Principles of Business Information Systems,

Description

Built on the successful framework of previous editions, this international edition of the popular Principles of Business Information Systems boasts a wealth of real world examples from a broad range of countries, including South Africa and the Gulf region. Retaining its comprehensive coverage of IS issues, this popular text is now fully updated with the latest technologies. The chapter organization is streamlined, although the five-part structure kept the same, and there are clear learning objectives throughout, closely mapped to each chapter's content.
While maintaining its business focus, there is boosted coverage of IT and technological issues, perfect for courses which prepare students for the corporate world in the twenty-first century. Suitable for all students on IS courses, this edition features a supporting website with full supplementary resources as well as Course Technology's companion MIS CD-Rom.

CONTENTS:

Preface xvii.
Approach of the Text xvii.
Goals of this Text xviii.
Changes to the International Edition xxi.
Structure of the Text xxiii.
About the Authors xxv.
Acknowledgements xxv.
Supplements xxvii.
MIS Companion CD-Rom xxvii.
ExamView Testbank and Test Generator xxvii.
Companion Website xxviii.
Walkthrough Tour xxx.

Part 1 Overview.
1. An Introduction to Information Systems 3.
Principles 3
Learning Objectives 3
Why Learn About Information Systems? 4
What Is an Information System? 4
What Is a System? 4
What Is Information? 6
What Is an Information System? 6
The Characteristics of Valuable Information 7
Manual and Computerized Information Systems 8
Business Information Systems 11
Information Systems @ Work: Speeding Up Insurance Claims with New Information Systems 12
Electronic and Mobile Commerce 13
Enterprise Systems: Transaction Processing Systems and Enterprise Resource Planning 15
Information and Decision Support Systems 15
Knowledge Management, Artificial Intelligence, Expert Systems, and Virtual Reality 18
Systems Development 19
Systems Investigation and Analysis 20
Systems Design, Implementation, and Maintenance and Review 21
Information Systems in Society, Business, and Industry 21
Ethical and Societal Issues: Snipermail Executive Serves Hard Time 22
Security, Privacy, and Ethical Issues in Information Systems and the Internet 23
Computer and Information Systems Literacy 23
Information Systems in the Functional Areas of Business 24
Information Systems in Industry 24
Global Challenges in Information Systems 25
Summary 26
Self-Assessment Test 28
Review Questions 28
Discussion Questions 29
Web Exercises 29
Case One: Shroff International Travel Care Opens Door to Philippines 29
Case Two: Nissan's 180-Degree Turn with Parts Distribution 30
Case Three: Discovery Communications Digs Out of Mountains of Documents 31
Notes 32
2. Information Systems in Organizations 33.
Principles 33
Learning Objectives 33
Why Learn About Information Systems in Organizations? 34
An Introduction to Organizations 34
Organizational Structures 36
Organizational Change 39
Ethical and Societal Issues: Royal Mail Collects Vehicle Telemetry 41
Reengineering and Continuous Improvement 41
User Satisfaction and Technology Acceptance 43
Information Systems @ Work: Wimbledon on the Web 43
The Applications Portfolio 44
Success Factors 45
Competitive Advantage 45
Factors that Lead Firms to Seek Competitive Advantage 46
Evaluating IS 47
Productivity 47
Return on Investment and the Value of Information Systems 47
Careers in Information Systems 48
Operations 49
Systems Development 50
Support 50
Information Service Units 50
Typical IS Titles and Functions 51
Summary 52
Self-Assessment Test 53
Review Questions 54
Discussion Questions 54
Web Exercises 54
Case One: Hitwise and Web Data 54
Case Two: Innocent Drinks Stays in Touch 55
Case Three: Itochu Kenzai Uses IS to Reduce Organizational Waste 56
Notes 57
World Views Case: High Performance Computing in South Africa: Computing in Support of African Development 58
World Views Case: The Importance of Collaboration and Trust in Virtual Organizations

Part 2 Information Technology Concepts 63.
3. Hardware: Input, Processing, and Output Devices 65.
Principles 65
Learning Objectives 65
Why Learn About Hardware? 66
Hardware 66
Hardware Components 67
Processing and Memory Devices: Power, Speed, and Capacity 69
Processing Characteristics and Functions 69
Main Memory Characteristics and Functions 71
Multiprocessing 73
Parallel Computing 73
Secondary Storage 74
Access Methods 75
Devices 75
Ethical and Societal Issues: Backup Storage Media and Identity Theft 79
Enterprise Storage Options 80
Input and Output Devices 82
Characteristics and Functionality 82
Input Devices 83
Output Devices 89
Information Systems @ Work: Wireless Communication at House of Fraser 93
Types of Computer Systems, Selection, and Upgrading 94
Types of Computer Systems 94
Selecting and Upgrading Computer Systems 97
Summary 99
Self-Assessment Test 100
Review Questions 101
Discussion Questions 101
Web Exercises 101
Case One: British Airways Donates Old PCs 102
Case Two: Printing and Paper Waste 102
Case Three: Oyster Card Eases Commute 103
4. Software: Systems and Application Software 105.
Principles 105
Learning Objectives 105
Why Learn About Software? 106
An Overview of Software 106
Systems Software 106
Operating Systems 106
Current Operating Systems 110
Workgroup Operating Systems 112
Enterprise Operating Systems 113
Mobile Operating Systems 113
Information Systems @ Work: Gas Natural: Improving Customer Service with Mobile Software 115
Utility Programs 116
Middleware 118
Application Software 119
Overview of Application Software 119
Personal Application Software 121
Programming Languages 126
The Evolution of Programming Languages 127
Software Issues and Trends 129
Software Bugs 129
Copyrights and Licences 130
Open-Source Software 130
Ethical and Societal Issues: Weighing the Benefits of Open Source 131
Shareware, Freeware, and Public Domain Software 132
Software Upgrades 132
Global Software Support 132
Summary 133
Self-Assessment Test 135
Review Questions 135
Discussion Questions 136
Web Exercises 136
Case One: Open Source in South Africa 136
Case Two: El-Al Adopts Software Solution for Scheduling Complexity 137
Case Three: DreamWorks SKJ Goes Completely Open Source 138
Notes 139
5. Organizing and Storing Data 141.
Principles 141
Learning Objectives 141
Why Learn About Organizing Data? 142
Data Management and Data Modelling 142
Relationships Between Tables 144
Designing Relational Databases 145
Database Management Systems 149
Creating and Modifying the Database 149
Storing and Retrieving Data 150
Manipulating Data and Generating Reports 151
Database Administration 154
Selecting a Database Management System 154
Using Databases with Other Software 155
Database Applications 155
Linking Databases to the Internet 155
Data Warehouses and Data Mining 156
Ethical and Societal Issues: Google: Protecting User Data from the Government 157
Information Systems @ Work: Combating Spam E-mails 161
Distributed Databases 162
Online Analytical Processing (OLAP) 163
Visual, Audio, and Other Database Systems 164
Object-Oriented and Object-Relational Database Management Systems 165
Summary 166
Self-Assessment Test 167
Review Questions 167
Discussion Questions 168
Web Exercises 168
Case One: Databases and Web pages 168
Case Two: HandWriting Recognition with Nearest Neighbour 169
Case Three: Blackboard and WebCT 171
Notes 172
6. Computer Networks 173.
Principles 173
Learning Objectives 173
Why Learn About Computer Networks? 174
Telecommunications 174
Channel Bandwidth 175
Guided Transmission Media Types 175
Wireless Transmission Media Types 178
Telecommunications Hardware 181
Networks and Distributed Processing 182
Network Types 182
Ethical and Societal Issues: Sharing Workstations at Sisters of Mercy Health System Distributed Processing 188
Client/Server Systems 188
Communications Protocols and Hardware 189
Communications Software 191
The Internet 192
How the Internet Works 193
Internet Applications 195
The World Wide Web 195
Information Systems @ Work: E-Petitions and the U.K. Government 199
E-mail 203
Telnet and FTP 203
Intranets and Extranets 203
Summary 205
Self-Assessment Test 207
Review Questions 208
Discussion Questions 208
Web Exercises 208
Case One: Delivering People 209
Case Two: Firwood Paints on the Web 210
Case Three: FUJI Market Switches to Web-Based Ordering System 211
Notes 213
World Views Case: Australian Film Studio Benefits from Broadband Networks...and Location 214
World Views Case: Virtual Learning Environment Provides Instruction Flexibility 217

Part 3. Business Information Systems 221.
7. Operational Systems 223.
Principles 223
Learning Objectives 223
Why Learn About Operational Systems? 224
An Overview of Enterprise Systems:
Transaction Processing Systems and Enterprise Resource Planning 224
Traditional Transaction Processing Methods and Objectives 225
Transaction Processing Activities 228
Information Systems @ Work: Retailers Turn to Smart Carts 230
Traditional Transaction Processing Applications 231
Order Processing Systems 231
Purchasing Systems 233
Accounting Systems 234
Electronic and Mobile Commerce 234
Electronic Commerce 234
Mobile Commerce 237
Ethical and Societal Issues: Mobile Banking in South Africa 238
Enterprise Resource Planning, Supply Chain Management, and Customer Relationship Management 238
Advantages of ERP 240
Disadvantages of ERP Systems 241
Production and Supply Chain Management 242
Customer Relationship Management and Sales Ordering 243
Financial and Managerial Accounting 246
Hosted Software Model for Enterprise Software 247
International Issues Associated with Operational Systems 247
Different Languages and Cultures 247
Disparities in Information System Infrastructure 248
Varying Laws and Customs Rules 248
Multiple Currencies 248
Summary 249
Self-Assessment Test 250
Review Questions 251
Discussion Questions 251
Web Exercises 251
Case One: Nike Empowers Customers with Online Customization 252
Case Two: Japanese Mobile Music Service Provides Peek Into M-Commerce Future 253
Case Three: Pico Electronics Develops TPS to Support Rapid-Fire Transactions 254
Notes 255
8. Management Information and Decision Support Systems 257.
Principles 257
Learning Objectives 257
Why Learn About Management Information Systems and Decision Support Systems? 258
Decision Making and Problem Solving 258
Programmed versus Non-programmed Decisions 259
Optimization, Satisficing, and Heuristic Approaches 260
Sense and Respond 261
An Overview of Management Information Systems 261
Inputs to a Management Information System 262
Outputs of a Management Information System 263
Characteristics of a Management Information System 267
Functional MIS 267
Financial Management Information Systems 267
Manufacturing Management Information Systems 270
Marketing Management Information Systems 272
Human Resource Management Information Systems 274
Geographic Information Systems 277
Decision Support Systems 277
Characteristics of a Decision Support System 277
Capabilities of a Decision Support System 279
A Comparison of DSS and MIS 280
Components of a Decision Support System 280
Information Systems @ Work: Decision Support Systems in Retail Outlets 282
Group Support Systems 284
Ethical and Societal Issues: SOCA and Decision Support 285
Characteristics of a GSS that Enhance Decision Making 286
Executive Support Systems 287
Capabilities of Executive Support Systems 288
Summary 289
Self-Assessment Test 291
Review Questions 292
Discussion Questions 292
Web Exercises 292
Case One: French Perfume Company Relies on Management Information Systems to Unify Employees 293
Case Two: Transit New Zealand Reroutes Information to Avoid Traffic Jams 294
Case Three: Water Management in Africa
9. Knowledge Management and Specialized Information Systems 297.
Principles 297
Learning Objectives 297
Why Learn About Knowledge Management and Specialized Information Systems? 298
Knowledge Management Systems 298
Overview of Knowledge Management Systems 298
Obtaining, Storing, Sharing, and Using Knowledge 299
Technology to Support Knowledge Management 300
Artificial Intelligence 302
The Nature of Intelligence 302
The Difference Between Natural and Artificial Intelligence 304
Information Systems @ Work: Call Centers Use Artificial Intelligence to Improve Service to Customers 305
The Major Branches of Artificial Intelligence 306
Ethical and Societal Issues: Online Matchmaker eHarmony 313
Expert Systems 313
When to Use Expert Systems 314
Components of Expert Systems 315
Virtual Reality 321
Interface Devices 322
Forms of Virtual Reality 323
Virtual Reality Applications 323
Summary 324
Self-Assessment Test 325
Review Questions 326
Discussion Questions 326
Web Exercises 327
Case One: Global Building Supply Leader Gets the Recipe Right Every Time with Artificial Intelligence 327
Case Two: BMW Drives Virtual Prototypes 328
Case Three: Neural Network Predicts Movie Success 329
Notes 331
10. Pervasive Computing 333.
Principles 333
Learning Objectives 333
Why Learn About Pervasive Computing? 334
Introduction 334
Wi-Fi Hotspots 335
Mobile Devices 336
Pocket PC 336
Wearable Technology 338
Ethical and Societal Issues: Sousveillance 342
Information Systems @ Work: Logging's Legacy 343
E-Money 344
Tangible Media 346
Personal Robotics 348
Virtual Pets 350
Computer Supported Cooperative Work 352
Videoconferencing 353
Messaging 354
Interactive Whiteboards 355
Wikis 355
MMOGs 355
Blogs and Podcasts 356
Other Applications of Electronic and Mobile Commerce 357
Retail and Wholesale 357
Manufacturing 358
Marketing 359
Investment and Finance 360
Auctions 361
Anywhere, Anytime Applications of Mobile Commerce 361
Advantages of Electronic and Mobile Commerce 362
Summary 362
Self-Assessment Test 364
Review Questions 364
Discussion Questions 364
Web Exercises 365
Case One: Volunteers Create Vast Encyclopaedia 365
Case Two: Businesses Go in World 366
Case Three: Google Continues to Strive to Manage the Earth's Information 366
Notes 368
World Views Case: Kulula.com: The Trials and Tribulations of a South African Online Airline 369
World Views Case: How to do business in
Second Life 372

Part 4. Systems Development.
11. Systems Analysis 377.
Principles 377
Learning Objectives 377
Why Learn About Systems Analysis? 378
An Overview of Systems Development 378
Participants in Systems Development 378
Information Systems Planning and Aligning Organization and IS Goals 380
Establishing Objectives for Systems Development 382
Systems Development Lifecycles 384
The Traditional Systems Development Lifecycle 384
Prototyping 386
Information Systems @ Work: Australia's Maroochy Shire Council Gains Control Over Information Overload 388
Rapid Application Development, Agile Development, Joint Application Development, and Other Systems Development Approaches 389
The End-User Systems Development Lifecycle 390
Outsourcing and On-Demand Computing 391
Factors Affecting System Development Success 392
Involvement 392
Degree of Change 392
Managing Change 393
Quality and Standards 393
Use of Project Management Tools 395
Use of Computer-Aided Software Engineering (CASE) Tools 397
Systems Investigation 398
Initiating Systems Investigation 398
Participants in Systems Investigation 399
Feasibility Analysis 399
The Systems Investigation Report 400
Ethical and Societal Issues: Identity Cards in the U.K. 401
Systems Analysis 401
General Considerations 402
Participants in Systems Analysis 402
Data Collection and Analysis 402
Requirements Analysis 408
Critical Success Factors 408
The IS Plan 408
Screen and Report Layout 408
Requirements Analysis Tools 409
Object-Oriented Systems Analysis 409
The Systems Analysis Report 410
Summary 411
Self-Assessment Test 413
Review Questions 414
Discussion Questions 414
Web Exercises 414
Case One: Applebee's Simplifies Life for Managers while Improving Service to Customers 415
Case Two: German Dairy Products Manufacturer Upgrades Systems to Meet Organizational Goals 416
Case Three: Waeco Pacific Employees Work Together to Create New ERP System 417
Notes 419
12. Systems Design and Implementation 421.
Principles 421
Learning Objectives 421
Why Learn About Systems Design and Implementation? 422
Systems Design 422
Interface Design and Controls 423
Design of System Security and Controls 425
Generating Systems Design Alternatives 428
Freezing Design Specifications 433
The Contract 433
The Design Report 433
Information Systems @ Work: Open Source Development Requires Non-Traditional Methods 434
Systems Implementation 435
Acquiring Hardware From an IS Vendor 436
Acquiring Software: Make or Buy? 436
Acquiring Database and Telecommunications Systems 439
User Preparation 439
IS Personnel: Hiring and Training 439
Site Preparation 440
Data Preparation 440
Installation 440
Testing 440
Ethical and Societal Issues: E-Voting in the U.K. 441
Start-Up 442
User Acceptance 443
Systems Operation and Maintenance 444
Reasons for Maintenance 444
Types of Maintenance 445
The Request for Maintenance Form 445
Performing Maintenance 446
The Financial Implications of Maintenance 446
The Relationship Between Maintenance and Design 447
Systems Review 447
Types of Review Procedures 448
Factors to Consider During Systems Review 448
System Performance Measurement 449
Summary 450
Self-Assessment Test 452
Review Questions 452
Discussion Questions 453
Web Exercises 453
Case One: Technology Development at Harrods 453
Case Two: Port of Brisbane Develops System to Tighten Security 455
Case Three: New Systems Allow Timex to Innovate Faster and with Less Risk 456
Notes 457
World Views Case: Brandon Trust Develops MIS Capability for Improved Operations and Services 458
World Views Case: Strategic Enterprise Management at International Manufacturing Corporation (IMC) 461
Part 5. Information Systems in Business and Society.
13. Security, Privacy, and Ethical Issues in Information Systems 467.
Principles 467
Learning Objectives 467
Why Learn About Security, Privacy, and Ethical Issues in Information Systems? 468
Computer Waste and Mistakes 468
Preventing Computer-Related Waste and Mistakes 468
Information Systems @ Work: Scotch Spam 470
Computer Crime 471
Preventing Computer-Related Crime 479
Crime Prevention by the State 479
Crime Prevention by Organizations 479
Crime Prevention by Individuals 482
Using Intrusion Detection Software 482
Using Managed Security Service Providers (MSSPs) 482
Preventing Crime on the Internet 483
Privacy 483
Privacy and the Government 483
Privacy at Work 484
E-mail Privacy 484
Privacy and the Internet 484
Fairness in Information Use 485
Individual Efforts to Protect Privacy 486
The Work Environment 487
Health Concerns 487
Avoiding Health and Environmental Problems 488
Ethical and Societal Issues: Microsoft versus the EU 489
Ethical Issues in Information Systems 490
Summary 490
Self-Assessment Test 492
Review Questions 493
Discussion Questions 493
Web Exercises 493
Case One: Checking for Fraud in Online Gambling 494
Case Two: Johnson & Johnson Maintain Secure Global Connections 495
Case Three: Disgruntled Employee Plants Time Bomb in Get-Rich-Quick Scheme 496
Notes 497
World Views Case: Coping with a major IT security breach 498
World Views Case: Preparing IT Systems in the Public Sector for a Pandemic 500
Answers to Self-assessment Tests 503
Glossary 507
Index 519