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MIS
10th Edition
Management information systems
Hossein Bidgoli, Ph.D.

California State University - Bakersfield
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Print Number: 01 Print Year: 2020
Bidgoli
MIS
10th Edition
Brief Contents
Part 1
Fundamentals of Information Systems 2
1 Information Systems in Business 2
2 Computers and Their Business Applications 28
3 Data and Business Intelligence 54
4 Personal, Legal, Ethical, and Organizational Issues 82
5 Protecting Information Resources 106
Part 2
Data Communication, the Internet, E-Commerce,
and Global Information Systems 136
6 Data Communication: Delivering Information Anywhere and Anytime 136
7 A Connected World 166
8 E-Commerce 196
9 Global Information Systems 228
Part 3
IS Development, Enterprise Systems, MSS, and Emerging
Trends 248
10 Building Successful Information Systems 248
11 Enterprise Systems 272
12 Supporting Decisions and Processes 298
13 Artificial Intelligence and Automation 320
14 Emerging Trends, Technologies, and Applications 348
Endnotes 373
Index 392
iii
Contents
Part 1 1-7f Computer Programmer 21

1-7g Webmaster 21
Fundamentals of Information Systems 1-8 Outlook for the Future 22
Module Summary 24
Key Terms 24
1 Information Systems in Business 2 Reviews and Discussions 25
Projects 25
1-1 Computers and Information Systems in Daily
Life 3 Module Quiz 25
Smartphones Everywhere and for Everything 4 Case Study 1-1: Using Information Technologies
A New Era of Marketing: YouTube 5 at Federal Express 26
Social Networking and the Vulnerability of Personal Case Study 1-2: Mobile Technology: A Key Player for
Information 6 Future Shopping 26
2 Computers
1-2 Computer Literacy and Information Literacy 7
1-3 The Beginning: Transaction-Processing Systems 7 and Their Business
Information Technologies at Domino’s Pizza 8 Applications 28
1-4 Management Information Systems 9 2-1 Defining a Computer 29
1-5 Major Components of an Information System 9 2-1a Components of a Computer System 30
1-5a Data 9 2-2 The History of Computer Hardware and
1-5b Database 10 Software 31
1-5c Process 11 IBM Watson: A Supercomputer with Artificial
Intelligence Capabilities 33
1-5d Information 11
2-3 The Power of Computers 33
1-5e Examples of Information Systems 11
2-3a Speed 33
1-6 Using Information Systems and Information
Technologies 12 2-3b Accuracy 34
Information Technologies at Home Depot 12 2-3c Storage and Retrieval 34
1-6a The Importance of Information Systems 13 2-4 Computer Operations 34
Human Resource Information Systems in Action 13 A Supercomputer in Your Pocket 35
Information Technologies at UPS 14 2-5 Input, Output, and Memory Devices 35
1-6b Using Information Technologies for a Competitive 2-5a Input Devices 35
Advantage 15 Touchless Computing: The New Paradigm in User
Information Technologies at Walmart 16 System Interface 36
1-6c Porter’s Five Forces Model: Understanding the 2-5b Output Devices 37
Business Environment 17 2-5c Memory Devices 38
Information Technologies at Netflix 18 2-6 Classes of Computers 40
Digital Innovation in Retail Industry Using Summit: The Fastest Supercomputer in the World 40
Information Technologies 19 Popular iPad Business Applications 41
1-7 The IT Job Market 20 2-6a Server Platforms: An Overview 42
1-7a CTO/CIO 21 Ubiquitous Computing 42
1-7b Manager of Information Systems Services 21 2-7 What Is Software? 43
1-7c Systems Analyst 21 Microsoft Office 365: Making Data and Applications
1-7d Network Administrator 21 Portable 43
1-7e Database Administrator 21 2-7a Operating System Software 44
iv
iOS: The Brain Behind Apple Devices 44 3-8 The Big Data Era 72
2-7b Application Software 45 Predictive Analytics in Action 72
2-8 Computer Languages 47 3-8a Who Benefits from Big Data? 73
2-9 Object-Oriented Programming: A Quick 3-8b Tools and Technologies of Big Data 73
Overview 48 3-8c Big Data Privacy Risks 73
Module Summary 50 Big Data in Action 74
Key Terms 50 3-8d Integration of IoT with Big Data Analytics 74
Reviews and Discussions 51 3-9 Database Marketing 75
Projects 51 Database Marketing in Action: Caterpillar
Module Quiz 51 Corporation 76
Case Study 2-1: Become Your Own Banker and Financial 3-10 Tableau and Power BI: Two Popular BI
Advisor 52 and Visualization Platforms 77
Case Study 2-2: iPads: New Productivity Tools for 3-10a What Is Tableau? 77
Service Workers 53 3-10b What Is Power BI? 77
Module Summary 78
3 Data and Business Intelligence 54 Key Terms 79

Reviews and Discussions 79
3-1 Databases 55 Projects 80
3-1a Types of Data in a Database 56 Module Quiz 80
BI in Action: Law Enforcement 57 Case Study 3-1: Data Mining Helps Students Enroll in
3-1b Methods for Accessing Files 57 Courses with Higher Chances of Success 81
3-2 Logical Database Design 58 Case Study 3-2: Data Mining Tools at Pandora Radio 81
3-2a The Relational Model 60
3-3 Components of a DBMS 61
3-3a Database Engine 61 4 Personal, Legal, Ethical, and
3-3b Data Definition 61 Organizational Issues 82
3-3c Data Manipulation 61 4-1 Privacy Issues 83
Graph Databases Move Relational Databases One Social Networking Sites and Privacy Issues 83
Step Forward 62 Employee Monitoring: Improving Productivity
3-3d Application Generation 63 or Invasion of Privacy? 84
3-3e Data Administration 63 4-1a General Data Protection Regulation (GDPR) 87
3-4 Recent Trends in Database Design and Use 64 4-1b E-mail 87
3-4a Data-Driven Web Sites 64 4-1c Data Collection on the Web 88
3-4b Distributed Databases 64 E-Mail and Corporate Data Leakage 88
3-4c Object-Oriented Databases 65 A Significant Unethical Behavior at Facebook 89
3-5 Data Warehouses 66 4-2 Ethical Issues of Information Technologies 90
Data Warehouse Applications at Marriott Ten Commandments of Computer Ethics 91
International 66 4-2a Computer Networks Ethics 92
3-5a Input 67 4-2b Censorship 92
3-5b ETL 67 4-2c Intellectual Property 93
3-5c Storage 68 Software Piracy: A Global Problem 95
3-5d Output 68 4-2d Social Divisions and the Digital Divide 96
3-6 Data Marts 69 Cybersquatting is on the Rise 96
Data Mining and the Airline Industry 70 4-3 The Impact of Information Technology in the
3-7 Business Analytics 70 Workplace 97
Mobile Analytics in Action: Airbnb 71 The Digital Divide in Action 97
Contents v
4-3a Information Technology and Health Issues 99 5-4h Computer Emergency Response Team 128
Health and Social Issues of Online Gaming 99 5-4i Zero Trust Security 129
4-4 Green Computing 101 5-5 Guidelines for a Comprehensive
Security System 129
Module Summary 102
5-5a Business Continuity Planning 130
Key Terms 103
Sarbanes-Oxley and Information Security 130
Module Summary 132
Projects 103
Key Terms 132
Module Quiz 104
Case Study 4-1: Telecommuting with a New Twist 104
Projects 133
Case Study 4-2: Privacy and Other Legal Issues at
Google 105 Module Quiz 134
Case Study 5-1: Vulnerabilities of Medical Devices 134
5 Protecting Information Case Study 5-2: Security Breach at Equifax 135
Resources 106
5-1 Risks Associated with Information Technologies 107
5-1a The Costs of Cyber Crime to the Global
Part 2
Economy 107 Data Communication, the Internet,
5-1b Spyware and Adware 107 E-Commerce, and Global Information
5-1c Phishing, Pharming, Baiting, Quid Pro Quo, Systems
SMiShing, and Vishing 108
6 Data
5-1d Keystroke Loggers 108
5-1e Sniffing and Spoofing 108 Communication: Delivering
5-1f Computer Crime and Fraud 108 Information Anywhere and
Challenges of Insiders’ Threats 109 Anytime 136
Identity Theft at the Internal Revenue Service 110 6-1 Defining Data Communication 137
Types of Hackers 111 6-1a Why Managers Need to Know About Data
5-2 Computer and Network Security: Basic Communication 137
Safeguards 111 GoToMeeting: Example of an E-Collaboration
Nearly All Organizations Get Hacked 112 Tool 138
5-3 Security Threats: An Overview 113 6-2 Basic Components of a Data Communication
System 138
5-3a Intentional Threats 113
6-2a Sender and Receiver Devices 139
Protecting Against Data Theft and Data Loss 115
6-2b Modems 139
Google and Facebook were victims of Social
Engineering 116 6-2c Communication Media 139
5-4 Security Measures and Enforcement: An 6-3 Processing Configurations 141
Overview 118 6-3a Centralized Processing 141
5-4a Biometric Security Measures 118 6-3b Decentralized Processing 141
Biometrics at Phoebe Putney Memorial Hospital 119 6-3c Distributed Processing 141
Face Recognition Technology in Action 120 Google Invests in Communication Media 141
5-4b Nonbiometric Security Measures 121 6-3d Open Systems Interconnection Model 142
5-4c Physical Security Measures 123 6-4 Types of Networks 143
5-4d Access Controls 124 6-4a Local Area Networks 143
Lost and Stolen Laptops 125 6-4b Wide Area Networks 143
5-4e Virtual Private Networks 126 6-4c Metropolitan Area Networks 144
5-4f Data Encryption 126 6-5 Network Topologies 145
5-4g E-Commerce Transaction Security Measures 128 6-5a Star Topology 145
vi Contents
6-5b Ring Topology 145 7-3 Internet Services 173
6-5c Bus Topology 146 7-3a E-Mail 174
6-5d Hierarchical Topology 146 7-3b Newsgroups and Discussion
6-5e Mesh Topology 147 Groups 174
6-6 Major Networking Concepts 147 7-3c Instant Messaging 174
6-6a Protocols 147 7-3d Internet Telephony 175
6-6b Transmission Control Protocol/Internet 7-4 Web Applications 175
Protocol 147 7-4a Tourism and Travel 175
6-6c Routing 148 7-4b Publishing 175
6-6d Routers 149 7-4c Higher Education 175
6-6e Client/Server Model 149 7-4d Real Estate 176
6-7 Wireless and Mobile Networks 152 7-4e Employment 176
Mobile Computing and Mobile Apps 153 7-4f Financial Institutions 176
6-7a Wireless Technologies 153 7-4g Software Distribution 177
6-7b Wi-Fi 154 7-4h Health Care 177
6-7c WiMAX 154 Electronic Health Records Pay Off for Kaiser
6-7d Bluetooth 154 Permanente 178
6-7e Mobile Networks 155 7-4i Politics 178
Mobile Computing in Action: The Apple 7-5 Intranets 179
iPhone 157 7-5a The Internet versus Intranets 180
6-8 Wireless Security 157 7-5b Applications of an Intranet 180
Privacy and Ethical Issues of Mobile Devices 158 7-6 Extranets 180
6-9 Convergence of Voice, Video, and Data 158 10 Best Intranets of 2019 181
Telepresence: A New Use of Data Communication 7-7 The Web Trends 183
and Convergence 159
7-7a Blogs 183
Module Summary 160
7-7b Wikis 183
Key Terms 161
LinkedIn: A Professional Social
Reviews and Discussions 162 Networking Site 184
Projects 162 7-7c Social Networking Sites 184
Module Quiz 163 7-7d Business Application of Social Networks 185
Case Study 6-1: Data Communication at Social Media Applications at Walmart 185
Walmart 163
7-7e RSS Feeds 186
Case Study 6-2: Protecting the Security and Privacy
of Mobile Devices 164 7-7f Podcasting 186
Twitter: Real-time Networking with Your
Followers 187
7 A Connected World 166 7-8 The Internet of Everything and Beyond 188
7-1 The Internet 167 The Internet of Things in Action 189
7-1a The Domain Name System 168 Module Summary 192
Major Events in the Development of the Key Terms 193
Internet 169 Reviews and Discussions 193
7-1b Types of Internet Connections 170 Projects 194
What Is HTML? 171 Module Quiz 194
7-2 Navigational Tools, Search Engines, Case Study 7-1: Scotts Miracle-Gro’s Intranet: The
and Directories 171 Garden 194
7-2a Navigational Tools 172 Case Study 7-2: Social Networking in Support of Small
7-2b Search Engines and Directories 172 Businesses 195
Contents vii
8 E-Commerce 196 Reviews and Discussions 224
Projects 224
8-1 Defining E-Commerce 197 Module Quiz 225
8-1a The Value Chain and E-Commerce 197 Case Study 8-1: Widespread Applications of Mobile
Using Instagram to Promote Your Products Ads 225
and Services 199 Case Study 8-2: Bridging the Gap Between E-Commerce
Showrooming and Webrooming 200 and Traditional Commerce 226
8-1b E-Commerce versus Traditional Commerce 200
8-1c Advantages and Disadvantages of
E-Commerce 201
9 Global Information Systems 228
The Home Depot Gets into E-Commerce 201 9-1 Why Go Global? 229
8-1d E-Commerce Business Models 202 Global Information Systems at Rohm & Haas 230
E-Commerce in 2025 203 9-1a E-Business: A Driving Force 230
8-2 Major Categories of E-Commerce 204 9-1b Growth of the Internet 230
8-2a Business-to-Consumer E-Commerce 204 Making a Company Web Site Global 231
8-2b Business-to-Business E-Commerce 204 Global Internet: Presents a Huge Payoff for Global
E-commerce 232
8-2c Consumer-to-Consumer E-Commerce 204
9-1c The Rise of Non-English Speakers on the Internet 232
8-2d Consumer-to-Business E-Commerce 205
9-1d Mobile Computing and Globalization 233
8-2e Government and Nonbusiness E-Commerce 205
9-2 Global Information Systems: An Overview 233
8-2f Organizational or Intrabusiness E-Commerce 206
9-2a Components of a Global Information System 234
8-3 B2C E-Commerce Cycle 206
The Internet and Globalization in Action 235
8-3a B2C E-Commerce Evolution: Multichannel, Cross-
9-2b Requirements of Global Information Systems 235
Channel, and Omnichannel 207
Video-Conferencing Systems Support
8-4 B2B E-Commerce: A Second Look 209
Globalization 236
8-4a Major Models of B2B E-Commerce 209
Globalization in Action: Alibaba 237
E-Procurement at Schlumberger 210
9-2c Implementation of Global Information Systems 237
B2B E-Commerce Growth and Best Practices 211
9-3 Organizational Structures and Global Information
8-5 Mobile and Voice-Based E-Commerce 211 Systems 238
Mobile Commerce in Action: Fast-Food 9-3a Multinational Structure 238
Restaurants 212
9-3b Global Structure 238
8-6 E-Commerce Supporting Technologies 213
9-3c International Structure 239
8-6a Electronic Payment Systems 213
9-3d Transnational Structure 240
Challenges in Using Mobile Payment Systems 214
9-3e Global Information Systems Supporting Offshore
8-6b Web Marketing 215 Outsourcing 241
8-6c Mobile Marketing 216 Global Information System at FedEx 241
Mobile Marketing at Starbucks 216 9-4 Obstacles to Using Global Information
8-6d Search Engine Optimization 217 Systems 242
Challenges in Using Digital Ads 217 9-4a Lack of Standardization 242
8-7 E-Commerce and Beyond: Social Commerce 218 9-4b Cultural Differences 243
Social Commerce at Coca-Cola Company 219 9-4c Diverse Regulatory Practices 243
8-8 Hypersocial Organizations 219 9-4d Poor Telecommunication Infrastructures 244
8-9 Social Media Information Systems 220 9-4e Lack of Skilled Analysts and Programmers 244
Hyper-Social Organization in Action: Module Summary 245
Spotify 221 Key Terms 245
Module Summary 223 Reviews and Discussions 245
Key Terms 223 Projects 246
viii Contents
Module Quiz 246 Case Study 10-1: Systems Development at SEB
Case Study 9-1: Global Information Systems at Toyota Latvia 271
Motor Company 246 Case Study 10-2: Crowdsourcing Pays Off 271
Case Study 9-2: Information Technologies Support
Global Supply Chain 247
11 Enterprise Systems 272
11-1 Supply Chain Management 273
Part 3 11-1a SCM Technologies 274

Supply Chain Management at Coca-Cola
IS Development, Enterprise Systems, Company 275
MSS, and Emerging Trends Green SCM in Action: Walmart 276
3D Printing in Action: The Medical Field 280
Coca-Cola Company Uses RFID-Based Dispensers
10 BSystems
uilding Successful Information
for Generating Business Intelligence 283
QR Codes in Action 284
248 11-1b Global Supply Chain Management 285
10-1 Systems Development Life Cycle: An Overview 249 11-2 Customer Relationship Management 285
10-2 Phase 1: Planning 249 11-2a CRM Applications 286
10-2a Formation of the Task Force 251 CRM at Delta Air Lines 287
10-2b Feasibility Study 251 11-2b Personalization Technology 288
A Feasible Project Becomes Unfeasible 252 Amazon’s Personalization Assists Sellers on Its
10-3 Phase 2: Requirements Gathering Marketplace 289
and Analysis 254 11-3 Knowledge Management 290
10-4 Phase 3: Design 256 11-4 Enterprise Resource Planning 291
10-4a Computer-Aided Systems Knowledge Management in Action 291
Engineering 256
11-5 Cloud-Based Enterprise Systems 293
10-4b Prototyping 257
ERP Streamlines Operations at Naghi Group 293
10-5 Phase 4: Implementation 259
Module Summary 295
10-5a IT Project Management 259
Key Terms 295
10-5b Request for Proposal 260
Preventing IT Project Failures Using Best
Projects 296
Practices 262
Module Quiz 296
10-5c Implementation Alternatives 263
Case Study 11-1: ERP at Johns Hopkins
10-6 Phase 5: Maintenance 265
Institutions 297
10-7 New Trends in Systems Analysis Case Study 11-2: CRM at Starbucks 297
and Design 265
10-7a Service-Oriented Architecture 265
10-7b Rapid Application Development 266 12 Sand
upporting Decisions
10-7c Extreme Programming 266 Processes 298
Extreme Programming in Action 266 12-1 Types of Decisions in an Organization 299
10-7d Agile Methodology 267 12-1a Phases of the Decision-Making Process 299
Agile Methodology at HomeAway, Inc. 268 12-2 Decision Support Systems 301
Module Summary 268 12-2a Components of a Decision Support System 301
Key Terms 269 12-2b DSS Capabilities 302
Reviews and Discussions 270 12-2c Roles in the DSS Environment 303
Projects 270 12-2d Costs and Benefits of Decision Support
Module Quiz 270 Systems 304
Contents ix
12-3 Executive Information Systems 304 13-2d Criteria for Not Using Expert Systems 330
Decision Support Systems at Family 13-2e Advantages of Expert Systems 330
Dollar 305 13-3 Case-Based Reasoning 330
12-3a Reasons for Using EISs 307 13-4 Intelligent Agents 331
12-3b Avoiding Failure in Design and Use of EISs 307 13-4a Shopping and Information Agents 331
Executive Information Systems at Hyundai Motor 13-4b Personal Agents 332
Company 308
13-4c Data-Mining Agents 332
12-4 Geographic Information Systems 308
Intelligent Agents in Action 332
12-4a GIS Applications 310
13-4d Monitoring and Surveillance Agents 333
12-5 Collaboration Systems 310
13-5 Fuzzy Logic 333
GISs for Fighting Disease 311
13-5a Uses of Fuzzy Logic 334
12-5a Types of Collaboration Software 312
Fuzzy Logic in Action 335
New Generations of Video-Conferencing
Systems 313 13-6 Machine Learning 335
Microsoft Office SharePoint Server: A Popular 13-7 Genetic Algorithms 336
Collaboration Platform 314 Neural Networks in Microsoft and the Chicago
12-5b Which Collaboration Software Is Right for Police Department 337
You? 314 13-8 Natural-Language Processing 338
Remote Collaboration with Google Apps for 13-9 Integrating AI Technologies Into Decision Support
Work 315 Systems 338
12-6 Guidelines for Designing a Management Support NLP in Action: The Health Care Industry 339
System 315
13-10 Contextual Computing: Making Mobile Devices
Module Summary 316 Smarter 339
Key Terms 317 AI Technologies for Decision Making 340
Reviews and Discussions 317 Contextual Computing in Action 341
Projects 317 13-11 AI and Automation 341
Module Quiz 318 13-12 Ethical issues of AI 342
Case Study 12-1: UPS Deploys Routing Optimization with Module Summary 344
a Big Payoff 318 Key Terms 345
Case Study 12-2: GPS Technology and Analytics Combat Reviews and Discussions 345
Crime 319
Projects 345
13 AAutomation
rtificial Intelligence and
Module Quiz 346
Case Study 13-1: AI-Based Software Helps Businesses
320 Better Understand Customers 346
13-1 What Is Artificial Intelligence? 321 Case Study 13-2: NLP: Making a Smartphone
Smarter 347
13-1a AI Technologies Supporting Decision
Making 321
Computers Understanding Common Sense 322
AI in Action: Retail Industry 323
14 Eand
merging Trends, Technologies,
Applications 348
13-1b Robotics 324
14-1 Trends In Software and Service
13-2 Expert Systems 325 Distribution 349
Medical Robotics in Action 326 14-1a Pull and Push Technologies 349
13-2a Components of an Expert System 327 14-1b Application Service Providers 350
13-2b Uses of Expert Systems 329 14-2 Virtual Reality 351
Expert Systems in the Baltimore County Police 14-2a Types of Virtual Environments 352
Department 329 14-2b Components of a Virtual Reality
13-2c Criteria for Using Expert Systems 330 System 352
x Contents
14-2c CAVE 353 14-4 Nanotechnology 364
14-2d Virtual Reality Applications 353 14-5 Blockchain Technology and Cryptocurrency 365
Virtual Reality at Lockheed Martin 354 Blockchain Technology in Action: Walmart and
14-2e Obstacles in Using VR Systems 355 Alibaba 366
14-2f Virtual Worlds 355 14-6 Quantum Computing 367
14-2g Augmented Reality 356 14-6a Popular Applications of Quantum Computing 368
14-2h Mixed Reality 357 Module Summary 369
Mixed Reality in Action 358 Key Terms 370
14-3 Cloud Computing: Foundation, Applications, Reviews and Discussions 370
and Models 358 Projects 370
14-3a Grid Computing 359 Module Quiz 371
14-3b Utility (On-Demand) Computing 359 Case Study 14-1: Cloud Computing at Intercontinental
14-3c Cloud Computing 360 Hotels Group (IHG) 371
14-3d Cloud Computing Components 360 Case Study 14-2: Virtual Reality Enhances Try Before You
Buy Concept 372
Cloud Computing in Support of Small
Businesses 361
Endnotes 373
14-3e Cloud Computing Alternatives 362
Index 392
14-3f Edge Computing 362
Edge Computing in Action 363
14-3g Cloud Computing Security 364
Contents xi
PART 1
1 Learning Objectives
Information Systems
in Business
After studying this module, you should be able to . . .
1-1 Discuss common applications of computers and information 1-7 Explain the importance and applications of information
systems. systems in functional areas of a business.
1-2 Explain the differences between computer literacy and 1-8 Analyze how information technologies are used to gain
information literacy. a competitive advantage.
1-3 Define transaction-processing systems. 1-9 Apply the Five Forces Model and strategies for gaining
a competitive advantage.
1-4 Define management information systems.
1-10 Review the IT job market.
1-5 Describe the four major components of an information system.
1-11 Summarize the future outlook of information systems.
1-6 Discuss the differences between data and information.
Wright Studio/Shutterstock.com
This module starts with an overview of common
uses for computers and information systems, Organizations use
computers and
explains the difference between computer
information systems to
literacy and information literacy, and reviews reduce costs and gain a
transaction-processing systems as one of the competitive advantage
earliest applications of information systems. in the marketplace.
Next, the module discusses the components of
a management information system, including data, databases, processes,
and information, and then delves into how information systems relate to
information technologies. This module also covers the roles and applications
of information systems and explains the Five Forces Model, which is used to
develop strategies for gaining a competitive advantage. Finally, the module
reviews the IT job market and touches on the future of information systems.
1-1 Computers and systems can even reorder stock automatically. Banks,
too, use computers and information systems for gener-
Information Systems ating your monthly statement, running automatic teller
machines (ATMs), and for many other banking activities.
in Daily Life Many workers are now telecommuters who per-
form their jobs at home, and others often use their
Organizations use computers and information systems to mobile devices to conduct business while on the go. The
reduce costs and gain a competitive advantage in the mar- most common mobile device is a smartphone (such as
ketplace. Throughout this book, you will study many infor- an iPhone, Galaxy, or Droid). Smartphones are mobile
mation system applications. For now, you will look at some phones with advanced capabilities, much like a mini-PC.
common applications used in daily life.
Computers and information systems
are all around you. As a student, you use Exhibit 1.1
computers and office suite software and A point-of-sale system
might take online classes. Computers are
often used to grade your exam answers
and generate detailed reports comparing
the performance of each student in your
class. Computers and information systems
also calculate grades and grade point aver-
ages (GPAs) and can deliver this informa-
tion to you.
Taras Vyshnya/Shutterstock.com
Computers and information systems

are commonly used in grocery and retail
stores as well. For example, a point-of-sale
(POS) system speeds up service by read-
ing the universal product codes (UPCs)
on items in your shopping cart (see
Exhibit 1.1). This same system also man-
ages store inventory, and some information
MODULE 1: Information Systems in Business 3
They include e-mail and Web-browsing features, and
most have a built-in keyboard or an external USB key-
board (see Exhibit 1.2). Tablet computers, such as iPads,
Exhibit 1.2
are increasingly being used. These tablets come with Examples of smartphones
apps (small programs) for common applications, and
they can improve the user’s efficiency. The “Smartphones
Everywhere and for Everything” box highlights several
popular applications of smartphones.
The Internet is used for all kinds of activities,
from shopping to learning to working. Search engines
and broadband communication bring information to
your desktop in seconds. The Internet is also used for
social purposes. With social networking sites—such as
Facebook, Twitter, LinkedIn, and Foursquare—you
can connect with friends, family, and colleagues online
and meet people with similar interests and hobbies.
Scanrail1/Shutterstock.com
Twitter (www.twitter.com), for example, is a social
networking and short-message service. Users can send
and receive brief text updates, called Tweets. These
posts are displayed on one’s profile page, and other
users can sign up to have them delivered to their in-
boxes. As an example, the author of this textbook sends
daily Tweets that consist of links to current articles
Smartphones Everywhere and for Everything

Finance | Technology in Society | Application
With the growing number of apps available for both iPhones and Android phones, individuals and businesses are using their
smartphones as a productivity tool and as an intelligent assistant for all sorts of activities. Here are a few popular examples.
Group texting app GroupMe is used for sending a message to a group of employees or customers. The Samsung iPolis
app, a video camera security system, is used to remotely watch the video that monitors the location of a business or
home. Apps are available to pay bills, update a company’s Web site, market and advertise a product or service, reach out
to customers, and keep in touch with employees from anywhere. Some businesses give out their Google Voice phone
number to customers so that they can text an order. Google’s calendar is used to coordinate events, and Instagram is
used to post photos of new merchandise.1
According to Massimo Marinucci, the owner and president of The Wine Connection, a $20-million business with six
employees, the iPhone does nearly everything for business that a desktop used to do. Using their iPhones, employees
check inventory, view sales for the day, run reports, print, change prices, and change inventory quantities. The new
point-of-sale (POS) app allows customers to buy immediately as soon as a new wine becomes available.2
Starwood Hotels & Resorts Worldwide, Inc., plans to offer customers of two of its hotels in Harlem, New York, and
Cupertino, California, a virtual key. Guests can bypass the crowded check-in desk and enter their rooms using their
smartphones. Guests receive a message on Starwood’s app that will unlock their rooms with a tap or twist of their smart-
phones, using Bluetooth technology. Marriott International, Inc., also does mobile check-ins at some of their hotels.
Loyalty program customers can check in via their smartphones and then go to a separate check-in desk to pick up a key.3
Questions and Discussions

1. What are two iPhone applications and related apps for The Wine Connection?
2. What are two advantages of mobile check-ins?
4 PART ONE: Fundamentals of Information Systems
about information systems applications, new devel- In addition, people use video-sharing sites to watch
opments, breaking news, IT jobs, and case examples. news, sporting events, and entertainment videos. One of
You can read these Tweets in Twitter, Facebook, or the most popular sites is YouTube (www.youtube.com).
LinkedIn. You can upload and share video
Organizations also use social clips via Web sites, mobile devices,
networking sites to give custom- In the 21st century, knowledge blogs, and e-mails. Users upload
ers up-to-date information and workers need two types of most of the content on YouTube,
how-to support via videos. These knowledge to be competitive in although media corporations such
sites can reduce organizations’ as CBS, BBC, Sony Music Group,
costs by providing an inexpensive
the workplace: computer literacy the Sundance Channel, and oth-
medium for targeting a large cus- and information literacy. ers also provide content. Anyone
tomer base. can watch videos on YouTube,
A New Era of Marketing: YouTube

Finance | Technology in Society | Application | Global
Companies use newspapers, magazines, TV shows, and search engines to promote their products, services, and brands.
YouTube is a popular video-sharing service that can be used as a marketing tool. The videos on YouTube are very well
indexed and organized. They are categorized and sorted by “channels.” The channels range from film and animation
to sports, short movies, and video blogging. Individual YouTube users have used this marketing tool to share videos
and stories. One popular application is watching how-to videos for repairing cars, home appliances, and so forth.
Corporations can also take advantage of this popular platform. YouTube represents a great opportunity for marketers
to reach consumers who are searching for information about a brand or related products and services. The service can
also be used as a direct-marketing tool. The following are examples of corporations that are using YouTube to promote
their products and services:
Quiksilver—This manufacturer of apparel and accessories, including the Roxy brand, frequently posts new videos of
its products, continually renewing its Web presence.
Ford Models—Since 2006, it has uploaded hundreds of videos promoting its brand.
University of Phoenix Online—This site has hundreds of video testimonials, reviews, and documentaries that promote
the university’s degree programs.
The Home Depot—Free content, including practical knowledge and money-saving tips for home improvements, may
be found at this site.
Nikefootball—Nike maintains several distinct YouTube channels that cater to specific audiences. Consumers can find
what is relevant to their needs without having to sift through a lot of content.4, 5
However, there are some challenges in using YouTube as an advertising medium. In 2017, several companies—
including Starbucks, Pepsi, AT&T, Verizon, Johnson & Johnson, Volkswagen, and Walmart—pulled YouTube ads after
they were placed on racist and other unpleasant videos.6
In 2018, YouTube faced obstacles in their effort to restrain fraudulent content, similar to other social media such
as Facebook and Google.7 In 2019, Nestle, Disney, and several other companies suspended YouTube ads over news of
a pedophile network on the site.8 Alphabet, the parent company of YouTube, has taken steps to fix this problem by
involving more people in reviewing videos and developing more sophisticated algorithms to instruct its computers to
eliminate this problem.

1. What are two advantages of using YouTube as a marketing tool?
2. What are two challenges of using YouTube as a marketing tool?
and services. See the “A New Era
of Marketing: YouTube” box, which
highlights a few such companies.
So what do all these examples
mean to you? Computers and
information technology will help
the knowledge workers of the
future perform more effectively
and productively, no matter what
profession they choose. In addi-
tion, these workers will be able to
connect to the rest of the world to
Rawpixel.com/Shutterstock.com
share information, knowledge, vid-

eos, ideas, and almost anything else
that can be digitized. Throughout
this book, these opportunities, as
well as the power of computers and
information systems, are explored.
As you read, keep in mind that
but you must register to upload videos. (This book has the terms information systems and information technologies
a YouTube channel on which you can watch many prac- are used interchangeably. Information systems are broader
tical videos related to information systems.) Businesses in scope than information technologies, but the two over-
are increasingly using YouTube to promote their products lap in many areas. Both are used to help organizations be
Social Networking and the Vulnerability

of Personal Information
Technology in Society | Application | Social and Ethical Issues
The popularity of social networking sites such as Facebook, Twitter, Snapchat, and Foursquare is on the rise. As of July
2019, worldwide, there are over 2.38 billion monthly active users (MAU) for Facebook, and the number is increasing on
a daily basis.9 But so is the potential risk. According to an InfoWorld study, over half of all users of social networks in this
country are putting themselves at risk by posting information that could be misused by cybercriminals. Many social
networkers post their full birth dates, their home addresses, photos of themselves and their families, and the times when
they will be away from home. This information could be used by cybercriminals for malicious purposes. According to
the report, 9 percent of the 2,000 people who participated in the study had experienced some kind of computer-related
trouble, such as malware infections, scams, identity theft, or harassment. To reduce risk and improve the privacy of your
personal information, the study offers several tips:10
• Always use the privacy controls offered by social networking sites.

• Use long passwords (12 characters or longer) that mix uppercase and lowercase letters with numbers and symbols.
• Do not post a phone number or a full address.
• Do not post children’s names, even in photo tags or captions.
• Do not be specific when posting information about vacations or business trips.

1. What are three examples of popular social networking sites?
2. What are three recommendations for reducing risk and improving the privacy of your personal information when
using social media?
more competitive and to improve their overall efficiency on data collection and
and effectiveness. Information technologies offer many processing, and they Computer literacy is skill in
advantages for improving decision making but involve have provided enormous using productivity software, such
as word processors, spreadsheets,
some challenges, too, such as security and privacy issues. reductions in costs. database management systems,
The “Social Networking and the Vulnerability of Personal Computers are most and presentation software, as
Information” box describes one of the potential challenges. beneficial in transaction- well as having a basic knowledge
processing operations. of hardware and software, the
Internet, and collaboration tools
These operations are
and technologies.
1-2 Computer Literacy and repetitive, such as print-
ing numerous checks, Information literacy
Information Literacy or involve enormous

volumes of data, such
is understanding the role of
information in generating and
using business intelligence.
as inventory control in
In the 21st century, knowledge workers need two types Business intelligence (BI)
a multinational textile provides historical, current, and
of knowledge to be competitive in the workplace: com-
company. When these predictive views of business
puter literacy and information literacy. Computer
systems are automated, operations and environments and
literacy is skill in using productivity software, such as human involvement is gives organizations a competitive
word processors, spreadsheets, database management advantage in the marketplace.
minimal. For example, in
systems, and presentation software, as well as having a Transaction-processing
an automated payroll sys-
basic knowledge of hardware and software, the Internet, systems (TPSs) focus on data
tem, there is little need
and collaboration tools and technologies. Information for managerial judgment
collection and processing; the
major reason for using them is cost
literacy, on the other hand, is understanding the role of in the task of printing and reduction.
information in generating and using business intelligence. sending checks, which
Business intelligence (BI) is more than just informa- reduces personnel costs.
tion. It provides historical, current, and predictive views Transaction-processing systems have come a long
of business operations and environments and gives orga- way. For example, the first ATM opened for business in
nizations a competitive advantage in the marketplace. 1969 with some very basic features. Similar to other infor-
(BI is discussed in more detail in Module 3.) To sum- mation technologies, ATMs have gone through major
marize, knowledge workers should know the following: changes and improvements.11 Later, JPMorgan Chase
• Internal and external sources of data introduced electronic banking kiosks (EBKs). Using
• How data is collected these kiosks customers can withdraw cash in a variety of
denominations ($10, $20, …). These machines also allow
• Why data is collected
customers to cash a check and receive exact change.12
• What type of data should be collected
Customers can be identified using biometric features
• How data is converted to information and eventually such as scanning a fingerprint or the iris of an eye.13
to business intelligence The cardless ATM is one of the recent technolo-
• How data should be indexed and updated gies deployed by some banks in order to attract younger
• How data and information should be used to gain customers. An app provided by the bank is used to
a competitive advantage withdraw cash. The customers set the amount using the
app and receive a code on his or her smartphone that
is scanned by the bank’s ATM when the customer gets
1-3 The Beginning: there. The ATM dispenses the cash and sends a receipt
over the phone, or it can be printed at the ATM.14
Transaction-Processing According to the Chicago-based BMO Harris Bank,
mobile withdrawal reduces fraud and also increases effi-
Systems ciency, as a mobile cash transaction takes 15 seconds
compared to 45 seconds for a card-based withdrawal.15
For the past 60 years, transaction-processing JPMorgan Chase says upcoming ATM features will
systems (TPSs) have been applied to structured tasks include cash withdrawals by tapping smartphones to the
such as record keeping, simple clerical operations, ATM, the technology similar to Apple Pay; withdrawals of
and inventory control. Payroll, for example, was one up to $3,000 on some ATMs; and allowing customers to
of the first applications to be automated. TPSs focus make their credit card and mortgage payments at the ATM.16
Information Technologies at Domino’s Pizza
Finance | Technology in Society | Application | Reflective Thinking
In 1960, Domino’s Pizza opened its first store. Today, there are nearly 15,000 stores, more than half of them outside the
United States. In 2007, Domino’s started online and mobile ordering. Today, customers can order online at www.dominos
.com or they can use apps for the iPhone, Android, or Kindle Fire.17 This allows them to customize their pizzas with any
combination of ingredients, enhancing their sense of participation while also saving Domino’s the labor costs associ-
ated with phone orders. After placing the order, the customer can track it all the way to when it is sent out for delivery,
keeping an eye on an estimated delivery time.
In 2012, Domino’s surpassed $1 billion in annual sales through its
Web site, proving that electronic sales will continue to play a large
role in the company’s success.18
At Domino’s, online ordering seamlessly accomplishes multiple
Susan Montgomery/Shutterstock.com
objectives without the customer even taking notice. First, it creates
the feeling among customers that they are an active part of the pizza-making process. Second, it results in greater effi-
ciency at the various stores because employees do not have to spend as much time taking orders. They merely need to
prepare the orders, which appear in an instant order queue, with all the customers’ specifications.
Domino’s now has the ability to store its online orders in its database. This data can then be used for many purposes,
including target marketing and deciding which pizzas to offer in the future. The company is also actively using social
media, including Facebook and Twitter, to promote its products and gather customers’ opinions.
In 2014, Domino’s began allowing customers to order pizza using a voice app called “Dom,” powered by Nuance
Communications. It enables users of iOS and Android devices to place orders using their voices.
Twitter is now a part of the ordering system at Domino’s. As of 2015, U.S. customers can order pizza by tweeting a
pizza emoji.19
Starting in 2016 customers were able to order Domino’s Pizza from a Facebook Messenger bot.20 Also in 2016,
Domino’s began testing a delivery robot called DRU in New Zealand.21 And the pizza company also announced plans
to beat Amazon and Google to delivery by drones.22
In 2017, Domino’s tested self-driving pizza delivery in a joint project with Ford in a specially equipped Ford Fusion
that comes with both self-driving technology and an oven.23
In 2018, Domino’s started pizza delivery to more than 150,000 “hot spots” nationwide, allowing customers to order
pizza delivery to beaches, sports arenas, parks, and other locations that don’t have a residential address.24 In 2019
Domino’s designed an app so that customers can order and receive pizza in their cars,25 allowing IT to further expand
its customer reach and its market share.

1. What are two advantages of online ordering in a fast-food restaurant such as Domino’s Pizza?
2. What are four examples of information technology tools being used at Domino’s Pizza? What are they used for?
However, there are some security risks associ- are more difficult to steal from. To protect your financial
ated with using ATMs. ATM skimming is a worldwide information while using an ATM, follow these steps26:
problem costing more than $2 billion a year in fraudu- • Check your bank statements regularly. Usually, if you
lent charges. Skimmers, by using a card the size of a report fraudulent charges within two days your bank
credit card installed inside the ATM or on the top of will reimburse you for anything over $50.
the machine, are able to record PIN numbers and other • Watch for signs that the ATM of a gas pump may have
financial information of the users. This could happen been tampered with. This could be done by physically
when you swiped your card at the ATM or even at a gas touching the machine or checking on Bluetooth for
station. Skimmers have been stealing financial informa- unusual Wi-Fi networks.
tion from cards with magnetic strips, as chip-based cards • Cover your PIN number when entering it.
Another random document with
no related content on Scribd:
our entrance, it was anticipated by liberals, would be the shortening
of the war. Our entrance has rather tended to prolong it. Liberals
were mistaken about the immediate collapse of the British
Commonwealth. It continued to endure the submarine challenge
without our material aid. We find ourselves, therefore, saddled with a
war-technique which has compromised rather than furthered our
strategy.
This war-technique compromises the outlines of American strategy
because instead of making for a negotiated peace it has had the
entirely unexpected result of encouraging those forces in the Allied
countries who desire la victoire intégrale, the “knockout blow.” In the
President’s war-message the country was assured that the principles
of the negotiated peace remained quite unimpaired. The strategy
that underlay this, it will be remembered, was to appeal to the
Teutonic peoples over the heads of their rulers with terms so liberal
that the peoples would force their governments to make peace. The
strategy of the American government was, while prosecuting the war,
to announce its war-aims and to persuade the Allies to announce
their war-aims in such terms as would split the peoples of the Central
Powers from their governments, thus bringing more democratic
régimes that would provide a fruitful basis for a covenant of nations.
We entered the war with no grievances of our own. It was our
peculiar rôle to continue the initiative for peace, both by
unmistakably showing our own purpose for a just peace based on
some kind of international organization and by wielding a steady
pressure on the Entente governments to ratify our programme. If we
lost this initiative for peace, or if we were unable or unwilling to press
the Entente toward an unmistakable liberalism, our strategy broke
down and our justification for entering the war became seriously
impaired. For we could then be charged with merely aiding the
Entente’s ambiguous scheme of European reorganization.
The success of this strategy of peace depended on a stern
disavowal of the illiberal programmes of groups within the Allied
countries and a sympathetic attitude toward the most democratic
programmes of groups within the enemy Powers. Anything which
weakened either this disavowal or this sympathy would imperil our
American case. As potential allies in this strategy the American
government had within the enemies’ gates the followers of
Scheidemann who said at the last sitting of the Reichstag: “If the
Entente Powers should renounce all claims for annexation and
indemnity and if the Central Powers should insist on continuing the
war, a revolution will certainly result in Germany.” It is not
inconceivable that the American government and the German
socialists had at the back of their minds the same kind of a just
peace. The fact that the German socialists were not opposing the
German government did not mean that any peace move in which the
former were interested was necessarily a sinister Hohenzollern
intrigue. The bitterest enemies of Hollweg were not the radicals but
the Pan-Germans themselves. It is they who were said to be
circulating manifestoes through the army threatening revolution
unless their programme of wholesale annexations is carried out.
Whatever liberal reservoir of power there is in Germany, therefore,
remains in the socialist ranks. If there is any chance of liberal
headway against the sinister Pan-German campaign it is through this
nucleus of liberal power. American strategy, if it has to find a liberal
leverage in Germany, will have to choose the socialist group as
against the Pan-Germans. It is not absolutely necessary to assume
that the support of the Chancellor by the socialist majority is
permanent. It is unplausible that the Scheidemann group coöperates
with the Government for peace merely to consolidate the Junker and
military class in power after the war. It is quite conceivable that the
socialist majority desires peace in order to have a safe basis for a
liberal overturn. Revolution, impossible while the Fatherland is in
danger, becomes a practicable issue as soon as war is ended. A
policy of aiding the Government in its pressure toward peace, in
order to be in a tactical position to control the Government when the
war-peril was ended, would be an extremely astute piece of
statesmanship. There is no evidence that the German socialists are
incapable of such far-sighted strategy. Certainly the “German peace”
of a Scheidemann is bound to be entirely different from the “German
peace” of a Hindenburg. This difference is one of the decisive factors
of the American strategy. To ignore it is to run the risk of postponing
and perhaps obstructing the settlement of the war.
It is these considerations that make the refusal of passports to the
American socialists seem a serious weakening of the American
strategy. A conference of responsible socialists from the different
countries might have clarified the question how far a Russian peace
or a Scheidemann peace differed from the structure of a Wilson
peace. By denying American participation in the conference, the
Administration apparently renounced the opportunity to make contact
with liberal leverage in Germany. It refused to take that aggressive
step in cleaving German opinion which was demanded by its own
strategy. It tended to discourage liberal opinion in Germany and
particularly it discouraged the Russian democracy which was
enthusiastic for a socialist conference.
This incident was symptomatic of the lessened adjustment which the
Administration has shown toward the changing situation. It was the
hope of the American liberals who advocated American entrance into
the war that this country would not lose thereby its initiative for
peace. They believed that our entrance would make our mediating
power actually stronger. That hope has been disappointed through
the unexpected radicalism of the new Russian government. The
initiative for peace was bound to lie with the people that most wanted
peace and was willing to make the most peremptory demands upon
the Allied governments that they state the war-aims that would bring
it. This tactic was an integral part of the original American strategy.
The American liberals trusted the President to use American
participation as an instrument in liberalizing the war-aims of all the
Allied governments. In the event, however, it has not been America
that has wanted peace sufficiently to be peremptory about it. It has
been Russia. The initiative for peace has passed from President
Wilson into the hands of the Council of Workmen’s and Soldiers’
Deputies. It is the latter who have brought the pressure to declare
democratic war-aims. It is their dissatisfaction with the original Allied
statement that has brought these new, if scarcely more satisfactory,
declarations. In this discussion between the Governments regarding
the restatement of war-aims, it was not upon Russia’s side that this
country found itself. The President’s note to Russia had all the tone
of a rebuke. It sounded like the reaction of a Government which—
supposedly itself the leader in the campaign for a just peace—found
itself uncomfortably challenged to state its own sincerity. The key to
our American strategy has been surrendered to Russia. The plain
fact is that the President has lost that position of leader which a
Russian candor would have retained for him.
What is more serious is that the note to Russia implied not only his
loss of the initiative for a negotiated peace but even the desire for it.
“The day has come when we must conquer or submit.” This has a
very strange ring coming from a President who in his very war-
message still insisted that he had not altered in any way the
principles of his “peace without victory” note. The note to Russia did
not attempt to explain how “peace without victory” was to be
reconciled with “conquer or submit,” nor has any such explanation
been forthcoming. The implication is that the entire strategy of the
negotiated peace has passed out of American hands into those of
Russia, and that this country is committed to the new strategy of the
“knockout blow.” If this is true, then we have the virtual collapse of
the strategy, and with it the justification, of our entrance into the war.
Whether American strategy has changed or not, the effect upon
opinion in the Allied countries seems to be as if it had. Each
pronouncement of America’s war-aims is received with disconcerting
unanimity in England, France and Italy as ratifying their own
aspirations and policies. Any hint that Allied policies disagree with
ours is received with marked disfavor by our own loyal press. When
we entered the war, the Allied aims stood as stated in their reply to
the President’s December note. This reply was then interpreted by
American liberals as a diplomatic programme of maximum demands.
They have therefore called repeatedly upon the President to secure
from the Allied governments a resolution of the ambiguities and a
revision of the more extreme terms, in order that we might make
common cause with them toward a just peace. In this campaign the
American liberals have put themselves squarely on the side of the
new Russia, which has also clamored for a clear and liberal
statement of what the war is being fought for. Unfortunately the
Administration has been unable or unwilling to secure from the Allies
any such resolution or revision. The Russian pressure has elicited
certain statements, which, however, proved little more satisfactory to
the Russian radicals than the original statement. Our own war-aims
have been stated in terms as ambiguous and unsatisfactory as those
of the Allies. Illiberal opinion in the other countries has not been slow
in seizing upon President Wilson’s pronouncements as confirming all
that their hearts could wish. Most significant has been the
satisfaction of Italian imperialistic opinion, the most predatory and
illiberal force in any Allied country. The President has done nothing
to disabuse Italian minds of their belief. He has made no disavowal
of the Allied reactionary ratification. The sharp divergence of
interpretation between the Allied governments and the Russian
radicals persists. In lieu of any clear statement to the contrary,
opinion in the Allied countries has good ground for believing that the
American government will back up whatever of their original
programme can be carried through. Particularly is this true after the
President’s chiding of Russia. The animus behind the enthusiasm for
Pershing in France is the conviction that American force will be the
decisive factor in the winning back of Alsace-Lorraine. It is no mere
sentimental pleasure at American alliance. It is an immense
stiffening of the determination to hold out to the uttermost, to the
“peace with victory” of which Ribot speaks. Deluded France carries
on the war to complete exhaustion on the strength of the American
millions who are supposedly rushing to save her. The immediate
effect of American participation in England and Italy as well has been
an intense will to hold out not for the “peace without victory” but pour
la victoire intégrale, for the conquest so crushing that Germany will
never be feared again.
Now the crux of American strategy was the liberalization of Allied
policy in order that that peace might be obtained which was a
hopeful basis for a League of Nations. American participation has
evidently not gone one inch toward liberalizing the Allies. We are
further from the negotiated peace than we were in December, though
the only change in the military and political situation is the Russian
revolution which immensely increased the plausibility of that peace.
As Allied hope of victory grows, the covenant of nations fades into
the background. And it is Allied hope of victory that our participation
has inflamed and augmented.
The President’s Flag Day address marks without a doubt the
collapse of American strategy. That address, coupled with the hints
of “effective readjustments” in the note to Russia, implies that
America is ready to pour out endless blood and treasure, not to the
end of a negotiated peace, but to the utter crushing of the Central
Powers, to their dismemberment and political annihilation. The war is
pictured in that address as a struggle to the death against the
military empire of Mittel-Europa. The American rôle changes from
that of mediator in the interest of international organization to that of
formidable support to the breaking of this menace to the peace and
liberty of Europe. It will be remembered that American liberals
interpreted our entrance into the war as primarily defensive, an
enterprise to prevent Germany’s threatened victory on the sea. We
came in, not to secure an Allied “peace with victory,” but to prevent a
German “peace with victory,” and so restore the situation favorable
to a negotiated peace. The strategy of the negotiated peace
depended largely on the belief that a military decision was either
impossible or was not worth the colossal sacrifice it demanded. But it
is only as the result of a sweeping military decision that any assured
destruction of Mittel-Europa could come. In basing his case on
Mittel-Europa, therefore, the President has clearly swung from a
strategy of “peace without victory” to a strategy of “war to exhaustion
for the sake of a military decision.” He implies that a country which
came only after hesitation to the defense of the seas and the Atlantic
world will contentedly pour out its indefinite blood and treasure for
the sake of spoiling the coalition of Mittel-Europa and of making
readjustments in the map of Europe effective against German
influence on the Continent. Such an implication means the “end of
American isolation” with a vengeance. No one can be blamed who
sees in the Flag Day Address the almost unlimited countersigning of
Allied designs and territorial schemes.
The change of American strategy to a will for a military decision
would explain the creation of the vast American army which in the
original policy was required only “as a reserve and a precaution.” It
explains our close coöperation with the Allied governments following
the visits of the Missions. An American army of millions would
undoubtedly be a decisive factor in the remaking of the map of
Europe and the permanent garrisoning of strategic points bearing
upon Germany. But this change of strategy does not explain itself.
The continental military and political situation has not altered in any
way which justifies so fundamental an alteration in American
strategy. American liberals justified our entrance into the war as a
response to a sudden exigency. But the menace of Mittel-Europa
has existed ever since the entrance of Bulgaria in 1915. If it now
challenges us and justifies our change of strategy, it challenged us
and justified our assault a full two years ago. American shudders at
its bogey are doubly curious because it is probably less of a menace
now than it has ever been. President Wilson ignores the effect of a
democratic Russia on the success of such a military coalition. Such
heterogeneous states could be held together only through the
pressure of a strong external fear. But the passing of predatory
Russia removes that fear. Furthermore, Bulgaria, the most
democratic of the Balkan States, would always be an uncertain
partner in such a coalition. Bagdad has long been in British hands.
There are strong democratic and federalistic forces at work in the
Austro-Hungarian monarchy. The materials seem less ready than
ever for the creation of any such predatory and subjugated Empire
as the Flag Day Address describes. Whatever the outcome of the
war, there is likely to result an economic union which could bring
needed civilization to neglected and primitive lands. But such a union
would be a blessing to Europe rather than a curse. It was such a
union that England was on the point of granting to Germany when
the war broke out. The Balkans and Asia Minor need German
science, German organization, German industrial development. We
can hardly be fighting to prevent such German influence in these
lands. The irony of the President’s words lies in the fact that the
hopes of Mittel-Europa as a military coalition seem to grow dimmer
rather than brighter. He must know that this “enslavement” of the
peoples of which he speaks can only be destroyed by the peoples
themselves and not at the imposition of a military conqueror. The will
to resist this Prussian enslavement seems to have been generated
in Austro-Hungary. The President’s perspective is belated. If our
fighting to crush this amazing plot is justified now, it was more than
justified as soon as Rumania was defeated. The President convicts
himself of criminal negligence in not urging us into the war at that
time. If our rôle was to aid in conquest, we could not have begun our
work too soon.
The new strategy is announced by the President in no uncertain
terms—“The day has come when we must conquer or submit.” But
the strategy of conquest implies the necessity of means for
consolidating the conquest. If the world is to be made safe for
democracy, democracy must to a certain extent be imposed on the
world. There is little point in conquering unless you carry through the
purposes for which you have conquered. The earlier American
strategy sought to bring democracy to Germany by appealing directly
to the democratic forces in Germany itself. We relied on a self-
motivated regeneration on the part of our enemy. We believed that
democracy could be imposed only from within. If the German people
cannot effect their own political reorganization, nobody can do it for
them. They would continue to prefer the native Hohenzollerns to the
most liberal government imposed by their conquering enemies. A
Germany forced to be democratic under the tutelage of a watchful
and victorious Entente would indeed be a constant menace to the
peace of Europe. Just so far then as our changed American strategy
contributes toward a conquest over Germany, it will work against our
desire to see that country spontaneously democratized. There is
reason for hope that democracy will not have to be forced on
Germany. From the present submission of the German people to the
war-régime nothing can be deduced as to their subserviency after
the war. Prodigious slaughter will effect profound social changes.
There may be going on a progressive selection in favor of
democratic elements. The Russian army was transformed into a
democratic instrument by the wiping-out in battle of the upper-class
officers. Men of democratic and revolutionary sympathies took their
places. A similar process may happen in the German army. The end
of the war may leave the German “army of the people” a genuine
popular army intent upon securing control of the civil government.
Furthermore, the continuance of Pan-German predatory imperialism
depends on a younger generation of Junkers to replace the veterans
now in control. The most daring of those aristocrats will almost
certainly have been destroyed in battle. The mortality in upper-class
leadership will certainly have proved far larger than the mortality in
lower-class leadership. The maturing of these tendencies is the hope
of German democracy. A speedy ending of the war, before the
country is exhausted and the popular morale destroyed, is likely best
to mature these tendencies. In this light it is almost immaterial what
terms are made. Winning or losing, Germany cannot replace her
younger generation of the ruling class. And without a ruling class to
continue the imperial tradition, democracy could scarcely be
delayed. An enfeebled ruling class could neither hold a vast world
military Empire together nor resist the revolutionary elements at
home. The prolongation of the war delays democracy in Germany by
convincing the German people that they are fighting for their very
existence and thereby forcing them to cling even more desperately
to their military leaders. In announcing an American strategy of
“conquer or submit,” the President virtually urges the German people
to prolong the war. And not only are the German people, at the
apparent price of their existence, tacitly urged to continue the fight to
the uttermost, but the Allied governments are tacitly urged to wield
the “knockout blow.” All those reactionary elements in England,
France and Italy, whose spirits drooped at the President’s original bid
for a negotiated peace, now take heart again at this apparent
countersigning of their most extreme programmes.
American liberals who urged the nation to war are therefore suffering
the humiliation of seeing their liberal strategy for peace transformed
into a strategy for prolonged war. This government was to announce
such war-aims as should persuade the peoples of the Central
Powers to make an irresistible demand for a democratic peace. Our
initiative with the Allied governments was to make this peace the
basis of an international covenant, “the creation of a community of
limited independencies,” of which Norman Angell speaks. Those
Americans who opposed our entrance into the war believed that this
object could best be worked for by a strategy of continued neutrality
and the constant pressure of mediation. They believed that war
would defeat the strategy for a liberal peace. The liberal intellectuals
who supported the President felt that only by active participation on
an independent basis could their purposes be achieved. The event
has signally betrayed them. We have not ended the submarine
menace. We have lost all power for mediation. We have not even
retained the democratic leadership among the Allied nations. We
have surrendered the initiative for peace. We have involved
ourselves in a moral obligation to send large armies to Europe to
secure a military decision for the Allies. We have prolonged the war.
We have encouraged the reactionary elements in every Allied
country to hold out for extreme demands. We have discouraged the
German democratic forces. Our strategy has gradually become
indistinguishable from that of the Allies. With the arrival of the British
Mission our “independent basis” became a polite fiction. The
President’s Flag Day Address merely registers the collapse of
American strategy. All this the realistic pacifists foresaw when they
held out so bitterly and unaccountably against our entering the war.
The liberals felt a naïve faith in the sagacity of the President to make
their strategy prevail. They looked to him single-handedly to
liberalize the liberal nations. They trusted him to use a war-technique
which should consist of an olive-branch in one hand and a sword in
the other. They have had to see their strategy collapse under the
very weight of that war-technique. Guarding neutrality, we might
have counted toward a speedy and democratic peace. In the war, we
are a rudderless nation, to be exploited as the Allies wish, politically
and materially, and towed, to their aggrandizement, in any direction
which they may desire.
V
A WAR DIARY
(September, 1917)
I
Time brings a better adjustment to the war. There had been so many
times when, to those who had energetically resisted its coming, it
seemed the last intolerable outrage. In one’s wilder moments one
expected revolt against the impressment of unwilling men and the
suppression of unorthodox opinion. One conceived the war as
breaking down through a kind of intellectual sabotage diffused
through the country. But as one talks to people outside the cities and
away from ruling currents of opinion, one finds the prevailing apathy
shot everywhere with acquiescence. The war is a bad business,
which somehow got fastened on us. They don’t want to go, but
they’ve got to go. One decides that nothing generally obstructive is
going to happen and that it would make little difference if it did. The
kind of war which we are conducting is an enterprise which the
American government does not have to carry on with the hearty
coöperation of the American people but only with their acquiescence.
And that acquiescence seems sufficient to float an indefinitely
protracted war for vague or even largely uncomprehended and
unaccepted purposes. Our resources in men and materials are vast
enough to organize the war-technique without enlisting more than a
fraction of the people’s conscious energy. Many men will not like
being sucked into the actual fighting organism, but as the war goes
on they will be sucked in as individuals and they will yield. There is
likely to be no element in the country with the effective will to help
them resist. They are not likely to resist of themselves concertedly.
They will be licked grudgingly into military shape, and their lack of
enthusiasm will in no way unfit them for use in the hecatombs
necessary for the military decision upon which Allied political wisdom
still apparently insists. It is unlikely that enough men will be taken
from the potentially revolting classes seriously to embitter their spirit.
Losses in the well-to-do classes will be sustained by a sense of duty
and of reputable sacrifice. From the point of view of the worker, it will
make little difference whether his work contributes to annihilation
overseas or to construction at home. Temporarily, his condition is
better if it contributes to the former. We of the middle-classes will be
progressively poorer than we should otherwise have been. Our lives
will be slowly drained by clumsily levied taxes and the robberies of
imperfectly controlled private enterprises. But this will not cause us
to revolt. There are not likely to be enough hungry stomachs to make
a revolution. The materials seem generally absent from the country,
and as long as a government wants to use the war-technique in its
realization of great ideas, it can count serenely on the human
resources of the country, regardless of popular mandate or
understanding.
II
If human resources are fairly malleable into the war-technique, our
material resources will prove to be even more so, quite regardless of
the individual patriotism of their owners or workers. It is almost
purely a problem of diversion. Factories and mines and farms will
continue to turn out the same products and at an intensified rate, but
the government will be working to use their activity and concentrate it
as contributory to the war. The process which the piping times of
benevolent neutrality began will be pursued to its extreme end. All
this will be successful, however, precisely as it is made a matter of
centralized governmental organization and not of individual offerings
of good-will and enterprise. It will be coercion from above that will do
the trick rather than patriotism from below. Democratic contentment
may be shed over the land for a time through the appeal to individual
thoughtfulness in saving and in relinquishing profits. But all that is
really needed is the coöperation with government of the men who
direct the large financial and industrial enterprises. If their interest is
enlisted in diverting the mechanism of production into war-channels,
it makes not the least difference whether you or I want our activity to
count in aid of the war. Whatever we do will contribute toward its
successful organization, and toward the riveting of a semi-military
State-socialism on the country. As long as the effective managers,
the “big men” in the staple industries remained loyal, nobody need
care what the millions of little human cogs who had to earn their
living felt or thought. This is why the technical organization for this
American war goes on so much more rapidly than any corresponding
popular sentiment for its aims and purposes. Our war is teaching us
that patriotism is really a superfluous quality in war. The government
of a modern organized plutocracy does not have to ask whether the
people want to fight or understand what they are fighting for, but only
whether they will tolerate fighting. America does not coöperate with
the President’s designs. She rather feebly acquiesces. But that
feeble acquiescence is the all-important factor. We are learning that
war doesn’t need enthusiasm, doesn’t need conviction, doesn’t need
hope, to sustain it. Once maneuvered, it takes care of itself, provided
only that our industrial rulers see that the end of the war will leave
American capital in a strategic position for world-enterprise. The
American people might be much more indifferent to the war even
than they are and yet the results would not be materially different. A
majority of them might even be feebly or at least unconcertedly
hostile to the war, and yet it would go gaily on. That is why a popular
referendum seems so supremely irrelevant to people who are willing
to use war as an instrument in the working-out of national policy. And
that is why this war, with apathy rampant, is probably going to act
just as if every person in the country were filled with patriotic ardor,
and furnished with a completely assimilated map of the League to
Enforce Peace. If it doesn’t, the cause will not be the lack of popular
ardor, but the clumsiness of the government officials in organizing
the technique of the war. Our country in war, given efficiency at the
top, can do very well without our patriotism. The non-patriotic man
need feel no pangs of conscience about not helping the war.
Patriotism fades into the merest trivial sentimentality when it
becomes, as so obviously in a situation like this, so pragmatically
impotent. As long as one has to earn one’s living or buy tax-ridden
goods, one is making one’s contribution to war in a thousand indirect
ways. The war, since it does not need it, cannot fairly demand also
the sacrifice of one’s spiritual integrity.
III
The “liberals” who claim a realistic and pragmatic attitude in politics
have disappointed us in setting up and then clinging wistfully to the
belief that our war could get itself justified for an idealistic flavor, or at
least for a world-renovating social purpose, that they had more or
less denied to the other belligerents. If these realists had had time in
the hurry and scuffle of events to turn their philosophy on
themselves, they might have seen how thinly disguised a
rationalization this was of their emotional undertow. They wanted a
League of Nations. They had an unanalyzable feeling that this was a
war in which we had to be, and be in it we would. What more natural
than to join the two ideas and conceive our war as the decisive factor
in the attainment of the desired end! This gave them a good
conscience for willing American participation, although as good men
they must have loathed war and everything connected with it. The
realist cannot deny facts. Moreover, he must not only acknowledge
them but he must use them. Good or bad, they must be turned by his
intelligence to some constructive end. Working along with the
materials which events give him, he must get where and what he
can, and bring something brighter and better out of the chaos.
Now war is such an indefeasible and unescapable Real that the
good realist must accept it rather comprehensively. To keep out of it
is pure quietism, an acute moral failure to adjust. At the same time,
there is an inexorability about war. It is a little unbridled for the
realist’s rather nice sense of purposive social control. And nothing is
so disagreeable to the pragmatic mind as any kind of an absolute.
The realistic pragmatist could not recognize war as inexorable—
though to the common mind it would seem as near an absolute,
coercive social situation as it is possible to fall into. For the
inexorable abolishes choices, and it is the essence of the realist’s
creed to have, in every situation, alternatives before him. He gets out
of his scrape in this way: Let the inexorable roll in upon me, since it
must. But then, keeping firm my sense of control, I will somehow
tame it and turn it to my own creative purposes. Thus realism is
justified of her children, and the “liberal” is saved from the limbo of
the wailing and irreconcilable pacifists who could not make so easy
an adjustment.
Thus the “liberals” who made our war their own preserved their
pragmatism. But events have shown how fearfully they imperilled
their intuition and how untameable an inexorable really is. For those
of us who knew a real inexorable when we saw one, and had
learned from watching war what follows the loosing of a war-
technique, foresaw how quickly aims and purposes would be
forgotten, and how flimsy would be any liberal control of events. It is
only we now who can appreciate The New Republic—the organ of
applied pragmatic realism—when it complains that the League of
Peace (which we entered the war to guarantee) is more remote than
it was eight months ago; or that our State Department has no
diplomatic policy (though it was to realize the high aims of the
President’s speeches that the intellectuals willed American
participation); or that we are subordinating the political management
of the war to real or supposed military advantages, (though
militarism in the liberal mind had no justification except as a tool for
advanced social ends). If after all the idealism and creative
intelligence that were shed upon America’s taking up of arms, our
State Department has no policy, we are like brave passengers who
have set out for the Isles of the Blest only to find that the first mate
has gone insane and jumped overboard, the rudder has come loose
and dropped to the bottom of the sea, and the captain and pilot are
lying dead drunk under the wheel. The stokers and engineers,
however, are still merrily forcing the speed up to twenty knots an
hour and the passengers are presumably getting the pleasure of the
ride.
IV
The penalty the realist pays for accepting war is to see disappear
one by one the justifications for accepting it. He must either become
a genuine Realpolitiker and brazen it through, or else he must feel
sorry for his intuition and regretful that he willed the war. But so easy
is forgetting and so slow the change of events that he is more likely
to ignore the collapse of his case. If he finds that his government is
relinquishing the crucial moves of that strategy for which he was
willing to use the technique of war, he is likely to move easily to the
ground that it will all come out in the end the same anyway. He soon
becomes satisfied with tacitly ratifying whatever happens, or at least
straining to find the grain of unplausible hope that may be latent in
the situation.
But what then is there really to choose between the realist who
accepts evil in order to manipulate it to a great end, but who
somehow unaccountably finds events turn sour on him, and the
Utopian pacifist who cannot stomach the evil and will have none of
it? Both are helpless, both are coerced. The Utopian, however,
knows that he is ineffective and that he is coerced, while the realist,
evading disillusionment, moves in a twilight zone of half-hearted
criticism, and hopings for the best, where he does not become a tacit
fatalist. The latter would be the manlier position, but then where
would be his realistic philosophy of intelligence and choice?
Professor Dewey has become impatient at the merely good and
merely conscientious objectors to war who do not attach their
conscience and intelligence to forces moving in another direction.
But in wartime there are literally no valid forces moving in another
direction. War determines its own end—victory, and government
crushes out automatically all forces that deflect, or threaten to
deflect, energy from the path of organization to that end. All
governments will act in this way, the most democratic as well as the
most autocratic. It is only “liberal” naïveté that is shocked at arbitrary
coercion and suppression. Willing war means willing all the evils that
are organically bound up with it. A good many people still seem to
believe in a peculiar kind of democratic and antiseptic war. The
pacifists opposed the war because they knew this was an illusion,
and because of the myriad hurts they knew war would do the
promise of democracy at home. For once the babes and sucklings
seem to have been wiser than the children of light.
V
If it is true that the war will go on anyway whether it is popular or not
or whether its purposes are clear, and if it is true that in wartime
constructive realism is an illusion, then the aloof man, the man who
will not obstruct the war but who cannot spiritually accept it, has a
clear case for himself. Our war presents no more extraordinary
phenomenon than the number of the more creative minds of the
younger generation who are still irreconcilable toward the great
national enterprise which the government has undertaken. The
country is still dotted with young men and women, in full possession
of their minds, faculties and virtue, who feel themselves profoundly
alien to the work which is going on around them. They must not be
confused with the disloyal or the pro-German. They have no grudge
against the country, but their patriotism has broken down in the
emergency. They want to see the carnage stopped and Europe
decently constructed again. They want a democratic peace. If the
swift crushing of Germany will bring that peace, they want to see
Germany crushed. If the embargo on neutrals will prove the decisive
coup, they are willing to see the neutrals taken ruthlessly by the
throat. But they do not really believe that peace will come by any of
these means, or by any use of our war-technique whatever. They are
genuine pragmatists and they fear any kind of an absolute, even
when bearing gifts. They know that the longer a war lasts the harder
it is to make peace. They know that the peace of exhaustion is a
dastardly peace, leaving enfeebled the morale of the defeated, and
leaving invincible for years all the most greedy and soulless
elements in the conquerors. They feel that the greatest obstacle to
peace now is the lack of the powerful mediating neutral which we
might have been. They see that war has lost for us both the
mediation and the leadership, and is blackening us ever deeper with
the responsibility for having prolonged the dreadful tangle. They are
skeptical not only of the technique of war, but also of its professed
aims. The President’s idealism stops just short of the pitch that
would arouse their own. There is a middle-aged and belated taint
about the best ideals which publicist liberalism has been able to
express. The appeals to propagate political democracy leave these
people cold in a world which has become so disillusioned of
democracy in the face of universal economic servitude. Their ideals
outshoot the government’s. To them the real arena lies in the
international class-struggle, rather than in the competition of artificial
national units. They are watching to see what the Russian socialists
are going to do for the world, not what the timorous capitalistic
American democracy may be planning. They can feel no enthusiasm
for a League of Nations, which should solidify the old units and
continue in disguise the old theories of international relations.
Indispensable, perhaps? But not inspiring; not something to give
one’s spiritual allegiance to. And yet the best advice that American
wisdom can offer to those who are out of sympathy with the war is to
turn one’s influence toward securing that our war contribute toward
this end. But why would not this League turn out to be little more
than a well-oiled machine for the use of that enlightened imperialism
toward which liberal American finance is already whetting its tongue?
And what is enlightened imperialism as an international ideal as
against the anarchistic communism of the nations which the new
Russia suggests in renouncing imperialist intentions?
VI
Skeptical of the means and skeptical of the aims, this element of the
younger generation stands outside the war, and looks upon the
conscript army and all the other war-activities as troublesome
interruptions on its thought and idealism, interruptions which do not
touch anywhere a fiber of its soul. Some have been much more
disturbed than others, because of the determined challenge of both
patriots and realists to break in with the war-obsession which has
filled for them their sky. Patriots and realists can both be answered.
They must not be allowed to shake one’s inflexible determination not
to be spiritually implicated in the war. It is foolish to hope. Since the
30th of July, 1914, nothing has happened in the arena of war-policy
and war-technique except for the complete and unmitigated worst.
We are tired of continued disillusionment, and of the betrayal of
generous anticipations. It is saner not to waste energy in hope within
the system of war-enterprise. One may accept dispassionately
whatever changes for good may happen from the war, but one will
not allow one’s imagination to connect them organically with war. It is
better to resist cheap consolations, and remain skeptical about any
of the good things so confidently promised us either through victory
or the social reorganization demanded by the war-technique. One
keeps healthy in wartime not by a series of religious and political
consolations that something good is coming out of it all, but by a
vigorous assertion of values in which war has no part. Our
skepticism can be made a shelter behind which is built up a wider
consciousness of the personal and social and artistic ideals which
American civilization needs to lead the good life. We can be
skeptical constructively, if, thrown back on our inner resources from
the world of war which is taken as the overmastering reality, we
search much more actively to clarify our attitudes and express a
richer significance in the American scene. We do not feel the war to
be very real, and we sense a singular air of falsity about the
emotions of the upper-classes toward everything connected with
war. This ostentatious shame, this groveling before illusory Allied
heroisms and nobilities, has shocked us. Minor novelists and minor
poets and minor publicists are still coming back from driving
ambulances in France to write books that nag us into an appreciation
of the “real meaning.” No one can object to the generous emotions of
service in a great cause or to the horror and pity at colossal
devastation and agony. But too many of these prophets are men who
have lived rather briskly among the cruelties and thinnesses of
American civilization and have shown no obvious horror and pity at
the exploitations and the arid quality of the life lived here around us.
Their moral sense had been deeply stirred by what they saw in
France and Belgium, but it was a moral sense relatively unpracticed
by deep concern and reflection over the inadequacies of American
democracy. Few of them had used their vision to create literature
impelling us toward a more radiant American future. And that is why,
in spite of their vivid stirrings, they seem so unconvincing. Their
idealism is too new and bright to affect us, for it comes from men
who never cared very particularly about great creative American
ideas. So these writers come to us less like ardent youth, pouring its
energy into the great causes, than like youthful mouthpieces of their
strident and belligerent elders. They did not convert us, but rather
drove us farther back into the rightness of American isolation.
VII
There was something incredibly mean and plebeian about that
abasement into which the war-partisans tried to throw us all. When
we were urged to squander our emotion on a bedeviled Europe, our
intuition told us how much all rich and generous emotions were
needed at home to leaven American civilization. If we refused to
export them it was because we wanted to see them at work here. It
is true that great reaches of American prosperous life were not using
generous emotions for any purpose whatever. But the real antithesis
was not between being concerned about luxurious automobiles and
being concerned about the saving of France. America’s “benevolent
neutrality” had been saving the Allies for three years through the
ordinary channels of industry and trade. We could afford to export
material goods and credit far more than we could afford to export
emotional capital. The real antithesis was between interest in
expensively exploiting American material life and interest in
creatively enhancing American personal and artistic life. The fat and
earthy American could be blamed not for not palpitating more richly
about France, but for not palpitating more richly about America and
her spiritual drouths. The war will leave the country spiritually
impoverished, because of the draining away of sentiment into the
channels of war. Creative and constructive enterprises will suffer not
only through the appalling waste of financial capital in the work of
annihilation, but also in the loss of emotional capital in the conviction
that war overshadows all other realities. This is the poison of war
that disturbs even creative minds. Writers tell us that, after contact
with the war, literature seems an idle pastime, if not an offense, in a

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