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To C. J., Carter, and Charlotte
—David Kroenke
viii
Brief Contents
Part 1 Why MIS? 1 CE 10 Collaborative Information
Systems for Student Projects 499
1 The Importance of MIS 3
8 Processes, Organizations,
CE 1 Introduction to Microsoft and Information Systems 197
Excel 2019 347
CE 11 Enterprise Resource
2 Organizational Strategy, Planning (ERP) Systems 519
Information Systems, and
Competitive Advantage 29 CE 12 Supply Chain Management 533
6. What Data Characteristics Are Necessary ■■ Ethics Guide: The Lure of Love Bots 46
for Quality Information? 18 ■■ Career Guide 47
Accurate 18 Active Review 48 • Key Terms and Concepts 49 • End of
Timely 19 Chapter Questions 49 • Collaboration Exercise 2 50 • Case
Study 2 51 • Endnotes 53
Relevant 19
Just Barely Sufficient 19
3 Business Intelligence Systems 55
Worth Its Cost 19
How does the knowledge in this chapter help you? 20 1. How Do Organizations Use Business
Intelligence (BI) Systems? 57
■■ Ethics Guide: Ethics and Professional Responsibility 20
How Do Organizations Use BI? 57
■■ Career Guide: Five-Component Careers 22
What Are Typical Uses for Business Intelligence? 58
Active Review 23 • Key Terms and Concepts 24 • End of Chapter
Questions 24 • Collaboration Exercise 1 25 • Case Study 1 26 2. What Are the Three Primary Activities in the BI Process? 60
• Endnotes 27 Using Business Intelligence to Find Candidate Parts 60
xi
xii Contents
3. How Do Organizations Use Data Warehouses Active Review 110 • Key Terms and Concepts 110 • End of
and Data Marts to Acquire Data? 63 Chapter Questions 111 • Collaboration Exercise 4 111 • Case
Study 4 112 • Endnotes 114
Problems with Operational Data 65
Data Warehouses Versus Data Marts 66 5 Database Processing 117
4. What Are Three Techniques for Processing BI Data? 67
1. Why Do You Need to Know About Databases? 119
Reporting Analysis 67
Reasons for Learning Database Technology 119
Data Mining Analysis 68
What Is the Purpose of a Database? 119
Big Data 69
2. What Is a Database? 121
5. What Are the Alternatives for Publishing BI? 71
Relationships Among Rows 122
Characteristics of BI Publishing Alternatives 71
Metadata 123
■■ So What?: Geofencing for Business? 72
3. What Is a Database Management System (DBMS)? 124
What Are the Two Functions of a BI Server? 73
■■ So What?: Slick Analytics 125
How does the knowledge in this chapter help you? 74
4. How Do Database Applications Make Databases
■■ Ethics Guide: MIS-diagnosis 74
More Useful? 128
■■ Career Guide 76 Traditional Forms, Queries, Reports, and
Active Review 76 • Key Terms and Concepts 77 • End of Applications 128
Chapter Questions 77 • Collaboration Exercise 3 77 • Case
Browser Forms, Reports, Queries, and Applications 130
Study 3 78 • Endnotes 80
Multiuser Processing 131
Part 2 Information Technology 81 5. How Can eHermes Benefit from a Database System? 132
6. What Are Nontraditional DBMS Products? 133
4 Hardware and Software 83 Need to Store New Data Types Differently 133
Need for Faster Processing Using Many Servers 134
1. What Do Business Professionals Need to Know About
Computer Hardware? 85 Nontraditional DBMS Types 134
Hardware Components 85 Will These New Products Replace the Relational Model? 134
Types of Hardware 85 What Do Nonrelational DBMS Mean for you? 135
Computer Data 86 How does the knowledge in this chapter help you? 135
2. How Can New Hardware Affect Competitive ■■ Ethics Guide: Mining at Work 135
Strategies? 89 ■■ Career Guide 137
The Internet of Things 89 Active Review 138 • Key Terms and Concepts 138 • End of
Digital Reality Devices 90 Chapter Questions 139 • Collaboration Exercise 5 140 • Case
Study 5 140 • Endnotes 145
Self-Driving Cars 93
6
■■ So What?: New from CES 2019 95
The Cloud 147
3D Printing 96
Cryptocurrencies 96 1. Why Is the Cloud the Future for Most Organizations? 148
3. What Do Business Professionals Need to Know About Cloud Computing 149
Software? 97 Why Do Organizations Prefer the Cloud? 150
What Are the Major Operating Systems? 99 When Does the Cloud Not Make Sense? 152
Virtualization 101 2. How Do Organizations Use the Cloud? 153
Owning Versus Licensing 103 Resource Elasticity 153
What Types of Applications Exist, and How Do Pooling Resources 154
Organizations Obtain Them? 103 Over the Internet 154
What Is Firmware? 104 Cloud Services from Cloud Vendors 155
4. Is Open Source Software a Viable Alternative? 105 Content Delivery Networks 157
Why Do Programmers Volunteer Their Services? 105 Using Web Services Internally 159
How Does Open Source Work? 106 3. How Can eHermes Use the Cloud? 160
So, Is Open Source Viable? 107 SaaS Services at eHermes 160
How does the knowledge in this chapter PaaS Services at eHermes 160
help you? 107
IaaS Services at eHermes 161
■■ Ethics Guide: Free Apps for Data 107 4. How Can Organizations Use Cloud
■■ Career Guide 109 Services Securely? 161
Contents xiii
7 Collaboration Information Systems The Need for Business Process Engineering 208
Emergence of Enterprise Application Solutions 208
for Decision Making, Problem
Customer Relationship Management (CRM) 209
Solving, and Project Management 177
■■ So What?: Digital Dining 210
1. What Are the Two Key Characteristics of Enterprise Resource Planning (ERP) 211
Collaboration? 179
Enterprise Application Integration (EAI) 212
Importance of Constructive Criticism 179
5. What Are the Challenges of Implementing
Guidelines for Giving and Receiving Constructive and Upgrading Enterprise Information Systems? 213
Criticism 181
6. How Do Inter-Enterprise IS Solve the Problems
Warning! 181 of Enterprise Silos? 215
2. What Are Three Criteria for Successful Collaboration? 182 How does the knowledge in this chapter help you? 217
Successful Outcome 182 ■■ Ethics Guide: Paid Deletion 217
Growth in Team Capability 182
■■ Career Guide 218
Meaningful and Satisfying Experience 183
Active Review 219 • Key Terms and Concepts 220 • End
3. What Are the Four Primary Purposes of Collaboration? 183 of Chapter Questions 220 • Collaboration Exercise 8 220 •
Becoming Informed 184 Case Study 8 223 • Endnotes 225
Making Decisions
Solving Problems
184
186
9 Social Media Information Systems 227
Managing Projects 186 1. What Is a Social Media Information System (SMIS)? 229
■■ So What?: Future of the Gig Economy 188 Three SMIS Roles 229
4. What Are the Components and Functions of a SMIS Components 232
Collaboration Information System? 189 2. How Do SMIS Advance Organizational Strategy? 234
The Five Collaboration System Components 189 Social Media and the Sales and Marketing
Primary Functions: Communication and Content Activity 234
Sharing 190 Social Media and Customer Service 235
How does the knowledge in this chapter help you? 191 Social Media and Inbound and Outbound Logistics 235
■■ Ethics Guide: Big Brother Wearables 191 Social Media and Manufacturing and Operations 236
■■ Career Guide 192 Social Media and Human Resources 236
Active Review 193 • Key Terms and Concepts 193 • End of ■■ So What?: Enhanced Golf Fan 237
Chapter Questions 194 • Collaboration Exercise 7 194 • Case 3. How Do SMIS Increase Social Capital? 238
Study 7 194 • Endnotes 196
What Is the Value of Social Capital? 239
Firewalls
Malware Protection
277
277
12 Information Systems
Development 319
Design for Secure Applications 279
6. How Can Data Safeguards Protect 1. What Is Systems Development? 321
Against Security Threats? 279 2. Why Is Systems Development Difficult
Legal Safeguards for Data 280 and Risky? 322
7. How Can Human Safeguards Protect The Difficulty of Requirements Determination 322
Against Security Threats? 280 Changes in Requirements 323
Human Safeguards for Employees 281 Scheduling and Budgeting Difficulties 323
Human Safeguards for Nonemployee Personnel 283 Changing Technology 324
Account Administration 283 Diseconomies of Scale 324
Contents xv
Chapter Extensions
Report Management 396 Active Review 431 • Key Terms and Concepts 432 • End of
Report Delivery 397 Chapter Questions 432 • Endnote 432
Active Review 551 • Key Terms and Concepts 552 • End of Cultural Norms 579
Chapter Questions 552 • Endnotes 552 5. What Are the Challenges of International IS
A Sample Ordering Business Process 607 5 How Is BPM Practiced in the Real World? 616
Why Does This Process Need Management? 608 Defining the Process Problem 616
2. What Are the Stages of Business Process Designing the New Process 618
Management (BPM)? 610 Create Process Components 618
3. How Do Business Processes and Information Implement New Processes 618
Systems Relate? 611 Active Review 619 • Key Terms and Concepts 619 • End of
4. Which Come First: Business Processes Chapter Questions 620
or Information Systems? 613
Business Processes First 613 Application Exercises 621
xx
Preface xxi
revision cycles. Text materials we develop in April of one edition’s Chapter 1 and Chapter 2. Content in Chapter 8 was
year are published in January of the next year and are first also expanded to include more discussion about processes in
used by students in September—a minimum 17-month systems. We hope this new organization of chapters will make
delay. the presentation of the chapters flow more naturally.
For some areas of study, a year and a half may not seem Chapters 1 through 6 begin with a new discussion of
long because little changes in that amount of time. But in MIS, eHermes, a startup that provides mobile shopping expe-
entire companies can be founded and then sold for billions of riences using self-driving vehicles. Chapters 7 through
dollars in just a few years. YouTube, for example, was founded 12 continue to be introduced by the discussion of ARES
in February 2005 and then sold in November 2006 to Google Systems, a cloud-based augmented-reality exercise startup.
for $1.65B (21 months). And that wasn’t just a one-time fluke. In addition to motivating the chapter material, both case
Facebook Inc. started in 2004, led the social media revolution, scenarios provide numerous opportunities for students to
and became a public company currently (as of mid-2019) val- practice one of Chapter 1’s key skills: “Assess, evaluate, and
ued at $551B. That’s a whopping $36B in growth per year for apply emerging technology to business.”
15 years! MIS changes fast—very fast. We hope this new edi- This edition also continues to focus on teaching ethics.
tion is the most up-to-date MIS textbook available. Every Ethics Guide asks students to apply Immanuel Kant’s
The changes in this ninth edition are listed in Table 1. categorical imperative, Bentham and Mill’s utilitarianism,
The chapter on Business Intelligence Systems was pulled or both to the business situation described in the guide. We
forward to Chapter 3 because of the increased importance hope you find the ethical considerations rich and deep with
of these systems to all businesses. Every large tech com- these exercises. The categorical imperative is introduced in the
pany has spent considerable resources acquiring artificial Ethics Guide in Chapter 1 (pages 20–21), and utilitarianism is
intelligence (AI) companies in the past ten years, including introduced in the Ethics Guide in Chapter 2 (pages 46–47).
Google ($3.9 billion), Amazon ($871 million), Apple ($786), As shown in Table 1, additional changes were made to
Intel ($776), and Microsoft ($690).4 And that’s not counting every chapter, including eight new So What? features, five
additional internal investments. AI and machine learning new Ethics Guides, seven new Career Guides, and four new
are becoming core parts of these companies’ competitive chapter cases. Numerous changes were made throughout
advantage. Some of the highest-paying jobs are in AI, busi- the chapters in an attempt to keep them up-to-date. MIS
ness analytics, Big Data, and data mining. moves fast, and to keep the text current, we checked every
Even consumers are being affected. Consumers are inter- fact, data point, sentence, and industry reference for obso-
acting with AIs like Alexa, Google, and Siri in their homes on lescence and replaced them as necessary.
a daily basis. Machine learning is being used to make person-
alized recommendations for online shoppers. It’s also being
used to create automated Gmail replies, optimize Uber ar- Structure, Organization,
rival times, and identify which songs you’ll want to listen to.
A new chapter on Collaboration Information Systems and Appearance of This Text
(Chapter 7) was added to Part 3 (MIS in Organizations) Teaching today is a very different endeavor than it was
because it focuses on systems in organizations, much like years ago. Students have many more distractions and de-
Chapters 8 and 9 do. MIS professors who reviewed the book mands on their time. They are quick to tune in and quick
said they assign a lot of group work and that they wanted to tune out, so much so that someone compared their atten-
content to help their students work more effectively within tion spans to those of Labrador Retriever puppies. We can
their groups. Chapter Extension 10 covers collaboration lament that fact, but we can’t change it. What we can do is
software options that students can use to manage their as- to meet students where they are and creatively attempt to
signed projects. obtain their engagement.
To make room for the new chapter, the content from the We designed this text with that hope and goal in mind.
previous edition’s Chapter 2 was split and integrated into this Every feature of this book is designed to make it easy for
xxiv Preface
students to engage with the content, not by watering it make it easier for students to open this book and continue to
down but rather, we hope, by making it interesting and rel- read it, interesting and engaging art and photos have been
evant to them. This text is not an encyclopedia; it attempts used. In every instance, however, we have insisted that the photo
to teach essential topics well. It does so by providing op- or art be related to the topic under discussion; these photos are not
portunities for students to actively engage with the content, simply eye candy. Pearson allows us to personally review and
by providing features to help students better manage their approve every photo and art exhibit in this text. We believe
study time, and by having an appearance that makes it easy a good book does not have to appear boring, but all art must
for students to pick up and start. be relevant.
Eileen was the only one who had kept her wits about her. She
reasoned with the boys, or at least she tried to; she told them how
very, very, lucky they were in that for the second time none of them
were drowned, and as for the gold it was a blessed good thing it was
all gone, she said, for it only brought bad luck.
Bill looked at her as she spoke these consoling words in a funny
kind of way, as though he’d just got out of a merry-go-round and
didn’t quite know where he was.
“Eileen,” he managed to say, blinking at her; “I wouldn’t even let a
perliceman talk that way to me. If you was me pard, Jack here, I’d
make you put up your dooks, see.”
Eileen laughed as if either he, or what he had said, was a great
joke, and what’s more, she laughed out loud—the first time since
they had known her. Then Jack laughed, and Bill, not to be left out in
the cold, joined them with his hearty guffaw. And there the three of
them sat on a fallen tree, water soaked, bedraggled, dead broke and
as miserable as possible, laughing fit to kill.
Having had experience in losing things, including a few mere
sacks of gold and a lot of provisions when his sled went down, Bill
had insisted before they embarked on their raft that they should each
carry a day’s rations strapped to their backs. Building a big fire they
dried their clothes and had their drop of tea and bit of pemmican and
after that they felt much better, and quit laughing.
The huskies fared very much a la Mother Hubbard’s dog, which is
to say that the cupboard was bare and so the poor brutes had none,
no, not even a piece of fish to eat.
“Well, one good thing,” said Bill, whose pemmican had revived
him again, “we won’t have to mark this blarsted spot where the last
bit of our gold was dumped for I’d know that rock if I saw it a
thousand miles off Fire Island.”
Jack and Eileen took a good look at the projecting finger which
wouldn’t get out of the way of their raft, and they agreed with Bill that
it was a monument of misfortune which having once been run into
could never be forgotten.
As they were only twenty some odd miles from Fort Yukon these
youngsters started out to walk there, or “hoof it” as Bill so inelegantly
expressed it. They had not gone more than a couple of miles when
they came upon—no, it couldn’t be, and yet there it was—their raft
beached on the shore and on it there still remained three of the
moosehide sacks of gold.
As Jack had often told Bill conditions are largely a matter of mind
and truly it seemed so. For see you now, when they first stumbled on
the pit of gold in Carscadden’s cabin they were not nearly as elated
as one would have thought they’d be. Then when they lost the sled
load of gold, though they were still millionaires, they were as sore at
heart and mad at each other as they could be. When they lost all of
their treasure and were dead-broke they laughed, and now having
recovered three sacks of it they simply went wild with joy. Can you
beat it?
It was a remarkable trio of youngsters that landed from their raft at
Fort Yukon on that never-to-be-forgotten day in July. At any rate so
said the inhabitants of that burg. Hoboes couldn’t have looked more
disreputable. And the huskies were all there too, mean, lean and dog
dirty.
The crowd at the landing that gathered round this motley little
group scarce knew what to make of it, they felt so sorry for these
woe-be-gone “kids.” But when they saw Bill take two moosehide
sacks filled with something that was tremendously heavy under his
arms and Jack take another and third one on his shoulder, the half-
breed girl trudging along between them and their teams of huskies
sticking as close to them as they could get without being stepped on,
their mute sorrow changed to open expressions of surprise. Here
was something to talk about to the end of time.
“Moosehide sacks filled with gold! by jimminy!” blurted out an old
timer.
“An’ them kids found it where we couldn’t,” exclaimed another
bitterly.
And so on, and so on.
They went over to the Crystal Hotel and while Bill stood guard
over what was left of their treasure, Jack took Eileen across the
street to the New York Emporium and there they outfitted themselves
and Bill for the trip down to St. Michaels. When they next appeared
in public there had been a great transformation for Eileen was a
brand new girl and Jack and Bill were almost themselves again.
Eileen, as pretty as ever an Irish lass and an Indian maid blended
into one could be, had her hair done up, wore a blue traveling dress,
a sailor hat and, cross my criss cross, she had on stockings and
shoes, which latter, let it be whispered, she would willingly have
traded for a pair of old moccasins.
The boys were clean, well groomed and had their hair cut. They
wore real store clothes—all wool suits that looked as if the price tag
on them had been marked up to $7.65 from $5.67. When they
walked their shoes squeaked at every step like a duck having its
neck wrung. They were rich, genial and willing to talk on any subject
they didn’t know anything about, but of the moosehide sacks filled
with gold, they said never a word.
Yet, with all their good humor the boys were ready to pull the
triggers of their six-guns on the bat of an eyelid should any one get
the idea in his head that he was going to relieve them of their
treasure. And they guarded Eileen with the same jealous care.
A week’s run on the steamboat down the Yukon landed them at
St. Michael, and once there they shipped their sacks of gold by
express through to New York City when a part of their great
responsibility was lifted from their minds. In a month’s time Jack and
Bill were back where they had started from, while Eileen was being
petted and pampered by the swelldom of Montclair.
THE END
*** END OF THE PROJECT GUTENBERG EBOOK JACK HEATON,
GOLD SEEKER ***
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