Principles of Business Information Systems

530 Pages·2015·45.906 MB·English

by  Ralph M. Stair, Thomas Chesney, George Walter Reynolds

PRINCIPLES OF
BUSINESS
INFORMATION
SYSTEMS
THIRD
EDITION
RALPH STAIR, GEORGE REYNOLDS
THOMAS CHESNEY
AND
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300
PRINCIPLES OF
BUSINESS
INFORMATION
SYSTEMS
THIRD
EDITION
RALPH STAIR,
GEORGE REYNOLDS
THOMAS CHESNEY
AND
Australia • Brazil • Mexico • Singapore • United Kingdom • United States
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300
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Brief Contents
1 Overview
1
1 An Introduction to Information Systems 3
2 Information Systems in Organizations 33
2 Information Technology Concepts
63
3 Hardware: Input, Processing, Output and Storage Devices 65
4 Software: Systems and Application Software 115
5 Organizing and Storing Data 157
6 Computer Networks 187
3 Business Information Systems
231
7 Operational Systems 233
8 Management Information and Decision Support Systems 265
9 Knowledge Management and Specialized Information Systems 305
10 Pervasive Computing 335
4 Systems Development
365
11 Systems Analysis 367
12 Systems Design and Implementation 409
5 Information Systems in Business and Society
447
13 Security, Privacy and Ethical Issues in Information Systems 449
iv Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300
Contents
Preface xiii Systems Development 19
AApppprrooaacchh ooff tthhee TTeexxtt xxiiiiii Systems Investigation and Analysis 20
GGooaallss ooff tthhiiss TTeexxtt xxiivv Systems Design, Implementation, and
Changes to the Second Edition xvii Maintenance and Review 20
SSttrruuccttuurree ooff tthhee TTeexxtt xxiixx Information Systems in Society, Business
About the Authors xxi and Industry 21
Acknowledgements xxi Ethical and Societal Issues: Robots on the
Digital Resources Page xxii Loose! 21
Security, Privacy and Ethical Issues in
Information Systems and the Internet 22
Computer and Information Systems
Literacy 23
1 Overview Information Systems in the Functional Areas
1
ofBusiness 24
Information Systems in Industry 24
Global Challenges in Information Systems 24
Summary 26
1 An Introduction to Information
Self-Assessment Test 28
Systems 3
Review Questions 28
Principles 3 Discussion Questions 28
Learning Objectives 3 Web Exercises 28
Why Learn About Information Systems? 4 Case One: When Online Surveys Go Awry 29
Case Two: Health Information Systems in South
What is an Information System? 4
Africa 30
What is a System? 4
Case Three: Australian Drones Join The Postal
What is Information? 6
Service 31
What is an Information System? 6
Notes 32
The Characteristics of Valuable Information 7
Manual and Computerized Information
Systems 8
2 Information Systems
Business Information Systems 12
in Organizations 33
Information Systems @ Work: Translating
Shakespeare into Dothraki 12 Principles 33
Enterprise Systems: Transaction Processing Learning Objectives 33
Systems and Enterprise Resource Why Learn About Information Systems
in Organizations? 34
Planning13
MIS and DSS 16 An Introduction to Organizations 34
Knowledge Management, Artificial Intelligence, Organizational Structures 36
Expert Systems and Virtual Reality 17 Organizational Change 39
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300
Ethical and Societal Issues: Customers Computer Systems: Integrating the Power
Outof Pocket After Direct Transfer Error 41 ofTechnology 66
Reengineering and Continuous Improvement 43 Hardware Components 67
User Satisfaction and Technology Hardware Components in Action 68
Acceptance44
Processing and Memory Devices: Power,
Information Systems @ Work: Neto Helps
Speed and Capacity 68
Australian Small Businesses Get Online45
Processing Characteristics and Functions 69
The Applications Portfolio 46
Memory Characteristics and Functions 70
Success Factors 47
Multiprocessing 72
Competitive Advantage 48 Parallel Computing 73
Factors That Lead Firms to Seek Competitive
Secondary Storage 74
Advantage 48
Access Methods 75
Evaluating IS 49 Secondary Storage Devices 75
Productivity 49 Enterprise Storage Options 78
Return on Investment and the Value
Input and Output Devices: The Gateway
ofInformation Systems 50
toComputer Systems 81
Careers in Information Systems 51 Characteristics and Functionality 81
Operations 51 Input Devices 82
Systems Development 51 Output Devices 87
Support 52
Computer System Types 91
Information Service Units 53
Portable Computers 93
Typical IS Titles and Functions 53
Nonportable Single-User Computers 95
Summary 54
Multiple-User Computer Systems 96
Self-Assessment Test 56
Information Systems @ Work: Printers Arrive
Review Questions 56
in the Operating Theatre 97
Discussion Questions 56
Green Computing 101
Web Exercises 56
Ethical and Societal Issues: Mobile
Case One: Cloud Computing and Social Media
Technology Fighting Human Trafficking103
Make Nail Polish Success 57
Summary 104
Case Two: Can You Solve It? 58
Self-Assessment Test 105
Case Three: Raining Wine from the Cloud 60
Review Questions 106
Notes 60
Discussion Questions 106
World Views Case: ABAZONG Training and
Web Exercises 106
Consulting (Pty) Ltd Helps Organizations and
Case One: Moore’s Law About to Be Overturned
Users With Information Security Consultation
106
and Training Awareness 61
Case Two: Sen.Se is Helping to Create the
Internet ofThings 108
Case Three: The €30 computer 109
Notes 110
Information
2
Technology
4 Software: Systems and Application
Concepts
63 Software 115
Principles 115
Learning Objectives 115
3 Hardware: Input, Processing, Output
Why Learn about Systems and Application
and Storage Devices 65 Software? 116
Principles 65 An Overview of Software 116
Learning Objectives 65 Systems Software 116
Why Learn About Hardware? 66 Application Software 117
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Supporting Individual, Group and Relationships Between Tables 160
Organizational Goals 117 Designing Relational Databases 161
Systems Software 118 Database Management Systems 165
Operating Systems 118 Creating and Modifying the Database 165
Current Operating Systems 122 Storing and Retrieving Data 166
Information Systems @ Work: Privacy for Manipulating Data and Generating Reports 167
Everyone, Everywhere 123 Database Administration 168
Workgroup Operating Systems 125 Selecting a Database Management System 169
Enterprise Operating Systems 126 Using Databases with Other Software 169
Operating Systems for Small Computers,
Database Applications 170
Embedded Computers and Special-
Linking Databases to the Internet 170
Purpose Devices 126
Big Data Applications 170
Utility Programs 127
Data Warehouses 171
Middleware 129
Ethical and Societal Issues: Three Words
Application Software 129 and a Few Symbols Cost a Business
Overview of Application Software 129 €40m 172
Personal Application Software 131 Data Mining 173
Mobile Application Software 135 Business Intelligence 174
Workgroup Application Software 136 Information Systems @ Work: The IBM
Enterprise Application Software 137 Quantum Experience 175
Application Software for Information, Decision Distributed Databases 177
Support andCompetitive Advantage 138 Online Analytical Processing (OLAP) 178
Programming Languages 138 Visual, Audio and Other Database Systems 179
Ethical and Societal Issues: Adblockers: Summary 180
Salvation for Web Users Or a High-Tech Self-Assessment Test 181
Protection Racket? 139 Review Questions 181
The Evolution of Programming Languages 140 Discussion Questions 181
Visual, Object-Oriented and Artificial Web Exercises 181
Intelligence Languages 140 Case One: Just Tell Me My Password
Already!182
Software Issues and Trends 142
Case Two: Reading Every Book That’s Ever Been
Software Bugs 142
Written 183
Copyrights and Licences 143
Case Three: Life Is Short. Protect Your Data 184
Freeware and Open-Source Software 143
Notes 185
Software Upgrades 145
Global Software Support 146
Summary 146 6 Computer Networks 187
Self-Assessment Test 148 Principles 187
Review Questions 149 Learning Objectives 187
Discussion Questions 149 Why Learn About Computer Networks? 188
Web Exercises 149
Telecommunications 188
Case One: Software Cuts Legal Costs 149
Channel Bandwidth 189
Case Two: Ready. Steady. Go! 151
Guided Transmission Media Types 189
Case Three: Software Error Dooms
Wireless Transmission Media Types 192
Spacecraft152
Telecommunications Hardware 195
Notes 153
Networks and Distributed Processing 197
Network Types 197
5 Organizing and Storing Data 157
Ethical and Societal Issues: The Great British
Principles 157 Data Grab 199
Learning Objectives 157 Distributed Processing 202
Why Learn About Organizing Data? 158 Client/Server Systems 203
Data Management and Data Modelling 158 Communications Software 204
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300
Securing Data Transmission 206 Information Systems @ Work: Fast Food
Virtual Private Network (VPN) 207 Chain Yonghe King Upgrades Their
POS244
The Internet 208
How the Internet Works 209 Traditional Transaction Processing
Applications 245
Internet Applications 211
Order Processing Systems 245
The World Wide Web 212
Purchasing Systems 247
Information Systems @ Work: Tech Firms
Accounting Systems 248
Plan the Highest Capacity Atlantic Data
Link 214 Electronic and Mobile Commerce 248
Email 218 Electronic Commerce 248
Telnet and FTP 219 Mobile Commerce 251
Cloud Computing 219 Ethical and Societal Issues: Tracking Staff
Beyond the Workplace 251
Intranets and Extranets 219
Summary 220 Production and Supply Chain
Self-Assessment Test 223 Management 253
Review Questions 223
Customer Relationship Management and
Discussion Questions 223
Sales Ordering 254
Web Exercises 223
Financial and Managerial Accounting 255
Case One: Instant Messaging Is Easier To
Hosted Software Model for Enterprise
Secure Than Email 224
Software256
Case Two: Anatomy Of A Hack 225
International Issues Associated with
Case Three: Digital Cartography Gets It
Operational Systems 256
Wrong226
Different Languages and Cultures 257
Notes 227
World Views Case: IT Purchase Decisions – Disparities in Information System
Infrastructure257
What Should You Buy? 229
Varying Laws and Customs Rules 257
Multiple Currencies 257
Summary 258
Self-Assessment Test 259

Business
Review Questions 259
3
Information Discussion Questions 260
Systems Web Exercises 260
231
Case One: Non-Linear Presentations 260
Case Two: When Stock Becomes a Liability 262
Case Three: Netflix Analytics Creates Content
7 Operational Systems 233 That We’ll Watch 263
Notes 264
Principles 233
Learning Objectives 233
8 Management Information and
Why Learn About
Operational Systems? 234 Decision Support Systems 265
Introduction 234 Principles 265
Enterprise Resource Planning 235 Learning Objectives 265
Advantages of ERP Systems 235 Why Learn About Management
Disadvantages of ERP Systems 237 InformationSystems and Decision Support
ERP for Small- and Medium-Sized Systems? 266
Enterprises(SMEs) 238 Decision Making and Problem Solving 266
Transaction Processing Systems 238 Programmed versus Non-Programmed
Traditional Transaction Processing Methods Decisions 267
and Objectives 239 Optimization, Satisficing and Heuristic
Transaction Processing Activities 241 Approaches 268
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300
Sense and Respond 268 Knowledge Management Systems 306
Big Data 269 Overview of Knowledge Management
Systems306
An Overview of Management Information
Obtaining, Storing, Sharing and Using
Systems 269
Knowledge 307
Inputs to a Management Information System 269
Technology to Support Knowledge
Outputs of a Management Information
Management 308
System270
Characteristics of a Management Artificial Intelligence 309
InformationSystem 273 The Nature of Intelligence 309
The Difference Between Natural and Artificial
Functional MIS 274
Intelligence 311
Financial Management Information Systems 275
Information Systems @ Work: Playing with
Manufacturing Management Information
Atoms 312
Systems 277
The Major Branches of Artificial
Marketing Management InformationSystems 280
Intelligence 312
Human Resource Management Information
Ethical and Societal Issues: Augmented
Systems 282
Reality’s Killer App 317
Geographic Information Systems 284
Expert Systems 318
Decision Support Systems 284
When to Use Expert Systems 318
Characteristics of a Decision Support
Components of Expert Systems 319
System285
Capabilities of a Decision Support System 286 Virtual Reality 325
A Comparison of a DSS and an MIS 287 Interface Devices 325
Components of a Decision Support System 287 Forms of Virtual Reality 326
Information Systems @ Work: Non-Linear Virtual Reality Applications 326
What-If Analysis in OpenOffice 288 Summary 327
Self-Assessment Test 328
Group Support Systems 291
Review Questions 329
Ethical and Societal Issues: Online Divorce
Discussion Questions 329
Form Error ‘Could Have Led to Unfair
Web Exercises 329
Settlements’ 292
Case One: A ‘Soft’ Octopus Robot 329
Characteristics of a GSS that Enhance
Case Two: 360° Video Makes Virtual Reality
Decision Making 293
Accessible 331
Executive Support Systems 294
Case Three: Game-Show-Winning AI Now
Capabilities of Executive Support Systems 295
Diagnoses Rare Diseases 332
Summary 296
Notes 333
Self-Assessment Test 298
Review Questions 298
10 Pervasive Computing 335
Discussion Questions 299
Web Exercises 299 Principles 335
Case One: Smart Meters Capture Big Data For Learning Objectives 335
Energy Decisions 299 Why Learn About Pervasive Computing? 336
Case Two: Taking Designs into the Next Introduction 336
Dimension 300
Wireless Internet Access 337
Case Three: Computer Games as Decision
Mobile Devices 337
Tools301
Smartphone 338
Notes 303
Wearable Technology 339
Ethical and Societal Issues: Pay Up Or Your
9 Knowledge Management and
Data Gets It! 340
Specialized Information Systems 305
Information Systems @ Work: The
Principles 305 Blockchain Creates Tamper-Proof
Learning Objectives 305 Transactions 342
Why Learn About Knowledge Management and E-Money 343
Specialized Information Systems? 306 Tangible Media 344
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300