MIS 10 - Management Information Systems - 10th Ed. PDF

Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203  MIS...

Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203  MIS 10th Edition 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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Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Bidgoli MIS 10th Edition Brief Contents Part 1 Fundamentals of Information Systems 2 1 Information Systems in Business 2 2 Computers and Their Business Applications 28 3 Data and Business Intelligence 54 4 Personal, Legal, Ethical, and Organizational Issues 82 5 Protecting Information Resources 106 Part 2 Data Communication, the Internet, E-Commerce, and Global Information Systems 136 6 Data Communication: Delivering Information Anywhere and Anytime 136 7 A Connected World 166 8 E-Commerce 196 9 Global Information Systems 228 Part 3 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. 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.  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 Key Terms 24 1 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 A New Era of Marketing: YouTube 5 at Federal Express 26 Social Networking and the Vulnerability of Personal Case Study 1-2: Mobile Technology: A Key Player for Information 6 Future Shopping 26 2 Computers 1-2 Computer Literacy and Information Literacy 7 1-3 The Beginning: Transaction-Processing Systems 7 and Their Business Information Technologies at Domino’s Pizza 8 Applications 28 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 1-5b Database 10 Software 31 1-5c Process 11 IBM Watson: A Supercomputer with Artificial 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 Technologies 12 2-3b Accuracy 34 Information Technologies at Home Depot 12 2-3c Storage and Retrieval 34 1-6a The Importance of Information Systems 13 2-4 Computer Operations 34 Human Resource Information Systems in Action 13 A Supercomputer in Your Pocket 35 Information Technologies at UPS 14 2-5 Input, Output, and Memory Devices 35 1-6b Using Information Technologies for a Competitive 2-5a Input Devices 35 Advantage 15 Touchless Computing: The New Paradigm in User Information Technologies at Walmart 16 System Interface 36 1-6c Porter’s Five Forces Model: Understanding the 2-5b Output Devices 37 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 Data and Business Intelligence 54 Key Terms 79 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 3-3a Database Engine 61 4 Personal, Legal, Ethical, and 3-3b Data Definition 61 Organizational Issues 82 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 Protecting Information Case Study 5-2: Security Breach at Equifax 135 Resources 106 5-1 Risks Associated with Information Technologies 107 5-1a The Costs of Cyber Crime to the Global Part 2 Economy 107 Data Communication, the Internet, 5-1b Spyware and Adware 107 E-Commerce, and Global Information 5-1c Phishing, Pharming, Baiting, Quid Pro Quo, Systems SMiShing, and Vishing 108 6 Data 5-1d Keystroke Loggers 108 5-1e Sniffing and Spoofing 108 Communication: Delivering 5-1f Computer Crime and Fraud 108 Information Anywhere and Challenges of Insiders’ Threats 109 Anytime 136 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 5-2 Computer and Network Security: Basic Communication 137 Safeguards 111 GoToMeeting: Example of an E-Collaboration Nearly All Organizations Get Hacked 112 Tool 138 5-3 Security Threats: An Overview 113 6-2 Basic Components of a Data Communication 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 Engineering 116 6-2c Communication Media 139 5-4 Security Measures and Enforcement: An 6-3 Processing Configurations 141 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 6-5e Mesh Topology 147 Groups 174 6-6 Major Networking Concepts 147 7-3c Instant Messaging 174 6-6a Protocols 147 7-3d Internet Telephony 175 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 Followers 187 7 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 E-Commerce 196 Reviews and Discussions 224 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 Using Instagram to Promote Your Products Ads 225 and Services 199 Case Study 8-2: Bridging the Gap Between E-Commerce Showrooming and Webrooming 200 and Traditional Commerce 226 8-1b E-Commerce versus Traditional Commerce 200 8-1c Advantages and Disadvantages of E-Commerce 201 9 Global Information Systems 228 The Home Depot Gets into E-Commerce 201 9-1 Why Go Global? 229 8-1d E-Commerce Business Models 202 Global Information Systems at Rohm & Haas 230 E-Commerce in 2025 203 9-1a E-Business: A Driving Force 230 8-2 Major Categories of E-Commerce 204 9-1b Growth of the Internet 230 8-2a Business-to-Consumer E-Commerce 204 Making a Company Web Site Global 231 8-2b Business-to-Business E-Commerce 204 Global Internet: Presents a Huge Payoff for Global 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 Implementation 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 Transnational 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 8-6d Search Engine Optimization 217 Systems 242 Challenges in Using Digital Ads 217 9-4a Lack of Standardization 242 8-7 E-Commerce and Beyond: Social Commerce 218 9-4b Cultural Differences 243 Social Commerce at Coca-Cola Company 219 9-4c Diverse Regulatory Practices 243 8-8 Hypersocial Organizations 219 9-4d Poor Telecommunication Infrastructures 244 8-9 Social Media Information Systems 220 9-4e Lack of Skilled Analysts and Programmers 244 Hyper-Social Organization in Action: Module Summary 245 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. Module Quiz 246 Case Study 10-1: Systems Development at SEB Case Study 9-1: Global Information Systems at Toyota Latvia 271 Motor Company 246 Case Study 10-2: Crowdsourcing Pays Off 271 Case Study 9-2: Information Technologies Support Global Supply Chain 247 11 Enterprise Systems 272 11-1 Supply Chain Management 273 Part 3 11-1a SCM Technologies 274 Supply Chain Management at Coca-Cola IS Development, Enterprise Systems, Company 275 MSS, and Emerging Trends Green SCM in Action: Walmart 276 3D Printing in Action: The Medical Field 280 Coca-Cola Company Uses RFID-Based Dispensers 10 BSystems uilding Successful Information for Generating Business Intelligence 283 QR Codes in Action 284 248 11-1b Global Supply Chain Management 285 10-1 Systems Development Life Cycle: An Overview 249 11-2 Customer Relationship Management 285 10-2 Phase 1: Planning 249 11-2a CRM Applications 286 10-2a Formation of the Task Force 251 CRM at Delta Air Lines 287 10-2b Feasibility Study 251 11-2b Personalization Technology 288 A Feasible Project Becomes Unfeasible 252 Amazon’s Personalization Assists Sellers on Its 10-3 Phase 2: Requirements Gathering Marketplace 289 and Analysis 254 11-3 Knowledge Management 290 10-4 Phase 3: Design 256 11-4 Enterprise Resource Planning 291 10-4a Computer-Aided Systems Knowledge Management in Action 291 Engineering 256 11-5 Cloud-Based Enterprise Systems 293 10-4b Prototyping 257 ERP Streamlines Operations at Naghi Group 293 10-5 Phase 4: Implementation 259 Module Summary 295 10-5a IT Project Management 259 Key Terms 295 10-5b Request for Proposal 260 Reviews and Discussions 295 Preventing IT Project Failures Using Best Projects 296 Practices 262 Module Quiz 296 10-5c Implementation Alternatives 263 Case Study 11-1: ERP at Johns Hopkins 10-6 Phase 5: Maintenance 265 Institutions 297 10-7 New Trends in Systems Analysis Case Study 11-2: CRM at Starbucks 297 and Design 265 10-7a Service-Oriented Architecture 265 10-7b Rapid Application Development 266 12 Sand upporting Decisions 10-7c Extreme Programming 266 Processes 298 Extreme Programming in Action 266 12-1 Types of Decisions in an Organization 299 10-7d Agile Methodology 267 12-1a Phases of the Decision-Making Process 299 Agile Methodology at HomeAway, Inc. 268 12-2 Decision Support Systems 301 Module Summary 268 12-2a Components of a Decision Support System 301 Key Terms 269 12-2b DSS Capabilities 302 Reviews and Discussions 270 12-2c Roles in the DSS Environment 303 Projects 270 12-2d Costs and Benefits of Decision Support Module Quiz 270 Systems 304 Contents ix 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.  12-3 Executive Information Systems 304 13-2d Criteria for Not Using Expert Systems 330 Decision Support Systems at Family 13-2e Advantages of Expert Systems 330 Dollar 305 13-3 Case-Based Reasoning 330 12-3a Reasons for Using EISs 307 13-4 Intelligent Agents 331 12-3b Avoiding Failure in Design and Use of EISs 307 13-4a Shopping and Information Agents 331 Executive Information Systems at Hyundai Motor 13-4b Personal Agents 332 Company 308 13-4c Data-Mining Agents 332 12-4 Geographic Information Systems 308 Intelligent Agents in Action 332 12-4a GIS Applications 310 13-4d Monitoring and Surveillance Agents 333 12-5 Collaboration Systems 310 13-5 Fuzzy Logic 333 GISs for Fighting Disease 311 13-5a Uses of Fuzzy Logic 334 12-5a Types of Collaboration Software 312 Fuzzy Logic in Action 335 New Generations of Video-Conferencing Systems 313 13-6 Machine Learning 335 Microsoft Office SharePoint Server: A Popular 13-7 Genetic Algorithms 336 Collaboration Platform 314 Neural Networks in Microsoft and the Chicago 12-5b Which Collaboration Software Is Right for Police Department 337 You? 314 13-8 Natural-Language Processing 338 Remote Collaboration with Google Apps for 13-9 Integrating AI Technologies Into Decision Support Work 315 Systems 338 12-6 Guidelines for Designing a Management Support NLP in Action: The Health Care Industry 339 System 315 13-10 Contextual Computing: Making Mobile Devices Module Summary 316 Smarter 339 Key Terms 317 AI Technologies for Decision Making 340 Reviews and Discussions 317 Contextual Computing in Action 341 Projects 317 13-11 AI and Automation 341 Module Quiz 318 13-12 Ethical issues of AI 342 Case Study 12-1: UPS Deploys Routing Optimization with Module Summary 344 a Big Payoff 318 Key Terms 345 Case Study 12-2: GPS Technology and Analytics Combat Reviews and Discussions 345 Crime 319 Projects 345 13 AAutomation rtificial Intelligence and Module Quiz 346 Case Study 13-1: AI-Based Software Helps Businesses 320 Better Understand Customers 346 13-1 What Is Artificial Intelligence? 321 Case Study 13-2: NLP: Making a Smartphone Smarter 347 13-1a AI Technologies Supporting Decision Making 321 Computers Understanding Common Sense 322 AI in Action: Retail Industry 323 14 Eand merging Trends, Technologies, Applications 348 13-1b Robotics 324 14-1 Trends In Software and Service 13-2 Expert Systems 325 Distribution 349 Medical Robotics in Action 326 14-1a Pull and Push Technologies 349 13-2a Components of an Expert System 327 14-1b Application Service Providers 350 13-2b Uses of Expert Systems 329 14-2 Virtual Reality 351 Expert Systems in the Baltimore County Police 14-2a Types of Virtual Environments 352 Department 329 14-2b Components of a Virtual Reality 13-2c Criteria for Using Expert Systems 330 System 352 x 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.  14-2c CAVE 353 14-4 Nanotechnology 364 14-2d Virtual Reality Applications 353 14-5 Blockchain Technology and Cryptocurrency 365 Virtual Reality at Lockheed Martin 354 Blockchain Technology in Action: Walmart and 14-2e Obstacles in Using VR Systems 355 Alibaba 366 14-2f Virtual Worlds 355 14-6 Quantum Computing 367 14-2g Augmented Reality 356 14-6a Popular Applications of Quantum Computing 368 14-2h Mixed Reality 357 Module Summary 369 Mixed Reality in Action 358 Key Terms 370 14-3 Cloud Computing: Foundation, Applications, Reviews and Discussions 370 and Models 358 Projects 370 14-3a Grid Computing 359 Module Quiz 371 14-3b Utility (On-Demand) Computing 359 Case Study 14-1: Cloud Computing at Intercontinental 14-3c Cloud Computing 360 Hotels Group (IHG) 371 14-3d Cloud Computing Components 360 Case Study 14-2: Virtual Reality Enhances Try Before You Buy Concept 372 Cloud Computing in Support of Small Businesses 361 Endnotes 373 14-3e Cloud Computing Alternatives 362 Index 392 14-3f Edge Computing 362 Edge Computing in Action 363 14-3g Cloud Computing Security 364 Contents xi 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. PART 1 1 Learning Objectives Information Systems in Business After studying this module, you should be able to... 1-1 Discuss common applications of computers and information 1-7 Explain the importance and applications of information systems. systems in functional areas of a business. 1-2 Explain the differences between computer literacy and 1-8 Analyze how information technologies are used to gain information literacy. a competitive advantage. 1-3 Define transaction-processing systems. 1-9 Apply the Five Forces Model and strategies for gaining a competitive advantage. 1-4 Define management information systems. 1-10 Review the IT job market. 1-5 Describe the four major components of an information system. 1-11 Summarize the future outlook of information systems. 1-6 Discuss the differences between data and information. Wright Studio/Shutterstock.com 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 module starts with an overview of common uses for computers and information systems, Organizations use computers and explains the difference between computer information systems to literacy and information literacy, and reviews reduce costs and gain a transaction-processing systems as one of the competitive advantage earliest applications of information systems. in the marketplace. Next, the module discusses the components of a management information system, including data, databases, processes, and information, and then delves into how information systems relate to information technologies. This module also covers the roles and applications of information systems and explains the Five Forces Model, which is used to develop strategies for gaining a competitive advantage. Finally, the module reviews the IT job market and touches on the future of information systems. 1-1 Computers and systems can even reorder stock automatically. Banks, too, use computers and information systems for gener- Information Systems ating your monthly statement, running automatic teller machines (ATMs), and for many other banking activities. in Daily Life Many workers are now telecommuters who per- form their jobs at home, and others often use their Organizations use computers and information systems to mobile devices to conduct business while on the go. The reduce costs and gain a competitive advantage in the mar- most common mobile device is a smartphone (such as ketplace. Throughout this book, you will study many infor- an iPhone, Galaxy, or Droid). Smartphones are mobile mation system applications. For now, you will look at some phones with advanced capabilities, much like a mini-PC. common applications used in daily life. Computers and information systems are all around you. As a student, you use Exhibit 1.1 computers and office suite software and A point-of-sale system might take online classes. Computers are often used to grade your exam answers and generate detailed reports comparing the performance of each student in your class. Computers and information systems also calculate grades and grade point aver- ages (GPAs) and can deliver this informa- tion to you. Taras Vyshnya/Shutterstock.com Computers and information systems are commonly used in grocery and retail stores as well. For example, a point-of-sale (POS) system speeds up service by read- ing the universal product codes (UPCs) on items in your shopping cart (see Exhibit 1.1). This same system also man- ages store inventory, and some information MODULE 1: Information Systems in Business 3 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.  They include e-mail and Web-browsing features, and most have a built-in keyboard or an external USB key- board (see Exhibit 1.2). Tablet computers, such as iPads, Exhibit 1.2 are increasingly being used. These tablets come with Examples of smartphones apps (small programs) for common applications, and they can improve the user’s efficiency. The “Smartphones Everywhere and for Everything” box highlights several popular applications of smartphones. The Internet is used for all kinds of activities, from shopping to learning to working. Search engines and broadband communication bring information to your desktop in seconds. The Internet is also used for social purposes. With social networking sites—such as Facebook, Twitter, LinkedIn, and Foursquare—you can connect with friends, family, and colleagues online and meet people with similar interests and hobbies. Scanrail1/Shutterstock.com Twitter (www.twitter.com), for example, is a social networking and short-message service. Users can send and receive brief text updates, called Tweets. These posts are displayed on one’s profile page, and other users can sign up to have them delivered to their in- boxes. As an example, the author of this textbook sends daily Tweets that consist of links to current articles Smartphones Everywhere and for Everything Finance | Technology in Society | Application With the growing number of apps available for both iPhones and Android phones, individuals and businesses are using their smartphones as a productivity tool and as an intelligent assistant for all sorts of activities. Here are a few popular examples. Group texting app GroupMe is used for sending a message to a group of employees or customers. The Samsung iPolis app, a video camera security system, is used to remotely watch the video that monitors the location of a business or home. Apps are available to pay bills, update a company’s Web site, market and advertise a product or service, reach out to customers, and keep in touch with employees from anywhere. Some businesses give out their Google Voice phone number to customers so that they can text an order. Google’s calendar is used to coordinate events, and Instagram is used to post photos of new merchandise.1 According to Massimo Marinucci, the owner and president of The Wine Connection, a $20-million business with six employees, the iPhone does nearly everything for business that a desktop used to do. Using their iPhones, employees check inventory, view sales for the day, run reports, print, change prices, and change inventory quantities. The new point-of-sale (POS) app allows customers to buy immediately as soon as a new wine becomes available.2 Starwood Hotels & Resorts Worldwide, Inc., plans to offer customers of two of its hotels in Harlem, New York, and Cupertino, California, a virtual key. Guests can bypass the crowded check-in desk and enter their rooms using their smartphones. Guests receive a message on Starwood’s app that will unlock their rooms with a tap or twist of their smart- phones, using Bluetooth technology. Marriott International, Inc., also does mobile check-ins at some of their hotels. Loyalty program customers can check in via their smartphones and then go to a separate check-in desk to pick up a key.3 Questions and Discussions 1. What are two iPhone applications and related apps for The Wine Connection? 2. What are two advantages of mobile check-ins? 4 PART ONE: Fundamentals of Information Systems 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. about information systems applications, new devel- In addition, people use video-sharing sites to watch opments, breaking news, IT jobs, and case examples. news, sporting events, and entertainment videos. One of You can read these Tweets in Twitter, Facebook, or the most popular sites is YouTube (www.youtube.com). LinkedIn. You can upload and share video Organizations also use social clips via Web sites, mobile devices, networking sites to give custom- In the 21st century, knowledge blogs, and e-mails. Users upload ers up-to-date information and workers need two types of most of the content on YouTube, how-to support via videos. These knowledge to be competitive in although media corporations such sites can reduce organizations’ as CBS, BBC, Sony Music Group, costs by providing an inexpensive the workplace: computer literacy the Sundance Channel, and oth- medium for targeting a large cus- and information literacy. ers also provide content. Anyone tomer base. can watch videos on YouTube, A New Era of Marketing: YouTube Finance | Technology in Society | Application | Global Companies use newspapers, magazines, TV shows, and search engines to promote their products, services, and brands. YouTube is a popular video-sharing service that can be used as a marketing tool. The videos on YouTube are very well indexed and organized. They are categorized and sorted by “channels.” The channels range from film and animation to sports, short movies, and video blogging. Individual YouTube users have used this marketing tool to share videos and stories. One popular application is watching how-to videos for repairing cars, home appliances, and so forth. Corporations can also take advantage of this popular platform. YouTube represents a great opportunity for marketers to reach consumers who are searching for information about a brand or related products and services. The service can also be used as a direct-marketing tool. The following are examples of corporations that are using YouTube to promote their products and services: Quiksilver—This manufacturer of apparel and accessories, including the Roxy brand, frequently posts new videos of its products, continually renewing its Web presence. Ford Models—Since 2006, it has uploaded hundreds of videos promoting its brand. University of Phoenix Online—This site has hundreds of video testimonials, reviews, and documentaries that promote the university’s degree programs. The Home Depot—Free content, including practical knowledge and money-saving tips for home improvements, may be found at this site. Nikefootball—Nike maintains several distinct YouTube channels that cater to specific audiences. Consumers can find what is relevant to their needs without having to sift through a lot of content.4, 5 However, there are some challenges in using YouTube as an advertising medium. In 2017, several companies— including Starbucks, Pepsi, AT&T, Verizon, Johnson & Johnson, Volkswagen, and Walmart—pulled YouTube ads after they were placed on racist and other unpleasant videos.6 In 2018, YouTube faced obstacles in their effort to restrain fraudulent content, similar to other social media such as Facebook and Google.7 In 2019, Nestle, Disney, and several other companies suspended YouTube ads over news of a pedophile network on the site.8 Alphabet, the parent company of YouTube, has taken steps to fix this problem by involving more people in reviewing videos and developing more sophisticated algorithms to instruct its computers to eliminate this problem. Questions and Discussions 1. What are two advantages of using YouTube as a marketing tool? 2. What are two challenges of using YouTube as a marketing tool? MODULE 1: Information Systems in Business 5 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.  and services. See the “A New Era of Marketing: YouTube” box, which highlights a few such companies. So what do all these examples mean to you? Computers and information technology will help the knowledge workers of the future perform more effectively and productively, no matter what profession they choose. In addi- tion, these workers will be able to connect to the rest of the world to Rawpixel.com/Shutterstock.com share information, knowledge, vid- eos, ideas, and almost anything else that can be digitized. Throughout this book, these opportunities, as well as the power of computers and information systems, are explored. As you read, keep in mind that but you must register to upload videos. (This book has the terms information systems and information technologies a YouTube channel on which you can watch many prac- are used interchangeably. Information systems are broader tical videos related to information systems.) Businesses in scope than information technologies, but the two over- are increasingly using YouTube to promote their products lap in many areas. Both are used to help organizations be Social Networking and the Vulnerability of Personal Information Technology in Society | Application | Social and Ethical Issues The popularity of social networking sites such as Facebook, Twitter, Snapchat, and Foursquare is on the rise. As of July 2019, worldwide, there are over 2.38 billion monthly active users (MAU) for Facebook, and the number is increasing on a daily basis.9 But so is the potential risk. According to an InfoWorld study, over half of all users of social networks in this country are putting themselves at risk by posting information that could be misused by cybercriminals. Many social networkers post their full birth dates, their home addresses, photos of themselves and their families, and the times when they will be away from home. This information could be used by cybercriminals for malicious purposes. According to