Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 M i s1 0 t h E d i t i o n ManageMent inforMation SySteMS Hossein Bidgoli, PH.d. California State University - Bakersfield Australia • Brazil • Mexico • Singapore • United Kingdom • United States Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. This is an electronic version of the print textbook. 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Bidgoli MIS 1 0 t h E d i t i o n s Part 1 t Fundamentals of Information Systems 2 n 1 Information Systems in Business 2 2 Computers and their Business applications 28 e 3 Data and Business Intelligence 54 4 Personal, Legal, Ethical, and Organizational Issues 82 t 5 Protecting Information resources 106 n Part 2 o Data Communication, the Internet, E-Commerce, C and Global Information Systems 136 6 Data Communication: Delivering Information anywhere and anytime 136 f 7 a Connected World 166 8 E-Commerce 196 e 9 Global Information Systems 228 i r Part 3 B IS Development, Enterprise Systems, MSS, and Emerging Trends 248 10 Building Successful Information Systems 248 11 Enterprise Systems 272 12 Supporting Decisions and Processes 298 13 artificial Intelligence and automation 320 14 Emerging trends, technologies, and applications 348 Endnotes 373 Index 392 iii Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. 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CONTENTS Part 1 1-7f Computer Programmer 21 1-7g Webmaster 21 Fundamentals of Information Systems 1-8 Outlook for the Future 22 Module Summary 24 1 Key terms 24 Information Systems in Business 2 reviews and Discussions 25 Projects 25 1-1 Computers and Information Systems in Daily Life 3 Module Quiz 25 Smartphones Everywhere and for Everything 4 Case Study 1-1: Using Information technologies at Federal Express 26 A New Era of Marketing: YouTube 5 Case Study 1-2: Mobile technology: a Key Player for Social Networking and the Vulnerability of Personal Future Shopping 26 Information 6 1-2 Computer Literacy and Information Literacy 7 2 Computers and Their Business 1-3 the Beginning: transaction-Processing Systems 7 Applications 28 Information Technologies at Domino’s Pizza 8 1-4 Management Information Systems 9 2-1 Defining a Computer 29 1-5 Major Components of an Information System 9 2-1a Components of a Computer System 30 1-5a Data 9 2-2 the History of Computer Hardware and Software 31 1-5b Database 10 IBM Watson: A Supercomputer with Artificial 1-5c Process 11 Intelligence Capabilities 33 1-5d Information 11 2-3 the Power of Computers 33 1-5e Examples of Information Systems 11 2-3a Speed 33 1-6 Using Information Systems and Information 2-3b Accuracy 34 technologies 12 2-3c Storage and Retrieval 34 Information Technologies at Home Depot 12 2-4 Computer Operations 34 1-6a The Importance of Information Systems 13 A Supercomputer in Your Pocket 35 Human Resource Information Systems in Action 13 2-5 Input, Output, and Memory Devices 35 Information Technologies at UPS 14 2-5a Input Devices 35 1-6b Using Information Technologies for a Competitive Advantage 15 Touchless Computing: The New Paradigm in User System Interface 36 Information Technologies at Walmart 16 2-5b Output Devices 37 1-6c Porter’s Five Forces Model: Understanding the Business Environment 17 2-5c Memory Devices 38 Information Technologies at Netflix 18 2-6 Classes of Computers 40 Digital Innovation in Retail Industry Using Summit: The Fastest Supercomputer in the World 40 Information Technologies 19 Popular iPad Business Applications 41 1-7 the It Job Market 20 2-6a Server Platforms: An Overview 42 1-7a CTO/CIO 21 Ubiquitous Computing 42 1-7b Manager of Information Systems Services 21 2-7 What Is Software? 43 1-7c Systems Analyst 21 Microsoft Office 365: Making Data and Applications 1-7d Network Administrator 21 Portable 43 1-7e Database Administrator 21 2-7a Operating System Software 44 iv Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. iOS: The Brain Behind Apple Devices 44 3-8 the Big Data Era 72 2-7b Application Software 45 Predictive Analytics in Action 72 2-8 Computer Languages 47 3-8a Who Benefits from Big Data? 73 2-9 Object-Oriented Programming: a Quick 3-8b Tools and Technologies of Big Data 73 Overview 48 3-8c Big Data Privacy Risks 73 Module Summary 50 Big Data in Action 74 Key terms 50 3-8d Integration of IoT with Big Data Analytics 74 reviews and Discussions 51 3-9 Database Marketing 75 Projects 51 Database Marketing in Action: Caterpillar Module Quiz 51 Corporation 76 Case Study 2-1: Become Your Own Banker and Financial 3-10 tableau and Power BI: two Popular BI advisor 52 and Visualization Platforms 77 Case Study 2-2: iPads: New Productivity tools for 3-10a What Is Tableau? 77 Service Workers 53 3-10b What Is Power BI? 77 Module Summary 78 3 Key terms 79 Data and Business Intelligence 54 reviews and Discussions 79 3-1 Databases 55 Projects 80 3-1a Types of Data in a Database 56 Module Quiz 80 BI in Action: Law Enforcement 57 Case Study 3-1: Data Mining Helps Students Enroll in 3-1b Methods for Accessing Files 57 Courses with Higher Chances of Success 81 3-2 Logical Database Design 58 Case Study 3-2: Data Mining tools at Pandora radio 81 3-2a The Relational Model 60 3-3 Components of a DBMS 61 4 Personal, Legal, Ethical, and 3-3a Database Engine 61 Organizational Issues 82 3-3b Data Definition 61 3-3c Data Manipulation 61 4-1 Privacy Issues 83 Graph Databases Move Relational Databases One Social Networking Sites and Privacy Issues 83 Step Forward 62 Employee Monitoring: Improving Productivity 3-3d Application Generation 63 or Invasion of Privacy? 84 3-3e Data Administration 63 4-1a General Data Protection Regulation (GDPR) 87 3-4 recent trends in Database Design and Use 64 4-1b E-mail 87 3-4a Data-Driven Web Sites 64 4-1c Data Collection on the Web 88 3-4b Distributed Databases 64 E-Mail and Corporate Data Leakage 88 3-4c Object-Oriented Databases 65 A Significant Unethical Behavior at Facebook 89 3-5 Data Warehouses 66 4-2 Ethical Issues of Information technologies 90 Data Warehouse Applications at Marriott Ten Commandments of Computer Ethics 91 International 66 4-2a Computer Networks Ethics 92 3-5a Input 67 4-2b Censorship 92 3-5b ETL 67 4-2c Intellectual Property 93 3-5c Storage 68 Software Piracy: A Global Problem 95 3-5d Output 68 4-2d Social Divisions and the Digital Divide 96 3-6 Data Marts 69 Cybersquatting is on the Rise 96 Data Mining and the Airline Industry 70 4-3 the Impact of Information technology in the 3-7 Business analytics 70 Workplace 97 Mobile Analytics in Action: Airbnb 71 The Digital Divide in Action 97 Contents v Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 4-3a Information Technology and Health Issues 99 5-4h Computer Emergency Response Team 128 Health and Social Issues of Online Gaming 99 5-4i Zero Trust Security 129 4-4 Green Computing 101 5-5 Guidelines for a Comprehensive Security System 129 Module Summary 102 5-5a Business Continuity Planning 130 Key terms 103 Sarbanes-Oxley and Information Security 130 reviews and Discussions 103 Module Summary 132 Projects 103 Key terms 132 Module Quiz 104 reviews and Discussions 133 Case Study 4-1: telecommuting with a New twist 104 Projects 133 Case Study 4-2: Privacy and Other Legal Issues at Google 105 Module Quiz 134 Case Study 5-1: Vulnerabilities of Medical Devices 134 5 Case Study 5-2: Security Breach at Equifax 135 Protecting Information Resources 106 Part 2 5-1 risks associated with Information technologies 107 5-1a The Costs of Cyber Crime to the Global Data Communication, the Internet, Economy 107 5-1b Spyware and Adware 107 E-Commerce, and Global Information 5-1c Phishing, Pharming, Baiting, Quid Pro Quo, Systems SMiShing, and Vishing 108 5-1d Keystroke Loggers 108 6 5-1e Sniffing and Spoofing 108 Data Communication: Delivering Information Anywhere and 5-1f Computer Crime and Fraud 108 Anytime 136 Challenges of Insiders’ Threats 109 Identity Theft at the Internal Revenue Service 110 6-1 Defining Data Communication 137 Types of Hackers 111 6-1a Why Managers Need to Know About Data Communication 137 5-2 Computer and Network Security: Basic Safeguards 111 GoToMeeting: Example of an E-Collaboration Tool 138 Nearly All Organizations Get Hacked 112 6-2 Basic Components of a Data Communication 5-3 Security threats: an Overview 113 System 138 5-3a Intentional Threats 113 6-2a Sender and Receiver Devices 139 Protecting Against Data Theft and Data Loss 115 6-2b Modems 139 Google and Facebook were victims of Social 6-2c Communication Media 139 Engineering 116 6-3 Processing Configurations 141 5-4 Security Measures and Enforcement: an Overview 118 6-3a Centralized Processing 141 5-4a Biometric Security Measures 118 6-3b Decentralized Processing 141 Biometrics at Phoebe Putney Memorial Hospital 119 6-3c Distributed Processing 141 Face Recognition Technology in Action 120 Google Invests in Communication Media 141 5-4b Nonbiometric Security Measures 121 6-3d Open Systems Interconnection Model 142 5-4c Physical Security Measures 123 6-4 types of Networks 143 5-4d Access Controls 124 6-4a Local Area Networks 143 Lost and Stolen Laptops 125 6-4b Wide Area Networks 143 5-4e Virtual Private Networks 126 6-4c Metropolitan Area Networks 144 5-4f Data Encryption 126 6-5 Network topologies 145 5-4g E-Commerce Transaction Security Measures 128 6-5a Star Topology 145 vi Contents Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 6-5b Ring Topology 145 7-3 Internet Services 173 6-5c Bus Topology 146 7-3a E-Mail 174 6-5d Hierarchical Topology 146 7-3b Newsgroups and Discussion Groups 174 6-5e Mesh Topology 147 7-3c Instant Messaging 174 6-6 Major Networking Concepts 147 7-3d Internet Telephony 175 6-6a Protocols 147 6-6b Transmission Control Protocol/Internet 7-4 Web applications 175 Protocol 147 7-4a Tourism and Travel 175 6-6c Routing 148 7-4b Publishing 175 6-6d Routers 149 7-4c Higher Education 175 6-6e Client/Server Model 149 7-4d Real Estate 176 6-7 Wireless and Mobile Networks 152 7-4e Employment 176 Mobile Computing and Mobile Apps 153 7-4f Financial Institutions 176 6-7a Wireless Technologies 153 7-4g Software Distribution 177 6-7b Wi-Fi 154 7-4h Health Care 177 6-7c WiMAX 154 Electronic Health Records Pay Off for Kaiser 6-7d Bluetooth 154 Permanente 178 6-7e Mobile Networks 155 7-4i Politics 178 Mobile Computing in Action: The Apple 7-5 Intranets 179 iPhone 157 7-5a The Internet versus Intranets 180 6-8 Wireless Security 157 7-5b Applications of an Intranet 180 Privacy and Ethical Issues of Mobile Devices 158 7-6 Extranets 180 6-9 Convergence of Voice, Video, and Data 158 10 Best Intranets of 2019 181 Telepresence: A New Use of Data Communication 7-7 the Web trends 183 and Convergence 159 7-7a Blogs 183 Module Summary 160 7-7b Wikis 183 Key terms 161 LinkedIn: A Professional Social reviews and Discussions 162 Networking Site 184 Projects 162 7-7c Social Networking Sites 184 Module Quiz 163 7-7d Business Application of Social Networks 185 Case Study 6-1: Data Communication at Social Media Applications at Walmart 185 Walmart 163 7-7e RSS Feeds 186 Case Study 6-2: Protecting the Security and Privacy of Mobile Devices 164 7-7f Podcasting 186 Twitter: Real-time Networking with Your 7 Followers 187 A Connected World 166 7-8 the Internet of Everything and Beyond 188 7-1 the Internet 167 The Internet of Things in Action 189 7-1a The Domain Name System 168 Module Summary 192 Major Events in the Development of the Key terms 193 Internet 169 reviews and Discussions 193 7-1b Types of Internet Connections 170 Projects 194 What Is HTML? 171 Module Quiz 194 7-2 Navigational tools, Search Engines, Case Study 7-1: Scotts Miracle-Gro’s Intranet: the and Directories 171 Garden 194 7-2a Navigational Tools 172 Case Study 7-2: Social Networking in Support of Small 7-2b Search Engines and Directories 172 Businesses 195 Contents vii Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 8 reviews and Discussions 224 E-Commerce 196 Projects 224 8-1 Defining E-Commerce 197 Module Quiz 225 8-1a The Value Chain and E-Commerce 197 Case Study 8-1: Widespread applications of Mobile ads 225 Using Instagram to Promote Your Products and Services 199 Case Study 8-2: Bridging the Gap Between E-Commerce and traditional Commerce 226 Showrooming and Webrooming 200 8-1b E-Commerce versus Traditional Commerce 200 9 8-1c Advantages and Disadvantages of Global Information Systems 228 E-Commerce 201 9-1 Why Go Global? 229 The Home Depot Gets into E-Commerce 201 Global Information Systems at Rohm & Haas 230 8-1d E-Commerce Business Models 202 9-1a E-Business: A Driving Force 230 E-Commerce in 2025 203 9-1b Growth of the Internet 230 8-2 Major Categories of E-Commerce 204 Making a Company Web Site Global 231 8-2a Business-to-Consumer E-Commerce 204 Global Internet: Presents a Huge Payoff for Global 8-2b Business-to-Business E-Commerce 204 E-commerce 232 8-2c Consumer-to-Consumer E-Commerce 204 9-1c The Rise of Non-English Speakers on the Internet 232 8-2d Consumer-to-Business E-Commerce 205 9-1d Mobile Computing and Globalization 233 8-2e Government and Nonbusiness E-Commerce 205 9-2 Global Information Systems: an Overview 233 8-2f Organizational or Intrabusiness E-Commerce 206 9-2a Components of a Global Information System 234 8-3 B2C E-Commerce Cycle 206 The Internet and Globalization in Action 235 8-3a B2C E-Commerce Evolution: Multichannel, Cross- 9-2b Requirements of Global Information Systems 235 Channel, and Omnichannel 207 Video-Conferencing Systems Support 8-4 B2B E-Commerce: a Second Look 209 Globalization 236 8-4a Major Models of B2B E-Commerce 209 Globalization in Action: Alibaba 237 E-Procurement at Schlumberger 210 9-2c I mplementation of Global Information Systems 237 B2B E-Commerce Growth and Best Practices 211 9-3 Organizational Structures and Global Information 8-5 Mobile and Voice-Based E-Commerce 211 Systems 238 Mobile Commerce in Action: Fast-Food 9-3a Multinational Structure 238 Restaurants 212 9-3b Global Structure 238 8-6 E-Commerce Supporting technologies 213 9-3c International Structure 239 8-6a Electronic Payment Systems 213 9-3d T ransnational Structure 240 Challenges in Using Mobile Payment Systems 214 9-3e Global Information Systems Supporting Offshore 8-6b Web Marketing 215 Outsourcing 241 8-6c Mobile Marketing 216 Global Information System at FedEx 241 Mobile Marketing at Starbucks 216 9-4 Obstacles to Using Global Information Systems 242 8-6d Search Engine Optimization 217 9-4a Lack of Standardization 242 Challenges in Using Digital Ads 217 9-4b Cultural Differences 243 8-7 E-Commerce and Beyond: Social Commerce 218 9-4c Diverse Regulatory Practices 243 Social Commerce at Coca-Cola Company 219 9-4d Poor Telecommunication Infrastructures 244 8-8 Hypersocial Organizations 219 9-4e Lack of Skilled Analysts and Programmers 244 8-9 Social Media Information Systems 220 Module Summary 245 Hyper-Social Organization in Action: Spotify 221 Key terms 245 Module Summary 223 reviews and Discussions 245 Key terms 223 Projects 246 viii Contents Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.