Management Information Systems

by McLeod, Raymond; Schell, George

• ISBN13: 9780131889187
• ISBN10: 0131889184
• Edition: 10th
• Format: Paperback
• Copyright: 2006-04-26
• Publisher: Pearson

Summary

Management Information Systemsis recognized for logical organization and clear descriptions. Focusing on the role of managers within an organization, the volume emphasizes the development of computer-based Information Systems to support an organization's objectives and strategic plans. Focusing on the Systems Concepts, the Systems Approach is implemented throughout the text. The volume covers essential concepts such as using information technology to engage in electronic commerce, and information resources such as database management systems, information security, ethical implications of information technology and decision support systems with projects to challenge users at all levels of competence. For those involved in Management Information Systems.

Table of Contents

Preface	xxv
PART 1 ESSENTIAL CONCEPTS	1	(92)
Introduction to Information Systems	2	(22)
History of Information Systems	4	(2)
The Evolution in Computer Hardware	4	(1)
Smaller Computers	5	(1)
Moore's Law	6	(1)
Introduction to Computer Architecture	6	(2)
Introduction to Communications Architecture	8	(1)
The Evolution in Computer Applications	9	(5)
Transaction Processing Systems	9	(1)
Management Information Systems	10	(1)
Virtual Office Systems	11	(1)
Decision Support Systems	12	(1)
Enterprise Resource Planning Systems	12	(2)
Information System Users	14	(1)
Managers as Information System Users	14	(2)
Where Managers Are Found	14	(2)
What Managers Do	16	(1)
The Role of Information in Management Problem Solving	16	(2)
Problem Solving and Decision Making	16	(1)
Problem-Solving Phases	17	(1)
The Future of Information Technology	18	(1)
Highlights in MIS -- The World's Smallest Logic Circuit	19	(2)
Summary	19	(1)
Key Terms	20	(1)
Key Concepts	20	(1)
Questions	20	(1)
Topics for Discussion	21	(1)
Problems	21	(2)
Notes	23
Case Problem -- Freeway Ford	21	(1)
Case Problem -- Spending on Personal Computers	22	(2)
Information Systems for Competitive Advantage	24	(22)
The Firm and Its Environment	25	(3)
The General Systems Model of the Firm	26	(1)
The Firm in Its Environment	27	(1)
Environmental Resource Flows	27	(1)
Managing the Physical Resource Flows---Supply Chain Management	28	(1)
Electronic Systems	28	(1)
Supply Chain Management and Enterprise Resource Planning Systems	28	(1)
Competitive Advantage	28	(4)
Porter's Value Chains	29	(1)
The Dimensions of Competitive Advantage	30	(2)
Challenges from Global Competitors	32	(1)
The Special Need for Information Processing in an MNC	32	(1)
The Special Need for Coordination in an MNC	32	(1)
The Advantages of Coordination	33	(1)
Challenges in Developing Global Information Systems	33	(1)
Politically Imposed Constraints	33	(1)
Cultural and Communications Barriers	33	(1)
Technological Problems	34	(1)
Lack of Support from Subsidiary Managers	34	(1)
Knowledge Management	34	(2)
The Dimensions of Information	34	(1)
The Changing Nature of Knowledge Management	35	(1)
Strategic Planning for Information Resources	36	(1)
The Chief Information Officer and the Chief Technology Officer	36	(1)
Strategic Planning for the Enterprise	37	(1)
Highlights in MIS -- 9/11 Not the End of Globalization	37	(7)
Strategic Planning for Business Areas	38	(1)
Core Content of a Strategic Plan for Information Resources	39	(1)
An Example Strategic Plan for Information Resources	39	(2)
Summary	41	(1)
Key Terms	42	(1)
Key Concepts	43	(1)
Questions	43	(1)
Topics for Discussion	43	(1)
Problems	43	(2)
Notes	45
Case Problem -- Water Equipment Technology Company of Mexico	44	(1)
Case Problem -- A Day Late, and Thousands of Dollars Short	44	(2)
Using Information Technology to Engage in Electronic Commerce	46	(26)
Electronic Commerce	47	(3)
E-Commerce Beyond the Boundary of the Firm	48	(1)
Anticipated Benefits from E-Commerce	48	(1)
E-Commerce Constraints	49	(1)
Scope of E-Commerce	49	(1)
The Path to E-Commerce	50	(1)
Business Intelligence	50	(2)
External Databases	50	(1)
Search Engines	51	(1)
E-Commerce Strategy and Interorganizational Systems	52	(1)
The Interorganizational System	52	(4)
IOS Benefits	52	(1)
EDI	53	(1)
Extranet	53	(1)
Proactive and Reactive Business Partners	54	(1)
Adoption Influences	54	(1)
Indirect IOS Benefits	55	(1)
B2C Strategies for E-Commerce	56	(3)
Digital Products	56	(1)
Physical Products	56	(1)
Virtual Versus Hybrid Sales	57	(2)
Electronic Government	59	(1)
The Next Step for E-Commerce	59	(1)
Mobile Commerce	59	(1)
Business-Class Wireless Everywhere	60	(1)
Using the Internet	60	(2)
The World Wide Web	60	(2)
Highlights in MIS -- Get Your Red Hot Web Domain Here	62	(1)
Cyberspace and the Information Superhighway	62	(1)
Internet Standards	62	(1)
Business Applications of the Internet	63	(1)
E-Commerce and Hospital Supply Chain Management	63	(1)
Retailing Applications	63	(1)
Suggestions for Successful Internet Use	64	(1)
Future Impact of the Internet on Business	65	(3)
Summary	65	(1)
Key Terms	66	(1)
Key Concepts	66	(1)
Questions	67	(1)
Topics for Discussion	67	(1)
Problems	67	(3)
Notes	70
Case Problem -- A Buck More	68	(2)
Case Problem -- Less Painful Parking Tickets	70	(2)
System Users and Developers	72	(21)
The Business Organization	73	(1)
Information Systems Support for the Organization	73	(1)
The Information Services Organization	74	(1)
The Information Resources	74	(1)
The Information Specialists	74	(1)
The Information Services Organizational Structure	75	(3)
The Trend from Centralized to Decentralized Structure	75	(1)
Innovative Organizational Structures	76	(2)
End-User Computing	78	(1)
Users as an Information Resource	79	(1)
Benefits of End-User Computing	79	(1)
Risks of End-User Computing	80	(1)
Education Criteria, Knowledge, and Skills Needed for Careers in Information Services	80	(2)
Systems Development Knowledge	81	(1)
Systems Development Skills	81	(1)
Managing the Knowledge Represented by the Firm's Information Resources	82	(1)
Office Automation	82	(2)
A Shift from Clerical to Managerial Problem Solving	83	(1)
The Virtual Office	84	(1)
Telecommuting	84	(1)
Hoteling	84	(1)
Advantages of the Virtual Office	85	(1)
Disadvantages of the Virtual Office	85	(1)
The Virtual Organization	85	(1)
The Societal Impact of the Virtual Organization	85	(1)
Highlights in MIS -- Videoconferencing Alternatives	86	(1)
Putting the System Users and Information Specialists in Perspective	87	(1)
Highlights in MIS -- A Successful KM Development Project at Nortel Networks	87	(4)
Summary	89	(1)
Key Terms	90	(1)
Key Concepts	90	(1)
Questions	90	(1)
Topics for Discussion	90	(1)
Problems	90	(1)
Notes	91	(1)
Case Problem -- Cyber U	91	(2)
PART 2 INFORMATION RESOURCES	93	(116)
Computing and Communications Resources	94	(28)
Hardware	95	(2)
Processors	95	(2)
Memory	97	(1)
Highlights in MIS -- Blue Gene	97	(6)
Storage	98	(2)
Input Devices	100	(1)
Output Devices	101	(1)
Multimedia	102	(1)
Personal Computing Devices	103	(3)
Cell Phones with Interactive Messaging and Video	103	(1)
Smart Cell Phones	103	(1)
Home Networks	104	(2)
Home Computing Security	106	(1)
Highlights in MIS -- The Impact of Wireless Networks---Convenient but Vulnerable	106	(2)
Software	108	(1)
System Software	108	(1)
Highlights in MIS -- Slow Computers and Spyware	108	(3)
Application Software	109	(1)
The Role of User-Friendly Software	110	(1)
Communications	111	(4)
Public Connections	111	(1)
Private Lines	112	(1)
Virtual Private Networks	112	(1)
Communications---Networks	113	(1)
Protocols for Computer Communication	113	(2)
Packets	115	(1)
Internet Network Addresses	115	(1)
Network Types	115	(3)
Local Area Networks	116	(1)
Internet	117	(1)
The Convergence of Computing and Communications	118	(2)
Summary	118	(1)
Key Terms	119	(1)
Key Concepts	119	(1)
Questions	120	(1)
Topics for Discussion	120	(1)
Problems	120	(1)
Notes	121
Case Problem -- Special Salmon	120	(2)
Database Management Systems	122	(28)
Data Organization	123	(5)
The Data Hierarchy	123	(1)
The Spreadsheet as a Simple Database	124	(1)
Flat Files	124	(2)
Key Fields	126	(1)
Relating Tables	127	(1)
Database Structures	128	(3)
Hierarchical Database Structures	128	(1)
Network Database Structures	129	(1)
Relational Database Structures	129	(2)
A Relational Database Example	131	(4)
The Schedule Database	131	(3)
The Database Concept	134	(1)
Creating a Database	135	(5)
Determine Data Needs	135	(1)
Data Modeling Techniques	136	(1)
Entity-Relationship Diagrams	136	(2)
Class Diagrams	138	(2)
Using the Database	140	(4)
Reports and Forms	140	(3)
Queries	143	(1)
Structured Query Language	143	(1)
Advanced Database Processing	144	(1)
Highlights in MIS -- It Can Be Healthy to Mine the Corporate Database	144	(1)
Database Personnel	145	(1)
Database Administrator	145	(1)
Database Programmer	145	(1)
End User	145	(1)
Putting Database Management Systems in Perspective	146	(3)
DBMS Advantages	146	(1)
DBMS Disadvantages	146	(1)
Summary	147	(1)
Key Terms	147	(1)
Key Concepts	148	(1)
Questions	148	(1)
Topics for Discussion	148	(1)
Problems	148	(1)
Notes	149	(1)
Case Problem -- Pets to People	149	(1)
Systems Development	150	(32)
The Systems Approach	151	(5)
A Series of Steps	152	(1)
Preparation Effort	152	(1)
Definition Effort	153	(2)
Solution Effort	155	(1)
The Systems Development Life Cycle	156	(1)
The Traditional SDLC	156	(1)
Prototyping	157	(2)
Types of Prototypes	157	(1)
The Attraction of Prototyping	158	(1)
Potential Pitfalls of Prototyping	158	(1)
Rapid Application Development	159	(2)
The Essential Ingredients of RAD	160	(1)
Phased Development	161	(1)
The Phased Development Stages	161	(1)
Module Phases	162	(1)
Business Process Redesign	162	(4)
Strategic Initiation of BPR Projects	163	(1)
Reverse Engineering	164	(1)
Reengineering	165	(1)
Selection of the BPR Components	165	(1)
Putting the Traditional SDLC, Prototyping, RAD, Phased Development, and BPR in Perspective	166	(1)
Systems Development Tools	166	(1)
Data-Driven Versus Process-Driven Approaches	166	(1)
Process Modeling	166	(5)
Data Flow Diagrams	167	(3)
Use Cases	170	(1)
Use Case Guidelines	171	(1)
When to Use Data Flow Diagrams and Use Cases	171	(1)
Project Management	171	(5)
The MIS Steering Committee	171	(2)
Project Leadership	173	(2)
The Project Management Mechanism	175	(1)
Web Support for Project Management	175	(1)
Project Cost Estimating	176	(1)
Cost-Estimating Inputs	176	(1)
Cost-Estimating Tools and Techniques	176	(1)
Cost-Estimating Outputs	176	(1)
Highlights in MIS -- A Quick Fix for IT at the FBI? Think Again	177	(3)
Summary	177	(1)
Key Terms	178	(1)
Key Concepts	178	(1)
Questions	179	(1)
Topics for Discussion	179	(1)
Problems	179	(2)
Notes	181
Case Problem -- Saint James Hospital	180	(2)
Information in Action	182	(27)
Information as a Critical Success Factor	183	(1)
The Transaction Processing System	183	(5)
System Overview	184	(1)
The Major Subsystems of the Distribution System	185	(1)
Systems that Fill Customer Orders	186	(1)
Systems that Order Replenishment Stock	186	(1)
Systems that Perform General Ledger Processes	187	(1)
Putting the Transaction Processing System in Perspective	188	(1)
Organizational Information Systems	188	(6)
The Marketing Information System	189	(1)
The Human Resources Information System	190	(1)
The Manufacturing Information System	190	(1)
The Financial Information System	191	(1)
The Executive Information System	191	(3)
Customer Relationship Management	194	(1)
Data Warehousing	194	(5)
Data Warehouse Characteristics	194	(1)
The Data Warehousing System	195	(1)
How Data Are Stored in the Warehouse Data Repository	196	(3)
Information Delivery	199	(2)
OLAP	201	(1)
Data Mining	202	(1)
Hypothesis Verification	203	(1)
Knowledge Discovery	203	(1)
Putting Data Warehousing in Perspective	203	(1)
Highlights in MIS -- Casinos Lead the Way in Data Mining	203	(3)
Summary	204	(1)
Key Terms	205	(1)
Key Concepts	205	(1)
Questions	205	(1)
Topics for Discussion	206	(1)
Problems	206	(1)
Notes	207
Case Problem -- Great Lakes Boat and Marine	206	(3)
PART 3 MANAGING INFORMATION AND TECHNOLOGY	209	(66)
Information Security	210	(20)
Organizational Needs for Security and Control	211	(1)
Information Security	212	(1)
Objectives of Information Security	212	(1)
Management of Information Security	212	(1)
Information Security Management	212	(1)
Threats	213	(2)
Internal and External Threats	214	(1)
Accidental and Deliberate Acts	214	(1)
Types of Threats	215	(1)
Risks	215	(1)
Unauthorized Disclosure and Theft	215	(1)
Unauthorized Use	215	(1)
Unauthorized Destruction and Denial of Service	215	(1)
Unauthorized Modification	215	(1)
E-Commerce Considerations	216	(1)
The ``Disposable'' Credit Card	216	(1)
Visa's Required Security Practices	216	(1)
Risk Management	217	(1)
Information Security Policy	218	(1)
Controls	219	(1)
Technical Controls	219	(3)
Access Controls	219	(1)
Intrusion Detection Systems	220	(1)
Firewalls	220	(2)
Cryptographic Controls	222	(1)
Physical Controls	222	(1)
Putting the Technical Controls in Perspective	222	(1)
Formal Controls	222	(1)
Informal Controls	222	(1)
Achieving the Proper Level of Controls	222	(1)
Government and Industry Assistance	223	(1)
Government Legislation	223	(1)
Industry Standards	224	(1)
Professional Certification	224	(1)
Information Systems Audit and Control Association	224	(1)
International Information System Security Certification Consortium	224	(1)
SANS Institute	224	(1)
Putting Information Security Management In Perspective	225	(1)
Business Continuity Management	225	(1)
The Emergency Plan	225	(1)
The Backup Plan	225	(1)
The Vital Records Plan	225	(1)
Putting Business Continuity Management in Perspective	226	(1)
Highlights in MIS -- The Newest Threat to the Corporation: Cyberextortion	226	(3)
Summary	226	(2)
Key Terms	228	(1)
Key Concepts	228	(1)
Questions	228	(1)
Topics for Discussion	228	(1)
Problems	228	(1)
Notes	229	(1)
Case Problem -- Confidential Reports	229	(1)
Ethical Implications of Information Technology	230	(20)
Prescriptive Versus Descriptive Coverage	231	(1)
Morals, Ethics, and Laws	232	(2)
Morals	232	(1)
Ethics	232	(1)
Laws	232	(1)
Computer Legislation in the United States	233	(1)
Software Patents	233	(1)
Software Patent Legislation in the European Union	233	(1)
Personal Privacy Legislation in the People's Republic of China	234	(1)
Putting Morals, Ethics, and Laws in Perspective	234	(1)
Need for an Ethics Culture	234	(2)
How the Ethical Culture Is Imposed	234	(2)
Putting the Credos, Programs, and Codes in Perspective	236	(1)
Reasons for a Computer Ethic	236	(2)
Reasons for the Importance of Computer Ethics	236	(1)
Social Rights and the Computer	237	(1)
Right to Privacy	237	(1)
Right to Accuracy	237	(1)
Right to Property	237	(1)
Right to Access	238	(1)
Information Auditing	238	(2)
The Importance of Objectivity	239	(1)
Types of Auditing Activity	239	(1)
The Internal Audit Subsystem	240	(1)
Achieving Ethics in Information Technology	240	(3)
Codes of Ethics	240	(2)
ACM Software Engineering Code of Ethics and Professional Practice	242	(1)
Computer Ethics Education	243	(1)
Ethics and the CIO	243	(1)
Life Under Sarbanes-Oxley	244	(2)
SOX 404	245	(1)
SOX 409	245	(1)
SOX and COBIT	245	(1)
Putting Sarbanes-Oxley in Perspective	245	(1)
Highlights in MIS -- SOX Lose Season Opener	246	(2)
Summary	246	(1)
Key Terms	247	(1)
Key Concepts	247	(1)
Questions	247	(1)
Topics for Discussion	248	(1)
Problems	248	(1)
Notes	249
Case Problem -- National Foods	248	(2)
Decision Support Systems	250	(25)
What It's All About---Decision Making	251	(1)
Problem Solving and Decision Making	251	(1)
Problem-Solving Phases	251	(1)
Problem-Solving Frameworks	252	(1)
The Systems Approach	252	(1)
The Importance of a Systems View	252	(1)
Building on the Concepts	252	(3)
Elements of a Problem-Solving Process	252	(2)
Selecting the Best Solution	254	(1)
Problems Versus Symptoms	254	(1)
Problem Structure	254	(1)
Types of Decisions	255	(1)
Decision Support Systems	255	(1)
A DSS Model	256	(1)
Mathematical Modeling	256	(7)
Types of Models	256	(2)
Uses of Models	258	(1)
Classes of Mathematical Models	258	(1)
Simulation	259	(1)
Simulation Technique	259	(1)
Format of Simulation Output	259	(1)
A Modeling Example	259	(1)
Model Input	260	(1)
Model Output	261	(1)
Advantages and Disadvantages of Modeling	262	(1)
Mathematical Modeling Using Electronic Spreadsheets	263	(2)
Static Modeling Capability	264	(1)
Dynamic Modeling Capability	264	(1)
Playing the ``What-If'' Game	264	(1)
The Spreadsheet Model Interface	265	(1)
Artificial Intelligence	265	(3)
History of AI	265	(1)
Areas of AI	266	(1)
The Appeal of Expert Systems	266	(1)
The Expert System Configuration	266	(2)
Group Decision Support Systems	268	(2)
The GDSS Concept	268	(1)
How the GDSS Contributes to Problem Solving	268	(1)
GDSS Environmental Settings	269	(1)
Putting the DSS in Perspective	270	(1)
Highlights in MIS -- Fix It before It Breaks	270	(3)
Summary	271	(1)
Key Terms	272	(1)
Key Concepts	272	(1)
Questions	272	(1)
Topics for Discussion	272	(1)
Problems	273	(1)
Notes	274
Case Problem -- Heritage Homes	273	(2)
PART 4 PROJECTS	275	(151)
Everyday Technology Skills	276	(10)
Operating Systems	277	(2)
Microsoft Windows	277	(1)
Other Operating Systems	278	(1)
Application Software	279	(3)
Identification	279	(1)
Updates	280	(1)
Tracking Changes	281	(1)
Password Protection	281	(1)
Viruses and Spyware	282	(1)
Threats and Hoaxes	282	(1)
Protection	283	(1)
E-Mail	283	(2)
Implications in the Workplace	283	(1)
E-mail Etiquette at Work	284	(1)
Personal E-Mail Accounts	284	(1)
Summary	285	(1)
Assignment	285	(1)
Notes	285	(1)
Web/HTML Project Using Microsoft® FrontPage	286	(22)
Example	287	(1)
Making the FrontPage Document	288	(11)
Bulleted Lists	291	(1)
Tables	292	(1)
Adding an Image	293	(2)
Numbered Lists	295	(1)
Web Page Links	295	(4)
View the Web Page	299	(1)
Advantages and Disadvantages of Frontpage	300	(7)
Assignment	307	(1)
Web/HTML Project Using Notepad	308	(10)
Example	309	(1)
Sections of an HTML Document	310	(1)
Making the Notepad Document	311	(3)
Saving the Example	314	(1)
View the Web Page	314	(1)
Advantages and Disadvantages of Using Notepad	315	(1)
Assignment	316	(2)
Web/HTML Student Survey Form	318	(8)
Example	319	(1)
Sections of the Example Form	320	(3)
Saving the Example	323	(1)
View the Web Page	323	(1)
Assignment	324	(2)
Web/HTML Book Purchase Form	326	(8)
Example	327	(1)
Sections of the Example Form	328	(3)
Saving the Example	331	(1)
View the Web Page	331	(1)
Assignment	332	(2)
Spreadsheet Basics	334	(8)
Example	335	(2)
Discount Datasheet	337	(1)
Invoice Datasheet	337	(3)
Saving the Example	340	(1)
Assignment	340	(2)
Spreadsheets with Data Capture---Minivan Example	342	(12)
Example	343	(1)
Options Datasheet	344	(1)
Car Datasheet	345	(2)
Calculating Values Based on Choices	347	(1)
Calculating Monthly Payments	348	(1)
Showing the Profit	349	(1)
Saving and Editing the Example	350	(1)
Assignment	351	(3)
Spreadsheets with Data Capture---College Computing Example	354	(12)
Example	355	(1)
Prices Datasheet	356	(1)
Computers Datasheet	356	(4)
Calculating Values Based on Choices	360	(1)
Choosing the Best Buy	361	(2)
Saving and Editing the Example	363	(1)
Assignment	364	(2)
Database Forms and Reports	366	(14)
Example	367	(1)
Textbook Database	367	(11)
Creating a Form	368	(5)
A Report from One Table	373	(2)
A Report from Multiple Tables	375	(3)
Assignment	378	(2)
Database Queries---Textbook Database	380	(16)
Example	381	(1)
Textbook Database	382	(12)
Creating a Query with Constraints	382	(4)
Parameter Query	386	(1)
Inexact Constraints	387	(1)
Queries Requiring More Than One Table	388	(3)
Data Field Concatenation and Calculation	391	(3)
Assignment	394	(2)
Database Queries---ClassProjects Database	396	(16)
Example	397	(1)
ClassProjects Database	398	(13)
Creating a Query with Constraints	399	(3)
Parameter Query	402	(1)
Inexact Constraints	403	(1)
Queries Requiring More Than One Table	403	(5)
Data Field Concatenation and Calculation	408	(3)
Assignment	411	(1)
Reports Based on Queries	412	(14)
Example	413	(1)
Textbook Database	414	(1)
Creating a Query and Report to Show Books Required for Classes	415	(5)
Creating the Query for Books	415	(3)
Creating the Report of Books Required for Classes	418	(2)
Creating a Report From a Parameter Query	420	(3)
Creating the Parameter Query	421	(1)
Creating the Report Based on the Parameter Query	422	(1)
Assignment	423	(3)
Glossary	426	(9)
Index	435