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University of Denver
 information
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brief
contents
module one
BUSINESS DRIVEN MIS 3
chapter 1 Management Information Systems: Business
Driven MIS 5
chapter 2 Decisions + Processes: Value Driven
Business 33
chapter 3 Ebusiness: Electronic Business Value 63
chapter 4 Ethics + Information Security: MIS Business
Concerns 91

module two
TECHNICAL FOUNDATIONS OF MIS 113
chapter 5 Infrastructures: Sustainable Technologies 115
chapter 6 Data: Business Intelligence 147
chapter 7 Networks: Mobile Business 183

module three
ENTERPRISE MIS 209
chapter 8 Enterprise Applications: Business
Communications 211
chapter 9 Systems Development and Project
Management: Corporate Responsibility 249
GLOSSARY 277
NOTES 292
INDEX 298

v
contents
module one BUSINESS DRIVEN
THE THREE GENERIC STRATEGIES—CHOOSING A BUSINESS
FOCUS 26
MIS 3 SHOW ME THE MONEY Death of a Product 27
LIVING THE DREAM One Laptop per Child 28
VALUE CHAIN ANALYSIS—EXECUTING BUSINESS
CHAPTER 1 MANAGEMENT INFORMATION STRATEGIES 28
SYSTEMS: BUSINESS DRIVEN BUSTED Listen to Spider-Man; He Knows What He’s
MIS 5 Talking About! 29
SECTION 1 .1 >> Business Driven MIS 6
COMPETING IN THE INFORMATION AGE 6
CHAPTER 2 DECISIONS + PROCESSES:
LIVING THE DREAM Sensors and Bears—A Perfect VALUE DRIVEN BUSINESS 33
Match 7 SECTION 2.1 >> Decision Support Systems 34
Data 7
MAKING BUSINESS DECISIONS 34
FYI People in China and India Are Starving for Your The Decision-Making Process 35
Jobs 9 Decision-Making Essentials 35
Information 9
MEASURING BUSINESS DECISIONS 37
Business Intelligence 10
Efficiency and Effectiveness Metrics 39
Knowledge 11
The Interrelationship Between Efficiency and Effectiveness
THE CHALLENGE: DEPARTMENTAL COMPANIES 12 MIS Metrics 39
SYSTEMS THINKING AND MANAGEMENT INFORMATION SHOW ME THE MONEY Is It Effective or Is It
SYSTEMS 13 Efficient? 39
BUSTED The Interent of Things Is Wide Open—For DUE DILIGENCE Get the Cow Out of the Ditch 40
Everyone! 14 USING MIS TO MAKE BUSINESS DECISIONS 40
Systems Thinking 15 Operational Support Systems 41
SHOW ME THE MONEY Who Really Won the 2014 Managerial Support Systems 41
Winter Olympics? 15 Strategic Support Systems 42
MIS Department Roles and Responsibilities 16
USING AI TO MAKE BUSINESS DECISIONS 43
SHOW ME THE MONEY Is Technology Making Us
Dumber or Smarter? 17 BUSTED The Criminal in the Cube Next Door 45
Expert Systems 45
SECTION 1 .2 >> Business Strategy 19 Neural Networks 46
DUE DILIGENCE Safekeeping Data 19 FYI Got Junk? Get a Hunk! 47
IDENTIFYING COMPETITIVE ADVANTAGES 19 LIVING THE DREAM Track Your Life 48
MY NOT TO-DO LIST What Happens on YouTube Genetic Algorithms 48
Stays on YouTube—FOREVER 21 Intelligent Agents 49
THE FIVE FORCES MODEL—EVALUATING INDUSTRY
SHOW ME THE MONEY If It Ain’t Broke,
ATTRACTIVENESS 22
Don’t Fix It 49
Virtual Reality 49
Buyer Power 22
SHOW ME THE MONEY SWOT Your Student 23 SECTION 2.2 >> Business Processes 50
Supplier Power 24 FYI Long-Distance Hugs 50
Threat of Substitute Products or Services 24
MANAGING BUSINESS PROCESSES 50
Threat of New Entrants 25
Rivalry among Existing Competitors 25 BUSINESS PROCESS MODELING 52
Analyzing the Airline Industry 25 USING MIS TO IMPROVE BUSINESS PROCESSES 53
FYI Cool College Start-Ups 26 Operational Business Processes—Automation 54
 Managerial Business Processes—Streamlining 55 Social Tagging 82
Strategic Business Processes—Reengineering 57 MY NOT TO-DO LIST Viral Foxes and Devil
MY NOT TO-DO LIST You Accidently Sent Your Babies 83
Confidential Email to Your Significant Other to Your DUE DILIGENCE Anti-Social Networking 83
Grandmother—Ouch! 59 BUSINESS 2.0 TOOLS FOR COLLABORATING 84
SHOW ME THE MONEY Streamlining Your Email 59 Blogs 84
Wikis 84
FYI Don’t You Just Love ­Mötley Crüe? 85
CHAPTER 3 EBUSINESS: ELECTRONIC Mashups 85
BUSINESS VALUE 63 LIVING THE DREAM Kiva Collaboration` 86
SECTI ON 3.1 >> Web 1.0: Ebusiness 64 THE CHALLENGES OF BUSINESS 2.0 86
DISRUPTIVE TECHNOLOGIES 64 Technology Dependence 86
Disruptive versus Sustaining Technology 64 Information Vandalism 86
The Internet and World Wide Web—The Ultimate Business FYI Using Hashtags 87
Disruptors 65 Violations of Copyright and Plagiarism 87
DUE DILIGENCE Unethical Disruption 65 WEB 3.0: DEFINING THE NEXT GENERATION OF ONLINE
WEB 1.0: THE CATALYST FOR EBUSINESS 65 BUSINESS OPPORTUNITIES 87
Web 1.0: The Catalyst for Ebusiness 65 BUSTED Connectivity Break-Down 87
Expanding Global Reach 67 Egovernment: The Government Moves Online 88
Opening New Markets 68 Mbusiness: Supporting Anywhere Business 89
Reducing Costs 68
Improving Effectiveness 69
SHOW ME THE MONEY Nasty-Gal: 8 Years Old and CHAPTER 4 ETHICS + INFORMATION
Worth $100 Million 70 SECURITY: MIS BUSINESS
THE FOUR EBUSINESS MODELS 70 CONCERNS 91
Business-to-Business (B2B) 71 SECTION 4.1 >> Ethics 92
Business-to-Consumer (B2C) 71
Consumer-to-Business (C2B) 72 INFORMATION ETHICS 92
Consumer-to-Consumer (C2C) 72 Information Does Not Have Ethics; People Do 93
Ebusiness Forms and Revenue-Generating Strategies 72 BUSTED Information—Does It Have Ethics? 94
LIVING THE DREAM Crazy over Access 73 MY NOT TO-DO LIST Do You Really Want
EBUSINESS TOOLS FOR CONNECTING AND to Risk It? 95
COMMUNICATING 74 DEVELOPING INFORMATION MANAGEMENT POLICIES 95
Email 74 Ethical Computer Use Policy 95
Instant Messaging 75 Information Privacy Policy 96
Podcasting 75 DUE DILIGENCE The Right to Be Forgotten 97
Videoconferencing 75 Acceptable Use Policy 97
Web Conferencing 76 SHOW ME THE MONEY 15 Million Identity Theft
Content Management Systems 76 Victims 97
THE CHALLENGES OF EBUSINESS 76 Email Privacy Policy 98
Identifying Limited Market Segments 76 FYI Monitoring Employees 99
Managing Consumer Trust 76 Social Media Policy 99
BUSTED Virtual Abandonment 77 Workplace Monitoring Policy 100
Ensuring Consumer Protection 77 BUSTED I’m Being Fired for Smoking, but I Was at
Adhering to Taxation Rules 77 Home and It Was Saturday 101
SECTI ON 3.2 >> Web 2.0: Business 2.0 77 SECTION 4.2 >> Information Security 101
WEB 2.0: ADVANTAGES OF BUSINESS 2.0 77 PROTECTING INTELLECTUAL ASSETS 101
Content Sharing through Open Sourcing 78 Security Threats Caused by Hackers and Viruses 103
User-Contributed Content 78 SHOW ME THE MONEY Beyond Passwords 104
Collaboration inside the Organization 79 THE FIRST LINE OF DEFENSE–PEOPLE 105
SHOW ME THE MONEY Analyzing Websites 79 MY NOT TO-DO LIST Lifelock: Keeping Your Identity
Collaboration outside the Organization 80 Safe 106
NETWORKING COMMUNITIES WITH BUSINESS 2.0 80 THE SECOND LINE OF DEFENSE–TECHNOLOGY 106
MY NOT TO-DO LIST Social Not Working 81 People: Authentication and Authorization 106

Contents | vii
 DUE DILIGENCE Doodling Passwords 109 Virtualized Computing 132
Data: Prevention and Resistance 109 Cloud Computing 137
SHOW ME THE MONEY Hackers Love Phish, FYI Virtualization for Your Cell Phone 137
and I Don’t Mean the Band 110 BUSTED Hack Attack 141
Attack: Detection and Response 111 Utility Computing 143

module two
SHOW ME THE MONEY Upcycle Your Old PC 144
TECHNICAL
FOUNDATIONS OF MIS 113 CHAPTER 6 DATA: BUSINESS
INTELLIGENCE 147
CHAPTER 5 INFRASTRUCTURES: SECTION 6.1 >> Data, Information, and
SUSTAINABLE Databases 148
TECHNOLOGIES 115 THE BUSINESS BENEFITS OF HIGH-QUALITY
SECTION 5 .1 >> MIS Infrastructures 116 INFORMATION 148
Information Type: Transactional and Analytical 148
THE BUSINESS BENEFITS OF A SOLID MIS Information Timeliness 149
INFRASTRUCTURE 116 Information Quality 150
SUPPORTING OPERATIONS: INFORMATION MIS SHOW ME THE MONEY Determining Information
INFRASTRUCTURE 117 Quality Issues 151
Backup and Recovery Plan 118 Information Governance 152
DUE DILIGENCE I Don’t Have a Temperature, but I’m STORING INFORMATION USING A RELATIONAL DATABASE
Positive I Have a Virus 119 MANAGEMENT SYSTEM 153
Disaster Recovery Plan 119 Storing Data Elements in Entities and Attributes 154
Business Continuity Plan 121 Creating Relationships through Keys 155
SHOW ME THE MONEY Recovering from DUE DILIGENCE That’s Not My Mother in the
Disaster 122 Casket! 155
DUE DILIGENCE Zombies Attack the University of Coca Cola Relational Database Example 155
Florida 123
USING A RELATIONAL DATABASE FOR BUSINESS
FYI Creating a BCP Plan 124 ADVANTAGES 155
SUPPORTING CHANGE: AGILE MIS INFRASTRUCTURE 124 Increased Flexibility 157
Accessibility 124 MY NOT TO-DO LIST Yes, I Started the Internet 157
Availability 125 Increased Scalability and Performance 158
Maintainability 125 Reduced Information Redundancy 158
Portability 126 Increased Information Integrity (Quality) 158
Reliability 126 SHOW ME THE MONEY Excel or Access? 158
SHOW ME THE MONEY Ranking the -ilities 126 Increased Information Security 159
Scalability 127 DUE DILIGENCE Sorry, I Didn’t Mean to Post Your
Usability 127 Social Security Number on the Internet 159
SECTION 5 .2 >> Building Sustainable MIS DRIVING WEBSITES WITH DATA 160
Infrastructures 127
SECTION 6.2 >> Business Intelligence 162
MIS AND THE ENVIRONMENT 128
DATA WAREHOUSING 162
DUE DILIGENCE Laptop? Notebook? Netbook?
History of the Data Warehouse 162
Tablet? 128
Data Mart 163
Increased Electronic Waste 128
LIVING THE DREAM Solving the Ewaste FYI Butterfly Effects 164
Information Cleansing (or Scrubbing) 164
Problem 129
FYI Ewaste and the Environment 129 BUSINESS INTELLIGENCE 166
LIVING THE DREAM Smart Cities 130 SHOW ME THE MONEY Clean My Data! 167
Increased Energy Consumption 130 The Problem: Data Rich, Information Poor 168
Increased Carbon Emissions 131 The Solution: Business Intelligence 168
BUSTED Follow the Data 169
SUPPORTING THE ENVIRONMENT: SUSTAINABLE MIS
INFRASTRUCTURE 131 THE POWER OF BIG DATA 170
Grid Computing 131 Virtualization 170
SHOW ME THE MONEY How Big Is Your Carbon Analyzing Big Data 170
Footprint? 131

viii | Contents
 module three
LIVING THE DREAM 2 Trillion Rows of Data
­Analyzed Daily—No Problem 172 ENTERPRISE
DATA MINING 172 MIS 209
Data Mining Process Model 173
Data Mining Analysis Techniques 173
DUE DILIGENCE Unethical Data Mining 175 CHAPTER 8 ENTERPRISE
Data Mining Modeling Techniques for Predictions 176 APPLICATIONS: BUSINESS
DATA ANALYSIS 178 COMMUNICATIONS 211
Advanced Data Analytics 178 SECTION 8.1 >> Supply Chain Management 212
Data Visualization 179
BUILDING A CONNECTED CORPORATION THROUGH
FYI News Dots 181
INTEGRATIONS 212
Integration Tools 213
CHAPTER 7 NETWORKS: MOBILE SUPPLY CHAIN MANAGEMENT 214
BUSINESS 183 Visibility into the Supply Chain 216
SECTI ON 7.1 >> Connectivity: The Business Value of a TECHNOLOGIES REINVENTING THE SUPPLY CHAIN 218
Networked World 184 3D Printing Supports Procurement 219
THE CONNECTED WORLD 184 RFID Supports Logistics 220
Network Categories 185 LIVING THE DREAM 3D Printing for Poverty 220
Network Providers 185 Drones Support Logistics 221
Network Access Technologies 186 Robotics Supports Materials Management 221
Network Protocols 188 DUE DILIGENCE 3D Printing Weapons 222
BUSTED Never Run with Your iPod 190 DUE DILIGENCE Robots Took My Job 223
Network Convergence 190 MY NOT TO-DO LIST Fixing the Post Office 223
The Extended Supply Chain 223
SHOW ME THE MONEY Net Neutrality 192
BENEFITS AND CHALLENGES OF A CONNECTED WORLD 193 SECTION 8.2 >> Customer Relationship Management
and Enterprise Resource Planning 224
FYI Music in the Clouds 193
Security 194 CUSTOMER RELATIONSHIP MANAGEMENT 224
My Not To-Do List Should Airlines Allow Cellphones on FYI Ruby Receptionists 225
Flights? 195 The Power of the Customer 226
DUE DILIGENCE Teddy the Guardian 195 Operational and Analytical CRM 228
Social, Ethical, and Political Issues 196 Marketing and Operational CRM 228
SECTI ON 7.2 >> Mobility: The Business Value of a SHOW ME THE MONEY Nice Emotions 228
Wireless World 196 BUSTED I’m Stuck in London and I’ve Been
Robbed—Help Me! 230
WIRELESS NETWORKS 196 Sales and Operational CRM 230
Personal Area Networks 197 Customer Service and Operational CRM 231
Wireless LANs 197 DUE DILIGENCE Customer Power to the
Wireless MANs 198 Rescue 232
SHOW ME THE MONEY Wireless Networks and Analytical CRM 233
Streetlamps 198 SHOW ME THE MONEY Straight Jacket Customer
Wireless WAN—Cellular Communication System 199 Service 233
Wireless WAN—Satellite Communication System 201 The Future of CRM 234
LIVING THE DREAM Saving the World One Phone at
ENTERPRISE RESOURCE PLANNING 234
a Time 201
The Benefits of ERP 237
Protecting Wireless Connections 201
Core ERP Components 237
Managing Mobile Devices 202
Extended ERP Components 239
FYI Sports Sensors 202
SHOW ME THE MONEY Classic Cars 241
BUSINESS APPLICATIONS OF WIRELESS NETWORKS 203 Measuring ERP Success 242
Radio-Frequency Identification (RFID) 203
ORGANIZATIONAL INTEGRATION WITH ERP 243
Global Positioning System (GPS) 204
On-Premise ERP 243
Geographic Information Systems (GIS) 205
Cloud ERP 243
LIVING THE DREAM Wi-Fi for Fishes 205 Hybrid ERP 245
BUSTED Snapping a Theftie 206
FYI Bean Integration 247

Contents | ix
CHAPTER 9 SYSTEMS DEVELOPMENT DEVELOPING A SERVICE-ORIENTED ARCHITECTURE 263
AND PROJECT Service 263
Interoperability 264
MANAGEMENT: CORPORATE Loose Coupling 265
RESPONSIBILITY 249 SHOW ME THE MONEY Scratch 265
SECTION 9 .1 >> Developing Enterprise SECTION 9.2 >> Project Management 266
Applications 250
USING PROJECT MANAGEMENT TO DELIVER SUCCESSFUL
THE SYSTEMS DEVELOPMENT LIFE CYCLE (SDLC) 250 PROJECTS 266
Phase 1: Planning 250 Unclear or Missing Business Requirements 267
FYI Have You Met Ted? If Not, You Need To! 252 Skipped Phases 267
Phase 2: Analysis 252 Changing Technology 268
Phase 3: Design 253 The Cost of Finding Errors in the SDLC 268
Phase 4: Development 254 Balance of the Triple Constraint 268
Phase 5: Testing 254 FYI Sharepoint 268
MY NOT TO-DO LIST Flawed Development 256
PRIMARY PROJECT PLANNING DIAGRAMS 269
Phase 6: Implementation 256
LIVING THE DREAM CharityFocus.org 272
FYI Reducing Ambiguity in Business
Requirements 257 OUTSOURCING PROJECTS 272
Phase 7: Maintenance 258 MY NOT TO-DO LIST Honestly, It Cost $7,500 for a
Steak Dinner 272
SOFTWARE DEVELOPMENT METHODOLOGIES 259
Outsourcing Benefits 273
SHOW ME THE MONEY Planning for the Outsourcing Challenges 274
Unexpected 260 DUE DILIGENCE DUI in a Golf Cart 274
Agile Software Development Methodologies 260
SHOW ME THE MONEY Death March 275
Rapid Application Development (RAD) Methodology 261
Extreme Programming Methodology 262
GLOSSARY 277
BUSTED Faking Your Own Death 262
Rational Unified Process (RUP) Methodology 263 INDEX 298
Scrum Methodology 263

x | Contents
information
systems 4e
© Fry Design Ltd/Getty Images

2 MODULE 1 | Business Driven MIS

 module one

coming
M
ost companies today rely heavily on the use of
management information systems (MIS) to run
various aspects of their businesses. Whether they
need to order and ship goods, interact with customers, or
conduct other business functions, management information
systems are often the underlying infrastructure performing the
activities. Management information systems allow companies
to remain competitive in today’s fast-paced world and especially
when conducting business on the Internet. Organizations must adapt
to technological advances and innovations to keep pace with today’s
rapidly changing environment. Their competitors certainly will!
No matter how exciting technology is, successful companies do
not use it simply for its own sake. Companies should have a solid
BUSINESS
business reason for implementing technology. Using a technological DRIVEN MIS
solution just because it is available is not a good business strategy.
The purpose of Module 1 is to raise your awareness of the vast
opportunities made possible by the tight correlation between busi- module one
BUSINESS DRIVEN MIS
ness and technology. Business strategies and processes should
chapter 1: Management Information Systems: Business Driven MIS
always drive your technology choices. Although awareness of an chapter 2: Decisions + Processes: Value Driven Business
chapter 3: Ebusiness: Electronic Business Value
emerging technology can sometimes lead us in new strategic direc- chapter 4: Ethics + Information Security: MIS Business Concerns

module two
tions, the role of information systems, for the most part, is to support
existing business strategies and processes. ■
TECHNICAL FOUNDATIONS OF MIS

module three
ENTERPRISE MIS

CHAPTER 1 | Management Information Systems: Business Driven MIS 3

© Chad Baker/Photodisc/Getty Images RF

4 MODULE 1 | Business Driven MIS

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