1 Introduction to Information
Technology and Management
Introduction 2
Tech Talk: Information Technology 2
Information Technology Issues 3
Tech Talk: Capacity 4
Tech Talk: information Technology
Infrastructure 6
The Music Industry: 1999-2001 7
Tech Talk: Instant Messaging and Chat 9
Industry Stakeholders 9
Major Themes of the Book 12
Organizational Responsiveness 12
Competitive Strategy 13
Business Brief 1.1: Fidelity Sharpens Its
Technological Edge 15
Global Perspective 16
Business Brief 1.2: AOL to Unveil China
Venture 17
Ethical Issues 18
Business Brief 1.3: Big Bro Is Eyeing
Your E-Mail 18
Impact on Careers 19
Tech Talk: HyperText kinks 19
Tech Talk: System Interface 20
Framework for the Book 21
Summary 23
Case Assignment: Watch Your Speed 25
Reflections Case: The Rosetta Disk 26
Foundations of Information
Technology 29
2 Software and Hardware 31
Introduction 32
Performance Criteria 34
Performance Trade-Offs 35
Tech Talk: Moore's Law 35
Software 38
Systems Software 39
Business Brief 2.1: Microsoft Uses Fee Code 42
Application Software 43
Hardware 47
Software Horror Stories 47
Business Brief 2.2: Buggy Software 48
Software Tips! 48
Input Devices: Accepting Data 48
Tech Talk: Computer Sizes 49
System Unit and Motherboard 51
Processor and Main Memory:
Processing Data 54
Tech Talk: Measuring Data and Storage
Capacity 55
Tech Talk: Measuring Internal Clock
Speed 56
Tech Talk: Measuring the Speed of Executing
Instructions 56
Business Brief 2.3: Chip Breakthrough 57
Computer Design 58
Secondary Storage: Storing Data 58
Tech Talk: Measuring Time 58
Output Devices: Presenting Data 61
Hardware Tips! 63
Hardware Horror Stories 64
Concluding Comments 64
Summary 65
Case Assignment I: Factory of the Future? 68
Case Assignment I1: Pull the Plug on
KaZaA? 69
Reflections Case: Virtual Immortality 70
3 Content Management 72
Introduction 73
NextCard, Inc. 73
Data Representation 73
File Access 75
Transaction Processing 78
Database Processing 80
Data Capture and Processing 82
Content as a Corporate Resource 83
Business Brief 3.1: Keeping Tabs on the
81ood Bank 84
Database Organization-Relational
Model 84
Maintaining Data in a Database 86
Retrieving Information from a
Relational Database 87
Advanced Database Query
Interfaces 88
Presenting Information from a Database 90
Business Brief 3.2: Giving the Web a Voice 91
Performance Criteria for Database
Management Systems 92
Object-Oriented Database Model 93
Object-Relational Database Management Systems 94
Data Warehouses 94
Business Brief 3.3: BB~T 97
Data Mining 98
Business Brief 3.4: E.piphany? 102
Additional Data Management Issues 102
Distributed Databases 102
Data Security 103
Summary 104
Case Assignment: DoubleClick 106
Reflections Case: The Genome Project 108
Practicum Case Assignment: Green[and
Commercial Rentals 109
Technical Note 1: Data Modeling and
Entity-Relationship Diagrams 112
Creating a Data Model 117
Moving from a Data Model to a Database
Design 117
4 Telecommunications and Networking 120
Introduction 121
Organizational Communication 122
Formal and Informal Communication 122
Communication Dyads 123
Business Brief 4.1: Phony Press Release
Lands Hoaxer in Jail 124
Distortion in Organizational
Communication 125
Types of Distortion 126
Information Overload 129
Business Brief 4.2: Slowed to a Dead HaR 130
Analog and Digital Data
Representation 130
Telecommunications 131
The Changing Face of
Telecommunications 133
Tech Talk: Data Channels 134
Protocols 136
ISDN 136
DSL 136
Tech Talk: Data Transfer Rates 137
Cable Modems 137
T~Carrier System 138
Frame Relay 139
Fast Ethernet 139
Wireless 139
Business Brief 4.3: China Builds
Telecommunications Infrastructure 142
Networks 142
Components of a LAN 144
LAN Protocols t47
LAN Topologies 148
Intranets and Extranets 148
Network Horror Stories 152
Summary 153
Case Assignment: Guerrilla Wireless
Networking for the Masses 155
Reflections Case: Ubiquitous Computing 157
5 The internet and Electronic Commerce 160
Introduction 161
Evolution of the Intemet 162
Intemet Building Blocks 164
Internet Addressing 164
Electronic Mail, Newsgroups, List Services 165
Telnet and Ftp 166
World Wide Web 167
Company Example: NextCard 168
Additional Internet Technologies 170
Markup Languages 170
Dynamically Generated Web Pages 172
Web Portals 174
Search Engines 175
Intelligent Agents 175
Industry Example: Brokerage 176
Business Opportunities 179
Business-to-Consumer 179
Business-Based Markets 180
Business Brief 5.1: Plugged-in Fans Buy Hot Tickets in Web Presales 181
Consumer-Based Markets 181
Business-to-Business 182
Business Brief 5.2: Selling Backpacks on the Web Is Harder Than It Looks 183
The Mobile Internet 184
Internet Technologies and Business Operations 186
Intemet Issues 186
Security 187
Privacy 189
Consumer Protection 189
Censorship 190
Business Brief 5.3: U.S. Firms Concerned about Global Legal Pact 191
Intellectual Property Rights 191
Interactive Activities 192
Summary 194
Case Assignment: Wireless Banking Strategy 196
O rganizational Uses of InformationSystems 199
6 information Systems and Organizational Competition 201
Introduction 202
Components of an Information System 202
Purpose 202
Roles 203
Procedures 204
Content 205
Information Technology 206
Competition and Strategy 207
Business Brief 6.1: Mr. Cozzette Buys a Computer 210
Understanding Strategy 211
SWOT Analysis 212
The Value Chain 212
Business Brief 6.2: General Motors: From Bricks to Clicks 215
Porter's Five-Forces Model 216
Case Example: Marshall Industries 219
Management Objectives for Information Systems 221
Competitive Vulnerabilities 225
Positioning the I/T Organization 225
Managing Emerging Technologies 226
Summary 229
Case Assignment I: Demco Uses I/T to Help Customers 231
Case Assignment Il: Pollution Solutions (A): One Person's Waste... 232
7 information Systems and
7 Organizational Responsiveness 236
Introduction 237
A Framework to Achieve OrganizatiOnal Responsiveness 239
Organizations as Systems 239
The Elements of Organizational Responsiveness 241
Inputs 242
Business Brief 7.1: Border Delays Slow Production 243
Outputs 243
Transformation Process 245
Business Brief 7.2: Customer Support-- ParTech 246
Business Brief 7.3: I/T Can Transform
Operations: The Russell Corporation 248
The Dynamics of Organizational Responsiveness 249
Homeostasis 249
Forecasting 251
Business Brief 7.4: In Hindsight 253
Feedback 254
Environmental Scanning 257
Open versus Closed Systems 259
Buffers 260
Summary 262
Case Assignment I: Wal-Mart Trumps
Moore's Law 264
Case Assignment I1: Creative Aerospace, Inc. 265
8 Information Systems and Organizational Decision Making 268
Introduction 269
Managerial Functions 269
Traditional Scheme for Classifying
Information Systems 272
Decision Making in Management 273
The Realities of Decision Making 274
Alternative Views of Management 275
The Limitations of Rationality 278
Using Information Systems to Improve Decision Making 282
Controlling 282
Automating Decisions 284
Supporting Complex Decisions 285
Augmenting Knowledge 286
Business Brief 8.1: Computers as Complexity Busters: I'd Like Next Friday Off 287
Business Brief 8.2: Keeping the Engine Tuned 289
Knowledge Management 291
Business Brief 8.3: Tapping Knowledge at P fx G 292
Strategic Planning 292
Group Decision Making 293
Business Brief 8.4: WebDAV Protocol Comes of Age 295
Summary 296
Case Assignment I: Wisconsin Department
of Health and Social Services 297
Case Assignment I1: The Norris Company
(B): Sherry's Day at the Office 298
9 Organizational Use of
Information Systems 302
Introduction 303
Organizations and Organizational Structure 303
Business Functions 304
Accounting 305
Finance 305
'Marketing and Sales 306
Production and Operations
Management 307
Customer Support 308
Human Resource Management 308
Information Services 308
Business Processes 309
Process View of an Organization 312
Business Brief 9.1: National and Provincial Building Society 314
Information Systems to Support Organizational Processes 315
The Virtual Organization 317
Business Brief 9.2: Networks as Distortion Busters 319
Cautions on the Use of I/T 319
Information Systems and Regulatory Issues 320
Bad Timing 320
Waking a Sleeping Giant 320
Cultural Issues Matter 321
Vulnerability to System's Failure 322
Ethical Vulnerabilities 323
Business Brief 9.3: Happy Birthday to You 324
Business Brief 9.4: Internet Privacy 325
Establish and Enforce Written Policies on Ethics and the Use of I/T 325
Summary 328
Case Assignment I: Anchoring Logistics in Technology 329
Case Assignment Ii: When Affairs of the Heart Raise I/T Privacy issues 331
Module II Case: Dakin Farm (A): Mail-OrderProcessing 333
Managing Information SystemsResources 339
11 Business Process Management and Enterprise Systems 341
Introduction 342
Organizational Strategies and Business Processes 344
Business Process Automation 344
Business Process Improvement and Transformation 346
Principles of Business Process Improvement 346
Example of Business Process Improvement 349
Principles of Business Process Transformation 350
Example of Business Process Transformation 351
Business Brief 10.1: The Axe Can Be Sharp:
The Ultimate in Process Transformation 353
Information Systems and Process Management 353
Enterprise Information Systems 354
Enterprise Resource Planning and Enterprise Systems 355
Issues in Implementing Enterprise Systems 357
Business Brief 10.2: Answering Customers with CRM 358
Business Brief 10.3: Integrating Purchasing with ERP 360
Summary 361
Case Assignment I: The Limited Curtails Fraud 363
Case Assignment Il: Lehigh Valley Hospital Gets a New Backbone 364
11 Information Systems Development 366
Introduction 367
Roles in Information Systems Development 369
The Systems Development Process 369
Structured Development versus Object- Oriented Development 370
Object-Oriented Techniques 371
Step 1. Project Planning (Define Goals and Objectives) 371
Step 2. Analysis (Define Information Requirements) 374
Step 3. Generation and Evaluation of Alternatives 376
Design Strategies: Build, Buy, or Outsource 380
Step 4. Designing the Chosen Alternative 380
Business Brief 11.1: Ski Conditions Ideal after I/S Integration 381
Step 5. Implementation 384
Business Brief 11.2: Powering a Peacock 386
Step 6. Maintenance and Operations 388
CASE Tools 389
Alternative Development Techniques 390
End-User Development 391
Rapid Application Development 392
Operational Vulnerabilities 393
Business Brief 11.3: Application Development Life Cycle Gets an ASP Angle 394
Effective Project Management 395
Summary 396
Case Assignment I: Intelligent Electronics 399
Case Assignment il: Great Sports! 400
Technical Note 2: Structured Analysis
and Design Techniques 403
Structured Tools and Techniques 403
Sample Case: Westward Ho 403
Data Flow Diagrams 404
Westward Ho: Operations 405
DFDs: The Context Diagram 406
DFDs: The System-Level Diagram 406
DFDs: Lower-Level Diagrams 408
Diagraming Conventions 409
Data Models and Data Dictionaries 409
Structured Design 410
Structured Programming , 412
Summary 412
External Information SystemsSourcing 414
Introduction 415
12 Buying Packaged Software 415
Outsourcing 420
Business Brief 12.1: Problems for Rich-Con
Steel 421
Service Providers 423
Application Service Provider 423
Business Brief 12.2: Spin-off Sees
Outsourcing as Key to Success 424
Management Services Provider 426
Web Services 428
Selective'Sourcing 431
Summary 432
Case Assignment I: Miller ElectricCase Assignment ii: Outsourcing in theRetail Sector 436
13Information ResourceManagement 438
Introduction 439
Hershey's Biggest Dud 439
Spot Shortages 439
The Mars Option 440
The Project 440
Big-Bang Approach 441
Not an Isolated Instance 442
Information Systems as a Corporate
Resource 443
Content as a Corporate Resource 444
Information Systems Planning 445
Organization of the Information
Services Department 447
Cost and Resource Management 449
Business Brief 13.1: Charge Those
Users 450
Disaster Recovery Planning 451
Business Brief 13.2: Recreating Years of Files,
One Application at a Time 452
Systems Security 455
Business Brief 13.3: IBM Moves to Plug
Holes in Disaster Recovery 456
Summary 458
Case Assignment I: Pollution Solutions (C):
When It Rains... 460
Case Assignment Il: Disaster Recovery at
Vermont Mutual 461
Module iii Case: Dakin Farm (B): What's Next? 464
14 Information Technology: Emerging and Future Issues 472
Introduction 473
Organizational Management 474
Employment and Entrepreneurship 476
Business Brief 14.1:Just-Not-in-Time 477
Business Brief 14.2: Amid Record Profits,
Companies Continue Layoffs 478
Ethical, Security, and International Issues 480
Business Brief 14.3: The Cyber-Surveillance Bill and You 481
Cyberterrorism 482
Semantic Hacking: Who Can You Believe? 482
Business Brief 14.4: Cyberterrorism 483
Business Brief 14.5: Want a New Credit Card Number? 484
Business Brief 14.6: Semantic Hacking 485
Summary 490
Case Assignment I: The Parable of the Pizza Parlor 490
Case Assignment I1: South Korea: A Nation of Digital Guinea Pigs 492
Case Assignment III: Artificial
Intelligence 493
Glossary 495
Index 516
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