step by step, with each step building on a previous one. teamwork.
structured decisions Decisions that are repetitive and routine and technology standards Specifications that establish the
have a definite procedure for handling them. compatibility of products and the ability to communicate in a
structured knowledge Knowledge in the form of structured network.
documents and reports. telepresence Telepresence is a technology that allows a person to
Structured Query Language (SQL) The standard data give the appearance of being present at a location other than his
manipulation language for relational database management or her true physical location.
systems. Telnet Network tool that allows someone to log on to one computer
subscription revenue model Website charging a subscription fee system while doing work on another.
for access to some or all of its content or services on an ongoing test plan Prepared by the development team in conjunction with
basis. the users; it includes all of the preparations for the series of tests
supply chain Network of organizations and business processes for to be performed on the system.
procuring materials, transforming raw materials into testing The exhaustive and thorough process that determines
intermediate and finished products, and distributing the finished whether the system produces the desired results under known
products to customers. conditions.
supply chain execution systems Systems to manage the flow of text mining Discovery of patterns and relationships from large sets
products through distribution centers and warehouses to ensure of unstructured data.
that products are delivered to the right locations in the most token Physical device similar to an identification card that is
efficient manner. designed to prove the identity of a single user.
supply chain management systems Information systems that total cost of ownership (TCO) Designates the total cost of
automate the flow of information between a firm and its owning technology resources, including initial purchase costs,
suppliers in order to optimize the planning, sourcing, the cost of hardware and software upgrades, maintenance,
manufacturing, and delivery of products and services. technical support, and training.
supply chain planning systems Systems that enable a firm to total quality management (TQM) A concept that makes quality
generate demand forecasts for a product and to develop sourcing control a responsibility to be shared by all people in an
and manufacturing plans for that product. organization.
support activities Activities that make the delivery of a firm’s touch point Method of firm interaction with a customer, such as
primary activities possible. Consist of the organization’s telephone, email, customer service desk, conventional mail, or
infrastructure, human resources, technology, and procurement. point-of-purchase.
switch Device to connect network components that has more trade secret Any intellectual work or product used for a
intelligence than a hub and can filter and forward data to a business purpose that can be classified as belonging to that
specified destination. business, provided it is not based on information in the public
switching costs The expense a customer or company incurs in lost domain.
time and expenditure of resources when changing from one transaction costs Costs incurred when a firm buys on the
supplier or system to a competing supplier or system. marketplace what it cannot make itself.
system testing Tests the functioning of the information system as a transaction cost theory Economic theory stating that firms grow
whole in order to determine if discrete modules will function larger because they can conduct marketplace transactions
together as planned. internally more cheaply than they can with external firms in the
systems analysis The analysis of a problem that the organization marketplace.
will try to solve with an information system. transaction fee revenue model An online e-commerce revenue
systems analysts Specialists who translate business problems and model where the firm receives a fee for enabling or executing
requirements into information requirements and systems, acting transactions.
as liaison between the information systems department and the transaction processing systems (TPS) Computerized systems
rest of the organization. that perform and record the daily routine transactions necessary
systems design Details how a system will meet the information to conduct the business; they serve the organization’s operational
requirements as determined by the systems analysis. level.
systems development The activities that go into producing an transborder data flow The movement of information across
information systems solution to an organizational problem or international boundaries in any form.
opportunity. Transmission Control Protocol/Internet Protocol (TCP/IP)
systems life cycle A traditional methodology for developing an Dominant model for achieving connectivity among different
information system that partitions the systems development networks. Provides a universally agreed-on method for
process into formal stages that must be completed sequentially breaking up digital messages into packets, routing them to the
with a very formal division of labor between end users and proper addresses, and then reassembling them into coherent
information systems specialists. messages.
T lines High-speed guaranteed service level data lines leased from transnational Truly global form of business organization with no
communications providers, such as T-1 lines (with a transmission national headquarters; value-added activities are managed from a
capacity of 1.544 Mbps). global perspective without reference to national borders,
tablet computer Mobile handheld computer that is larger than a optimizing sources of supply and demand and local competitive
mobile phone and operated primarily by touching a flat screen. advantage.
tacit knowledge Expertise and experience of organizational Trojan horse A software program that appears legitimate but
members that has not been formally documented. contains a second hidden function that may cause damage.
630 Glossary
tuple A row or record in a relational database. war driving Technique in which eavesdroppers drive by buildings
two-factor authentication Validating user identity with two or park outside and try to intercept wireless network traffic.
means of identification, one of which is typically a physical Web 2.0 Second-generation, interactive Internet-based services that
token, and the other of which is typically data. enable people to collaborate, share information, and create new
Unified communications Integrates disparate channels for voice services online, including mashups, blogs, RSS, and wikis.
communications, data communications, instant messaging, Web 3.0 Future vision of the web where all digital information is
email, and electronic conferencing into a single experience woven together with intelligent search capabilities.
where users can seamlessly switch back and forth between web beacons Tiny objects invisibly embedded in email messages
different communication modes. and web pages that are designed to monitor the behavior of the
unified threat management (UTM) Comprehensive security user visiting a website or sending email.
management tool that combines multiple security tools, web browser An easy-to-use software tool for accessing the World
including firewalls, virtual private networks, intrusion detection Wide Web and the Internet.
systems, and web content filtering and anti-spam software. web hosting service Company with large web server computers to
uniform resource locator (URL) The address of a specific maintain the websites of fee-paying subscribers.
resource on the Internet. web mining Discovery and analysis of useful patterns and
unit testing The process of testing each program separately in the information from the World Wide Web.
system. Sometimes called program testing. web server Software that manages requests for web pages on the
Unix Operating system for all types of computers, which is machine computer where they are stored and that delivers the page to the
independent and supports multiuser processing, multitasking, user’s computer.
and networking. Used in high-end workstations and servers. web services Set of universal standards using Internet technology
unstructured decisions Nonroutine decisions in which the for integrating different applications from different sources
decision maker must provide judgment, evaluation, and insights without time-consuming custom coding. Used for linking systems
into the problem definition; there is no agreed-upon procedure of different organizations or for linking disparate systems within
for making such decisions. the same organization.
user interface The part of the information system through which website All of the World Wide Web pages maintained by an
the end user interacts with the system; type of hardware and the organization or an individual.
series of on-screen commands and responses required for a user Wi-Fi Stands for “wireless fidelity” and refers to the 802.11 family of
to work with the system. wireless networking standards.
user-designer communications gap The difference in wide area network (WAN) Telecommunications network that
backgrounds, interests, and priorities that impede spans a large geographical distance. May consist of a variety of
communication and problem solving among end users and cable, satellite, and microwave technologies.
information systems specialists. wiki Collaborative website where visitors can add, delete, or modify
utilitarian principle Principle that assumes one can put values in content, including the work of previous authors.
rank order of utility and understand the consequences of various WiMax Popular term for IEEE Standard 802.16 for wireless
courses of action. networking over a range of up to 31 miles with a data transfer
value chain model Model that highlights the primary or support rate of up to 75 Mbps. Stands for Worldwide Interoperability for
activities that add a margin of value to a firm’s products or Microwave Access.
services where information systems can best be applied to Windows Microsoft family of operating systems for both network
achieve a competitive advantage. servers and client computers.
value web Customer-driven network of independent firms who use Windows 10 Most recent Microsoft Windows client operating
information technology to coordinate their value chains to system.
collectively produce a product or service for a market. Wintel PC Any computer that uses Intel microprocessors
virtual company Organization using networks to link people, (or compatible processors) and a Windows operating system.
assets, and ideas to create and distribute products and services wireless sensor networks (WSNs) Networks of interconnected
without being limited to traditional organizational boundaries or wireless devices with built-in processing, storage, and radio
physical location. frequency sensors and antennas that are embedded into the
virtual private network (VPN) A secure connection between physical environment to provide measurements of many points
two points across the Internet to transmit corporate data. over large spaces.
Provides a low-cost alternative to a private network. wisdom The collective and individual experience of applying
Virtual Reality Modeling Language (VRML) A set of knowledge to the solution of problems.
specifications for interactive three-dimensional modeling on the wisdom of crowds The belief that large numbers of people can
World Wide Web. make better decisions about a wide range of topics or products
virtual reality systems Interactive graphics software and than a single person or even a small committee of experts.
hardware that create computer-generated simulations that World Wide Web A system with universally accepted standards for
provide sensations that emulate real-world activities. storing, retrieving, formatting, and displaying information in a
virtualization Presenting a set of computing resources so that they networked environment.
can all be accessed in ways that are not restricted by physical worms Independent software programs that propagate themselves
configuration or geographic location. to disrupt the operation of computer networks or destroy data
visual web Refers to web linking visual sites such as Pinterest and other programs.
where pictures replace text socuents and where users search on zero-day vulnerabilities Security vulnerabilities in software,
pictures and visual characteristics. unknown to the creator, that hackers can exploit before the
Voice over IP (VoIP) Facilities for managing the delivery of voice vendor becomes aware of the problem.
information using the Internet Protocol (IP).
Index
631
632 Index
Macy’s, 310–311, 433 Pepsico, 90, 231, 425, 433 Sun Microsystems, 221
Maersk, 594 Photobucket.com, 413 Super Fresh, 431
Mandarin Oriental, 42 Pinterest, 405, 422–423 Sybase, 209
MasterCard, 158, 342 Piper Jaffray Cos., 64
Match.com, 416 The Pirate Bay, 171 T
Matsushita, 471 Pixar Animation Studios, 305 Taco Bell, 501
McAfee, 327 Plan International, 80–81 TAL Apparel Ltd., 43
McDonalds, 597 Plex Systems, 389 Target, 173, 388, 394–396
McKinsey & Company, 87, 583 Ponemon Institute, 330–331, 353 Tasty Baking Company, 369
Megaupload, 171 Priceline.com, 414 Tata Consultancy Services, 475–477
Mercedes-Benz, 461–462 PricewaterhouseCoopers (PwC), 551 Tate & Lyle, 107-109
Metal Office Furniture Company, 609 Privi Organics, Ltd., 45 TCS, 216
MetLife, 254 Procter & Gamble (P&G), 135, 373, 433, 456, Tenaris, 456
Michelin North America, 235 470–471 Texas Instruments (TI), 115
Microsoft Corp., 137, 193–194, 201, 209, 299, Progressive Insurance, 502–503 ThomasNet.com, 264
370, 456, 508, 511 Proofpoint, 297 TIBCO, 522
Mitsubishi, 471 Tidal Trade, 614
Mitsubishi Heavy Industries, 466 Q Time Warner, 288, 295
MobileIron, 235–236 Qualcomm, 456 T-Mobile, 138, 143, 306
Mobiquity, 544 Quantcast, 167 Tower Records, 115
Monsanto, 63–64 Toyota, 117, 123
Morpheus, 171 R Trader Joe’s, 431
Mosaic, 415 Raytheon, 429 Travelocity, 129
Motorola, 138 Red Hat, 221 Treehouse Island Inc., 120–121
Mozilla Foundation, 168 Reebok, 136 Trend Micro, 352
Mrs. Fields Cookies, 597 Renault, 461 TTX, 545
MSN, 413, 433 Ricoh, 471 Tumblr, 415, 422
MyPoints, 417 Roche, 481–482 Twitter, 304, 389, 415, 422
Rolls-Royce PLC, 429 TypePad.com, 304
N Rosendin Electric, 235–236
Napster, 171 Rugby Football Union (RFU), 31–33 U
NASA, 102 Uber, 135, 399–401, 415, 430
National Cyber Security Center S Under Armour, 129–131
(NCSC), 305 Sabre Holdings, 254 United Parcel Service (UPS), 49–50, 497
National Health Service (NHS), 498–499, 568 SAC Capital, 154 United States International Trade Commission,
Nestlé, 375 Safeway, 431 171
Netflix, 40, 174, 291, 411, 416, 467 SalesForce.com, 201, 211, 215, 218, 225, 381, United States Patent and Trademark Office, 170
Network Advertising Initiative, 164, 168 389, 415, 590 United States Telecom Association, 292
NetZero, 288 Samsung Electronics, 138, 171, 207, 429 Universal Robots, 461
New York City, 255–257, 431, 459 Sanyo, 471 UPS Supply Chain Solutions, 375
New York Times, 416 SAP, 108, 273, 366, 370, 381, 388–389, 394, 482, U.S. Cyber Command (CYBERCOM), 333
New Zealand Department of Commerce, 508, 516, 609–610 U.S. Department of Commerce, 165
454–455 Schneider National, 375, 519 U.S. Department of Defense, 284, 288, 331, 333
NextBio, 258 7-Eleven, 440 U.S. Department of Defense Advanced
Nike, 126, 129–130, 371–372 Shopkick, 433 Research Projects Agency (DARPA), 284
Nissan, 433 Six Flags, 84 U.S. Department of Homeland Security, 305
Nordstrom, 354 SKF, 37 U.S. Federal Highway Administration, 451
Novell, 200, 281, 286 Skype, 90, 295, 505 U.S. Forest Service, 497
Snapchat, 418, 424 U.S. Internal Revenue Service, 75
O SNCF (French rail service), 494 U.S. National Institute of Standards and
Ocean Minded, 614 Snyders of Hanover, 61 Technology (NIST), 214
1-800-Flowers, 433 Societe Generale, 267-268 U.S. Patent and Trademark Office, 170
Open Handset Alliance, 208 The Software Alliance, 171 U.S. Postal Service (USPS), 255
OpenSignal, 234 Sonic Automotive, 37 U.S. Securities and Exchange Commission, 301
OpenSource.org, 220 Sony, 332 U.S. Social Security Administration, 75
Open Text Corp., 455 Southern Co., 211
Oracle Corp., 101, 201, 208, 209, 216, 221, 366, Southern Valve & Fitting USA (SVF), 93 V
381, 388, 394, 445–446, 455, 508, 522, 582, Southwest Airlines, 223 Vail Resorts, 78
605 Sports Authority, 433 Valiant Entertainment, 353
Orville Redenbacher, 550 Sportsvite, 415 Verizon, 280
Overstock.com, 388 Spotify, 172, 292, 417 Vestas Wind Systems, 494
Sprint, 138, 306 VEVO, 411
P Stanford University, 203, 299, 468 Virgin Entertainment Group, 295
Panda Security, 328 Staples, 414 Visa, 158, 468
Pandora, 172, 416 Starbucks, 127, 425, 492, 497 Vita Coco, 353
Panorama Consulting Solutions, 387 Starhub, 321–322 VmAirWatch, 354
PayPal, 126, 331 Statoil Fuel and Retail, 365-367 Volkswagen, 154, 427, 462
Penguin, 303 Steelcase Designs, 609–610 Volkswagen Group, 177
PeopleSoft, 224 SunGard Availability Services, 342
634 Index
cloud computing (continued) in-memory, 258–259 CPO. See chief privacy officer
competitive strategies, 129–133 malicious software in, 326–328, 327t CPQ. See configure, price and quote
Compiere, 389 mobile, 200–201, 210, 227, 234, 236 credit cards, 134, 520
complacency, from computing, 181–182 on-demand, 218 data from, 127, 157–158
complementary assets, 54–56 personal, 197 digital certificate system for, 350
complex instruction set computing (CISC), 207 quantum, 213 ethical issues of, 156–158
component-based development, 542 service-oriented, 542 hackers obtaining, 173
CompStat, 256 social, 297 hotspots and, 309
computer abuse, 176–177 standards in, 205t identity theft from, 331
computer-aided design (CAD), 452, 458, 472 system performance in, 174 Internet adoption of, 607–608
computer-aided software engineering terms and concepts in, 242–243 mobile devices managing, 433
(CASE), 532 wearable devices for, 210–212 neural networks for, 467–469
computer crimes, 176–177, 330t. See also Conficker (malware), 359 personal information from, 157
malware; security configure, price and quote (CPQ), 537–538 predictive analytics for, 493
botnets, 329–330 connectivity, 605–608 security systems for, 341
click fraud, 332 consumerization, of IT, 212–213 weblining and, 188
cyber, 330–331 Consumer Reports, 416 crime fighting, 256
cybervandalism, 329 consumers Crime Strategies Unit (CSU), 256
cyberwarfare, 333, 339–340 B2C, 412 CRM. See customer relationship management
data breaches, 332t disintermediation benefiting, 409–410, crop yields, 63
DDoS attack, 329 409f cross-channel capabilities, 394
DoS attack, 329 technologies relationships with, 130 cross-functional systems, 611
e-mails for fighting, 256 Consumer-to-consumer (C2C), 412 cross-selling, 382
evil twins, 331 content providers, 414 crowdsource funding, 415, 425
hackers, 329 ContentWorx, 454–455 CryptoLocker, 328
identity theft, 331–332 continuous measurement, 521 Crystal Reports, 250
keyloggers, 328 continuous quality improvement, 518 CSA. See Cloud Security Alliance
legislation, 331–332 controls, 323 CSO. See chief security officer
pharming, 331 control weaknesses, 344f CSU. See Crime Strategies Unit
phishing, 331 conversational commerce, 403–405 CT. See computerized tomography
spoofing and sniffing, 329 conversations, 86 CTS. See carpal tunnel syndrome
computer forensics, 336 conversion, in systems development, 527 culture, 48, 86
Computer Fraud and Abuse Act, 331 conversion rates, 394 global, 593
computer hardware COO. See chief operating officer information laws and, 595
microprocessing power in, 220 cookies, 166–167, 166f, 184 of organizations, 112–113
platforms, 207–208 cooptation, 604 currency fluctuations, 596
telecommunications, 49, 59 COPPA. See Children’s Online Privacy customer intimacy, 390
trends in, 230 Protection Act customer lifetime value (CLTV), 386
computerized hiring, 152 COPs. See communities of practice customer relationship management
computerized tomography (CT), 459 copyright law, 170, 184 (CRM), 83, 127, 380f, 589–591
computer literacy, 46 core business processes, 40 analytical, 383–386, 384f
computer networks, 280–282, 280f, 312 core competency, 135, 140–141 capabilities of, 383f
computers core systems, 601–602, 601f, 608–611 cloud computing and, 218
client, 199 corporate assets, 40 customer intimacy from, 390
enterprise, 200 corporations customer service with, 381–382
fault-tolerant, 350 enterprise applications of, 81–83 defining, 377–380
hardware platforms for, 207–208 firewalls for, 346–347, 346f direct-marketing campaigns
health risks, 180–183 network infrastructure of, 282f and, 382, 382f
Internet abuses by, 176–177 networks in large, 281–282 enterprise applications and, 387–388
mainframe, 197 patchwork international systems of, 596 operational, 383–386
networks and networking, 280–282, 280f, strategies of, 41–42 sales force automation in, 381
312 costs social networking using, 389
personal, 197, 199, 206, 329–330 of cybercrime, 330–331 software capabilities of, 383f
server, 199, 263–264, 281 Internet communications, 204, 205f software for, 381
software, 49 of IS, 564–565, 565t customers, 126
tablet, 210 leadership’s low, 126 businesses retaining, 125
viruses, 326 of magnetic storage device, 204f loyalty map, 384f
Wintel PC, 199, 206 menu, 409 social networking with, 424–425
Computer Software Copyright Act, 170 of microprocessor chips, 201, 202f supplier’s relationship with, 42–43, 127
computer-to-computer exchange, 426 negative social, 174–175 customer service, 49, 381–382
computer vision syndrome (CVS), 182 of offshore outsourcing, 540f customization
computing. See also cloud computing; operating, 144 in e-commerce, 407–408
operating systems of ownership, 228, 228t, mass, 126
client/server, 282–283 231, 565 in software packages, 538
complacency from, 181–182 project management considering, 559 CVS. See computer vision syndrome
data hierarchy in, 242f switching, 127 cyberbullying, 175
decentralized client-server in, 175 transaction, 117, 405 cybercrime, 330–331
green, 219 cost transparency, 407 cybervandalism, 329
health risks of, 180–183 counterimplementation, 574 cyberwarfare, 333, 339–340
Index 637
cycles per second, 287 Data Protection Directive, 595 digital subscriber line (DSL), 288, 312
data quality, 265–266 digital versus analog, 285
D data transfer rate, 286 direct cutover strategy, 527
DARPA. See Department of Defense Advanced data visualization, 492 direct goods, 427–428
Research Projects Agency data warehouse, 499 Directive on Data Protection, 164
data, 44, 509 data workers, 47 direct-marketing campaigns, 382, 382f, 384
ambient, 337 DBMS. See database management system disaster recovery planning, 342–343
business intelligence from, 491 DDoS. See distributed denial-of-service disintermediation, 409–410, 409f
from checkout counters, 45f debugging, 352 display ads, 403
cleansing or scrubbing, 266 decentralized client-server, 175 disruptive technologies, 114–116, 115t
from credit cards, 127, 157–158 decentralized systems, 599 distributed denial-of-service (DDoS), 321–323,
database quality of, 265–266 decisional role, 487–488 329
definition, 248 decision making distribution center, 394
dictionary, 248 automated high-speed, 489–490 distribution model, 410–411
Europe’s protection of, 164–165 BI analytics for, 491f DMCA. See Digital Millennium Copyright Act
hierarchy, 242f business value of, 483, 484t DNS. See Domain Name System
inconsistency, 244 competitive advantage and, 43 documentation, 526–527
knowledge from, 448–449 digital dashboard for, 79f Dodd-Frank Wall Street Reform and Consumer
managing resources of, 241–245 DSS and, 98, 506 Protection Act, 44
mart, 257–258, 269 enterprise systems improving, 370–371 domain name, 288
mining, 261–262 fairness in, 160 Domain Name System (DNS), 288–289, 289f,
MIS TPS, 76f improving, 43 313
multidimensional model of, 260f information required in, 484f domestic exporter, 597
personal information collection of, 165 IT influencing, 118–121, 119f Do Not Track system, 164, 169, 421
program dependence on, 244 managements role in, 486–487 DoS. See denial-of-service attack
redundancy, 244 MIS role in, 500–501 DoubleClick, 158, 166–168, 419, 421f
relational DBMS grouping of, 251 pivot tables used for, 502 downstream, supply chain, 372
from RFID tags, 46 process of, 485–486 DPI. See deep packet inspection
sales, 77f, 125f real world, 488 drill down, 493, 504
sharing of, 54–245 rent-versus-buy, 227 drive-by downloads, 327
warehouse, 255–258, 269 stages of, 486f driving habits, 151
data administration, 265 technologies and, 496 Dropbox, 92, 212, 218, 353
data analysis, 157 types of, 483–485, 505 DSL. See digital subscriber line
database management system (DBMS) value-added activities in, 54 DSL modems, 285
capabilities of, 248–250 decision-support systems (DSS), 78f DSS. See decision-support systems
designing, 250–251 BI delivered by, 77, 501 due process, 159
Microsoft Access in, 250f decision making and, 98, 506 duplicated systems, 599
multiple views of, 246f group, 504–506 dynamic pricing, 409
non-relational, 253–254 deep packet inspection (DPI), 350
relational, 246–248, 247f, 249f, 251, 254, Delivery Information Acquisition Device E
268 (DIAD), 53f Earthlink, 288
software, 245 delivery platform, 492 easy-to-handle pieces, 556
traditional environment of, 245–246 demand planning, 374 e-business, 84
databases, 245 denial-of-service (DoS) attack, 329, 354 EC2. See Elastic Compute Cloud
administration, 265 Department of Defense, 288 ECM. See enterprise content management
as alert system, 256 Department of Defense Advanced Research e-commerce, 35, 41, 607–608. See also digital
in cloud computing, 253–254 Projects Agency (DARPA), 284 markets; Internet
information accessed in, 269 deregulation, 164 behavioral targeting in, 418–422
Internet and, 263–264, 263f design considerations, 122–123, 485 big data analysis in, 493–494
NoSQL, 253 developing countries, 606 business models for, 412–415
quality of data in, 265–266 DevOps, 541–542, 546 commitment to, 440
querying of, 248–250, 250f DFD. See data flow diagram conversational, 403–405
server for, 263–264 DIAD. See Delivery Information Acquisition customization in, 407–408
software for, 209 Device goods and service purchased in, 401–402
data breaches, 332t digital asset management systems, 456 growth of, 402–404, 402f
data brokers, 152, 418–419 digital certificates, 349f, 350 information density in, 407
data flow, transborder, 595 digital dashboard, 79, 79f, 493 interactivity in, 407
data flow diagram (DFD), 528, 529f digital divide, 180 key concepts in, 408–410
data governance, 265, 267 digital firm, 40, 137f management challenges of, 433
data management, 268–269, 495 digital goods, 410–411, 435 marketing transformed by, 417–426, 435
cloud-based, 254 digital information, 157 mobile, 412, 430f
cloud computing and, 254, 351 digital markets, 435 through mobile devices, 405
data quality in, 265–266 flexibility and efficiency of, 408–409 personalization in, 407–408
IS and, 59–60 Internet changing, 411t presence map, 434, 434f, 435t
IT infrastructure and, 195–196, 206–207 traditional markets and, 410t revenue models, 415–417, 435
storage and, 209 Digital Millennium Copyright Act (DMCA), 172 revenues, 403
technology, 49, 144–145, 152 digital networks, 171 richness in, 407
data manipulation language, 248 digital signal, 285 social, 422–423, 423t
data mining, 261–262, 269, 417, 452, 460, 490 digital strategies, 107–108, 110 technology and power of, 405–408
638 Index
micromarketing, 594 structured methodologies in, 528–530 computer, 280–282, 280f, 312
micropayment systems, 416 subscription revenue, 416 corporation infrastructure of, 282f
microprocessing power, 201–203, 202f, 220 system design and, 546 digital, 171
microprocessor chips, 201, 202f transaction fee revenue, 417 economies of scale and, 204–206
Microsoft Access, 246, 250f value chain, 129–133, 132f, 140 ethical issues of, 156–158
Microsoft Cortana, 470 walled garden, 353 global, 288
Microsoft Excel, 502 modems, 285 international challenges of, 606t
Microsoft. NET platform, 223 functions of, 285f in large corporations, 281–282
Microsoft Office, 470, 536 types of, 286f local area, 286
Microsoft OneDrive, 92 MOOCs. See massive open online courses modems in, 285, 285f, 286f
Microsoft Project, 577 Moore’s Law, 201–203, 202f operating systems, 209
Microsoft SharePoint, 70, 92–93 moral dimensions, 156 packet switching of, 283, 283f
Microsoft SQL, 309 moral issues. See ethical and moral issues peer-to-peer, 286, 295, 325
Microsoft Xbox Live, 416 MOST, 37 private industrial, 427, 428f
middle management, 47, 89, 485 movie industry, 411 routers for, 281
millions of instructions per second (MIPS), 201 MRI. See magnetic resonance imaging software-defined, 281
MIMO. See multiple input multiple output MSN, 413 switches in, 127, 281
minicomputers, 197 MSSPs. See managed security service providers TCP/IP in, 284–285
minority groups, 180 multicore processors, 220 TCP/IP reference model for, 284f
MIPS. See millions of instructions per second multidimensional data model, 260f telephone, 279
Mirai (malware), 321–322, multinational company, 600 3G and 4G, 306
MIS. See Management Information Systems multinational strategy, 597 transmission media used in, 287
MLB. See Major League Baseball multiple input multiple output (MIMO), 309 types of, 285–287, 312
MLS. See multiple listing service multiple listing service (MLS), 226 unified communications in, 295–297
mobile apps, developing, 543–545 multitiered client/server architecture, 199, VPNs in, 297–298, 298f, 313, 348, 505
mobile computing, 210, 227, 234 200f, 293, 294f, 324 WANs, 286, 454
era of, 200–201 multitouch interface, 208 Wi-Fi, 308–309, 313
security of, 236 MyFitnessPal, 130 WSNs, 311, 313
mobile device management (MDM), 235 MyPoints, 417 NetZero, 288
mobile devices, 35–38, 324 My Recipe, 550–551 neural networks, 467–469, 468f, 472
advertising on, 433 MySQL, 246 neurofuzzy systems, 471
BYOD, 212–213, 234–236, 353–354 New York Times, 416
credit cards managed through, 433 N NFC. See near field communication
e-commerce through, 405 NAI. See Network Advertising Initiative NIC. See network interface controller
Internet users on, 429–430 nanotechnology, 203 NikeFuel, 130
malware on, 327 nanotubes, 203 NIST. See National Institute of Standards and
privacy issues of, 158 NAPs. See network access points Technology
security for, 325, 352, 354 NAT. See Network Address Translation nitrogen oxide (NOx), 178
mobile digital platforms, 35–36, 38–39, 210 National Information Infrastructure Protection NLP. See Neighborhood Liaison Program
mobile e-commerce, 412, 430f Act, 331 nonobvious relationships awareness (NORA),
mobile employees, 505 National Institute of Standards and Technology 158, 159f
MobileIron, 236 (NIST), 214 non-relational DBMS, 253–254
Mobile Sales App, 516–517 native advertising, 421 NORA. See nonobvious relationships awareness
mobile search, 300 native app, 543 normalization, 251, 251f, 252f
mobile web app, 543 near field communication (NFC), 311 normative goals, 116
mobile website, 543 negative social costs, 174–175 NOS. See network operating system
models. See also standards Netflix, 411, 416 NoSQL databases, 253
advertising revenue, 415–416 net marketplaces, 427–428, 428f Novell Netware, 200
affiliate revenue, 417 net neutrality, 291–292 NOx. See nitrogen oxide
agent-based, 470 Netscape.com, 402 N-tier. See multitiered client/server architecture
behavioral, 487 network access points (NAPs), 290
broadcast, 408 Network Address Translation (NAT), 347 O
business, 42, 412–415 Network Advertising Initiative (NAI), 168 objective techniques, 563
classical management, 487 network-based strategies, 135–138 object-oriented development, 530–532
cloud computing compared in, 219t network economics, 135–136, 203 object-oriented programming language, 222
competitive forces, 123, 124f, 140–141, networked systems, 599 observations, passive, 182
229–230, 229f network interface controller (NIC), 325 OFBiz. See Apache Open for Business
distribution, 410–411 Network interface layer, 285 Office 393, 70
ecosystem strategic, 137f network operating system (NOS), 281 offline media, 434
ERP scoring, 564t networks and networking, 49. See also telecom- offshore outsourcing, 539, 540f
financial, 566 munications technologies oil and gas industry, 509
free/freemium revenue, 416–417 advertising, 421f OLAP. See online analytical processing
multidimensional data, 260f bandwidth in, 287, 291, 505 OMS. See Order Management System
object-oriented development in, 530–532 bluetooth, 307–308, 307f, 325 on-demand computing, 218
opt-in and opt-out, 168 bot, 177 on-demand economy, 400–401, 415
pull-based and push-based, 376, 376f, 439 cable, 103, 173, 280 online advertising, 419
revenue, 415–417, 435 circuit-switched, 283 online analytical processing (OLAP), 260–261,
sales revenue, 416 client/server computing in, 282–283 384, 490
scoring, 563, 564t communication trends and, 279–280 online dating sites, 416
Index 643
product number, 266 Really Simply Syndication (RSS), 304, 313 SAP NetWeaver, 516
products, substitute, 124 real-time bidding platforms (RTB), 420 Sarbanes-Oxley Act, 44, 336
professional work, 85 reciprocal relationships, 114f satellite Internet connections, 288
profiling, 158 record, 242 scalability, 227
program-data dependence, 244 record change, 526f SCM. See supply chain management
Program Evaluation and Review Technique. See recording industry, 172, 410–411 scope, 559
PERT charts records management, 335–337 scoring models, 563, 564t
programmatic ad buying, 420 reduced instruction set computing (RISC), 207 SDN. See software-defined networking
programmers, 96, 539 reengineering work, 179–180, 571 SDS. See software-defined storage
programming, 215, 525 referential integrity, 252 search engine marketing, 303–304
HTML and HTML5, 221–222 referral fees, 417 search engine optimization (SEO), 303
Java in, 221 Refining Dashboard, 79 search engines, 299–300, 301f
open source, 220–221 regional distribution, 502f Second Life, 90
XML, 222–223 regional systems, 599, 601f Secure Hypertext Transfer Protocol (S-HTTP),
project, 558 registration system, 529f 348
project management, 558f regulations, 335–336 Secure Sockets Layer (SSL), 348
cost considerations in, 559 relational DBMS, 246, 247f, 249f, 254, 268 security, 323, 348, 355. See also computer
implementation in, 567–569 data grouping in, 251 crimes; malicious software; malware
objectives of, 558–559, 577 operations of, 247–248 breaches, 321, 353
risk dimensions in, 566–567 rent-versus-buy decisions, 227 in cloud computing, 351
scoring models and, 563 repetitive stress injury (RSI), 180–182, 183f credit card systems for, 341
software tools for, 576–577 request for proposal (RFP), 537, 538 in electronic records management,
systems control in, 560f research and development (R&D), 135 336–337
of technical complexity, 571–572 responsibility, 159 IoT challenges of, 327–328
of technologies, 567 responsive web design, 543 lack of, 244
Project Management Institute, 570 Retail Link system, 42 legal liability and, 335
project portfolio management software, 577 return on investment (ROI), 566 of mobile computing, 236
project structure, 567 revenue for mobile devices, 325, 352, 354
property rights, 156, 169–172 e-commerce, 403 outsourcing of, 351
protocol, 284 Google’s advertising, 35 policy, 341–342
prototyping, 546 mobile e-commerce, 430f of smartphones, 324
pros and cons of, 535 models for, 415–417, 435 threats, 333–334, 358–360
steps in, 534–535, 534f RFID. See radio frequency identification tags vulnerabilities of, 324f
in systems development, 534–535 RFP. See request for proposal wireless networks challenges of, 325
public cloud, 218 richness, in e-commerce, 407 self-regulation, 168
public key encryption, 348–349, 349f ride-sharing service, 399–400 sellers, third-party, 440
public key infrastructure (PKI), 350 RightMedia, 419 semantic search, 300–301
pull-based model, 376, 376f, 439 RISC. See reduced instruction set computing semi-structured decisions, 493, 501–503
push-based model, 376, 376f, 439 risk, 559 senior management, 47, 89, 154t, 485, 504
Pushdo, 330 assessment, 338–341, 341t sensitivity analysis, 501f
Python, 222 aversion principle, 161 sensor-generated data, 509
health, 180–183 sentiment analysis, 262
Q information systems project, 571, 576–577 SEO. See also search engine optimization
quality, 559 in organizational change, 518f sequences, 261
architectures, 596 project management dimensions of, server computers, 199, 263–264, 281
data, 265–266 566–567 service level agreements (SLA), 225, 351
of information, 488 robots, 461–462 service-oriented architecture (SOA), 222–223,
of life, 174 ROI. See return on investment 388
of software, 352 routers, 281 service-oriented computing, 542
system, 156, 174 routines, 112, 113f service platform, 197
TQM for, 518, 545 RSI. See repetitive stress injury services, substitute, 124
quantum computing, 213 RSS. See Really Simply Syndication service set identifiers (SSIDs), 325
querying, of database, 248–250, 250f RTB. See real-time bidding platforms service workers, 47
query language, 535 Ruby, 222 SFA. See sales force automation
runaway projects, 557–558 Shaft Align, 37
R sharing economy, 415
racial divides, 180 S shopping bots, 302
racial profiling, 151 S3. See Simple Storage Service S-HTTP. See Secure Hypertext Transfer Protocol
RAD. See rapid application development SaaS. See software as a service Shutterstock, 255
radio frequency identification (RFID) tags, 46, safe harbor, 165 SIG. See Special Interest Group
211–212, 277, 313, 316-318, 385–386 safety stock, 373 SIIA. See Software and Information Industry
functioning of, 310f sales data, 77f, 125f Association
through supply chain, 309–311 sales force automation (SFA), 381 Silverlight, 221
wireless networks with, 278–279 Salesforce Chatter, 93, 103 SimpleDB, 253
RAM. See main memory Salesforce.com, 225 Simple Storage Service (S3), 215
ransomware, 328 sales revenue model, 416 SIMs. See subscriber identity modules
rapid application development (RAD), 541, 546 sandboxing, 353 SIMS. See Sonic Inventory Management System
rationalization of procedures, 518 SAP ERP, 108, 516, 609 simulation, 452
R&D. See research and development SAP HANA, 108, 482 Siri. See Speech Interpretation and Recognition
Index 645
software, (continued) telephone networks, 279 Clean Air Act in, 177, 178
end users in, 524–525 telephone systems, 173 employment in, 39–40
information requirements in, 524 telepresence, 90 federal privacy laws in, 163t
maintenance in, 527 Telnet, 293 imports and exports of, 39
object-oriented development, 530–532 temperature controls, 466f Internet use in, 606f
organizational change and, 517–519 terminals, point-of-sale, 126, 395 privacy in, 168
problem solving activities in, 523 testing, in systems development, 525–526 unit testing, 526
process of, 523f, 545–546 test plan, 526, 526f universal standards, in e-commerce,
production in, 527 text mining, 262–263, 269 406–407
programming in, 525 third-party sellers, 440 Unix, 208
prototyping in, 534–535 Third World, 594 unstructured decisions, 484
sociotechnical design in, 576 3-D printing, 458–459 upstream, supply chain, 372
structured methodologies in, 528–530 3G networks, 306 URL. See uniform resource locator
systems analysts in, 523–524 three-dimensional (3D) systems, 457 U.S. See United States
testing in, 525–526 three-dimensional (3D) Web, 305 user attention, of websites, 416
systems integration, 605 time-based competition, 175 user content generation, 408
systems life cycle, 533 time shifting, 40 user-designer communications gap, 570
system testing, 526 time/space matrix, 94f utilitarian principle, 161
TLS. See Transport Layer Security UTM. See unified threat management
T TMT. See Thirty Meter Telescope
T1 lines, 288 token, 344 V
tablet computers, 210 total cost of ownership (TCO), 228, 228t, 231, value-added activities, 54
tacit knowledge, 448 565 value chain, 449, 450f
tag suggest, 302 total quality management (TQM), 518, 545 value chain model, 129–133, 132f, 140
tangible benefits, 564 touch point, 380, 384, 434 value web, 133, 134f, 137
tap-and-go services, 311 Toxic Substances Control Act, 43 vehicle identification number (VIN), 37
taxi service, 399–401 TPS. See transaction processing systems Veriato Investigator, 296
taxonomy, 455 TQM. See total quality management VEVO website, 411
TCO. See total cost of ownership trackbacks, 304 video streaming, 291, 411
TCP. See Transmission Control Protocol tracking files, 167 VIN. See vehicle identification number
TCP/IP. See Transmission Control Protocol/ tractors, 63 virtual company, 136
Internet Protocol trade secrets, 169 virtualization, 213, 219
teams, 85 traditional markets, 410t Virtual Lot, 37
Teamwork Projects, 577 transaction brokers, 414 virtual meeting systems, 90
technical approach, 56–57 transaction cost theory, 117, 405 virtual private network (VPN), 297–298, 298f,
technical complexity, 571–572 transaction fee revenue model, 417 313, 348, 505
technical solutions, to privacy, 169 transaction processing systems (TPS), 74–76, virtual reality (VR), 452, 459
technology, 203 75f, 76f, 267-268 Virtual Reality Modeling Language (VRML),
cognitive functioning and, 182–183 transborder data flow, 595 459
collaboration using, 89–90 Transmission Control Protocol (TCP), 284 virtual worlds, 90
competitive advantage from, 50 Transmission Control Protocol/Internet visitor tracking, 419f, 421
consumer relationships with, 130 Protocol (TCP/IP), 200, 282, 284–285, 284f visual search, 302
data management, 49, 144–145, 152 transmission media, 287 visual web, 302
decision making and, 496 transnational strategy, 598 VMware, 213
disruptive, 114–116, 115t transnational systems, 599, 602 voice over IP (VoIP), 294–295, 325
e-commerce features of, 406t transport layer, 284 voice recognition software, 161
e-commerce’s power from, 405–408 Transport Layer Security (TLS), 348 VoIP. See voice over IP
employment influenced by, 179–180 travel agency industry, 128 voyage-estimating systems, 77–78, 78f
ethical issues of, 156–158, 157t Trojan horse, 328, 347 VPN. See virtual private network
information resources protected by, 341, TRUSTe, 168 VR. See virtual reality
355 Tumblr, 415, 422 VRML. See Virtual Reality Modeling
investing in, 64 tunneling, 298 Language
MIS and changes in, 35–39, 36t tuples, 247
pollution-control, 178 Twitter, 101, 103, 212, 304, 415, 422, 424, 425, W
project management of, 567 492 walkthrough, 352
social business using, 89–90 two-factor authentication, 345 walled garden model, 353
for social networks, 102 two-tiered client/server architecture, 199 Wall Street Journal, 416, 432, 439
standards, 204–206 WANs. See wide area networks
TCO, 228, 228t, 231 U war driving, 325
telecommunications, 49, 59, 209, 280, Ubimax, 211 Warehouse Management System (WMS),
294–295, 325 ubiquity, 405 374–375
telecommunications technologies, 209, 280. See unified communications, 295–297 warehouses, 441
also international inerformation systems; unified threat management (UTM), 348 waterfall approach, 533
networks and networking; radio frequency uniform resource locator (URL), 299 Waze service, 430
identification tags United Kingdom, 193 wearable computing devices, 210–212
computer hardware in, 49, 59 United States (U.S.) Web 2.0, 304–305
global, 598–599 CAN-SPAM Act in, 177 Web 3.0, 305–306
VoIP, 294–295, 325 cell phone standards in, 306 web-based e-mail, 167
Index 647