Management Information Systems MANAGING THE DIGITAL FIRM

677 Pages·2013·28.82 MB·English

Could you increase your knowledge—
and raise your grade—if you…
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INTEGRATING BUSINESS WITH TECHNOLOGY
By completing the projects in this text, students will be able to demonstrate business knowledge, application
software proficiency, and Internet skills.These projects can be used by instructors as learning assessment tools
and by students as demonstrations of business, software, and problem-solving skills to future employers. Here
are some of the skills and competencies students using this text will be able to demonstrate:
Business Application skills: Use of both business and software skills in real-world business applications.
Demonstrates both business knowledge and proficiency in spreadsheet, database, and Web page/blog creation
tools.
Internet skills: Ability to use Internet tools to access information, conduct research, or perform online
calculations and analysis.
Analytical, writing and presentation skills: Ability to research a specific topic, analyze a problem, think
creatively, suggest a solution, and prepare a clear written or oral presentation of the solution, working either
individually or with others in a group.
Business Application Skills
BUSINESS SKILLS SOFTWARE SKILLS CHAPTER
Finance and Accounting
Financial statement analysis Spreadsheet charts Chapter 2*
Spreadsheet formulas Chapter 10
Spreadsheet downloading and formatting
Pricing hardware anrj software Spreadsheet formulas Chapter 5
Technology rent vs. buy decision Spreadsheet formulas Chapter 5*
Total Cost of Ownership (TCO) analysis
Analyzing telecommunications services anrj costs Spreadsheet formulas Chapter 7
Risk assessment Spreadsheet charts and formulas Chapter 8
Retirement planning Spreadsheet formulas and logical functions Chapter 11
Capital budgeting Spreadsheet formulas Chapter 14
Chapter 14*
Human Resources
Employee training and skills tracking Database design Chapter 13*
Database querying and reporting
Job posting database and Web page Database design Chapter 15
Web page design and creation
Manufacturing and Production
Analyzing supplier performance and pricing Spreadsheet date functions Chapter 2
Database functions
Data filtering
Inventory management Importing data into a database Chapter 6
Database querying and reporting
Bill of materials cost sensitivity analysis Spreadsheet data tables Chapter 12*
Spreadsheet formulas
Sales and Marketing
Sales trend analysis Database querying and reporting Chapter 1
Customer reservation system Database querying and reporting Chapter 3
Improving marketing decisions Spreadsheet pivot tables Chapter 12
Customer profiling Database design Chapter 6*
Database querying and reporting
Customer service analysis Database design Chapter 9
Database querying and reporting
Sales lead and customer analysis Database design Chapter 13
Database querying and reporting
Blog creation and design Blog creation tool Chapter 4
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Using online software tools to calculate shipping costs Chapter 1
Using online interactive mapping software to plan efficient transportation routes Chapter 2
Researching product information and evaluating Web sites for auto sales Chapter 3
Using Internet newsgroups for marketing Chapter 4
Researching travel costs using online travel sites Chapter 5
Searching online databases for products and services Chapter 6
Using Web search engines for business research Chapter 7
Researching and evaluating business outsourcing services Chapter 8
Researching and evaluating supply chain management services Chapter 9
Evaluating e-commerce hosting services Chapter 10
Using shopping bots to compare product price, features, and availability Chapter 11
Using online software tools for retirement planning Chapter 12
Redesigning business processes for Web procurement Chapter 13
Researching real estate prices Chapter 14
Researching international markets and pricing Chapter 15
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BUSINESS PROBLEM CHAPTER
Management analysis of a business Chapter 1
Value chain and competitive forces analysis Chapter 3
Business strategy formulation
Formulating a corporate privacy policy Chapter 4
Employee productivity analysis Chapter 7
Disaster recovery planning Chapter 8
Locating and evaluating suppliers Chapter 9
Developing an e-commerce strategy Chapter 10
Identifying knowledge management opportunities Chapter 11
Identifying international markets Chapter 15
*Dirt Bikes Running Case on MyMISLab
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Management
Information
Systems
MANAGING THE DIGITAL FIRM
TWELFTH EDITION
Kenneth C. Laudon
New York University
Jane P. Laudon
Azimuth Information Systems
Prentice Hall
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ISBN-13:978-0-13-214285-4
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A b o u t t h e A u t h o r s
Kenneth C. Laudon is a Professor of Information Systems at New York University’s Stern
School of Business. He holds a B.A. in Economics from Stanford and a Ph.D. from Columbia
University. He has authored twelve books dealing with electronic commerce, information
systems, organizations, and society. Professor Laudon has also written over forty articles
concerned with the social, organizational, and management impacts of information systems,
privacy, ethics, and multimedia technology.
Professor Laudon’s current research is on the planning and management of large-scale
information systems and multimedia information technology. He has received grants from
the National Science Foundation to study the evolution of national information systems at
the Social Security Administration, the IRS, and the FBI. Ken’s research focuses on enter-
prise system implementation, computer-related organizational and occupational changes in
large organizations, changes in management ideology, changes in public policy, and under-
standing productivity change in the knowledge sector.
Ken Laudon has testified as an expert before the United States Congress. He has been a
researcher and consultant to the Office of Technology Assessment (United States Congress),
Department of Homeland Security, and to the Office of the President, several executive
branch agencies, and Congressional Committees. Professor Laudon also acts as an in-house
educator for several consulting firms and as a consultant on systems planning and strategy
to several Fortune 500 firms.
At NYU’s Stern School of Business, Ken Laudon teaches courses on Managing the Digital
Firm, Information Technology and Corporate Strategy, Professional Responsibility (Ethics),
and Electronic Commerce and Digital Markets. Ken Laudon’s hobby is sailing.
Jane Price Laudon is a management consultant in the information systems area and the
author of seven books. Her special interests include systems analysis, data management,
MIS auditing, software evaluation, and teaching business professionals how to design and
use information systems.
Jane received her Ph.D. from Columbia University, her M.A. from Harvard University,
and her B.A. from Barnard College. She has taught at Columbia University and the New York
University Graduate School of Business. She maintains a lifelong interest in Oriental lan-
guages and civilizations.
The Laudons have two daughters, Erica and Elisabeth, to whom this book is dedicated.
iii
B r i e f C o n t e n t s
Part One Organizations, Management, and the Networked
Enterprise 1
Chapter 1 Information Systems in Global Business Today 2
Chapter 2 Global E-Business and Collaboration 40
Chapter 3 Information Systems, Organizations, and Strategy 78
Chapter 4 Ethical and Social Issues in Information Systems 120
Part Two Information Technology Infrastructure 161
Chapter 5 IT Infrastructure and Emerging Technologies 162
Chapter 6 Foundations of Business Intelligence: Databases and Information
Management 206
Chapter 7 Telecommunications, the Internet, and Wireless Technology 244
Chapter 8 Securing Information Systems 290
Part Three Key System Applications for the Digital Age 333
Chapter 9 Achieving Operational Excellence and Customer Intimacy: Enterprise
Applications 334
Chapter 10 E-Commerce: Digital Markets, Digital Goods 370
Chapter 11 Managing Knowledge 414
Chapter 12 Enhancing Decision Making 452
Part Four Building and Managing Systems 485
Chapter 13 Building Information Systems 486
Chapter 14 Managing Projects 526
Chapter 15 Managing Global Systems 558
(available on the Web at www.pearsonhighered.com/laudon)
References R 1
Glossary G 1
Photo and Screen Shot Credits P 1
Indexes I 1
iv
C o m p l e t e C o n t e n t s
Part One
Organizations, Management, and the Networked
Enterprise 1
Chapter 1 Information Systems in Global Business Today 2
!Opening Case: The New Yankee Stadium Looks to the Future 3
1.1 The Role of Information Systems in Business Today 5
How Information Systems Are Transforming Business 5 • What’s New In
Management Information Systems? 6 • Globalization Challenges and
Opportunities:A Flattened World 8
!Interactive Session: ManagementMISin Your Pocket 10
The Emerging Digital Firm 11 • Strategic Business Objectives of
Information Systems 12
1.2 Perspectives on Information Systems 15
What is an Information System? 15 • Dimensions of Information
Systems 17
!Interactive Session: TechnologyUPS Competes Globally with Information
Technology 22
It Isn’t Just Technology: A Business Perspective on Information Systems 24 •
Complementary Assets: Organizational Capital and the Right Business
Model 26
1.3 Contemporary Approaches to Information Systems 28
Technical Approach 29 • Behavioral Approach 29 • Approach of This Text:
Sociotechnical Systems 29
1.4 Hands-on MIS Projects 31
Management Decision Problems 31 • Improving Decision Making: Using
Databases to Analyze Sales Trends 31 • ImprovingDecision Making:Using
the Internet to Locate Jobs Requiring Information Systems Knowledge 32
Learning Track Modules:How Much Does IT Matter?; Information Systems and
Your Career, The Emerging Mobile Digital Platform 32
Review Summary 33 • Key Terms 34 • Review Questions 34 • Discussion
Questions 35 • Video Cases 35 • Collaboration and Teamwork: Creating a Web Site
for Team Collaboration 35
!Case Study:What’s the Buzz on Smart Grids? 36
Chapter 2 Global E-Business and Collaboration 40
!Opening Case: America’s Cup 2010:USAWins withInformation Technology 41
2.1 Business Processes and Information Systems 43
Business Processes 43 • How Information Technology Enhances Business
Processes 44
v