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(eBook PDF) Business Driven

Information Systems 5th by Paige


Baltzan
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CONTENTS

Entrepreneurial Challenge 36
mo dule 1 Apply Your Knowledge Business Projects 37
AYK Application Projects 41
B u s in ess Driv en MIS 1
C H AP TER 2
CHAPT ER 1 Decisions and Processes:
Management Information Systems: Value Driven Business 42
Business Driven MIS 2
Opening Case Study: Business
Opening Case Study: T h e I nter net Is Booming for Wearable
o f Th in gs 3 Technologies 43
Section 1.1 Business Driven MIS 5 Section 2.1 Decision Support Systems 45
COMPETING IN THE INFORMATION AGE 5 MAKING ORGANIZATIONAL BUSINESS
Data 6 DECISIONS 45
Information 8 The Decision-Making Process 46
Business Intelligence 8 Decision-Making Essentials 46
Knowledge 9 MEASURING ORGANIZATIONAL BUSINESS
THE CHALLENGE OF DEPARTMENTAL COMPANIES DECISIONS 48
AND THE MIS SOLUTION 11 Efficiency and Effectiveness Metrics 49
The MIS Solution 12 USING MIS TO MAKE BUSINESS DECISIONS 51
Systems Thinking 14 Operational Support Systems 52
MIS Department Roles and Responsibilities 14 Managerial Support Systems 53
Section 1.2 Business Strategy 15 Strategic Support Systems 55
IDENTIFYING COMPETITIVE ADVANTAGES 15 USING AI TO MAKE BUSINESS DECISIONS 58
Swot Analysis: Understanding Business Strategies 17 Expert Systems 59
THE FIVE FORCES MODEL—EVALUATING Neural Networks 60
INDUSTRY ATTRACTIVENESS 19 Genetic Algorithms 60
Buyer Power 20 Intelligent Agents 61
Supplier Power 20 Virtual Reality 62
Threat of Substitute Products or Services 21 Section 2.2 Business Processes 62
Threat of New Entrants 21 MANAGING BUSINESS PROCESSES 62
Rivalry among Existing Competitors 21 Business Process Modeling 65
Analyzing the Airline Industry 22 USING MIS TO IMPROVE BUSINESS PROCESSES 67
THE THREE GENERIC STRATEGIES—CHOOSING Operational Business Processes—Automation 68
A BUSINESS FOCUS 23 Managerial Business Processes—Streamlining 70
VALUE CHAIN ANALYSIS—EXECUTING Strategic Business Processes—Reengineering 71
BUSINESS STRATEGIES 25 Learning Outcome Review 77
Learning Outcome Review 28 Opening Case Questions 79
Opening Case Questions 30 Key Terms 79
Key Terms 30 Review Questions 80
Review Questions 30 Closing Case One: Political Micro-Targeting: What
Closing Case One: The World Is Flat: Decision Support Systems Did for Barack Obama 80
Thomas Friedman 31 Closing Case Two: Action Finally—Actionly 82
Closing Case Two: Crushing Candy 32 Critical Business Thinking 84
Critical Business Thinking 33 Entrepreneurial Challenge 85

Contents vii
Apply Your Knowledge Business Projects 86 WEB 3.0: DEFINING THE NEXT GENERATION
AYK Application Projects 90 OF ONLINE BUSINESS OPPORTUNITIES 116
Egovernment: The Government Moves Online 117
CHA PT ER 3 Mbusiness: Supporting Anywhere Business 118
Ebusiness: Electronic Business Learning Outcome Review 118
Value 91 Opening Case Questions 120
Key Terms 121
Opening Case Study: B it c oin 92 Review Questions 121
Section 3.1 Web 1.0: Ebusiness 93 Closing Case One: Social Media and Ashton
DISRUPTIVE TECHNOLOGY 93 Kutcher 122
Disruptive versus Sustaining Technology 93 Closing Case Two: Pinterest—Billboards for the
The Internet and World Wide Web—The Ultimate Internet 123
Business Disruptors 94 Critical Business Thinking 125
WEB 1.0: THE CATALYST FOR EBUSINESS 94 Entrepreneurial Challenge 128
Expanding Global Reach 97 Apply Your Knowledge Business Projects 128
Opening New Markets 97 AYK Application Projects 132
Reducing Costs 97
Improving Effectiveness 99 C H AP TER 4
THE FOUR EBUSINESS MODELS 100 Ethics and Information Security:
Business-to-Business (B2B) 100 MIS Business Concerns 133
Business-to-Consumer (B2C) 101
Opening Case Study: Five Ways
Consumer-to-Business (C2B) 101
Hackers Can Get Into Your
Consumer-to-Consumer (C2C) 102
Ebusiness Forms and Revenue-Generating
Business 134
Strategies 102 Section 4.1 Ethics 136
EBUSINESS TOOLS FOR CONNECTING INFORMATION ETHICS 136
AND COMMUNICATING 103 Information Does Not Have Ethics, People Do 137
Email 103 DEVELOPING INFORMATION MANAGEMENT
Instant Messaging 105 POLICIES 139
Podcasting 105 Ethical Computer Use Policy 140
Videoconferencing 105 Information Privacy Policy 141
Web Conferencing 105 Acceptable Use Policy 141
Content Management Systems 105 Email Privacy Policy 142
THE CHALLENGES OF EBUSINESS 106 Social Media Policy 143
Identifying Limited Market Segments 106 Workplace Monitoring Policy 144
Managing Consumer Trust 106 Section 4.2 Information Security 146
Ensuring Consumer Protection 106 PROTECTING INTELLECTUAL ASSETS 146
Adhering to Taxation Rules 107 Security Threats Caused by Hackers
Section 3.2 Web 2.0: Business 2.0 107 and Viruses 147
WEB 2.0: ADVANTAGES OF BUSINESS 2.0 107 THE FIRST LINE OF DEFENSE—PEOPLE 149
Content Sharing Through Open Sourcing 108 THE SECOND LINE OF DEFENSE—TECHNOLOGY 150
User-Contributed Content 108 People: Authentication and Authorization 150
Collaboration Inside the Organization 109 Data: Prevention and Resistance 153
Collaboration Outside the Organization 109 Attack: Detection and Response 154
NETWORKING COMMUNITIES WITH BUSINESS 2.0 110 Learning Outcome Review 155
Social Tagging 111 Opening Case Questions 156
BUSINESS 2.0 TOOLS FOR COLLABORATING 113 Key Terms 157
Blogs 113 Review Questions 157
Wikis 114 Closing Case One: Targeting Target 158
Mashups 114 Closing Case Two: To Share—Or Not to Share 159
THE CHALLENGES OF BUSINESS 2.0 115 Critical Business Thinking 162
Technology Dependence 115 Entrepreneurial Challenge 164
Information Vandalism 116 Apply Your Knowledge Business Projects 164
Violations of Copyright and Plagiarism 116 AYK Application Projects 168

viii Contents
THE BUSINESS BENEFITS OF HIGH-QUALITY INFORMATION 215
mo dule 2 Information Type: Transactional and Analytical 215
Information Timeliness 217
Technical Foundations of MIS 169 Information Quality 217
Information Governance 220
CHAPT ER 5 STORING INFORMATION USING A RELATIONAL DATABASE
Infrastructures: Sustainable MANAGEMENT SYSTEM 220
Technologies 170 Storing Data Elements in Entities and Attributes 222
Creating Relationships Through Keys 222
Opening Case Study: B ox Up Coca Cola Relational Database Example 223
Yo u r D a t a 1 7 1 USING A RELATIONAL DATABASE FOR BUSINESS
Section 5.1 MIS Infrastructures 174 ADVANTAGES 225
THE BUSINESS BENEFITS OF A SOLID MIS Increased Flexibility 225
INFRASTRUCTURE 174 Increased Scalability and Performance 225
SUPPORTING OPERATIONS: INFORMATION MIS Reduced Information Redundancy 226
INFRASTRUCTURE 175 Increased Information Integrity (Quality) 226
Backup and Recovery Plan 176 Increased Information Security 226
Disaster Recovery Plan 177 DRIVING WEBSITES WITH DATA 227
Business Continuity Plan 179 Section 6.2 Business Intelligence 229
SUPPORTING CHANGE: AGILE MIS INFRASTRUCTURE 180 SUPPORTING DECISIONS WITH BUSINESS
Accessibility 181 INTELLIGENCE 229
Availability 182 The Problem: Data Rich, Information Poor 229
Maintainability 183 The Solution: Business Intelligence 230
Portability 183 THE BUSINESS BENEFITS OF DATA WAREHOUSING 231
Reliability 183 DATA MARTS 232
Scalability 184 Multidimensional Analysis 234
Usability 185 Information Cleansing or Scrubbing 234
Section 5.2 Building Sustainable MIS Infrastructures 185 THE POWER OF BIG DATA ANALYTICS 237
MIS AND THE ENVIRONMENT 185 Data Mining 238
Increased Electronic Waste 186 Data Analytics 240
Increased Energy Consumption 187 Data Visualization 241
Increased Carbon Emissions 187 Learning Outcome Review 243
SUPPORTING THE ENVIRONMENT: SUSTAINABLE MIS Opening Case Questions 244
INFRASTRUCTURE 187 Key Terms 245
Grid Computing 188 Review Questions 245
Virtualized Computing 190 Closing Case One: Data Visualization: Stories for the
Cloud Computing 192 Information Age 246
Learning Outcome Review 199 Closing Case Two: Zillow 247
Opening Case Questions 200 Critical Business Thinking 248
Key Terms 201 Entrepreneurial Challenge 250
Review Questions 201 Apply Your Knowledge Business Projects 250
Closing Case One: UPS Invests $1 Billion to Go Green 202 AYK Application Projects 253
Closing Case Two: Pandora’s Music Box 203
Critical Business Thinking 204 C H AP TER 7
Entrepreneurial Challenge 205 Networks: Mobile Business 254
Apply Your Knowledge Business Projects 206 Opening Case Study: Disrupting
AYK Application Projects 210 the Taxi: Uber 255
CHAPT ER 6 Section 7.1 Connectivity: The Business Value
Data: Business Intelligence 211 of a Networked World 257
OVERVIEW OF A CONNECTED WORLD 257
Opening Case Study: Infor mi ng
Network Categories 258
I n form a t ion 2 1 2 Network Providers 258
Section 6.1 Data, Information, and Databases 215 Network Access Technologies 259

Contents ix
Network Protocols 262 Drones Support Logistics 308
Network Convergence 264 Robotics Supports Materials Management 308
BENEFITS OF A CONNECTED WORLD 266 The Extended Supply Chain 309
CHALLENGES OF A CONNECTED WORLD 269 Section 8.2 Customer Relationship Management
Security 269 and Enterprise Resource Planning 311
Social, Ethical, and Political Issues 269 CUSTOMER RELATIONSHIP MANAGEMENT 311
Section 7.2 Mobility: The Business Value The Power of the Customer 312
of a Wireless World 270 Measuring CRM Success 312
WIRELESS NETWORK CATEGORIES 270 CRM Communication Channels 312
Personal Area Networks 271 THE BENEFITS OF CRM 312
Wireless LANs 272 Evolution of CRM 314
Wireless MANs 273 Operational and Analytical CRM 316
Wireless WAN—Cellular Communication System 274 Marketing and Operational CRM 317
Wireless WAN—Satellite Communication System 276 Sales and Operational CRM 318
Protecting Wireless Connections 277 Customer Service and Operational CRM 319
Managing Mobile Devices 278 Analytical CRM 320
BUSINESS APPLICATIONS OF WIRELESS NETWORKS 278 EXTENDING CUSTOMER RELATIONSHIP MANAGEMENT 321
Radio-Frequency Identification (RFID) 279 ENTERPRISE RESOURCE PLANNING 322
Global Positioning System (GPS) 280 Core ERP Components 324
Geographic Information Systems (GIS) 280 Extended ERP Components 327
Learning Outcome Review 283 Measuring ERP Success 327
Opening Case Questions 284 ORGANIZATIONAL INTEGRATION WITH ERP 329
Key Terms 284 Mobile ERP 329
Review Questions 285 Cloud ERP and SaaS ERP 330
Closing Case One: Wireless Bikes 285 Tiered ERP Architectures 330
Closing Case Two: Square: Wireless Payments to an iPhone, Learning Outcome Review 332
Android, or iPad 286 Opening Case Questions 334
Critical Business Thinking 287 Key Terms 334
Entrepreneurial Challenge 289 Review Questions 334
Apply Your Knowledge Business Projects 290 Closing Case One: Zappos Is Passionate for Customers 335
AYK Application Projects 293 Closing Case Two: Got Milk? It’s Good for You—Unless
It’s Contaminated! 336
Critical Business Thinking 338
mo d u le 3 Entrepreneurial Challenge 340
Apply Your Knowledge Business Projects 341
En t e r p r i se MIS 294
AYK Application Projects 344

CHA PT ER 8 C H AP TER 9
Enterprise Applications: Business Systems Development and Project
Communications 295 Management: Corporate Responsibility 345
Opening Case Study: D rea m I t , Opening Case Study: Getti ng You r
D e s i g n I t , 3 D Print It 2 9 6 P roj ect on Tr ack 346
Section 8.1 Supply Chain Management 298 Section 9.1 Developing Enterprise Applications 349
BUILDING A CONNECTED CORPORATION THE SYSTEMS DEVELOPMENT LIFE CYCLE (SDLC) 349
THROUGH INTEGRATIONS 298 Phase 1: Planning 349
Integration Tools 299 Phase 2: Analysis 350
SUPPLY CHAIN MANAGEMENT 300 Phase 3: Design 353
Visibility into the Supply Chain 302 Phase 4: Development 353
TECHNOLOGIES REINVENTING THE SUPPLY CHAIN 304 Phase 5: Testing 354
3D Printing Supports Procurement 306 Phase 6: Implementation 354
RFID Supports Logistics 307 Phase 7: Maintenance 355

x Contents
SOFTWARE DEVELOPMENT METHODOLOGY: Output Devices A.8
THE WATERFALL 356 Communication Devices A.9
AGILE SOFTWARE DEVELOPMENT METHODOLOGIES 359 COMPUTER CATEGORIES A.9
Rapid Application Development (RAD) Methodology 360 SOFTWARE BASICS A.12
Extreme Programming Methodology 360 System Software A.12
Rational Unified Process (RUP) Methodology 360 Application Software A.13
Scrum Methodology 361 Distributing Application Software A.14
DEVELOPING A SERVICE-ORIENTED ARCHITECTURE 361 Key Terms A.15
Service 361 Apply Your Knowledge A.15
Interoperability 363
Loose Coupling 363 AP PE N D IX B
Section 9.2 Project Management 364 Networks and Telecommunications B.1
USING PROJECT MANAGEMENT TO DELIVER INTRODUCTION B.1
SUCCESSFUL PROJECTS 364 NETWORK BASICS B.1
Unclear or Missing Business Requirements 366 ARCHITECTURE B.3
Skipped Phases 366 Peer-to-Peer Networks B.3
Changing Technology 367 Client/Server Networks B.4
The Cost of Finding Errors in the SDLC 367 TOPOLOGY B.5
Balance of the Triple Constraint 367 PROTOCOLS B.6
PRIMARY PROJECT PLANNING DIAGRAMS 369 Ethernet B.6
OUTSOURCING PROJECTS 372 Transmission Control Protocol/Internet Protocol B.7
Outsourcing Benefits 373 MEDIA B.8
Outsourcing Challenges 374 Wire Media B.8
Learning Outcome Review 376 Wireless Media B.9
Opening Case Questions 377 Key Terms B.10
Key Terms 378 Apply Your Knowledge B.10
Review Questions 378
Closing Case One: Disaster at Denver International AP PE N D IX C
Airport 379 Designing Databases C.1
Closing Case Two: Reducing Ambiguity in Business
INTRODUCTION C.1
Requirements 380
THE RELATIONAL DATABASE MODEL C.1
Critical Business Thinking 381
Entities and Attributes C.2
Entrepreneurial Challenge 382
Business Rules C.3
Apply Your Knowledge Business Projects 383
DOCUMENTING ENTITY RELATIONSHIP DIAGRAMS C.3
AYK Application Projects 387
Basic Entity Relationships C.4
Relationship Cardinality C.6
RELATIONAL DATA MODEL AND THE DATABASE C.7
a ppe ndic e s From Entities to Tables C.7
Logically Relating Tables C.8
Key Terms C.9
APPEN DIX A
Apply Your Knowledge C.9
Hardware and Software Basics A.1
INTRODUCTION A.1 Apply Your Knowledge AYK.1
HARDWARE BASICS A.1 Glossary G.1
Central Processing Unit A.2 Notes N.1
Primary Storage A.3 Credits C-1
Secondary Storage A.5 Index I.1
Input Devices A.7

Contents xi
P R E FA C E
Business Driven Information Systems discusses various business initiatives first and how
technology supports those initiatives second. The premise for this unique approach is that
business initiatives should drive technology choices. Every discussion first addresses the
business needs and then addresses the technology that supports those needs. This text pro-
vides the foundation that will enable students to achieve excellence in business, whether they
major in operations management, manufacturing, sales, marketing, finance, human resources,
accounting, or virtually any other business discipline. Business Driven Information Systems is
designed to give students the ability to understand how information technology can be a point
of strength for an organization.
Common business goals associated with information technology projects include reduc-
ing costs, improving productivity, improving customer satisfaction and loyalty, creating com-
petitive advantages, streamlining supply chains, global expansion, and so on. Achieving these
results is not easy. Implementing a new accounting system or marketing plan is not likely to
generate long-term growth or reduce costs across an entire organization. Businesses must
undertake enterprisewide initiatives to achieve broad general business goals such as reducing
costs. Information technology plays a critical role in deploying such initiatives by facilitating
communication and increasing business intelligence. Any individual anticipating a successful
career in business whether it is in accounting, finance, human resources, or operation man-
agement must understand the basics of information technology that can be found in this text.
We have found tremendous success teaching MIS courses by demonstrating the correla-
tion between business and IT. Students who understand the tight correlation between business
and IT understand the power of this course. Students learn 10 percent of what they read,
80 percent of what they personally experience, and 90 percent of what they teach others. The
business driven approach brings the difficult and often intangible MIS concepts to the stu-
dent’s level and applies them using a hands-on approach to reinforce the concepts. Teaching
MIS with a business driven focus helps:
■ Add credibility to IT.
■ Open students’ eyes to IT opportunities.
■ Attract majors.
■ Engage students.

FORMAT, FEATURES, AND HIGHLIGHTS


Business Driven Information Systems is state of the art in its discussions, presents concepts
in an easy-to-understand format, and allows students to be active participants in learning. The
dynamic nature of information technology requires all students, more specifically business stu-
dents, to be aware of both current and emerging technologies. Students are facing complex
subjects and need a clear, concise explanation to be able to understand and use the concepts
throughout their careers. By engaging students with numerous case studies, exercises, projects,
and questions that enforce concepts, Business Driven Information Systems creates a unique
learning experience for both faculty and students.
■ Audience. Business Driven Information Systems is designed for use in undergraduate or
introductory MBA courses in management information systems, which are required in
many business administration or management programs as part of the common body of
knowledge for all business majors.
■ Logical Layout. Students and faculty will find the text well organized with the topics
flowing logically from one chapter to the next. The definition of each term is provided
before it is covered in the chapter, and an extensive glossary is included at the back of the
text. Each chapter offers a comprehensive opening case study, learning outcomes, closing
case studies, key terms, and critical business thinking questions.

xii Preface
■ Thorough Explanations. Complete coverage is provided for each topic that is introduced.
Explanations are written so that students can understand the ideas presented and relate
them to other concepts.
■ Solid Theoretical Base. The text relies on current theory and practice of information sys-
tems as they relate to the business environment. Current academic and professional jour-
nals cited throughout the text are found in the Notes at the end of the book—a road map
for additional, pertinent readings that can be the basis for learning beyond the scope of the
chapters or plug-ins.
■ Material to Encourage Discussion. All chapters contain a diverse selection of case stud-
ies and individual and group problem-solving activities as they relate to the use of informa-
tion technology in business. Two comprehensive cases at the end of each chapter reinforce
content. These cases encourage students to consider what concepts have been presented
and then apply those concepts to a situation they might find in an organization. Different
people in an organization can view the same facts from different points of view, and the
cases will force students to consider some of those views.
■ Flexibility in Teaching and Learning. Although most textbooks that are text only leave
faculty on their own when it comes to choosing cases, Business Driven Information
Systems goes much further. Several options are provided to faculty with case selections
from a variety of sources, including CIO, Harvard Business Journal, Wired, Forbes, and
Time, to name just a few. Therefore, faculty can use the text alone, the text and a complete
selection of cases, or anything in between.
■ Integrative Themes. Several integrative themes recur throughout the text, which adds
integration to the material. Among these themes are value-added techniques and methodol-
ogies, ethics and social responsibility, globalization, and gaining a competitive advantage.
Such topics are essential to gaining a full understanding of the strategies that a business
must recognize, formulate, and in turn implement. In addition to addressing these in the
chapter material, many illustrations are provided for their relevance to business practice.

Preface xiii
WALKTHROUGH

Learning Outcomes

Learning Outcomes. These outcomes focus on what


students should learn and be able to answer upon
completion of the chapter.

section 3.1 Web 1.0: Ebusiness

LEARNING OUTCOMES

3.1 Compare disruptive and sustaining technologies and explain how the Internet and WWW caused
business disruption.
3.2 Describe ebusiness and its associated advantages.
3.3 Compare the four ebusiness models.
3.4 Describe the six ebusiness tools for connecting and communicating.
3.5 Identify the four challenges associated with ebusiness.

xiv Walkthrough
Chapter Opening Case Study and Opening Case Questions

Chapter Opening Case Study. To enhance student interest, each chapter begins
with an opening case study that highlights an organization that has been time-tested
and value-proven in the business world. This feature serves to fortify concepts with
relevant examples of outstanding companies. Discussion of the case is threaded
throughout the chapter.

opening case study

The Internet of Things


Who are your best and worst customers? Who are your best and worst sales representa-
tives? How much inventory do you need to meet demand? How can you increase sales or
reduce costs? These are the questions you need to answer to run a successful business,
and answering them incorrectly can lead directly to business failure. In the past few years,
data collection and analytic technologies have been collecting massive amounts of data
that can help answer these critical business questions. The question now becomes whether
you have the right technical skills to collect and analyze your data.
Imagine your toothbrush telling you to visit your dentist because it senses a cavity. How
would you react if your refrigerator placed an order at your local grocery store because your
milk and eggs when about to expire? Over 20 years ago, a few professors at Massachusetts
Institute of Technology (MIT) began describing the Internet of Things (IoT), which is a world
where interconnected, Internet-enabled devices or “things” can collect and share data

Opening Case Questions. Located at the end of the chapter, poignant questions
connect the chapter opening case with important chapter concepts.

OPENING CASE QUESTIONS

1. Knowledge: Explain the Internet of Things and list three IoT devices.
2. Comprehension: Explain why it is important for business managers to understand that data col-
lection rates from IoT devices is increasing exponentially.
3. Application: Demonstrate how data from an IoT device can be transformed into information and
business intelligence.
4. Analysis: Analyze the current security issues associated with IoT devices.
5. Synthesis: Propose a plan for how a start-up company can use IoT device data to make better
business decisions.
Untitled-2 3 1/16/15 9:13 AM

Walkthrough xv
Projects and Case Studies

Case Studies. This text is packed with 27 case studies illustrating how a variety of prominent organizations and
businesses have successfully implemented many of this text’s concepts. All cases are timely and promote critical
thinking. Company profiles are especially appealing and relevant to your students, helping to stir classroom discus-
sion and interest.

Apply Your Knowledge. At the end of each chapter you will find several Apply Your Knowledge projects that challenge
students to bring the skills they have learned from the chapter to real business problems. There are also 33 Apply Your
Knowledge projects on the OLC that accompanies this text (www.mhhe.com/baltzan) that ask students to use IT
tools such as Excel, Access, and Dreamweaver to solve business problems. These projects help to develop the applica-
tion and problem-solving skills of your students through challenging and creative business-driven scenarios.

e os e c e a d e ec e a e

A P P LY Y O U R K N O W L E D G E B U S I N E S S P R O J E C T S

PROJ ECT I Making Business Decisions


You are the vice president of human resources for a large consulting company. You are compiling a
list of questions that you want each job interviewee to answer. The first question on your list is, “How
can MIS enhance your ability to make decisions at our organization?” Prepare a one-page report to
answer this question.

PROJ ECT II DSS and EIS


Dr. Rosen runs a large dental conglomerate—Teeth Doctors—that employs more than 700 dentists
in six states. Dr. Rosen is interested in purchasing a competitor called Dentix that has 150 dentists

Untitled-3 86 1/16/15 9:26 AM

xvi Walkthrough
End-of-Chapter Elements
Each chapter contains complete pedagogical support in the form of:

KEY TERMS
Key Terms. With page
numbers referencing Business intelligence (BI), 8 Fact, 5 Product differentiation, 20
Business process, 23 Feedback, 14 Rivalry among existing
where they are discussed Business strategy, 15 First-mover advantage, 17 competitors, 20
Buyer power, 18 Goods, 12 Services, 12
in the text. Chief information officer Information, 7 Supplier power, 19
(CIO), 15 Information age, 5 Supply chain, 19
Chief knowledge officer Knowledge, 10 Support value activities, 24
(CKO), 15 Knowledge worker, 10 Switching costs, 18

Two Closing Case Studies. CLOSING CASE ONE


Reinforcing important concepts
with prominent examples from
The World Is Flat: Thomas Friedman
businesses and organizations.
Discussion questions follow each Christopher Columbus proved in 1492 that the world is round. For centuries, sailors maneuvered the
seas, discovering new lands, new people, and new languages as nations began trading goods around
case study. the globe. Then Thomas Friedman, a noted columnist for The New York Times, published his book The
World Is Flat.

Critical Business Thinking. The best way to learn MIS is to apply it to scenarios and real-world business
dilemmas. These projects require students to apply critical thinking skills and chapter concepts to analyze
the problems and make recommended business decisions.

CRITICAL BUSINESS THINKING

1. Modeling a Business Process


Do you hate waiting in line at the grocery store? Do you find it frustrating when you go to the video
rental store and cannot find the movie you wanted? Do you get annoyed when the pizza delivery
baL76892_ch01_001-041.indd 29 05/10/12
person brings you the wrong order? This is your chance to reengineer the process that drives you

Entrepreneurial Challenge. This unique feature represents a running project that allows students to chal-
lenge themselves by applying the MIS concepts to a real business. The flexibility of the case allows each
student to choose the type of business he or she would like to operate throughout the case. Each chapter
provides hands-on projects your students can work with their real-business scenarios.

ENTREPRENEURIAL CHALLENGE

BUILD YO UR O WN BUSINESS

1. You realize that you need a digital dashboard to help you operate your business. Create a list of
all of the components you would want to track in your digital dashboard that would help you run
your business. Be sure to justify how each component would help you gain insight into the opera-
Untitled-6 31 1/16/15
tions of your business and flag potential issues that could ruin your business. (Be sure to identify

Walkthrough xvii
About the Plug-Ins

Located on the OLC that accompanies this text (www.mhhe.com/baltzan), the overall goal of the plug-ins
is to provide an alternative for faculty who find themselves in the situation of having to purchase an extra
book to support Microsoft Office 2010 or 2013. The plug-ins presented here offer integration with the core
chapters and provide critical knowledge using essential business applications, such as Microsoft Excel,
Microsoft Access, DreamWeaver, and Microsoft Project. Each plug-in uses hands-on tutorials for compre-
hension and mastery.

Plug-In Description
T1. Personal Productivity Using IT This plug-in covers a number of things to do to keep a personal computer running effectively
and efficiently. The 12 topics covered in this plug-in are:
■ Creating strong passwords.
■ Performing good file management.
■ Implementing effective backup and recovery strategies.
■ Using Zip files.
■ Writing professional emails.
■ Stopping spam.
■ Preventing phishing.
■ Detecting spyware.
■ Threads to instant messaging.
■ Increasing PC performance.
■ Using antivirus software.
■ Installing a personal firewall.

End-of-Plug-In Elements

Each plug-in contains complete pedagogical support in the form of:


Plug-In Summary. Revisits the plug-in highlights in summary format.
Making Business Decisions. Small scenario-driven projects that help students focus individually on
decision making as they relate to the topical elements in the chapters.

T2. Basic Skills Using Excel This plug-in introduces the basics of using Microsoft Excel, a spreadsheet program for data
analysis, along with a few fancy features. The six topics covered in this plug-in are:
■ Workbooks and worksheets.
■ Working with cells and cell data.
■ Printing worksheets.
■ Formatting worksheets.
■ Formulas.
■ Working with charts and graphics.

T4. Decision Making Using Excel This plug-in examines a few of the advanced business analysis tools used in Microsoft Excel
that have the capability to identify patterns, trends, and rules, and create “what-if” models.
The four topics covered in this plug-in are:
■ IF
■ Goal Seek
■ Solver
baL76892_plugins_T1-T4.indd 1 1/29/15 9:46 AM
■ Scenario Manager

xviii Walkthrough
baL76892_plugins_T1-T4.indd 1 1/29/15 9:46 AM
Support and Supplemental Material
All of the supplemental material supporting Business Driven Information Systems was developed by the author to
ensure that you receive accurate, high-quality, and in-depth content. Included is a complete set of materials that
will assist students and faculty in accomplishing course objectives.
Video Exercises. Each of the videos that accompany the text is supported by detailed teaching notes on how to
turn the videos into classroom exercises to which your students can apply the knowledge they are learning after
watching the videos.
Test Bank. This computerized package allows instructors to custom design, save, and generate tests. The test
program permits instructors to edit, add, or delete questions from the test banks; analyze test results; and organize
a database of tests and students’ results.
Instructor’s Manual (IM). The IM, written by the author, includes suggestions for designing the course and
presenting the material. Each chapter is supported by answers to end-of-chapter questions and problems, and
suggestions concerning the discussion topics and cases.
PowerPoint Presentations. A set of PowerPoint slides, created by the author, accompanies each chapter and fea-
tures bulleted items that provide a lecture outline, plus key figures and tables from the text, and detailed teaching
notes on each slide.
Image Library. Text figures and tables, as permission allows, are provided in a format by which they can be
imported into PowerPoint for class lectures.
Project Files. The author has provided files for all projects that need further support, such as data files.

Walkthrough xix
Tegrity Campus: Lectures 24/7

Tegrity Campus is a service that makes class time available 24/7 by automatically capturing every lecture in a
searchable format for students to review when they study and complete assignments. With a simple one-click
start-and-stop process, you capture all computer screens and corresponding audio. Students can replay any part
of any class with easy-to-use browser-based viewing on a PC or Mac.
Educators know that the more students can see, hear, and experience class resources, the better they learn. In
fact, studies prove it. With Tegrity Campus, students quickly recall key moments by using Tegrity Campus’s unique
search feature. This search helps students efficiently find what they need, when they need it, across an entire
semester of class recordings. Help turn all your students’ study time into learning moments immediately supported
by your lecture.
To learn more about Tegrity, watch a two-minute Flash demo at http://tegritycampus.mhhe.com.

Assurance of Learning Ready


Many educational institutions today are focused on the notion of assurance of learning, an important element of
some accreditation standards. Business Driven Information Systems is designed specifically to support your assur-
ance of learning initiatives with a simple, yet powerful solution.
Each test bank question for Business Driven Information Systems maps to a specific chapter learning outcome/
objective listed in the text. You can use our test bank software, EZ Test and EZ Test Online, or in Connect MIS to
query easily for learning outcomes/objectives that directly relate to the learning objectives for your course. You can
then use the reporting features of EZ Test to aggregate student results in similar fashion, making the collection and
presentation of assurance of learning data simple and easy.

AACSB Statement
The McGraw-Hill Companies is a proud corporate member of AACSB International. Understanding the importance
and value of AACSB accreditation, Business Driven Information Systems recognizes the curricula guidelines
detailed in the AACSB standards for business accreditation by connecting selected questions in the test bank to the
six general knowledge and skill guidelines in the AACSB standards.
The statements contained in Business Driven Information Systems are provided only as a guide for the users of
this textbook. The AACSB leaves content coverage and assessment within the purview of individual schools, the
mission of the school, and the faculty. Although Business Driven Information Systems and the teaching package
make no claim of any specific AACSB qualification or evaluation, within Business Driven Information Systems we
have labeled selected questions according to the six general knowledge and skills areas.

xx Walkthrough
McGraw-Hill Customer Care Contact Information
At McGraw-Hill, we understand that getting the most from new technology can be challenging. That’s why our
services don’t stop after you purchase our products. You can email our product specialists 24 hours a day to get
product training online. Or you can search our knowledge bank of Frequently Asked Questions on our support
website. For Customer Support, call 800-331-5094 or visit www.mhhe.com/support where you can look for
your question on our FAQ, or you can email a question directly to customer support. One of our technical support
analysts will be able to assist you in a timely fashion.

Walkthrough xxi
Apply Your Knowledge
Business Driven Information Systems contains 33 projects that focus on student application of core concepts and tools.
These projects can be found on the OLC at www.mhhe.com/baltzan.

Project Page
Number Project Name Project Type Plug-In Focus Area Project Level Skill Set Number

1 Financial Excel T2 Personal Introductory Formulas AYK.4


Destiny Budget
2 Cash Flow Excel T2 Cash Flow Introductory Formulas AYK.4
3 Technology Excel T1, T2 Hardware and Introductory Formulas AYK.4
Budget Software
4 Tracking Excel T2 Employee Introductory Formulas AYK.4
Donations Relationships
5 Convert Excel T2 Global Introductory Formulas AYK.5
Currency Commerce
6 Cost Excel T2 Total Cost of Introductory Formulas AYK.5
Comparison Ownership
7 Time Excel or Project T12 Project Introductory Gantt Charts AYK.6
Management Management
8 Maximize Excel T2, T4 Strategic Intermediate Formulas or AYK.6
Profit Analysis Solver
9 Security Excel T3 Filtering Data Intermediate Conditional AYK.7
Analysis Formatting,
Autofilter,
Subtotal
10 Gathering Excel T3 Data Intermediate Conditional AYK.8
Data Analysis Formatting
11 Scanner Excel T2 Strategic Intermediate Formulas AYK.8
System Analysis
12 Competitive Excel T2 Profit Intermediate Formulas AYK.9
Pricing Maximization
13 Adequate Excel T2 Break-Even Intermediate Formulas AYK.9
Acquisitions Analysis
14 Customer Excel T3 CRM Intermediate PivotTable AYK.9
Relations
15 Assessing Excel T3 Data Intermediate PivotTable AYK.10
the Value of Analysis
Information
16 Growth, Excel T2, T3 Data Advanced Average, AYK.11
Trends, and Forecasting Trend, Growth
Forecasts
17 Shipping Costs Excel T4 SCM Advanced Solver AYK.12
18 Formatting Excel T3 Data Advanced If, LookUp AYK.12
Grades Analysis

(Continued )

xxii Walkthrough
Project Page
Number Project Name Project Type Plug-In Focus Area Project Level Skill Set Number
19 Moving Excel T2, T3 SCM Advanced Absolute AYK.13
Dilemma vs. Relative
Values
20 Operational Excel T3 SCM Advanced PivotTable AYK.14
Efficiencies
21 Too Much Excel T3 CRM Advanced PivotTable AYK.14
Information
22 Turnover Rates Excel T3 Data Mining Advanced PivotTable AYK.15
23 Vital Excel T3 Data Mining Advanced PivotTable AYK.15
Information
24 Breaking Even Excel T4 Business Advanced Goal Seek AYK.16
Analysis
25 Profit Scenario Excel T4 Sales Advanced Scenario AYK.16
Analysis Manager
26 Electronic HTML T9, T10, Electronic Introductory Structural AYK.17
Résumés T11 Personal Tags
Marketing
27 Gathering Dreamweaver T9, T10, Data Intermediate Organization AYK.17
Feedback T11 Collection of Information
28 Daily Invoice Access T5, T6, Business Introductory Entities, AYK.17
T7, T8 Analysis Relationships,
and
Databases
29 Billing Data Access T5, T6, Business Introductory Entities, AYK.19
T7, T8 Intelligence Relationships,
and
Databases
30 Inventory Data Access T5, T6, SCM Intermediate Entities, AYK.20
T7, T8 Relationships,
and
Databases
31 Call Center Access T5, T6, CRM Intermediate Entities, AYK.21
T7, T8 Relationships,
and
Databases
32 Sales Pipeline Access T5, T6, Business Advanced Entities, AYK.23
T7, T8 Intelligence Relationships,
and
Databases
33 Online Classified Access T5, T6, Ecommerce Advanced Entities, AYK.23
Ads T7, T8 Relationships,
and
Databases

Walkthrough xxiii
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xxiv Walkthrough
Another random document with
no related content on Scribd:
THE AMERICAN IDEA
A Sketch in One Act
By Lily Carthew
Three males, two females. Costumes, modern; scenery, an
interior. Plays twenty minutes. Royalty for amateur performance
$5.00. Mignon Goldman, following the American Idea, throws off the
parental yoke and marries the man of her choice and not the choice
of her parents. She brings home for the parental blessing John Kelly.
Abe, her father, is disconsolate at this prospect until he sees John
and recognizes in him Yan Kele Operchinsky, rechristened in
accordance with “The American Idea.” Originally produced at The
Peabody Playhouse, Boston. Strongly recommended.
Price, 25 cents

THE CROWNING OF COLUMBIA


A Patriotic Fantasy in One Act
By Kathrine F. Carlyon
Twenty-five boys and twenty-four girls. Costumes, modern and
picturesque. Nothing required in the way of scenery but a platform.
Plays half an hour or less. Columbia is approached by the Foresters,
the Farmers, the Miners, the Pleasure Seekers, the Ammunition
Workers and even the Red Cross Workers, all asking her to be their
Queen, but it is only when the Soldiers and the Red Cross Nurses
come, asking nothing and giving all, that she yields. Easy, pretty,
timely, and strongly recommended. Introduces music.
Price, 25 cents
THE AIR-SPY
A War Play in Three Acts
By Mansfield Scott
Twelve males, four females. Costumes, modern; scenery, a single
interior. Plays an hour and a half. Royalty, $10.00 for first, $5.00 for
subsequent performances by same cast; free for school
performance. Inspector Steele, of the Secret Service, sets his wits
against those of German emissaries in their plot against Dr.
Treadwell’s air-ship, a valuable war invention, and baffles them after
an exciting pursuit. An easy thriller, full of patriotic interest. Easy to
get up and very effective. Strongly recommended for school
performance. Originally produced by The Newton (Mass.) High
School.
Price, 35 cents
CHARACTERS
Dr. Henry Treadwell, inventor of the Giant Air-ship.
Victor Lawrence, his pretended friend—a German spy.
Harold Felton, of the United States Army.
Carleton Everton, a young Englishman.
Karl Schoneman, of the German Secret Service.
Franz Muller, his assistant.
Arthur Merrill, also of the United States Army.
Inspector Malcome Steele, of the United States Secret Service.
Henry Gootner, a German agent.
Francis Drury, one of Treadwell’s guests.
Corporal Thayer.
Private Freeman.
Ruth Treadwell, Treadwell’s daughter.
Muriel Lawrence, Lawrence’s daughter.
Mrs. Treadwell.
Margaret Linden, a friend of Ruth’s.
The Time.—America’s second summer in the war.
The Place.—A deserted mansion on a small island near Eastport, Maine.
SYNOPSIS
Act I. The afternoon of June 10th.
Act II. The evening of September 21st.

Act III. Scene 1. The afternoon of the next day. About 1:30.
Scene 2. An hour later.

ART CLUBS ARE TRUMPS


A Play in One Act
By Mary Moncure Parker
Twelve females. Costumes of 1890 with one exception; scene, a
single easy interior. Plays thirty minutes. Describes the trials of an
ambitious woman who desired to form a club in the early days of
club life for women about thirty years ago, before the days of
telephones and automobiles. A capital play for ladies’ clubs or for
older women in general. The costumes are quaint and the picture of
life in the year of the Chicago World’s Fair offers an amusing
contrast to the present. Recommended.
Price, 25 cents
HAMILTON
A Play in Four Acts
By Mary P. Hamlin and George Arliss
Eleven males, five females. Costumes of the period; scenery,
three interiors. Plays a full evening. Royalty for amateur performance
where an admission is charged, $25.00 for each performance.
Special royalty of $10.00 for performance by schools. This play, well
known through the performances of Mr. George Arliss still continuing
in the principal theatres, presents the builders of the foundations of
the American Republic as real people, and its story adroitly
illustrates not merely the various ability of its leading figure,
Alexander Hamilton, but the unconquerable courage and
determination that were his dominating characteristics. The vividness
with which it vitalizes the history of its period and the power with
which it emphasizes Hamilton’s most admirable and desirable
quality, make it most suitable for school use, for which special terms
have been arranged, as above. Strongly recommended.
Price, 60 cents
CHARACTERS
Alexander Hamilton.
General Schuyler.
Thomas Jefferson.
Monroe.
Giles.
Tallyrand.
Jay.
Zekiel.
Reynolds.
Colonel Lear.
First Man.

Betsy Hamilton.
Angelica Church.
Mrs. Reynolds.
Soldier’s Wife.
Melissa.
THE SCENES
Act I.—The Exchange Coffee House in Philadelphia.
Act II.—A room in Alexander Hamilton’s house in Philadelphia. (The office of the
Secretary of the Treasury.)
Act III.—The same. (Six weeks later.)
Act IV.—A reception room in Alexander Hamilton’s house. (The next morning.)

THE MINUTE MAN


A Patriotic Sketch for Girls of the High School Age in
a Prologue and Three Episodes
By Nellie S. Messer
Thirteen girls. Costumes, modern, Colonial and of the Civil War
period. Scenery, three interiors. Plays an hour and a half. Betty and
Eleanor, typically thoughtless girls of the present day, run across the
diaries of Bess’s mother and grandmother, which relate the
experiences of girls of their age and kind at previous periods of their
country’s history, and learn a vivid lesson in patriotism. The scenes
of the past are shown in dramatic episodes visualizing the matter of
the diaries that they read. A very clever arrangement of a very
stimulating subject, strongly recommended for all occasions where
the promotion of patriotism is desired. A timely lesson strongly
enforced.
Price, 25 cents
A. W. Pinero’s Plays
Price, 60 Cents Each

Play in Four Acts. Six males, five females.


MID-CHANNEL Costumes, modern; scenery, three
interiors. Plays two and a half hours.

THE NOTORIOUS MRS.


EBBSMITH
Drama in Four Acts. Eight males, five females. Costumes, modern; scenery,
all interiors. Plays a full evening.
Play in Four Acts. Seven males,
THE PROFLIGATE five females. Scenery, three
interiors, rather elaborate; costumes, modern. Plays a full evening.
Farce in Three Acts.
THE SCHOOLMISTRESS Nine males, seven
females. Costumes, modern; scenery, three interiors. Plays a full evening.
Pl
THE SECOND MRS. TANQUERAY ay
in Four Acts. Eight males, five females. Costumes, modern; scenery, three
interiors. Plays a full evening.
Comedy in Three Acts. Seven
SWEET LAVENDER males, four females. Scene, a
single interior; costumes, modern. Plays a full evening.
Comedy in Four Acts. Ten
THE THUNDERBOLT males, nine females.
Scenery, three interiors; costumes, modern. Plays a full evening.
Comedy in Four Acts. Six males, seven females.
THE TIMES Scene, a single interior; costumes, modern. Plays
a full evening.
Comedy in Three Acts. Eight
THE WEAKER SEX males, eight females. Costumes,
modern; scenery, two interiors. Plays a full evening.
Comedy in
A WIFE WITHOUT A SMILE Three Acts. Five
males, four females. Costumes, modern; scene, a single interior. Plays a full
evening.

Sent prepaid on receipt of price by


Walter H. Baker & Company
No. 5 Hamilton Place, Boston, Massachusetts
The William Warren Edition of
Plays
Price, 25 Cents Each

Comedy in Five Acts. Thirteen males,


AS YOU LIKE IT four females. Costumes, picturesque;
scenery, varied. Plays a full evening.
Drama in Five Acts. Nine males, five females.
CAMILLE Costumes, modern; scenery, varied. Plays a full
evening.
Play in Five Acts. Thirteen males, three females.
INGOMAR Scenery, varied; costumes, Greek. Plays a full
evening.
Tragedy in Five Acts. Thirteen males,
MARY STUART four females, and supernumeraries.
Costumes, of the period; scenery, varied and elaborate. Plays a full evening.
Comedy in
THE MERCHANT OF VENICE Five Acts.
Seventeen males, three females. Costumes, picturesque; scenery varied.
Plays a full evening.
Play in Five Acts. Fifteen males, two females.
RICHELIEU Scenery, elaborate; costumes, of the period.
Plays a full evening.
Comedy in Five Acts. Nine males, five females.
THE RIVALS Scenery, varied; costumes, of the period. Plays
a full evening.
Comedy in
SHE STOOPS TO CONQUER Five Acts.
Fifteen males, four females. Scenery, varied; costumes, of the period. Plays
a full evening.
Comedy in Five Acts. Ten males, three females. Costumes, picturesque;
scenery, varied. Plays a full evening.
TWELFTH NIGHT; OR, WHAT YOU
WILL

Sent prepaid on receipt of price by

Walter H. Baker & Company


No. 5 Hamilton Place, Boston, Massachusetts
Transcriber’s Notes
Changed landside to landslide in “I had been struck by a landslide”.
Changed Beech to Beach in “Palm Beach, Fla.”.
Changed air ship to air-ship in “Dr. Treadwell’s air-ship” for consistency.
The word land appears to be used as a euphemism for lawd or lord. This has not
been changed.
Minor punctuation changes have been made for consistency.
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