Business driven information systems

496 Pages·2012·75.841 MB·English

by  Paige Baltzan

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Business Driven
Information Systems

Paige Baltzan
Daniels College of Business, University of Denver
Business Driven
Information Systems
THIRD EDITION
BU TION SYSTEMS
Published by McGraw-H cGraw-Hill Companies, Inc., 1221 Aven
icas, New York , 10020. Copyright © 2012, 2009, 2008 by The McGraw-Hill Companies, I ights
reserved. No par tion may be reproduced or ibuted in any form or by any means, or stored in
a database or retrieval system, without the prior written consent of The McGraw-H , Inc., including,
but not limited to onic storage or transmission, or broadcast for distance learning.
Some ancillaries onic and print components, may not be available to customers outside the
United States.
This book is printed on acid-free paper.
1 2 3 4 5 6 7 8 9 0 RJE/RJE 1 0 9 8 7 6 5 4 3 2 1
ISBN 978–0–07–337682–0
MHID 0–07–337682–5
Vice president and editor-in-chief: Brent Gordon
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Librar g
B aige.
Business driven information systems / Paige Baltzan.—3rd ed.
p. cm.
Includes index.
ISBN
ISBN-10: 0-07-337682-5 (alk. paper)
1. Informa anagement. 2. Industrial management—Data processing. I. Title.
HD30.2.B357 2012
658.4'038011—dc22
2010048328
.com
DEDICATION
To Tony, Hannah, Sophie, and Gus:
What do you always remember?
That I Love You!
That I’m Proud of You!
Paige
BRIEF CONTENTS
MODULE ONE BUSINESS DRIVEN MIS
Chapter 1 Management Information Systems: Business Driven MIS
Chapter 2 Decisions and Processes: Value Driven Business
Chapter 3 Ebusiness: Electronic Business Value
Chapter 4 Ethics and Information Security: MIS Business Concerns
MODULE TWO TECHNICAL FOUNDATIONS OF MIS
Chapter 5 Infrastructures: Sustainable Technologies
Chapter 6 Data: Business Intelligence
Chapter 7 Networks: Mobile Business
MODULE THREE ENTERPRISE MIS
Chapter 8 Enterprise Applications: Business Communications
Chapter 9 Systems Development and Project Management: Corporate
Responsibility
APPENDIX A: Hardware and Software Basics
APPENDIX B: Networks and Telecommunications
APPENDIX C: Designing Databases
Technology Plug-In Overview
Apply Your Knowledge
Glossary
Notes
Credits
Index
viii Brief Contents
CONTENTS
module 1 CHAPTER 2
Decisions and Processes: Value Driven
Business Driven MIS 1
Business 40
Opening Case Study: Political
CHAPTER 1
Micro-Targeting: What
Management Information Systems:
Business Driven MIS 2 Decision Support Systems
Did for Barack Obama 41
Opening Case Study: The World
Section 2.1 Decision Support Systems 43
Is Flat: Thomas Friedman 3
MAKING BUSINESS DECISIONS 43
Section 1.1 Business Driven MIS 5 The Decision-Making Process 44
COMPETING IN THE INFORMATION AGE 5 Decision-Making Essentials 44
Data 6 METRICS: MEASURING SUCCESS 46
Information 8 Efficiency and Effectiveness Metrics 49
Business Intelligence 8 The Interrelationship Between Efficiency and
Knowledge 9 Effectiveness MIS Metrics 50
THE CHALLENGE: DEPARTMENTAL COMPANIES 10 SUPPORT: ENHANCING DECISION MAKING
THE SOLUTION: MANAGEMENT INFORMATION WITH MIS 51
SYSTEMS 11 Operational Support Systems 51
MIS Department Roles and Responsibilities 13 Managerial Support Systems 52
Section 1.2 Business Strategy 13 Strategic Support Systems 54
IDENTIFYING COMPETITIVE ADVANTAGES 13 THE FUTURE: ARTIFICIAL INTELLIGENCE 57
THE FIVE FORCES MODEL—EVALUATING Expert Systems 58
INDUSTRY ATTRACTIVENESS 15 Neural Networks 58
Buyer Power 16 Genetic Algorithms 59
Supplier Power 16 Intelligent Agents 60
Threat of Substitute Products or Services 17 Virtual Reality 60
Threat of New Entrants 17 Section 2.2 Business Processes 61
Rivalry among Existing Competitors 18 EVALUATING BUSINESS PROCESSES 61
Analyzing the Airline Industry 18 MODELS: MEASURING PERFORMANCE 63
THE THREE GENERIC STRATEGIES—CHOOSING SUPPORT: CHANGING BUSINESS PROCESSES
A BUSINESS FOCUS 19 WITH MIS 68
VALUE CHAIN ANALYSIS—EXECUTING BUSINESS Improving Operational Business
STRATEGIES 20 Processes—Automation 69
Learning Outcome Review 25 Improving Managerial Business
Opening Case Questions 26 Processes—Streamlining 70
Key Terms 27 Improving Strategic Business
Review Questions 27 Processes—Reengineering 71
Closing Case One: Apple—Merging Technology, THE FUTURE: BUSINESS PROCESS MANAGEMENT 74
Business, and Entertainment 28 Learning Outcome Review 75
Closing Case Two: Major League Baseball—The Real Opening Case Questions 77
Competitive Advantages 29 Key Terms 77
Critical Business Thinking 31 Review Questions 78
Entrepreneurial Challenge 33 Closing Case One: Defense Advanced Research Project
Apply Your Knowledge Business Projects 34 Agency (DARPA) Grand Challenge 79
AYK Application Projects 39 Closing Case Two: Second Life: Succeeding in Virtual Times 80
Contents ix
Critical Business Thinking 81 THE CHALLENGES OF BUSINESS 2.0 113
Entrepreneurial Challenge 83 Technology Dependence 113
Apply Your Knowledge Business Projects 84 Information Vandalism 114
AYK Application Projects 86 Violations of Copyright and Plagiarism 114
WEB 3.0: DEFINING THE NEXT GENERATION OF ONLINE
CHAPTER 3
BUSINESS OPPORTUNITIES 114
Ebusiness: Electronic Business Value 87
Egovernment: The Government Moves Online 115
Mbusiness: Supporting Anywhere Business 116
Opening Case Study: Social Media
Learning Outcome Review 116
and Ashton Kutcher 88
Opening Case Questions 118
Section 3.1 WEB 1.0: EBusiness 90 Key Terms 119
DISRUPTIVE TECHNOLOGIES AND WEB 1.0 90 Review Questions 119
Disruptive versus Sustaining Technology 90 Closing Case One: BBC Taps Web 3.0 for New Music Site 120
The Internet and World Wide Web—The Ultimate Closing Case Two: Amazon.com—Not Your Average
Business Disruptors 91 Bookstore 121
Web 1.0: The Catalyst for Ebusiness 92 Critical Business Thinking 122
ADVANTAGES OF EBUSINESS 94 Entrepreneurial Challenge 125
Expanding Global Reach 94 Apply Your Knowledge Business Projects 126
Opening New Markets 94 AYK Application Projects 130
Reducing Costs 96
CHAPTER 4
Improving Operations 96
Ethics and Information Security: MIS
Improving Effectiveness 96
Business Concerns 131
EBUSINESS MODELS 97
Business-to-Business (B2B) 98
Opening Case Study: E-Espionage 132
Business-to-Consumer (B2C) 98
Consumer-to-Business (C2B) 99 Section 4.1 Ethics 135
Consumer-to-Consumer (C2C) 99 INFORMATION ETHICS 135
Ebusiness Forms and Revenue-Generating Information Does Not Have Ethics, People Do 138
Strategies 99 DEVELOPING INFORMATION MANAGEMENT
EBUSINESS TOOLS FOR CONNECTING POLICIES 139
AND COMMUNICATING 101 Ethical Computer Use Policy 139
Email 101 Information Privacy Policy 140
Instant Messaging 101 Acceptable Use Policy 140
Podcasting 102 Email Privacy Policy 141
Videoconferencing 102 Social Media Policy 142
Web Conferencing 103 Workplace Monitoring Policy 143
Content Management Systems 103 Section 4.2 Information Security 144
THE CHALLENGES OF EBUSINESS 103 PROTECTING INTELLECTUAL ASSETS 145
Identifying Limited Market Segments 103 Security Threats Caused by Hackers and Viruses 147
Managing Consumer Trust 104 THE FIRST LINE OF DEFENSE—PEOPLE 149
Ensuring Consumer Protection 104 THE SECOND LINE OF DEFENSE—TECHNOLOGY 149
Adhering to Taxation Rules 104 People: Authentication and Authorization 149
Section 3.2 WEB 2.0: Business 2.0 104 Data: Prevention and Resistance 151
WEB 2.0: ADVANTAGES OF BUSINESS 2.0 105 Attack: Detection and Response 153
Content Sharing Through Open Sourcing 105 Learning Outcome Review 154
User-Contributed Content 106 Opening Case Questions 155
Collaboration Inside the Organization 106 Key Terms 156
Collaboration Outside the Organization 107 Review Questions 156
NETWORKING COMMUNITIES WITH BUSINESS 2.0 108 Closing Case One: Banks Banking on Security 157
Social Tagging 109 Closing Case Two: Hacker Hunters 158
BUSINESS 2.0 TOOLS FOR COLLABORATING 111 Critical Business Thinking 159
Blogs 111 Entrepreneurial Challenge 161
Wikis 112 Apply Your Knowledge Business Projects 162
Mashups 112 AYK Application Projects 164
x Contents