Ebook Mis 9 Management Information Systems PDF Full Chapter PDF
Ebook Mis 9 Management Information Systems PDF Full Chapter PDF
Ebook Mis 9 Management Information Systems PDF Full Chapter PDF
MIS 9
MANAGEMENT INFORMATION SYSTEMS
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9 BRIEF CONTENTS
Endnotes 333
Index 347
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iii
CONTENTS
Information Technologies at Walmart 15
Part 1 1-6c Porter’s Five Forces Model: Understanding the Business
Environment 16
Fundamentals of Information Systems Information Technologies at Netflix 17
Digital Innovation in Retail Industry Using
Information Technologies 18
1-7 The IT Job Market 18
1-7a CTO/CIO 19
1-7b Manager of Information Systems Services 19
ESB Professional/Shutterstock.com
3 Database Systems, Data Case Study 3-2: Data Mining Tools at Pandora Radio 70
Part 2
Case Study 4-1: Telecommuting with a New Twist 90
Case Study 4-2: Privacy and Other Legal Issues at Google 91
Data Communication, the Internet,
5 Protecting Information E-Commerce, and Global Information
Systems
Resources 92
5-1 Risks Associated with Information Technologies 93
5-1a The Costs of Cyber Crime to the U.S. Economy 93
Syda Productions/Shutterstock.com
5-1b Spyware and Adware 93
5-1c Phishing, Pharming, Baiting, Quid Pro Quo, SMiShing,
and Vishing 94
5-1d Keystroke Loggers 94
5-1e Sniffing and Spoofing 94
5-1f Computer Crime and Fraud 94
Challenges of Insiders’ Threats 95
6 Data Communication:
Identity Theft at Internal Revenue Service 96
Types of Hackers 97
5-2 Computer and Network Security: Basic Delivering Information
Safeguards 97
Anywhere and Anytime 118
Nearly All Organizations Get Hacked 98
6-1 Defining Data Communication 119
5-3 Security Threats: An Overview 99
6-1a Why Managers Need to Know About Data
5-3a Intentional Threats 99 Communication 119
Protecting Against Data Theft and Data Loss 101 GoToMeeting: Example of an E-collaboration
Social Engineering Costs Ubiquiti Networks More Tool 120
than $39 Million 102 6-2 Basic Components of a Data Communication
5-4 Security Measures and Enforcement: An System 120
Overview 103 6-2a Sender and Receiver Devices 121
5-4a Biometric Security Measures 103 6-2b Modems 121
Biometrics at Phoebe Putney Memorial Hospital 103 6-2c Communication Media 121
5-4b Nonbiometric Security Measures 104 6-3 Processing Configurations 122
5-4c Physical Security Measures 106 Google Invests in Communication Media 123
5-4d Access Controls 107 6-3a Centralized Processing 123
Lost and Stolen Laptops 108 6-3b Decentralized Processing 123
5-4e Virtual Private Networks 109 6-3c Distributed Processing 123
5-4f Data Encryption 109 6-3d Open Systems Interconnection Model 124
5-4g E-Commerce Transaction Security Measures 111 6-4 Types of Networks 125
5-4h Computer Emergency Response Team 111 6-4a Local Area Networks 125
5-5 Guidelines for a Comprehensive Security System 112 6-4b Wide Area Networks 125
Sarbanes-Oxley and Information Security 113 6-4c Metropolitan Area Networks 126
5-5a Business Continuity Planning 113 6-5 Network Topologies 127
Reviews and Discussions 115 6-5a Star Topology 127
Projects 115 6-5b Ring Topology 127
vi Contents
6-5c Bus Topology 127 7-4f Financial Institutions 155
6-5d Hierarchical Topology 128 7-4g Software Distribution 155
6-5e Mesh Topology 128 7-4h Healthcare 155
6-6 Major Networking Concepts 129 Electronic Health Records Pay Off for Kaiser
6-6a Protocols 129 Permanente 156
6-6b Transmission Control Protocol/Internet Protocol 129 7-4i Politics 156
6-6c Routing 129 The Internet in 2020 157
6-6d Routers 130 7-5 Intranets 157
6-6e Client/Server Model 131 7-5a The Internet versus Intranets 157
6-7 Wireless and Mobile Networks 133 7-5b Applications of an Intranet 158
7-6 Extranets 159
Mobile Computing and Mobile Apps 134
7-7 New Trends: The Web 2.0 and Web 3.0 Eras 160
6-7a Wireless Technologies 135
7-7a Blogs 161
6-7b Mobile Networks 135
7-7b Wikis 161
Mobile Computing in Action: The Apple iPhone 137
LinkedIn: A Professional Social Networking Site 162
6-8 Wireless Security 137
7-7c Social Networking Sites 162
Privacy and Ethical Issues of Wireless Devices 138
Social Media Applications at Walmart 163
6-9 Convergence of Voice, Video, and Data 138
7-7d Business Application of Social Networks 163
Telepresence: A New Use of Data Communication
7-7e RSS Feeds 163
and Convergence 139
7-7f Podcasting 164
Reviews and Discussions 140
Twitter: Real-time Networking with Your Followers 165
Projects 141
7-7g The Internet2 165
Are You Ready to Move On? 141
7-8 The Internet of Everything and Beyond 166
Case Study 6-1: Data Communication at Walmart 141
The Internet of Everything in Action 168
Case Study 6-2: Protecting the Security and Privacy of
Mobile Devices 142 Reviews and Discussions 169
x Contents
PART 1
1 Information Systems:
An Overview
ESB Professional/Shutterstock.com
LEARNING OBJECTIVES
After studying this chapter, you should be able to:
1-2 Explain the differences between computer literacy and information literacy.
1-9 Explain the Five Forces Model and strategies for gaining a competitive advantage.
2 PART
PARTONE:
ONE: Fundamentals of Information Systems
This chapter starts with an overview of common
uses for computers Organizations use and information
computers and
systems, explains the information systems difference between
computer literacy and to reduce costs and information literacy,
and then reviews gain a competitive transaction-processing
systems as one of the advantage in the earliest applications
marketplace.
of information systems. Next, the
chapter discusses the components of
a management information system (MIS), including data, databases,
processes, and information, and then delves into how information
systems relate to information technologies. This chapter also covers
the roles and applications of information systems and explains the
Five Forces Model used to develop strategies for gaining a competitive
advantage. Finally, the chapter reviews the IT job market and touches
on the future of information systems.
1-1 COMPUTERS AND and retail stores as well. For example, a point-of-sale
(POS) system speeds up service by reading the universal
INFORMATION SYSTEMS product codes (UPCs) on items in your shopping cart
(see Exhibit 1.1). This same system also manages store
IN DAILY LIFE inventory, and some information systems can even reor-
der stock automatically. Banks, too, use computers and
Organizations use computers and
information systems to reduce costs
and gain a competitive advantage in the Exhibit 1.1
marketplace. Throughout this book,
you will study many information sys-
tem applications. For now, you will look
at some common applications used in
daily life.
Computers and information sys-
tems are all around you. As a student,
you use computers and office suite
software and 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
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ciency. The information box “Smartphones Everywhere
and for Everything” highlights several popular applica-
tions of smartphones.
The Internet is used for all kinds of activities, from
shopping to learning to working. Search engines and broad-
band communication bring information to your desktop
in seconds. The Internet is also used for social purposes.
With social networking sites—such as Facebook, Twitter,
Google+, LinkedIn, and Foursquare—you can connect
Rawpixel.com/Shutterstock.com
interchangeably. Information
systems are broader in scope
than information technolo-
gies, but the two overlap
in many areas. Both are
used to help organizations
be more competitive and
promote their products and services. See the information to improve their overall efficiency and e ffectiveness.
box “A New Era of Marketing: YouTube,” which high- Information technologies offer many advantages for
lights a few such companies. improving decision making but involve some chal-
So what do all these examples mean to you? Com- lenges, too, such as security and privacy issues. The
puters and information technology will help the knowl- information box “Social Networking and the Vulner-
edge workers of the future perform more effectively and ability of Personal Information” describes one of the
productively, no matter what profession they choose. In potential challenges.
Business intelligence
features will include (BI) provides historical, current,
For the past 60 years, transaction-processing cash withdrawals by tap- and predictive views of business
systems (TPSs) have been applied to structured tasks ping smartphones to the operations and environments
such as record keeping, simple clerical operations, and ATM, the technology and gives organizations a
competitive advantage in the
inventory control. Payroll, for example, was one of the first similar to Apple Pay;
marketplace.
applications to be automated. TPSs focus on data collection withdrawals of up to
and processing, and they have provided enormous reduc- $3,000 on some ATMs; Transaction-processing
systems (TPSs) focus on
tions in costs. and allowing customers
data collection and processing; the
Computers are most beneficial in transaction- to make their credit card major reason for using them is
processing operations. These operations are repeti- and mortgage payments cost reduction.
tive, such as printing numerous checks, or involve at the ATM.14
CHAPTER 1: Information Systems: An Overview 7
Information Technologies at Domino’s Pizza
In 1960, Domino’s Pizza opened its first store. Today, there are nearly 12,000 stores, half of them outside the United States. In
2007, Domino’s started online and mobile ordering. Today, customers can order online at www.dominos.com or they can use
apps for the iPhone, Android, or Kindle Fire.15 This allows them to customize their pizzas with any combination of ingredients,
enhancing their sense of participation while also saving Domino’s the labor costs associated with phone orders. After placing
the order, the customer can track it all the way to when it is sent out for delivery, keeping an eye on an estimated delivery time.
In 2012, Domino’s surpassed $1 billion in annual sales through its Web site, proving that e lectronic sales will con-
tinue to play a large role in the company’s success. 16
However, there are some security risks associated ●● Watch for signs that the ATM of a gas pump may have
with using ATMs. ATM skimming is a worldwide problem been tampered with. This could be done by physically
costing more than $2 billion a year in fraudulent charges. touching the machine or checking on Bluetooth for
Skimmers, by using a card the size of a credit card installed unusual Wi-Fi networks.
inside the ATM or on the top of the machine, are able to ●● Cover your pin number when entering it.
record PIN numbers and other financial information of the
users. This could happen when you swiped your card at the
ATM or even at a gas station. Skimmers have been stealing 1-4 MANAGEMENT
financial information from cards with magnetic strips, as
chip-based cards are more difficult to steal from. To protect INFORMATION SYSTEMS
your financial informa-
tion while using an ATM, A management information system (MIS) is an
A management
information system (MIS) follow these steps22: organized integration of hardware and software technol-
is an organized integration ogies, data, processes, and human elements designed to
●● heck your bank
C
of hardware and software
statements regularly.
produce timely, integrated, relevant, accurate, and use-
technologies, data, processes, ful information for decision-making purposes.
and human elements designed to Usually, if you report
fraudulent charges The hardware components, which are discussed
produce timely, integrated, relevant,
accurate, and useful information for within two days your in more detail in Chapter 2, include input, output, and
decision-making purposes. bank will reimburse you memory devices and vary depending on the applica-
for anything over $50. tion and the organization. MIS software, also covered
8 PART ONE: Fundamentals of Information Systems
If an organization has defined its strategic goals,
objectives, and critical success factors, then structuring
the data component to define what type of data
is collected and in what form is usually easy.
cunaplus/Shutterstock.com
aware of critical success factors,
many problems in data collec-
tion can occur, which affects an
information system’s reliability
and effectiveness.
An information system can include a wide range of
1-5b models to support all levels of decision making. Users
should be able to query an information system and gener-
A database, the heart of an information system, is a ate a variety of reports. In addition, an information sys-
collection of all relevant data organized in a series of tem should be able to grow with the organization so users
integrated files. (You will learn more about databases in can redefine and restructure models and incorporate new
Chapter 3.) A comprehensive database is essential for information into their analyses.
the success of any information system. To create, orga-
nize, and manage databases, a database management
1-5d
system (DBMS) is used, such as Microsoft Access or
FileMaker Pro for home or small-office use. In a large Although they might seem the same, data and informa-
organization, a DBMS such as Oracle or IBM DB2 tion are different. Data consists of raw facts and by itself
might be used. is difficult to use for making decisions. Information—
Databases are also important for reducing person- the output of an information system—consists of facts
nel time needed to gather, process, and interpret data that have been analyzed by the process component and
manually. With a computerized database and a DBMS, are therefore more useful to the MIS user. For example,
data can be treated as a common resource that is easy to XYZ Company’s total sales last month were $5 million.
access and use. This number is data because it does not tell you how the
company performed. Did it meet the sales goal? Did
1-5c sales increase or decrease from the previous month?
How did the company perform against its top competi-
A database is a collection of all The purpose of an infor- tors? These questions and more can be answered by the
relevant data organized mation system’s process information that an information system provides.
in a series of integrated files. component is generating The quality of information is determined by its use-
The process component of an the most useful type of fulness to users, and its usefulness determines the suc-
information system generates the information for making cess of an information system. Information is useful if it
most useful type of information for decisions. This compo- enables decision makers to make the right decision in a
decision making, including
nent generally includes timely manner. To be useful, information must have the
transaction-processing reports and
models for decision analysis. transaction-processing following qualities:
reports and models for
Information consists of facts ●● Timeliness
decision analysis that can
that have been analyzed by the ●● Integration with other data and information
process component and is an be built into the system
output of an information system. or accessed from external ●● Consistency and accuracy
sources. ●● Relevance
10 PART ONE: Fundamentals of Information Systems
If information lacks any of these qualities, the results provides. For example, knowing which major is the fast-
are incorrect decisions, misallocation of resources, and est growing can help with decisions on hiring faculty, and
overlooked windows of opportunity. If the system c annot knowing the estimated number of students for 2025 can
give users a minimum level of confidence in its reliabil- help with planning facilities.
ity, it will not be used or users might dismiss the reports Example 2 Teletech, an international textile com-
it generates. Information must provide either a base for pany, uses a database to store data on products, sup-
users to explore different options or insight into tasks. pliers, sales personnel, costs, and so forth. The process
Another factor affecting the usefulness of informa- component of the information system conducts analysis
tion is the information system’s user interface. Because this on the data to provide the following information about
interface must be flexible and easy to use, most informa- the preceding month:
tion systems make use of graphical user interfaces (GUIs), ●● Which salesperson generated the highest sales?
with features such as menus and buttons. To be useful, ●● Which product generated the highest sales? The
information systems should also produce information in lowest sales?
different formats, including graphics (e.g., pie charts and
●● Which region generated the highest sales?
bar graphs), tables, and exception reports, which highlight
information that is outside a specified range. Supplying Again, forecasting models can be used to generate
information in a variety of formats increases the likelihood predictions for the next sales period, and these predic-
of users understanding and being able to use the informa- tions can be broken down by product, region, and sales-
tion. Note that, in addition to the formal information that person. Based on this information, many decisions could
an information system generates, users need to be able to be made, such as allocating the advertising budget to
make use of informal information—such as rumors, uncon- different products and regions.
firmed reports, and stories—when solving problems.
The ultimate goal of an information system is to gen-
erate business intelligence (BI), described earlier in this
1-6 USING INFORMATION
chapter. As you will learn throughout this book, many SYSTEMS AND INFORMATION
different tools, techniques, and types of information sys-
tem technologies are used to generate BI. TECHNOLOGIES
1-5e Information systems are designed to collect data, process
the collected data, and deliver timely, relevant, and use-
To better understand the four main components of an infor-
ful information that can be used for making decisions. To
mation system, take a look at the following two examples.
achieve this goal, an information system might use many
Example 1 A state university stores all student data
different information technologies. For example,
in a database. The collected data includes each student’s
organizations often use the Internet as a worldwide
first name, last name, age, gender, major, nationality, and
network to communicate with one another. Computer
so forth. The process component of the information sys-
networks (wired and wireless), database systems, POS
tem performs all sorts of analysis on this data. For exam-
systems, and radio-frequency identification (RFID) tags
ple, the university’s DBMS has a built-in query capability
are just a few examples of information technologies used
that can generate the following information:
to support information systems. The information box on
●● How many students are in each major? The Information Technologies at Home Depot box gives
●● Which major is the fastest growing? you an idea of how companies use information technolo-
●● What is the average age of the student body? gies to stay competitive.
●● Among the international students, which country is
home to the highest number of students? 1-6a
●● What is the ratio of male to female students in
each major?
Information is the second Information technologies
Many other types of analysis can be done. A fore- most important resource support information systems
and use the Internet, computer
casting model (part of the process component) could (after the human ele-
networks, database systems, POS
be used to generate the estimated number of students ment) in any organiza- systems, and radio-frequency
for 2025, for instance. In addition, predictions could be tion. Timely, relevant, and identification (RFID) tags.
made or improved, based on information this system accurate information is a
CHAPTER 1: Information Systems: An Overview 11
Information Technologies at The Home Depot
The Home Depot revolutionized the do-it-yourself home-improvement industry in the United States. Its stores use a POS
system for both fast customer service and improved inventory management as well as a wireless network for efficient in-
store communication.24 The Home Depot has a Web site to communicate with customers and increase sales with online
orders. It also uses RFID tags to better manage inventory and improve the efficiency of its supply chain network.
The Home Depot maintains a high-speed network connecting its stores throughout North America, and it uses a data-
warehousing application to analyze variables affecting its success—customers, competitors, products, and so forth.25 The
information system gives The Home Depot a competitive advantage by gathering, analyzing, and using information to
better serve customers and plan for customers’ needs.
In 2010, The Home Depot launched a transition to Fujitsu
U-Scan self-checkout software in its U.S. and Canadian retail stores.
The software offers retailers the flexibility to quickly make changes
Sergey Yechikov/Shutterstock.com
to their POS systems, and offers savings in labor costs.26
Other Information Technologies used in some of The Home
Depot stores include virtual and augmented reality (discussed
in Chapter 14), mobile checkout, and heat mapping to reduce
in-store congestion. This technology assists the store manager
to deploy more associates to congested area within the store.27
critical tool for enhancing a company’s competitive position information that helps decision makers in personnel carry
in the marketplace and managing the four Ms of resources: out their tasks more effectively. Web technologies have
manpower, machinery, materials, and money. played a major role in improving the efficiency and effec-
To manage these resources, different types of infor- tiveness of HR departments. For example, intranets are
mation systems have been developed. Although all have often used to provide basic HR functions, such as employ-
the major components shown in Exhibit 1.3, they vary ees checking how much vacation time they have left or
in the kind of data they collect and the analyses they looking up how much they have in their 401(k) plans.
perform. This section discusses some major types of Intranets reduce personnel costs and speed up responses
information systems, focusing on the types of data and to common employee requests. As discussed in Chapter 7,
analysis used in each. an intranet is a network within an organization that uses
A personnel information system (PIS) or human Internet protocols and technologies for collecting, stor-
resource information system (HRIS) is designed to provide ing, and disseminating useful information that supports
Vdovichenko Denis/Shutterstock.com
used for many years, Walmart uses the following information technologies
to gain a competitive advantage:
●● Telecommunications is used to link stores with the central computer
system and then to suppliers’ computers. This system creates a seam-
less connection among all parties.
●● Network technologies are used to manage inventory and implement
a just-in-time inventory system. As a result, products and services can
be offered at the lowest possible prices.
●● Walmart uses an extranet, called RetailLink, to communicate with suppliers. Suppliers are able to review product sales
records in all stores and track current sales figures and inventory levels.36 (Extranets are discussed in Chapter 7.)
●● Electronic data interchange (EDI), discussed in Chapter 11, is used to streamline the order-invoice-payment cycle,
reduce paperwork, and improve accuracy.
●● Walmart is a major user of RFID technologies, which have improved its supply chain and inventory management systems.
●● Starting in 2017, Walmart has been using virtual reality to help train its employees on topics such as management
and customer service. It is estimated that over 150,000 employees will go through the program each year.37
●● The same year, Walmart introduced robots in over 50 locations. These 2-feet-tall robots perform tasks such as checking
stock, finding mislabeled or unlabeled products, and assisting employees to fulfill orders for online customers.38
a long-term relationship between an organization and by designing its computers to look very different than PCs
its customers. and focusing on its computers’ ease of use. As another
For differentiation strategies, organizations try to example, Amazon has differentiated its Web site by using
make their products and services different from their certain information technologies, such as personalization
competitors. Apple has been successful with this strategy technologies (covered in more detail in Chapter 11) to
recommend products to customers based on their previ-
ous purchases. Amazon also uses the one-click sys-
tem for fast checkout. With this system, customers
can enter credit card numbers and addresses once
and, in subsequent visits, simply click once to make a
purchase, without having to enter information again.
With focus strategies, organizations concen-
trate on a specific market segment to achieve a
cost or differentiation advantage. Apple has also
used this strategy to target iPhones to consumer
users rather than business users. Similarly, Macin-
tosh computers are heavily marketed to creative
Peshkova/Shutterstock.com
Potential
entrants
Threat of
new entrants
Industry
competitors
Bargaining power Bargaining power
of suppliers of buyers
Suppliers Buyers
Rivalry among
existing
competitors
Threat of
substitute products
or services
Substitutes
could assist these companies in reaching their target ●● Threat of new entrants
market segments more cost effectively. ●● Rivalry among existing competitors
Remember that focus and differentiation strategies
work only up to a certain point. Customers are often will- Buyer power is high when customers have many
ing to pay more for a unique product or service or one choices and low when they have few choices. Typically,
with a specific focus. However, cost still plays a major organizations try to limit buyers’ choices by offering
role. If a product or service becomes too expensive, cus- services that make it difficult for customers to switch,
tomers might not be willing to purchase it. which is essentially using a differentiation strategy. For
example, Dell Computer was among the first to offer
computer customization options to customers, and other
1-6c
computer manufacturers followed suit. Grocery stores,
such as Sam’s Club, offer club cards that encourage cus-
Harvard Business School’s Michael Porter created a com- tomers to shop by giving them big discounts, an example
prehensive framework called the Five Forces Model of overall cost leadership strategies. Similarly, airlines
for analyzing an organization, its position in the market- and hotels offer free mileage and points when customers
place, and how informa- use their services. Information systems can make manag-
tion systems could be ing these strategies easier and more cost effective.
Michael Porter’s Five Forces Organizations use these strategies to increase
Model analyzes an organization, used to make the orga-
nization more competi- customer loyalty, thus combating the threat of new
its position in the marketplace, and
how information systems could be tive.39 The five forces, entrants or substitute products. However, certain
used to make it more competitive. shown in Exhibit 1.4, are: information technology tools, such as the Internet,
The five forces include buyer power, have evened the playing field by giving customers
supplier power, threat of substitute Buyer power
●● more access to all sorts of data, such as the various
products or services, threat of new
entrants, and rivalry among existing
●● Supplier power prices for products and services. This increases buy-
competitors. ●● hreat of substitute
T ers’ bargaining power and decreases supplier power,
products or services which is discussed next.
16 PART ONE: Fundamentals of Information Systems
Information Technologies at Netflix
Using a wide variety of devices, over 109 million Netflix subscribers in the United States and around the world
connect to the company’s Web site and watch unlimited movies and TV episodes.40 The users can also receive
DVDs through the mail. The Internet, personalization technologies, and effective inventory management tech-
niques have revolutionized rental entertainment at Netflix. Any user with an Internet connection can connect
to the Web site and watch movies and TV episodes streamed and delivered instantly to a user’s device. Netflix is
currently using Amazon Web Services (AWS), which has provided the company with a high degree of availability
and speed.41
Using data-mining and collaborative filtering technologies, Netflix’s personalization system actively searches infor-
mation to discover relationships and patterns and make recommendations based on a user’s past movie-viewing
history and questions that were answered on the
Web site. Based on these techniques, Netflix has
created CineMatch, an algorithm that recom-
mends other movies the customer might enjoy.42
The inventory system used by Netflix is fully
automated, and computers and robots play a
major role in managing CDs and DVDs by scan-
ning them as soon as they arrive, notifying the
customer that the shipment has been received,
Maxxa Satori/Shutterstock.com
and quickly making the CDs and DVDs avail
able for other customers. (Netflix owns over
89 million discs.) A machine called a “stuffer”
processes DVDs—puts the discs into the enve-
lopes, folds and closes the envelope, and applies
the sticker to the center of the envelope.43
Supplier power is high when customers have fewer for switching to another provider before the customer
options and low when customers have more options. contract is up.
Organizations might use information systems to make The threat of new entrants into the marketplace is
their products and services cheaper or to offer more ser- low when duplicating a company’s product or service
vices in order to distinguish themselves from competitors is difficult. Organizations often use focus strategies to
(another use of a differentiation strategy). Netflix, for ensure that this threat remains low. For example, devel-
example, uses information technologies to offer prod- oping a search engine that could compete successfully
ucts and services, which increases its power in the mar- with Google would be difficult. In addition, organiza-
ketplace. (For examples of how these focus strategies get tions use information technologies to increase customer
used, see the information box on Netflix.) Organizations loyalty, as mentioned previously, which reduces the
have tools other than information systems and technolo- threat of new entrants. For example, banks offer free bill
gies to increase their power. For example, drug companies paying to attract customers and keep them from switch-
obtain patents for their products to reduce competition. ing to another bank; setting up a bill-paying service at
The threat of customers choosing substitute prod- another bank takes time that most customers do not
ucts or services is high when many alternatives to an want to spend. Similarly, after customizing their home
organization’s products and services are available. Some pages with options offered by sites such as Yahoo! and
organizations add services—such as Amazon’s personal- Google, many users do not want to repeat this process
ized recommendations—to make their positions in the at a new site.
marketplace more distinctive. Other organizations use Rivalry among existing competitors is high when
fees to discourage customers from switching to a com- many competitors occupy the same marketplace
petitor, such as when cell phone companies add charges position; it is low when there are few competitors.
CHAPTER 1: Information Systems: An Overview 17
Digital Innovation in Retail Industry Using Information Technologies
In order to reduce cost and minimize the gap between
the e-commerce and traditional commerce, brick-and-
mortar retailers are increasingly using information tech-
nologies. This not only improves customer service, but
it also sets these retailers apart from the competition.
Here are few examples of information technologies
Anatoly Tiplyashin/Shutterstock.com
being deployed in retail business:44,45,46
Digital signage or dynamic signage—These are
kiosks placed throughout stores with dynamic content
update capabilities that provide shoppers with up-to-
date information on product offerings and the latest
promotional campaigns. They also allow customers to
print coupons.
Beacon marketing—Use of Apple’s iBeacon or similar technologies allows retailers to deliver in-store targeted
marketing to customers’ smartphones or other handheld devices.
Interactive touch display—These are virtual sales assistants that help shoppers locate a product in the store
through high-definition graphics similar to those that the shoppers see online.
Image search—Retailers using Google, TinEye, or other search engines allow shoppers to take a photo or submit a
photo to search the retailer’s Web site and then buy the item in the store or online.
Mobile wallets—These allow customers to store their credit, debit, or loyalty cards, as well as coupons, and
redeem them electronically in store. They also allow them to validate tickets, redeem vouchers, make transactions,
and use multiple loyalty services. Customers can also do mobile checkout either at the cash register or with a walk-
ing sales associate equipped with a handheld device.
Smart fitting rooms—Wall-mounted tablets inside fitting rooms provide side-by-side comparisons with video of
the various looks a customer has with different clothes. Customers can actually try on the clothes or just overlay
them on his/her image without changing clothing.
For example, online brokerage firms operate in a highly (discussed in Chapter 14) are in high demand.47 Broadly
competitive environment, so they use information tech- speaking, IT jobs fall into the following categories:
nologies to make their services unique. ●● Operations and help desk
The information box highlights the role of infor-
●● Programming
mation technologies in making retail businesses more
competitive. A growing number of retailers are using ●● Systems design
elements of Porter’s Five Forces Model. ●● Web design and Web hosting
●● Network design and maintenance
●● Database design and maintenance
1-7f
Windows: The most popular operating system for PCs and MSN: An Internet portal combining Web services and free
PC-compatible computers Web-based e-mail (Hotmail)
Windows XP, Windows Vista, Windows 7, Windows 8, SharePoint Server: Groupware for facilitating information
Windows 10: Five widely used OSs for PCs sharing and content management
Windows Server 2003, Server 2008, Server 2010, Server SQL Server 2008, 2010, 2012, 2014, and 2016: Widely used
2012, Server 2016: Five widely used server operating database management systems
systems used in network environments
Xbox: A video game system
Office: The most widely used office suite; includes Word,
Visual Studio: An integrated development environment (IDE)
Excel, Access, and PowerPoint
that can be used to program applications in a number of dif-
Office 365: An online service, similar to Google Apps, that ferent languages (such as C++, Java, Visual Basic, and C#); used
lets users collaborate on documents, spreadsheets, and for console or GUI applications as well as Web applications
e-mail using a combination of subscription desktop soft-
Windows Live ID: A single sign-on service for multiple
ware and Web apps; includes Word, Excel, Exchange, and
Web sites
PowerPoint
Skype: A software application that allows users to commu-
Internet Explorer: A popular Web browser
nicate using voice, videos, and data over the Internet
Expression Web (replacing FrontPage): An HTML editor
Surface: A tablet designed to compete with the iPad
and Web design program for developing Web pages and
other HTML applications Azure: A cloud computing platform
STUDY
TOOLS 1 ■■ Track your knowledge and understanding of key concepts
LOCATED AT BACK OF THE TEXTBOOK
■■ Rip out Chapter Review Card in management information systems
■■ Complete practice and graded quizzes to prepare for tests
LOCATED AT WWW.CENGAGE.COM/LOGIN ■■ Complete interactive content within the MIS MindTap
■■ Review Key Term flashcards and create your own cards
Projects
1. Identify three applications of information systems at the 4. After reading the information presented in this chapter
college or the university that you are attending. Write a and other sources, write a one-page paper that describes
one-page paper that describes these three applications, the ways two different companies use Michael Porter’s
and provide an example of the type of decisions that are three strategies. How are information systems assisting
being improved by each application. How are multiple these companies in implementing each strategy? How
choice and true-false questions graded? has Walmart (for the most part) become a cost leader?
2. Grocery chains have been using information technolo- 5. After reading the information presented in this
gies for several decades. After reading the information chapter and other sources, write a one-page paper that
presented in this chapter and other sources, write a supports the claim that, in the future, computer crimi-
one-page paper that describes three such technolo- nals will become more sophisticated and that protect-
gies. What are two advantages of a POS system? ing personal information will become more difficult.
3. RFID tags are being increasingly used by companies How should individuals guard against this threat?
such as Macy’s, Walmart, and Home Depot. Identify 6. Banks are promoting online banking to a broad
an additional company that uses RFIDs and write a range of customers. After reading the information
one-page paper that describes the company’s spe- presented in this chapter and other sources, write a
cific application of RFIDs. What are two differences one-page paper that lists three advantages and three
between an RFID and a UPC system? disadvantages of online banking. Why are some cus-
tomers reluctant to use online banking? What are two
examples of popular apps that your own bank uses?
Denise Kappa/Shutterstock.com
every day (http://about.van.fedex systems to Ship Manager.61
.com/). To stay ahead in a highly However, Federal Express still
competitive industry, the company spends almost $326 million per
focuses on customer service by year on its call center in order to
maintaining a comprehensive Web reduce customers’ frustration when
site, FedEx.com, where it assists the Web site is down or when cus-
customers and reduces costs. For tomers have difficulty using it.
example, every request for information that is handled at The company uses customer relationship management
the Web site rather than by the call center saves an esti- software called Clarify in its call centers to make customer
mated $1.87. Federal Express has reported that customer service representatives’ jobs easier and more efficient and
calls have decreased by 83,000 per day since 2000, which to speed up response time.62
saves the company $57.56 million per year. And because
each package-tracking request costs Federal Express Answer the following questions:
3 cents, costs have been reduced from more than 1. Is technology by itself enough to ensure high-quality
$1.36 billion per year to $21.6 million per year by customers customer service?
using the Web site instead of the call center. 2. What are Federal Express’s estimated annual savings
Another technology that improves customer service is from using information technology?
Ship Manager, an application installed on customers’ sites 3. What are a couple of examples of information technolo-
so users can weigh packages, determine shipping charges, gies used by Federal Express?
Faced with strong competition by online Scan It device spend about 10 percent
stores, retailers are looking for new ways more than average.
to improve customer service and lower Clothing retailer Nordstrom is also using
Tyler Olson/Shutterstock.com
operating costs. They have found mobile mobile devices, which it issues to its sales
technology to be the key for achieving associates on the floor so they can scan
this goal. Scan-as-you-go mobile devices items on the spot and let customers pay
are a logical next step after the self- without going through the cash registers.
checkout used by many retailers. Retail The Home Depot uses a device called First
experts predict the new mobile-based Phones as an inventory tracker. If the item
retail devices could eventually bring about the end of tra- is out of stock, First Phones quickly notifies the customer
ditional cash register systems. The mobile checkout stations whether a nearby store has it, then holds the item for the cus-
pioneered at Apple stores appear to be the future. The goal tomer to pick up. Starbucks is using a digital wallet model that
is to speed up and improve customer service and to keep allows customers to pay using their smartphones.63
consumers in stores and spending.
Ahold USA’s Stop & Shop retail stores use a mobile device Answer the following questions:
called Scan It that hangs on the handle of the shopping cart 1. According to this case study, what is an upcoming key
and allows customers to shop and scan as they go through technology that will be used in retail stores to improve
the aisles. If there is a coupon for an item, the device quickly customer service?
gives the customers a credit and the total is recalculated. 2. What is the name of the device used by Ahold USA’s
The device is smart enough to alert the customer if there is Stop & Shop retail stores?
a coupon for a complementary item, such as coffee creamer 3. What will be the role of smartphones in the future of
if the customer has purchased coffee. Shoppers who use the shopping?
CHAPTER 1: Information Systems: An Overview 23
2 Computers: The
Machines Behind
Computing
Preechar Bowonkitwanchai/Shutterstock.com
LEARNING OBJECTIVES
After studying this chapter, you should be able to:
2-2 Discuss the history of computer hardware and software. After you finish
2-3 Explain the factors distinguishing the computing power of computers. this chapter, go to
2-4 Summarize computer operations.
PAGE 43 for the
2-5 Discuss the types of input, output, and memory devices.
STUDY TOOLS
2-6 Explain how computers are classified.
CPU
Main memory
to program and maintain. Third-generation comput- IBM has produced a prototype chip with tran-
ers operated on integrated circuits, which enabled sistors that are just 7 nanometers wide, or about
computers to be even smaller, faster, more reliable, 1/10,000th the width of a human hair. Those in use
and more sophisticated. Remote data entry and currently are twice as big.2
telecommunications were introduced during this The field of optical technologies involves the appli-
generation. Fourth-generation computers continued cations and properties of light, including its interactions
several trends that further improved speed and ease with lasers, fiber optics, telescopes, and so forth. These
of use: miniaturization, very-large-scale integration technologies offer faster processing speed, parallelism
(VLSI) circuits, widespread use of personal comput- (several thousand light beams can pass through an ordi-
ers, and optical discs (discs written or encoded and nary device), and interconnection; much denser arrays
read using a laser optical device). The current fifth- of interconnections are possible because light rays do
generation computers include parallel processing not affect each other. Optical computing is in its infancy,
(computers containing hundreds or thousands of CPUs and more research is needed to produce a full-featured
for rapid data processing), gallium arsenide chips that optical computer. Nevertheless, storage devices using
run at higher speeds and consume less power than sili- this technology are revolutionizing the computer field by
con chips, and optical technologies. Table 2.1 summa- enabling massive amounts of data to be stored in very
rizes these hardware generations. small spaces.
Because silicon cannot emit light and has speed Computer languages and software have also devel-
limitations, computer designers have concentrated on oped through five generations. They are discussed in
technology using gallium arsenide, in which electrons more detail in the “Computer Languages” section, but
move almost five times faster than silicon. Devices Table 2.2 summarizes these generations.
made with this synthetic compound can emit light, The information box “IBM Watson: A Super-
withstand higher temperatures, and survive much computer with Artificial Intelligence Capabilities”
higher doses of radiation than silicon devices. The describes a supercomputer that has several features of
major problems with gallium arsenide are difficul- a fifth-generation computer as well as artificial intel-
ties in mass production. This material is softer and ligence capabilities.
more fragile than silicon, so it breaks more easily dur-
ing slicing and polishing. Because of the high costs
and difficulty of production, the military is currently
the major user of this technology. However, research
TABLE 2.2 COMPUTER LANGUAGE TRENDS
continues to eliminate some shortcomings of this
technology. Generation Major Attribute
IBM has already started using carbon nanotubes First Machine language
(CNTs) instead of silicon in its computer chips. CNTs Second Assembly language
are developed using nanotechnology, which is dis- Third High-level language
cussed in Chapter 14. It is one of the methods that
Fourth Fourth-generation language
should keep chip sizes shrinking after the current
Fifth Natural language processing (NLP)
silicon-based technology has reached its limit.1
28 PART ONE: Fundamentals of Information Systems
IBM Watson: A Supercomputer with Artificial Intelligence Capabilities
On February 16, 2011, an IBM supercomputer named
Watson beat two former champions of the television game
show Jeopardy and took away the $1 million prize. At first,
Watson did poorly on a variety of subjects, from politics
to USA Today’s 2008 price hike. The supercomputer also
did not know that Slovenia was the only former Yugoslav
republic currently in the European Union. Eventually,
though, it pulled ahead, with 18 correct answers compared
to Ken Jennings’s 7 and Brad Rutter’s 4.
Source: YouTube/IBM
To achieve its victory, Watson needed massive comput-
ing power and storage space, including 10 server racks, each
with 10 IBM Power 750 servers; it drew on 200 million pages
of content stored on 4 terabytes of disk space.3 Thousands of
algorithms and computer programs allowed it to break down
Watson has been seen conversing with
human language into pieces so it could search for answers in
musician and winner of the 2016 Nobel
its massive database. It answered questions without exactly
understanding them, but it answered them with a high Prize in Literature Bob Dylan in IBM
degree of confidence! Overall, this was a significant improve- commercials.
ment in a computer’s ability to understand context in human
language. IBM believes that the technology behind Watson can be applied to a variety of fields, including medicine.
Voice integration is the next step in the development of Watson-related applications.4,5
Watson powered apps are now available that can serve as personal shopping assistant and help brick-and-motor
companies to increase their cross-sell and up-sell opportunities.6
IBM and Pathway Genomics are developing an app that uses personal history and genetics to evaluate risks and
recommend exercises. This app enables an individual to find out what exercises to do, what to eat, and what medical
tests to ask from a doctor.7
Watson has also been used as a trip-planning service providing travelers with relevant information in order to better
plan their trips.8
As an example, H&R Block, an American tax preparation company, is using Watson to improve the client experi-
ence and assist in identifying credits and deductions. Watson will be able to find the best outcome for each and every
unique tax situation and maximize the tax returns. At the same time, it will assist clients to better understand how
different filing options can impact (increase or decrease) their tax returns.9
Some of the new features and capabilities of Watson include vision-recognizing images and patients’ records,10
battling cancer with advanced genomics,11 and managing call centers.12
2-3 THE POWER OF COMPUTERS can, which improves efficiency. Today’s high-speed
computers make it possible for knowledge workers to
perform tasks much faster than with the slower com-
Computers draw their power from three factors that far puters of the past. Typically, computer speed is mea-
exceed human capacities: speed, accuracy, and storage sured as the number of instructions performed during
and retrieval capabilities. These are discussed in the the following fractions of a second:
following sections.
●● Millisecond: 1/1,000 of a second
2-3a ●● Microsecond: 1/1,000,000 of a second
●● Nanosecond: 1/1,000,000,000 of a second
Computers process data with amazing speed. They are
capable of responding to requests faster than humans ●● Picosecond: 1/1,000,000,000,000 of a second
Everett Historical/Shutterstock.com
and high-end iPhone X both come with 3 GB of RAM. They
are more than 2,000 times faster than the Apollo 11 com-
puter at a fraction of its cost.
You can use your smartphone to order a latté or per-
form a sophisticated statistical analysis. You can shop or
manage a smart home (a home connected to the Internet)
from thousands miles away. Smartphones serve as the
gate to the Internet of things (IoT) discussed in Chapter 7 The Apollo 11 lunar module ascends from
that can connect you to billions of devices. the moon in this July 20, 1969, photo.
As of September 2017, there were more than 3.3 million
apps for Android devices 15 and more than 3.1 million apps for iOS devices. 16 When you combine the speed, memory,
and ease of use of smartphones with the number, variety, and sophistication of over 4 million apps, many of which
are available for free, you can easily see that a supercomputer is in the palm of your hand.
than 1 million books in a memory device about the size tasks with keyboards, but
Benko Zsolt/Shutterstock
of your fist. Later in this chapter, you will learn about for some tasks a scanner
different storage media, such as magnetic disks and tape. or mouse is faster and
more accurate.
●● Mouse—This pointing
.com
2-5 INPUT, OUTPUT, AND device moves the cursor on the
screen, allowing fast, precise cursor positioning. With
MEMORY DEVICES programs that use graphical interfaces, such as Micro-
soft Windows or Mac OS, the mouse has become the
input device of choice.
To use a computer and process data, three major com-
●● Touch screen—This is a combination of input devices,
ponents are needed: input, output, and memory devices. usually working with menus. Some touch screens rely
These are discussed in the following sections. on light detection to determine which menu item has
been selected; others are pressure sensitive. Touch
2-5a screens are often easier to use than keyboards, but
Input devices send data and information to the com- they might not be as accurate because selections can
be misread or mistouched. You probably saw touch
puter. They are constantly being improved to make data
screens used extensively on television during the
input easier. Examples of input devices include:
2016 presidential election to quickly show electoral
●● Keyboard—This is the most widely used input device. maps and analyze election data in different ways. The
Originally, keyboards were designed to resemble type- information box “Touchless Computing: The New
writers, but several modifications have been made to Paradigm in User
improve their ease of use. For example, most keyboards System Interface” Input devices send data and
include control keys, arrow keys, function keys, and discusses touchless information to the computer.
other special keys. In addition, some keyboards, such computing, which Examples include a keyboard and
as the split keyboard, have been developed for better may become popular mouse.
ergonomics. You can perform most computer input in the near future.
CHAPTER 2: Computers: The Machines Behind Computing 31
Touchless Computing: The New Paradigm in User System Interface
Imagine using your tablet, PC, or Macintosh without need-
ing a mouse, keyboard, or touchpad. Like Tom Cruise in
Minority Report, you may soon be able to interact with your
When Gillydrop saw the magic boat disappear into the darkness of
the sea, he thought that, now he had done one kindly deed, his
clothes would change from red to green, and he would be able to
return to his dear Faeryland. But nothing of the sort occurred, and
the poor elf began to cry again, thinking he was lost for ever, but this
time his tears were not red, which was a good sign, although he did
not know it.
Very soon he heard Dunderhead roaring for the loss of his supper,
so, drying his eyes, he flew back again to the hall of the castle, to
see what the giant was doing. He found a great fire was lighted, over
which was suspended a great kettle filled with water, which was now
boiling hot. Dunderhead was searching everywhere for the children,
and when he saw Gillydrop he shook his great fist at him.
“Where’s my supper, you red rag?” he roared fiercely.
“Your supper has gone back to earth,” replied Gillydrop angrily, for no
one likes to be called a red rag. “You told me a story, so I thought I’d
punish you.”
“Oh, did you?” bellowed Dunderhead, in a rage. “Then I’ll punish you
also for spoiling my supper.” And before Gillydrop could fly away, he
caught him in his great hand and popped him into the boiling water.
Oh, it was terribly hot, and Gillydrop thought it was all over with him;
but, being a Faery, he could not be killed, as the foolish giant might
have known. He sank down, down, right to the bottom of the great
kettle, and then arose once more to the top. As soon as he found his
head above water, he sprang out of the kettle and flew away high
above the head of Dunderhead, who could only shake his fist at him.
To his delight and surprise, Gillydrop found his clothes had all
changed from red to green, and instead of being dressed in crimson,
his suit was now of a beautiful emerald colour. He was so delighted
that he flew down on to the floor of the hall, and began to dance and
sing, while the giant joined in as he tried to catch him; so that they
had quite a duet.
Gillydrop. Now I’m gay instead of sad,
For I’m good instead of bad:
Dreadful lessons I have had.
Giant. I will catch and beat you!
But you see he could not do that, because Gillydrop was too quick
for him, and flew round the hall, laughing at Dunderhead, who roared
with anger. Then the elf flew out on to the terrace which overlooked
the Sea of Darkness, followed by the giant. Gillydrop flew down on to
the beach to escape the ogre, and Dunderhead tried to follow; but,
as he could not fly, he fell right into the Sea of Darkness. Dear me!
what a terrible splash he made! The waves arose as high as the
castle walls, but then they settled down again over Dunderhead, who
was suffocated in the black billows. He was the very last of the
giants, and now his bones lie white and gleaming in the depths of the
Sea of Darkness, where nobody will ever find them—nor do I think
any one would trouble to look for them.
As for Gillydrop, now that Dunderhead was dead, he flew away
across the dreary plain towards Faeryland, and soon arrived at the
borders of the sullen grey sea which still rolled under the pale light of
the moon. Gillydrop was not a bit afraid now, because his clothes
were green once more, and he had performed one kindly deed; so
he sat down on the seashore and sang this song:
“When from Faeryland I fled,
All my nice clothes turned to red;
Now in emerald suit I stand—
Take me back to Faeryland.”
And as he sang the grey ocean faded away, and in its place he saw
the green trees of the faery forest, waving their branches in the silver
moonlight. Only a bright sparkling stream now flowed between
Gillydrop and Faeryland; so, spreading his silver and blue wings, he
flew across the water, singing gaily:
“Thanks, dear Oberon. At last
All my naughtiness is past;
Home I come without a stain,
And will never roam again.”
So at last Gillydrop got back to Faeryland after all his trials, and ever
afterwards was one of the most contented elves ever known. You
may be sure he never wanted to see the Country of the Giants
again, and whatever King Oberon said he did willingly, because he
knew it must be right.
He was quite a hero among the faeries, and had the honour of telling
all his adventures to King Oberon himself, which he did so nicely that
the King gave him a title, and ever afterwards he was called “Sir
Gillydrop the Fearless.”
SHADOWLAND
IT was Christmas Eve, and the snow, falling heavily over a great city,
was trying to hide with its beautiful white robe all the black, ugly
houses and the narrow, muddy streets. The gas lamps stood up
proudly, each on its tall post, and cast their yellow light on the
crowds of people hurrying along with their arms filled with many
lovely presents for good children.
“They are poor things,” said the gas lamps scornfully. “If we did not
shed our light upon them, they would be lost in the streets.”
“Ah, but the people you despise made you,” cried the church bells,
which were calling the people to prayer. “They made you—they
made you, and gave you your beautiful yellow crowns.”
But the street lamps said nothing, because they could not deny what
the church bells said, and instead of acknowledging that they owed
all their beauty to the people they despised, remained obstinately
silent.
Near one of these lamp-posts, at the end of a street, stood a
ragged boy, who shivered dreadfully in his old clothes, and stamped
about to keep himself warm. The boy’s name was Tom, and he was
a crossing-sweeper, as could be seen by his well-worn broom. He
was very cold and very hungry, for he had not earned a copper all
day, and the gaily-dressed army of people swept selfishly past him,
thinking only of their Christmas dinners and warm homes.
The snowflakes fell from the leaden-coloured sky like great white
angels, to tell the earth that Christ would be born again on that night,
but Tom did not have any such ideas, as he was quite ignorant of
angels, and even of the birth of the child-Christ. He only looked upon
the snow as a cold and cruel thing, which made him shiver with pain,
and was a great trouble to brush away from his crossing.
And overhead the mellow bells clashed out
their glad tidings in the bitterly chill air, while
below, in the warm, well-lighted churches, the
organ rolled out its hymns of praise, and the
worshippers said to one another, “Christ is
born again.”
But poor Tom!
Ah, how cold and hungry he was, standing in
the bright glare of the lamp, with his rags drawn closely round him for
protection against the falling snow. The throng of people grew
thinner and thinner, the gaily-decorated shops put up their shutters,
the lights died out in the painted windows of the churches, the bells
were silent, and only poor Tom remained in the deserted, lonely
streets, with the falling snowflakes changing him to a white statue.
He was thinking about going to his garret, when a gentleman,
wrapped in furs, passed along quickly, and just as he came near
Tom, dropped his purse, but, not perceiving his loss, walked on
rapidly through the driving snow. Tom’s first idea was to pick the
purse up and restore it to its owner, whom Tom knew very well by
sight, for he was a poet, who daily passed by Tom’s crossing. Then
Tom paused for a moment as he thought of all the beautiful things
the money in that purse would buy; while he hesitated, the poet
disappeared in the darkness of the night, so Tom was left alone with
the purse at his feet.
There it lay, a black object on the pure white
snow, and as Tom picked it up, he felt that it
was filled with money. Oh, how many things of
use to him could that money buy—bread and
meat and a cup of warm coffee—which would
do him good. Tom slipped it into his pocket, and thought he would
buy something to eat; but just at that moment he seemed to hear a
whisper in the air,—
AS TOM PICKED IT UP HE FELT THAT IT WAS
FILLED WITH MONEY
ONCE upon a time, long long years ago, there was a shepherd
called Duldy, who dwelt in the forests which clothed the base of the
great mountain of Kel. This mountain was in the centre of an
immense plain, watered by many rivers, and dotted over with many
cities, for the kingdom of Metella was a very rich place indeed, so
rich that the inhabitants looked upon gold in the same way as we
look upon tin or iron, as quite a common thing. The plain was very
fertile by reason of the great rivers which flowed through it like silver
threads, and all these rivers took their rise in the mountain of Kel, a
mighty snow-clad peak which shot up, white and shining, to the blue
sky from amidst the bright green of its encircling forests.
There were old stories handed down from father to son, which said
that the mountain was once a volcano, which, breathing nothing but
fire, sent great streams of red-hot lava down to the fertile plain, to
wither and blight all the beautiful gardens and rich corn-fields. But
the fires in the breast of the mountain had long since died out, and
for many centuries the black, rugged summit had been covered with
snow, while countless streams, caused by the melting of the glaciers,
fell down its rocky sides, and, flowing through the cool, green pine
forests, spread themselves over the thirsty plain, so that it bloomed
like a beautiful garden.
Duldy lived in these scented pine forests, and
was supposed to be the son of an old couple
called Dull and Day, from whence by joining
both names he got his own Duldy; but he was
really a lost child whom old Father Dull had
found, seventeen years before, on the banks
of the Foam, one of the bright sparkling
streams which flowed from the snowy heights
above. Dull took the child home to his wife
Day, who was overcome with joy, for she