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Experiencing 4e

KROENKE + WILSON + Brookes

MS
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Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2016

Pearson Australia
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Melbourne VIC 3008

www.pearson.com.au
Authorised adaptation from the United States edition entitled Experiencing MIS, 5th edition, ISBN 0133517047 by
Kroenke, David, published by Pearson Education, Inc., Copyright © 2015.

Fourth adaptation edition published by Pearson Australia Group Pty Ltd, Copyright © 2016.

The Copyright Act 1968 of Australia allows a maximum of one chapter or 10% of this book, whichever is the greater, to be
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National Library of Australia

Cataloguing-in-Publication entry

Creator: Kroenke, David, author.

Title: Experiencing MIS / David Kroenke, David Wilson, Wayne Brookes.
Edition: 4th edition.
ISBN: 9781486019281 (paperback).
Notes: Includes index.
Subjects: Management information systems; Information resources management; Business—Data processing.
Other Creators/Contributors: Wilson, David (David Nigel), 1949– author; Brookes, Wayne, author.
Dewey Number: 658.4038011.

Every effort has been made to trace and acknowledge copyright. However, should any infringement have occurred, the
publishers tender their apologies and invite copyright owners to contact them.
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Contents
Preface xvii Key Terms and Concepts 21
About the Authors xxi Using Your Knowledge 21
Learning Aids xxii Collaboration Exercise 1 21
Making the Most of Your Resources xxiv Case Study 1 Requirements Creep
at Australia’s Parliament House 22

Part 1 Chapter 2
Business Processes,
Why MIS? 2 Information Systems and
This Could Happen to You 2
Information 24
This Could Happen to You 24
Chapter 1 Study Questions 25
The Importance of MIS 4 Q1 Why Does $RU Need to Understand
This Could Happen to You 4 Business Processes? 25

Study Questions 5 Q2 How Can Business Process Modelling Help

Organisations? 25
Q1 Why Study Management Information Q3 How Can Information Systems Improve
Systems (MIS)? 5 Process Quality? 28
What Are Cost-Effective Business Applications What Is Process Quality? 28
of Facebook and Twitter (or Whatever Will
Soon Appear)? 6 Using Information Systems to Improve
Process Quality 29
How Can I Attain Job Security? 6
Experiencing MIS InClass 2
How Can MIS Help You Learn Non-routine Skills? 7
CatchoftheDay 30
Jobs 9
Q4 What Is Information? 31
What Is the Bottom Line? 9
Q2 What Is an Information System? 10 Q5 What Data Characteristics Are Necessary
for Quality Information? 31
Q3 What Is Mis? 11
Guide  Understanding Perspectives and
Experiencing MIS InClass 1 Points of View 32
Information Systems and Online Dating 11
Accurate 34
Management and Use of Information Systems 12 Timely 34
Achieving Strategies 13 Relevant 34
Q4 Why Is the Difference Between Information Just Barely Sufficient 34
Technology and Information Systems
Worth Its Cost 35
Important to You? 13
How Does the Knowledge in This
Ethics Guide  Ethics and Professional
Chapter Help Kerrie and You? 35
Responsibility 14
Green IT Guide: ‘Whole-of-Government’
Q5 What Is Your Role in Is Security? 16
Approach to Green IT 36
Strong Passwords 17
Active Review 38
Password Etiquette 17
Key Terms and Concepts 38
Guide  Five-Component Careers 18 Using Your Knowledge 38
How Does the Knowledge in This Collaboration Exercise 2 39
Chapter Help Kerrie and You? 20 Case Study 2 Justicelink
Active Review 20 System Problems 41

vi
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Contents      vii

Chapter 3
OrganiSational Strategy, Part 2
Information Systems and
Competitive Advantage 42
Information Technology 68
This Could Happen to You 68
This Could Happen to You 42
Study Questions 43

Q1 How Does Organisational Strategy Determine

Chapter 4
Information Systems Requirements? 43
Hardware and Software 70
Q2 What Five Forces Determine Industry Structure? 44
This Could Happen to You 70
Q3 What Is Competitive Strategy? 45 Study Questions 71
Q4 How Does Competitive Strategy Determine
Q1 What Do Business Professionals Need to Know
Value Chain Structure? 46 about Computer Hardware? 71
Primary Activities in the Value Chain 46 Basic Components 71
Support Activities in the Value Chain 47 Computer Data 73
Value Chain Linkages 47 How a Computer Works, in Fewer than
300 Words? 74
Ethics Guide  Yikes! Bikes 48 Why Should a Manager Care How a
Q5 How Do Value Chains Determine Business Computer Works? 75
Processes and Information Systems? 50 What is the Difference Between a Client
and a Server? 76
Experiencing MIS InClass 3 Q2 What Do Business Professionals Need to Know
Competitive Strategy over the Web 51 about Operating Systems Software? 77
Q6 How Do Information Systems Provide Experiencing MIS InClass 4
Competitive Advantage? 51 Innovation in Practice: Microsoft Surface 78
Competitive Advantage via Products 52 Green IT Guide  NAB Data Centres 80
Competitive Advantage via Business Processes 53 What Are the Major Operating Systems? 82
Non-Mobile Client Operating Systems 82
How Does an Actual Company Use IS to
Mobile Client Operating Systems 83
Create Competitive Advantage? 53
Server Operating Systems 83
How Does This System Create a Competitive
Virtualisation 84
Advantage? 55
Owning versus Licensing 85
Guide  Your Personal Competitive Advantage 56 Q3 What Do Business Professionals Need to Know
How Does the Knowledge in This Chapter about Applications Software? 85
Help Kerrie and You? 58 What Categories of Application
Programs Exist? 86
Active Review 59
Thin Clients Versus Thick Clients 86
Key Terms and Concepts 59 How Do Organisations Acquire
Using Your Knowledge 59 Application Software? 88
Collaboration Exercise 3 60 Thin-client Versus Thick-client Mobile
Custom Software 89
Case Study 3 Competitive Advantage at
What is Firmware? 89
National Australia Bank 62
Q4 Is Open-source Software a Viable
part 1 Review 63 Alternative? 89
Guide  Keeping up to Speed 90
Consider Your Net Worth 63
Why Do Programmers Volunteer
Application Exercises 63 Their Services? 92
PART 1 CASE Study Innovation in How Does Open Source Work? 92
Information Systems 65 So, Is Open Source Viable? 93
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viii      Contents 

How Does the Knowledge in This Q2 How Do Organisations Use the Cloud? 130
Chapter Help Kerrie and You? 93
Cloud Services from Cloud Vendors 130
Active Review 95 Content Delivery Networks from
Key Terms and Concepts 95 Cloud Vendors 130
Using Your Knowledge 96 Use Web Services Internally 131
Collaboration Exercise 4 96 Experiencing MIS InClass 6
Case Study 4 Dell Leverages the Internet, What, Exactly, Does that Standard Mean? 132
Directly, but for How Long? 97
Q3 How Can Organisations Use Cloud
Services Securely? 133
Chapter 5 Virtual Private Network (VPN) 133
Database Processing 99 Guide  You Said What? About Me? In Class? 134
This Could Happen to You 99 Using a Private Cloud 136
Study Questions 100 Using a Virtual Private Cloud 138
Q4 How Can $RU Use the Cloud? 139
Q1 What Is the Purpose of a Database? 100
SaaS Services at $RU 139
Q2 What Is a Database? 101 PaaS Services at $RU 139
Relationships Between Rows? 103 IaaS Services at $RU 139
Q3 What Is a Database Management System? 105 Green IT Guide  Energy Use of
Experiencing MIS InClass 5 Electronic Devices 140
How Much Is a Database Worth? 106 Q5 What Does the Cloud Mean for Your Future? 142
Q4 How Do Database Applications Make How Does the Knowledge in This
Databases More Useful? 108 Chapter Help Kerrie and You? 143
Traditional Forms, Queries, Reports and Active Review 144
Applications 109
Key Terms and Concepts 145
Thin-client Forms, Queries, Reports and
Using Your Knowledge 145
Applications 111
Collaboration Exercise 6 145
Guide  No Thanks, I’ll Use a Spreadsheet 112
Case Study 6 Political Clouds 146
Ethics Guide  Nobody Said I Shouldn’t 114
Multi-User Processing 117 PART 2 Review 148
How Does the Knowledge in This Chapter Consider Your Net Worth 148
Help Kerrie and You? 118 Application Exercises 148
Active Review 118 PART 2 Case Study Better Buying
Key Terms and Concepts 119 for Business: The eBreviate Story 153
Using Your Knowledge 119
Collaboration Exercise 5 120
Case Study 5 Is Australia’s Electronic Health Part 3
Record the Cure We’ve Been Waiting for? 122
Using IS for Competitive
Chapter 6 Advantage 156
The Cloud 124
This Could Happen to You 156
This Could Happen to You 124
Study Questions 125 Chapter 7
Q1 Why Is the Cloud the Future for
OrganiSations and Information
Most Organisations? 125 Systems 158
What Is the Cloud? 125 This Could Happen to You 158
Why Is the Cloud Preferred to Study Questions 159
In-House Hosting? 128
Why Now? 129 Q1 How Do Information Systems Vary by Scope? 159
When Does the Cloud Not Make Sense? 129 Personal Information Systems 159
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Contents      ix

Workgroup Information Systems 160 Social Media and the Sales and
Enterprise Information Systems 160 Marketing Activity 191
Inter-Enterprise Information Social Media and Customer Service 192
Systems 160 Social Media and Inbound and
Q2 How Do Enterprise Systems Solve Outbound Logistics 193
the Problems of Departmental Silos? 161 Social Media and Manufacturing
and Operations 193
How Do Information Silos Arise? 161
Social Media and Human Resources 194
What Are the Problems with
Information Silos? 161 Q3 How Do SMIS Increase Social Capital? 195
How Do Organisations Solve the What is the Value of Social Capital? 195
Problems of Information Silos? 163 Green IT Guide  Environmental Monitoring
An Enterprise System for Patient Information Systems 196
Discharge 163
How Do Social Networks Add Value
Guide  The Flavour-of-the-Month Club 164 to Businesses? 198
Business Process Reengineering 166 Using Social Networking to Increase
Q3 How Do CRM, ERP and EAI Support Enterprise the Number of Relationships 198
Systems? 167 Using Social Networks to Increase
the Strength of Relationships 199
Ethics Guide  Dialling for Dollars 168
Connecting to Those with
Customer Relationship Management More Assets 200
(CRM) 170
Experiencing MIS InClass 8
Experiencing MIS InClass 7 Calculating Your Social Capital 201
Choosing a CRM Product 171
Q4 How Can Organisations Manage
Enterprise Resource Planning (ERP) 172 the Risks of Social Media? 202
Enterprise Application Integration (EAI) 173
Managing the Risk of Employee
What Are the Challenges when Communication 202
Implementing and Upgrading
Managing the Risk of
Enterprise Systems? 174
User-Generated Content 203
Q4 How Do Inter-Enterprise Information
Q5 Where Is Social Media Taking Us? 204
Systems Solve the Problems of
Enterprise Silos? 176 Guide  Social Recruiting 206
How Does the Knowledge in This Chapter How Does the Knowledge in This
Help Kerrie and You? 178 Chapter Help Kerrie and You? 208
Active Review 178 Active Review 209
Key Terms and Concepts 179 Key Terms and Concepts 209
Using Your Knowledge 179 Using Your Knowledge 209
Collaboration Exercise 7 180 Collaboration Exercise 8 210
Case Study 7 Renovate or Case Study 8 Tourism Holdings
detonate? 182 Limited (THL) 210

Chapter 8 Chapter 9
Social Media Information Business Intelligence
Systems 184 Systems 213
This Could Happen to You 184 This Could Happen to You 213
Study Questions 185 Study Questions 214
Q1 What Is a Social Media Information Q1 How Do Organisations Use Business
System (SMIS)? 185 Intelligence (BI) Systems? 214
Three SMIS Roles 186 How Do Organisations Use BI? 215
SMIS Components 188 What Are Typical Uses for BI? 216
Q2 How Do SMIS Advance Q2 What Are the Three Primary
Organisational Strategy? 190 Activities in the BI Process? 218
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x      Contents 

Using Business Intelligence for Decision Study Questions 255

Making: An Example 218
Q1 What Is Systems Development? 255
Guide  Counting and Counting
and Counting 224 Q2 Why Is Systems Development Difficult
and Risky? 256
Q3 How Do Organisations Use Data Warehouses
and Data Marts to Acquire Data? 226 The Difficulty of Determining Requirements 256
Problems with Operational Data 228 Changes in Requirements 256
Experiencing MIS InClass 9 Scheduling and Budgeting Difficulties 257
What Singularity Have We Wrought? 230 Changing Technology 258
Data Warehouses Versus Data Marts 231 Diseconomies of Scale 258
Q4 What Are Three Techniques for Is it Really So Bleak? 258
Processing BI Data? 232 Q3 What Are the Five Phases of the Systems
Reporting Analysis 233 Development Life Cycle? 259
Data Mining Analysis 233 Q4 How Is System Definition
BigData 234 Accomplished? 260
MapReduce 234 Define System Goals and Scope 260
Hadoop 234 Assess Feasibility 261
Q5 What Are the Alternatives for Form a Project Team 261
Publishing BI? 236 Green IT Guide  Green Information
Characteristics of BI Publishing Alternatives 236 Systems 262
What Are the Two Functions of a Experiencing MIS InClass 10
BI Server? 237 GardenTracker 264
Ethics Guide  Unseen Cyberazzi 238 Q5 What Is the Users’ Role in the
Requirements Phase? 265
How Does the Knowledge in This
Chapter Help Kerrie and You? 240 Determine Requirements 265
Active Review 240 Approve Requirements 267
Key Terms and Concepts 241 Role of a Prototype 267
Using Your Knowledge 241 Q6 How Are the Five Components
Designed? 267
Collaboration Exercise 9 241
Case Study 9 Tourism Holdings
Hardware Design 267
Limited (THL) (cont.) 242 Software Design 268
Database Design 268
PART 3 Review 246 Procedure Design 268
Consider Your Net Worth 246 Design of Job Descriptions 268
Application Exercises 246 Q7 How Is an Information System
PART 3 Case Study Switched on to Data Implemented? 269
at JB Hi-Fi 250 System Testing 269
System Conversion 270
Q8 What Are the Tasks for System
Part 4 Maintenance? 271
Guide  The Real Estimation Process 272
Information Systems Q9 What Are Some of the Problems with
Management 252 the SDLC? 274

This Could Happen to You 252 The SDLC Waterfall 274

Requirements Documentation Difficulty 274
Scheduling and Budgeting Difficulties 275
Chapter 10 How Does the Knowledge in This
Information Systems Chapter Help $RU and You? 275
Development 254
Active Review 275
This Could Happen to You 254 Key Terms and Concepts 276
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Contents      xi

Using Your Knowledge 276 Chapter 12

Collaboration Exercise 10 277 Information Security
Case Study 10 User Involvement at Management 301
Northern Territory Asset Management 277
This Could Happen to You 301
Study Questions 302
Chapter 11 Q1 What Is the Goal of Information Systems
Information Systems Security? 302
Management 279 The IT/IS Security Threat/
Loss Scenario 302
This Could Happen to You 279
What Are the Sources of Threats? 303
Study Questions 280
What Types of Security Loss Exist? 304
Q1 What Are the Functions and Organisation Goal of Information Systems Security 307
of the IT/IS Department? 280
Experiencing MIS InClass 12 Phishing
How Is the IT/IS Department for Credit Cards, Identifying Numbers and
Organised? 280 Bank Accounts 307
Experiencing MIS InClass 11 Q2 How Big Is the Computer
What’s That Humming Sound? 281 Security Problem? 308
What IT/IS-related Job Positions Exist? 283
Q3 How Should You Respond to Security
Q2 How Do Organisations Plan the Threats? 310
Use of IT/IS? 284
Q4 How Should Organisations Respond to
Align Information Systems with Security Threats? 312
Organisational Strategy 284
Communicate IT/IS Issues to the Q5 How Can Technical Safeguards Protect
Executive Group 285 Against Security Threats? 313
Develop Priorities and Enforce Them Identification and Authentication 313
Within the IT/IS Department 285 Encryption 314
Sponsor the Steering Committee 286 Firewalls 316
Q3 What Are the Advantages and Disadvantages Malware Protection 317
of Outsourcing? 286 Design for Secure Applications 318
Outsourcing Information Systems 286 Q6 How Can Data Safeguards Protect Against
International Outsourcing 288 Security Threats? 318
What Are Popular Outsourcing Q7 How Can Human Safeguards Protect Against
Alternatives? 288 Security Threats? 319
What Are the Risks of Outsourcing? 289 Human Safeguards for Employees 319
Guide  Is Outsourcing Fool’s Gold? 292 Green IT Guide  Green Fatigue? 320
Q4 What Are Your User Rights and Account Administration 323
Responsibilities? 294 Security Monitoring 325
Your User Rights 294 Q8 How Should Organisations Respond to
Your User Responsibilities 295 Security Incidents? 325
Ethics Guide  Using the Corporate Guide  Is It Spying or Just Good
Computer 296 Management? 326
How Does the Knowledge in This Guide  The Final, Final Word 328
Chapter Help Kerrie and You? 298
How Does the Knowledge in This
Active Review 298
Chapter Help Kerrie and You? 330
Key Terms and Concepts 298
Active Review 330
Using Your Knowledge 299
Key Terms and Concepts 331
Collaboration Exercise 11 299
Using Your Knowledge 331
Case Study 11 IT Development
and Acquisition at Australian Bureau Collaboration Exercise 12 332
of Statistics 299 Case Study 12 Cybercrime on the Rise 333
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xii      Contents 

PART 4 Review 334 Q3 How Can You Use Collaboration Tools to

Share Content? 359
Consider Your Net Worth 334
Shared Content with No Control 361
Application Exercises 335
Shared Content with Version Management
PART 4 Case Study The Need for Technical on Google Drive 361
Feasibility 339
Shared Content with Version Control 363
Q4 How Can You Use Collaboration Tools
Chapter Extensions 341 to Manage Tasks? 366
Sharing a Task List on Google Grid 367
Chapter Extension 1 Collaboration
Information Systems for Decision Making, Sharing a Task List Using Microsoft
Problem Solving and Project Management 342 SharePoint 367
Study Questions 342 Q5 Which Collaboration Information System
Is Right for Your Team? 370
Q1 What Are the Two Key Characteristics of The Minimal Collaboration Tool Set 370
Collaboration? 342
The Good Collaboration Tool Set 370
Importance of Effective Critical Feedback 343
The Comprehensive Collaboration
Guidelines for Giving and Receiving Critical Tool Set 371
Feedback 344
Choosing the Set for Your Team 371
Warning! 344
Don’t Forget Procedures and People! 372
Q2 What Are the Three Criteria for Successful Active Review 373
Collaboration? 345
Key Terms and Concepts 373
Successful Outcome 345
Using Your Knowledge 374
Growth in Team Capability 345
Meaningful and Satisfying Experience 346 Chapter Extension 3 Mobile Systems 375
Q3 What Are the Four Primary Purposes of Study Questions 375
Collaboration? 346
Q1 What Are Mobile Systems? 375
Becoming Informed 346
Making Decisions 347 Q2 Why Are Mobile Systems Important? 376
Solving Problems 349 Hardware 376
Managing Projects 349 Software 377
Q4 What Are the Components and Functions Data 377
of a Collaboration Information System? 351 Procedures 378
The Five Collaboration System Components 351 People 378
Primary Functions: Communication and Q3 How Do Native and Browser-based Mobile
Content Sharing 351 Applications Compare? 379
Active Review 352 Developing Native Mobile Applications 379
Key Terms and Concepts 353 Developing Thin-client Mobile
Using Your Knowledge 353 Applications 380
Which Is Better? 382
Chapter Extension 2 Collaboration Q4 What Characterises Quality Mobile User
Information Systems for Experiences? 382
Student Projects 354 Feature Content 383
Study Questions 354 Use Context-Sensitive Chrome 383
Q1 What Are the IS Requirements for Provide Animation and Lively Behaviour 383
Student Project Collaborations? 354 Design to Scale and Share 383
Required Features 355 Use the Cloud 384
Nice-to-Have Features 355 Q5 What Are the Challenges of Personal Mobile
Collaboration Tool Characteristics 355 Devices at Work? 386
Q2 How Can You Use Collaboration Tools to Advantages and Disadvantages of
Improve Team Communication? 356 Employee Use of Mobile Systems at Work 386
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Contents      xiii

Survey of Organisational BYOD Policy 387 Starting Access 425

Active Review 389 Creating Tables 426
Key Terms and Concepts 389 Q2 How Do You Create Relationships? 430
Using Your Knowledge 389 Q3 How Do You Create a Data Entry Form? 433
Q4 How can You Create Queries Using the
Chapter Extension 4 Introduction to Query Design Tool? 436
Microsoft Excel 2013 390
Q5 How Do You Create a Report? 439
Study Questions 390
Active Review 443
Q1 What Is a Spreadsheet? 390 Using Your Knowledge 443
Q2 How Do You Get Started with Excel? 391
Chapter Extension 7 Using Excel and
Q3 How Can You Enter Data? 394
Access Together 444
Key in the Data 394 Study Questions 444
Let Excel Add the Data Using a Pattern 395
Q1 Why Use Excel and Access Together? 444
Q4 How Can You Insert and Delete Rows
and Columns and Change Their Size? 398 Q2 What Is Import/Export? 445
Q5 How Can You Format Data? 401 Import/Export of Text Data 445
Q6 How Can You Create a (Simple) Formula? 402 Import/Export of Excel and Access Data 449
Q3 How Can You Create Charts with Excel? 449
Q7 How Can You Print Results? 405
Creating a Pie Chart 449
Active Review 407
Creating a Column Chart 449
Key Terms and Concepts 408
Using Your Knowledge 408 Q4 How Can You Create Group Totals in Access? 453
Q5 How Can You Use Excel to Graph
Access Data? 458
Chapter Extension 5 Database Design 409
Q6 How Can You Use Access to Report Excel Data?461
Study Questions 409
Q7 How Can You Combine Excel and Access
Q1 Who Will Volunteer? 409 to Analyse Data? 467
Q2 How Are Database Application Systems Active Review 471
Developed? 409 Key Terms and Concepts 472
Q3 What Are the Components of the Entity- Using Your Knowledge 472
Relationship Data Model? 411
Entities 411 Chapter Extension 8 Network and Cloud
Relationships 412 Technology 473
Q4 How Is a Data Model Transformed into Study Questions 473
a Database Design? 414 Q1 What Is a Computer Network? 473
Normalisation 414
Q2 What Are the Components of a LAN? 474
Representing Relationships 416
Connecting Your LAN to the Internet 475
Q5 What Is the Users’ Role? 418
Q3 How Does the Internet Work? 476
Q6 Who Will Volunteer? (continued) 420
An Internet Example 477
Active Review 422 Internet Addressing 477
Key Terms and Concepts 423 Processing on a Web Server 479
Using Your Knowledge 423
Q4 How Does the Cloud Work? 480
Service-Oriented Architecture (SOA) 480
Chapter Extension 6 Using Microsoft Protocols Supporting Web Services 483
Access 2013 424
Active Review 486
Study Questions 424
Key Terms and Concepts 486
Q1 How Do You Create Tables? 424 Using Your Knowledge 487
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xiv      Contents 

Chapter Extension 9 Enterprise Resource Structure and Control Become Messy 512
Planning (ERP) Systems 488 How Can Social Media Information
Study Questions 488 Systems (SMIS) Foster Hyper-Social
Organisations? 512
Q1 What Is the Purpose of ERP Systems? 488
Q2 What Are the Benefits of Knowledge
Q2 What Are the Elements of an ERP Solution? 491 Management? 514
ERP Application Programs 491 Q3 What Are Expert Systems? 515
ERP Databases 492 Q4 What Are Content Management Systems? 516
Business Process Procedures 492
What Are the Challenges of Content
Training and Consulting 493 Management? 516
Q3 How Are ERP Systems Implemented What are Content Management Application
and Upgraded? 494 Alternatives? 518
Q4 What Types of Organisations Use ERP? 495 Q5 How Do Hyper-Social Organisations Manage
ERP by Industry Type 495 Knowledge? 519
ERP by Organisation Size 496 Hyper-Social KM Alternative Media 519
International ERP 496 Resistance to Hyper-Social Knowledge Sharing 520
Q5 How Do the Major ERP Vendors Compare? 497 Active Review 521
Key Terms and Concepts 521
ERP Market Leaders 497
Using Your Knowledge 521
ERP Products 497
ERP in the Cloud 500 Chapter Extension 12 Database Marketing 522
Active Review 500 Study Questions 522
Key Terms and Concepts 501
Q1 What Is a Database Marketing Opportunity? 522
Using Your Knowledge 501
Q2 How Does RFM Analysis Classify Customers? 522
Chapter Extension 10 Supply Chain Q3 How Does Market-Basket Analysis Identify
Management 502 Cross-Selling Opportunities? 523
Study Questions 502 Q4 How Do Decision Trees Identify
Market Segments? 525
Q1 What Are Typical Inter-Enterprise Processes? 502
A Decision Tree for Student Performance 525
Q2 What Is a Supply Chain? 502
A Decision Tree for Loan Evaluation 527
Q3 What Factors Affect Supply Chain Active Review 529
Performance? 504
Key Terms and Concepts 529
Q4 How Does Supply Chain Profitability Differ Using Your Knowledge 529
from Organisational Profitability? 505
Q5 What Is the Bullwhip Effect? 506 Chapter Extension 13 Reporting Systems
and Olap 530
Q6 How Do Information Systems Affect
Supply Chain Performance? 507 Study Questions 530
Active Review 508 Q1 How Do Reporting Systems Enable People
Key Terms and Concepts 509 to Create Information? 530
Using Your Knowledge 509 Q2 What Are the Components and
Characteristics of Reporting Systems? 532
Chapter Extension 11 Hyper-Social Report Type 533
Organisations and Knowledge Management 510 Report Media 534
Study Questions 510 Report Mode 534
Q1 What Are the Characteristics of a Q3 How Are Reports Authored, Managed and
Hyper-Social Organisation? 510 Delivered? 534
Consumers Become Humans 510 Report Authoring 535
Market Segments Become Tribes 511 Report Management 535
Channels Become Networks 511 Report Delivery 536
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Contents      xv

Q4 How Are Online Analytical Processing (OLAP) Chapter Extension 16 Business Process
Reports Dynamic? 536 Management 562
Active Review 539 Study Questions 562
Key Terms and Concepts 540
Q1 Why Do Organisations Need to Manage
Using Your Knowledge 540 Business Processes? 562
A Sample Ordering Business Process 562
Chapter Extension 14 Systems Why Does This Process Need Management? 562
Development Project Management 541
Q2 What Are the Stages of Business Process
Study Questions 541 Management (BPM)? 564
Q1 Why Is Formalised Project Management Q3 How Do Business Processes and Information
Necessary? 541 Systems Relate? 566
Q2 What Are the Trade-offs in Requirements, Q4 Which Comes First, Business Processes or
Cost and Time? 542 Information Systems? 567
Q3 What Are the Dimensions of Project Business Processes First 568
Management? 544 Information System First 568
Q4 How Does a Work-Breakdown Structure Drive Another Factor: Off-the-Shelf Software 569
Project Management? 545 And the Answer Is … 569
Q5 What Is the Biggest Challenge in Q5 How Is BPM Practised in the Real World? 570
Planning a Large-scale Systems Defining the Process Problem 570
Development Project? 548
Designing the New Process 572
Q6 What Are the Biggest Challenges in Create Process Components 573
Managing a Large-scale Systems
Development Project? 549 Implement New Processes 573
Active Review 573
Q7 What Is the Single Most Important Task
for Users on a Large-scale Systems Key Terms and Concepts 574
Development Project? 551 Using Your Knowledge 574
Active Review 552
Key Terms and Concepts 553 Chapter Extension 17 international mis 575
Using Your Knowledge 553 Study Questions 575
Q1 How Does the Global Economy Impact
Organisations and Processes? 575
Chapter Extension 15 Agile Development 554
Study Questions 554 How Does the Global Economy Change the
Competitive Environment? 576
Q1 Why Is the SDLC Losing Credibility? 554 How Does the Emerging Global Economy
Q2 What Are the Principles of Agile Development Change Competitive Strategy? 577
Methodologies? 555 How Does the Global Economy Change
Value Chains and Business Processes? 577
Q3 What Is the Scrum Process? 556
Q2 What Are the Characteristics of International
Scrum Essentials 556 IS Components? 578
When Are We Done? 557
What Is Required to Localise Software? 578
Key Roles 558
What Are the Problems and Issues of Global
Q4 How Do Requirements Drive the Databases? 579
Scrum Process? 558
Q3 What Are the Challenges of International
Creating Requirements Tasks 558 Enterprise Applications? 580
Scheduling Tasks 559 Advantages of Functional Systems 580
Committing to Finish Tasks 559 Problems of Inherent Processes 581
Hocus-Pocus? 560 Q4 How Do Inter-Enterprise IS Facilitate
Active Review 560 Globalisation? 581
Key Terms and Concepts 561 How Do Global Information Systems Affect
Using Your Knowledge 561 Supply Chain Profitability? 581
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xvi      Contents 

What Is the Economic Impact of Global How Does the International Dimension
Manufacturing? 582 Affect Computer Security Risk
How Does Web 2.0 and Social Media Affect Management? 587
International Business? 582 Active Review 587
Q5 What Are the Challenges of International Key Terms and Concepts 588
IS Management? 583 Using Your Knowledge 588
Why Is International Information Systems
Glossary 589
Development More Challenging? 583
Index 601
What Are the Challenges of International
Project Management? 584
What Are the Challenges of International
IT/IS Management? 586
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Preface
Experiencing MIS is the title and theme of this book. It is an important theme because no matter
what you do in business, you will experience MIS. Whether you work in accounting, marketing,
finance, operations, management, human resources—whatever your business specialty—you will
experience MIS.
Because experiencing MIS is a given, the only important question is: What kind of an
experience will you have? Will you be a helpless user, one who says, ‘I don’t know anything about
computers, and I don’t want to’? Or will you be a manager who says, ‘I know there’s a way to use
information systems to improve the productivity of my department’? Will you be someone who
finds an innovative application of information technology to push your company ahead of the
competition? Or, will you be the user who ‘doesn’t get it’?

Relating This Text to Your Business Career

Many students think this is a book about using a computer. It is not. Experiencing MIS is not
the same as computer literacy. Some students think the primary goal of this book is to teach
you Excel or Access. Although you may expand your knowledge of using those products while
reading this book, you will do so on the way to learning something far more important: how to
use computer-based systems to better accomplish business goals and objectives—your personal
ones and those for the business in which you work.
Experiencing MIS is not something you will wait to do 20 years down the road when you are
a general manager of whatever. It starts your first day on the job. Imagine yourself that day,
hired by the company you really want to work for. What happens that first day? Typically, your
supervisor first gives you a desk and then assigns you a computer.
What are you going to do with that computer? Send emails to your parents? Surf the web?
IM your friends? Are you even allowed to use your work computer for personal email, Facebook
or Twitter? (Maybe.) Can your employer read the emails you send from work? (Yes, definitely.)
Will your employer read the email you send from work? (Maybe.) But, more importantly, what
are you going to DO with that computer to help your career? To help your department? To give
your organisation a competitive advantage?
Here’s the good news: You don’t have to wait until that first day to start experiencing
MIS. This book is designed to help you experience MIS right now—at university where you
can exercise your ‘inquiring mind’ without ruining your business reputation. Use Google
Docs and Spreadsheets, or Microsoft SharePoint, or some other software to facilitate the
exercises. Experience MIS now, where you can propose infeasible projects, and where you
can develop ideas that are not just ‘out of the box’, but that are truly innovative and future
oriented. Do it now while you have the support of a department of knowledgeable
professionals (your lecturers and professors) who are there to provide you consulting, at no
extra charge!

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xviii      Preface

Why This Fourth Australian Edition?

Events in management information systems move fast and to keep the text current, we check
every sentence and every industry reference for obsolescence. For example, the third edition’s
glorification of Apple’s success in Chapter 4 needed to be softened given Apple’s recent
experience. The excitement about Microsoft Surface that was prevalent when we wrote the third
edition had to be placed into context of Surface’s mediocre success, and indeed, its name change.
So, numerous changes, as listed in Table 1, were made throughout the chapters in an attempt to
keep them up to date and relevant to the Australian context.
As shown in the table below, changes were made to every chapter. One of the major changes
is the rewrite of Chapter 6 to focus entirely on the cloud. Data communications technology is
presented only in its role as supporting the cloud. We have also included new material on social
media information systems given their growing importance for business.
Also, some material included in the chapters of the third edition has been moved to chapter
extensions in the fourth edition. We hope this offers increased flexibility: the core chapters cover
fundamental MIS principles, but you can (and should!) use the chapter extensions to delve
deeper where it matters most for your own learning.

Changes in the Fourth Australian Edition

Chapter Description of change
1 New employment data and updated job requirements from Australian Government

1 New Guide: Five-Component Careers

1 New Ethics Guide: Ethics and Professional Responsibility

2 Adoption of business process modelling notation (BPMN)

Extended coverage of process quality and how information systems contribute to improving process quality

3 Improved coverage of Porter’s Five Forces and competitive strategy

3 New InClass Exercise: Competitive Strategy Over the Web

3 New Case Study: Competitive Advantage at National Australia Bank

4 Updated hardware specifications to reflect current industry norms. Introduced mobile operating systems
and different kinds of virtualisation

4 New InClass Exercise: Microsoft Surface changed from table computing to tablet computing

4 New Collaboration Exercise: Microsoft PixelSense

5 Extended database applications to include thin-client, browser-based apps

5 New Case Study: Is Australia’s Electronic Health Record the Cure We’ve Been Waiting for?

6 Entire chapter rewritten to focus entirely on the cloud. Incorporated $RU’s use of the cloud. Introduced
topic of cloud security

6 New InClass Exercise: What, Exactly, Does That Standard Mean?

6 New Guide: You Said What? About Me? In Class?

7 Updated chapter to take advantage of new content in Chapter 6

7 New case study: Renovate or detonate?

8 Entire chapter rewritten to focus on Social Media Information Systems

8 New Guide: Social Recruiting

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Preface      xix

Chapter Description of change

9 Updated with more depth on business intelligence and less on reporting

9 New InClass Exercise: What Singularity Have We Wrought?

9 New Ethics Guide: Unseen Cyberazzi

Part 3 New Case Study: Switched on to Data at JB Hi-Fi

Review

10 Improved coverage of the role of prototyping

10 New Case Study: User Involvement at Northern Territory Asset Management

11 Updated information systems jobs and related salary data

Extended coverage of aligning information systems with organisational strategy
Coverage of outsourcing included in chapter (previously covered in a chapter extension)

11 New Case Study: IT Development and Acquisition at Australian Bureau of Statistics

12 Updated coverage of goals and aims of information systems security

Updated computer crime statistics
Updated coverage of responses to security threats and incidents

12 New Guide: Is It Spying or Just Good Management?

Using This Book

Every part and every chapter in this book starts with a real-life business scenario of someone
experiencing MIS. For example, you can read about Kerrie Dehaviland from $RU Financial Planning.
Kerrie wanted to sponsor a CRM system to provide information to an office of extremely demanding
financial planners. Her system had to be very professional and it needed the blessing of her boss, Murray
Williams. How would you proceed if that idea occurred to you? How did Kerrie proceed? Each chapter
will give you guidance to apply fundamental information systems knowledge to business scenarios.
The book consists of four parts and three chapters within each part. The chapters are
relatively short and describe the minimum essentials of each topic. Additional material on each
chapter topic can then be found in ‘Chapter Extensions’, which are grouped together near the
back of the book. Some of the chapter extensions extend the technical content of a chapter and
others extend the business/management content of a chapter.
Every chapter and chapter extension starts with a list of questions. Read those questions.
Read the text material. Apply the knowledge to the scenario. Do the activities in the ‘Active
Review’. You can stop reading when you know you can answer the list of questions.

Chapter Guides
Every chapter has two ‘Guides’. The guides present situations or case studies that relate to the
implementation and/or use of information systems in practice. Each is followed by discussion
questions that you can use formally or informally to discuss the issues and points raised in the
guide. The experience of hearing others’ ideas and sharing your own is good practice for almost
any career you choose to pursue.
Each chapter has a guide that describes a scenario that will help you experience MIS now,
today. These guides present real-world examples related to some aspect of the topics covered in
the relevant chapter. There are twelve of these guides.
The odd-numbered chapters also have an Ethics Guide. An essential characteristic of a
profession is the need for its practitioners/members to subscribe to a set of values and ideals
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Making the Most of Your

Resources
MyMISLab for Kroenke/Wilson/Brookes
Experiencing MIS, 4th edition
A guided tour for students and educators
www.pearson.com.au/kroenke4
Auto-generated Tests and
Assignments
Each MyLab comes with pre-loaded
quizzes, all of which are
automatically graded.

Assignable Content
Educators can select content from
the Study Plan, Multimedia, and/or
Test Bank and assign to students as
homework or quizzes.

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MAKING THE MOST OF YOUR RESOURCES       xxv

Study Plan
A Study Plan is generated from each
student’s results on quizzes and
tests. Students can clearly see which
topics they have mastered and, more
importantly, which they need to
work on.

Learning Resources
Links to additional learning
resources are incorporated into the
Study Plan.
• eText
• videos
• decision-making simulations.

To assist the Educator, a full suite of resources is chapter offers a wide variety of true/false, short answer
provided to assist with delivery of the text, as well as to and multiple-choice questions, arranged by learning
support teaching and learning. objective and tagged by AACSB standards.
Every question is available in TestGen® software for
Solutions Manual both Windows® and Macintosh® computers. This
The Solutions Manual provides educators with easy-to-use testing software is a valuable test preparation
detailed, accuracy-verified solutions to in-chapter and tool that allows educators to customise, save, and
end-of-chapter problems in the book. generate classroom tests.

Test Bank Digital Image PowerPoint® Slides

The Test Bank provides a wealth of accuracy-verified All the diagrams and tables from the text are available
testing material. Updated for the new edition, each for lecturer use.