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PRINCIPLES OF
BUSINESS
INFORMATION
SYSTEMS
THIRD
EDITION
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PRINCIPLES OF
BUSINESS
INFORMATION
SYSTEMS
THIRD
EDITION
RALPH STAIR,
GEORGE REYNOLDS
AND THOMAS CHESNEY
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����������������������������������� © 2018, Cengage Learning EMEA
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Text design: Design Deluxe Ltd A catalogue record for this book is available from the British
Library.
Cover Image(s): istock
ISBN: 978-1-4737-4841-5
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For Tahseena
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Brief Contents
1 Overview 1
1 An Introduction to Information Systems 3
2 Information Systems in Organizations 33
iv Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300
Contents
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Ethical and Societal Issues: Customers Computer Systems: Integrating the Power
Out of Pocket After Direct Transfer Error 41 of Technology 66
Reengineering and Continuous Improvement 43 Hardware Components 67
User Satisfaction and Technology Hardware Components in Action 68
Acceptance 44 Processing and Memory Devices: Power,
Information Systems @ Work: Neto Helps Speed and Capacity 68
Australian Small Businesses Get Online 45 Processing Characteristics and Functions 69
The Applications Portfolio 46 Memory Characteristics and Functions 70
Success Factors 47 Multiprocessing 72
Competitive Advantage 48 Parallel Computing 73
Factors That Lead Firms to Seek Competitive Secondary Storage 74
Advantage 48 Access Methods 75
Evaluating IS 49 Secondary Storage Devices 75
Productivity 49 Enterprise Storage Options 78
Return on Investment and the Value Input and Output Devices: The Gateway
of Information Systems 50 to Computer Systems 81
Careers in Information Systems 51 Characteristics and Functionality 81
Operations 51 Input Devices 82
Systems Development 51 Output Devices 87
Support 52 Computer System Types 91
Information Service Units 53 Portable Computers 93
Typical IS Titles and Functions 53 Nonportable Single-User Computers 95
Summary 54 Multiple-User Computer Systems 96
Self-Assessment Test 56 Information Systems @ Work: Printers Arrive
Review Questions 56 in the Operating Theatre 97
Discussion Questions 56
Green Computing 101
Web Exercises 56
Ethical and Societal Issues: Mobile
Case One: Cloud Computing and Social Media
Technology Fighting Human Trafficking 103
Make Nail Polish Success 57
Summary 104
Case Two: Can You Solve It? 58
Self-Assessment Test 105
Case Three: Raining Wine from the Cloud 60
Review Questions 106
Notes 60
Discussion Questions 106
World Views Case: ABAZONG Training and
Web Exercises 106
Consulting (Pty) Ltd Helps Organizations and
Case One: Moore’s Law About to Be Overturned
Users With Information Security Consultation
106
and Training Awareness 61
Case Two: Sen.Se is Helping to Create the
Internet of Things 108
Case Three: The €30 computer 109
Notes 110
Information
2 Technology 4 Software: Systems and Application
Concepts 63 Software 115
Principles 115
Learning Objectives 115
3 Hardware: Input, Processing, Output Why Learn about Systems and Application
and Storage Devices 65 Software? 116
Principles 65 An Overview of Software 116
Learning Objectives 65 Systems Software 116
Why Learn About Hardware? 66 Application Software 117
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Supporting Individual, Group and Relationships Between Tables 160
Organizational Goals 117 Designing Relational Databases 161
Systems Software 118 Database Management Systems 165
Operating Systems 118 Creating and Modifying the Database 165
Current Operating Systems 122 Storing and Retrieving Data 166
Information Systems @ Work: Privacy for Manipulating Data and Generating Reports 167
Everyone, Everywhere 123 Database Administration 168
Workgroup Operating Systems 125 Selecting a Database Management System 169
Enterprise Operating Systems 126 Using Databases with Other Software 169
Operating Systems for Small Computers, Database Applications 170
Embedded Computers and Special- Linking Databases to the Internet 170
Purpose Devices 126 Big Data Applications 170
Utility Programs 127 Data Warehouses 171
Middleware 129 Ethical and Societal Issues: Three Words
Application Software 129 and a Few Symbols Cost a Business
Overview of Application Software 129 €40m 172
Personal Application Software 131 Data Mining 173
Mobile Application Software 135 Business Intelligence 174
Workgroup Application Software 136 Information Systems @ Work: The IBM
Enterprise Application Software 137 Quantum Experience 175
Application Software for Information, Decision Distributed Databases 177
Support and Competitive Advantage 138 Online Analytical Processing (OLAP) 178
Programming Languages 138 Visual, Audio and Other Database Systems 179
Ethical and Societal Issues: Adblockers: Summary 180
Salvation for Web Users Or a High-Tech Self-Assessment Test 181
Protection Racket? 139 Review Questions 181
The Evolution of Programming Languages 140 Discussion Questions 181
Visual, Object-Oriented and Artificial Web Exercises 181
Intelligence Languages 140 Case One: Just Tell Me My Password
Already! 182
Software Issues and Trends 142
Case Two: Reading Every Book That’s Ever Been
Software Bugs 142
Written 183
Copyrights and Licences 143
Case Three: Life Is Short. Protect Your Data 184
Freeware and Open-Source Software 143
Notes 185
Software Upgrades 145
Global Software Support 146
Summary 146 6 Computer Networks 187
Self-Assessment Test 148 Principles 187
Review Questions 149 Learning Objectives 187
Discussion Questions 149 Why Learn About Computer Networks? 188
Web Exercises 149 Telecommunications 188
Case One: Software Cuts Legal Costs 149 Channel Bandwidth 189
Case Two: Ready. Steady. Go! 151 Guided Transmission Media Types 189
Case Three: Software Error Dooms Wireless Transmission Media Types 192
Spacecraft 152 Telecommunications Hardware 195
Notes 153
Networks and Distributed Processing 197
Network Types 197
5 Organizing and Storing Data 157 Ethical and Societal Issues: The Great British
Principles 157 Data Grab 199
Learning Objectives 157 Distributed Processing 202
Why Learn About Organizing Data? 158 Client/Server Systems 203
Data Management and Data Modelling 158 Communications Software 204
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Securing Data Transmission 206 Information Systems @ Work: Fast Food
Virtual Private Network (VPN) 207 Chain Yonghe King Upgrades Their
The Internet 208 POS 244
How the Internet Works 209 Traditional Transaction Processing
Internet Applications 211 Applications 245
The World Wide Web 212 Order Processing Systems 245
Information Systems @ Work: Tech Firms Purchasing Systems 247
Plan the Highest Capacity Atlantic Data Accounting Systems 248
Link 214 Electronic and Mobile Commerce 248
Email 218 Electronic Commerce 248
Telnet and FTP 219 Mobile Commerce 251
Cloud Computing 219 Ethical and Societal Issues: Tracking Staff
Intranets and Extranets 219 Beyond the Workplace 251
Summary 220 Production and Supply Chain
Self-Assessment Test 223 Management 253
Review Questions 223 Customer Relationship Management and
Discussion Questions 223 Sales Ordering 254
Web Exercises 223
Financial and Managerial Accounting 255
Case One: Instant Messaging Is Easier To
Hosted Software Model for Enterprise
Secure Than Email 224
Software 256
Case Two: Anatomy Of A Hack 225
Case Three: Digital Cartography Gets It International Issues Associated with
Wrong 226 Operational Systems 256
Notes 227 Different Languages and Cultures 257
World Views Case: IT Purchase Decisions – Disparities in Information System
What Should You Buy? 229 Infrastructure 257
Varying Laws and Customs Rules 257
Multiple Currencies 257
Summary 258
Self-Assessment Test 259
Business Review Questions 259
3 Information Discussion Questions 260
Web Exercises 260
Systems 231 Case One: Non-Linear Presentations 260
Case Two: When Stock Becomes a Liability 262
Case Three: Netflix Analytics Creates Content
7 Operational Systems 233 That We’ll Watch 263
Notes 264
Principles 233
Learning Objectives 233
Why Learn About 8 Management Information and
Operational Systems? 234 Decision Support Systems 265
Introduction 234 Principles 265
Enterprise Resource Planning 235 Learning Objectives 265
Advantages of ERP Systems 235 Why Learn About Management
Disadvantages of ERP Systems 237 Information Systems and Decision Support
ERP for Small- and Medium-Sized Systems? 266
Enterprises (SMEs) 238 Decision Making and Problem Solving 266
Transaction Processing Systems 238 Programmed versus Non-Programmed
Traditional Transaction Processing Methods Decisions 267
and Objectives 239 Optimization, Satisficing and Heuristic
Transaction Processing Activities 241 Approaches 268
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Sense and Respond 268 Knowledge Management Systems 306
Big Data 269 Overview of Knowledge Management
An Overview of Management Information Systems 306
Systems 269 Obtaining, Storing, Sharing and Using
Inputs to a Management Information System 269 Knowledge 307
Outputs of a Management Information Technology to Support Knowledge
System 270 Management 308
Characteristics of a Management Artificial Intelligence 309
Information System 273 The Nature of Intelligence 309
Functional MIS 274 The Difference Between Natural and Artificial
Financial Management Information Systems 275 Intelligence 311
Manufacturing Management Information Information Systems @ Work: Playing with
Systems 277 Atoms 312
Marketing Management Information Systems 280 The Major Branches of Artificial
Human Resource Management Information Intelligence 312
Systems 282 Ethical and Societal Issues: Augmented
Geographic Information Systems 284 Reality’s Killer App 317
Decision Support Systems 284 Expert Systems 318
Characteristics of a Decision Support When to Use Expert Systems 318
System 285 Components of Expert Systems 319
Capabilities of a Decision Support System 286 Virtual Reality 325
A Comparison of a DSS and an MIS 287 Interface Devices 325
Components of a Decision Support System 287 Forms of Virtual Reality 326
Information Systems @ Work: Non-Linear Virtual Reality Applications 326
What-If Analysis in OpenOffice 288 Summary 327
Group Support Systems 291 Self-Assessment Test 328
Ethical and Societal Issues: Online Divorce Review Questions 329
Form Error ‘Could Have Led to Unfair Discussion Questions 329
Settlements’ 292 Web Exercises 329
Characteristics of a GSS that Enhance Case One: A ‘Soft’ Octopus Robot 329
Decision Making 293 Case Two: 360° Video Makes Virtual Reality
Accessible 331
Executive Support Systems 294
Case Three: Game-Show-Winning AI Now
Capabilities of Executive Support Systems 295
Diagnoses Rare Diseases 332
Summary 296
Notes 333
Self-Assessment Test 298
Review Questions 298
Discussion Questions 299
10 Pervasive Computing 335
Web Exercises 299 Principles 335
Case One: Smart Meters Capture Big Data For Learning Objectives 335
Energy Decisions 299 Why Learn About Pervasive Computing? 336
Case Two: Taking Designs into the Next Introduction 336
Dimension 300
Wireless Internet Access 337
Case Three: Computer Games as Decision
Tools 301 Mobile Devices 337
Notes 303 Smartphone 338
Wearable Technology 339
Ethical and Societal Issues: Pay Up Or Your
9 Knowledge Management and
Data Gets It! 340
Specialized Information Systems 305
Information Systems @ Work: The
Principles 305 Blockchain Creates Tamper-Proof
Learning Objectives 305 Transactions 342
Why Learn About Knowledge Management and E-Money 343
Specialized Information Systems? 306 Tangible
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or duplicated, 344or in part. WCN 02-300
in whole
Personal Robotics 345 Establishing Objectives for Systems
Virtual Pets 346 Development 372
Computer Supported Cooperative Work 346 Systems Development Lifecycles 374
Videoconferencing 347 The Traditional Systems Development
Messaging 347 Lifecycle 374
Interactive Whiteboards 347 Prototyping 376
Wikis 348 Information Systems @ Work: Open Source
MMOGs 348 Software Conquers Data Science 378
Blogs and Podcasts 349 Rapid Application Development, Agile
More Applications of Electronic and Mobile Development, Joint Application
Commerce 350 Development and Other Systems
Retail and Wholesale 350 Development Approaches 379
Manufacturing 350 The End-User Systems Development
Marketing 352 Lifecycle 380
Investment and Finance 353 Outsourcing and On-Demand Computing 380
Auctions 353 Factors Affecting System Development
Anywhere, Anytime Applications of Mobile Success 381
Commerce 353 Involvement 381
Advantages of Electronic and Mobile Degree of Change 382
Commerce 354 Managing Change 382
Summary 355 Quality and Standards 383
Self-Assessment Test 356 Use of Project Management Tools 384
Review Questions 356 Use of Computer-Aided Software Engineering
Discussion Questions 357 (CASE) Tools 386
Web Exercises 357 Systems Investigation 387
Case One: Someone to Share a Journey Initiating Systems Investigation 387
With 357 Participants in Systems Investigation 388
Case Two: Kids Finally Get a Real Magic Wand at Feasibility Analysis 388
Disney 358 The Systems Investigation Report 389
Case Three: Let’s Play and Become Famous 359 Ethical and Societal Issues: The Very Last
Notes 360 Step in Systems Development 390
World Views Case: Information Systems at
Systems Analysis 391
Damelin, South Africa 362
General Considerations 391
Participants in Systems Analysis 391
Data Collection and Analysis 392
Requirements Analysis 397
Critical Success Factors 397
4 Systems
Development 365
The IS Plan 397
Screen and Report Layout 398
Requirements Analysis Tools 399
Object-Oriented Systems Analysis 399
The Systems Analysis Report 399
Summary 400
11 Systems Analysis 367
Self-Assessment Test 403
Principles 367 Review Questions 403
Learning Objectives 367 Discussion Questions 404
Why Learn About Systems Analysis? 368 Web Exercises 404
An Overview of Systems Development 368 Case One: Hackathon Culture 404
Participants in Systems Development 368 Case Two: Failover from Amazon 405
Information Systems Planning and Aligning Case Three: The Internet of Bananas 1.0 406
Organization and IS Goals 370 Notes 408
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12 Systems Design and Case Two: Build Your Own Robot 441
Implementation 409 Case Three: GitHub 442
Notes 443
Principles 409
World Views Case: Systems Development at
Learning Objectives 409
Damelin, South Africa 445
Why Learn About Systems Design
and Implementation? 410
Systems Design 410
Interface Design and Controls 411 Information
Design of System Security and Controls 412 Systems in
Generating Systems Design Alternatives 415
Freezing Design Specifications 420
5 Business and
The Contract 420 Society 447
The Design Report 420
Information Systems @ Work: Creating
Computer Games Without Needing to 13 Security, Privacy and Ethical Issues
Program 421
in Information Systems 449
Systems Implementation 422
Principles 449
Acquiring Hardware from an IS Vendor 423
Learning Objectives 449
Acquiring Software: Make or Buy? 423
Why Learn About Security, Privacy and Ethical
Acquiring Database and Telecommunications
Issues in Information Systems? 450
Systems 426
User Preparation 426 Computer Waste and Mistakes 450
IS Personnel: Hiring and Training 426 Preventing Computer-Related Waste
Site Preparation 427 and Mistakes 451
Data Preparation 427 Information Systems @ Work: Admiral to
Installation 427 Price Car Insurance Based on Facebook
Testing 427 Posts 453
Ethical and Societal Issues: Modelling a Computer Crime 454
Mass Shooting 428 Preventing Computer-Related Crime 460
Start-Up 429 Crime Prevention by the State 460
User Acceptance 430 Crime Prevention by Organizations 461
Systems Operation and Maintenance 431 Crime Prevention by Individuals 463
Reasons for Maintenance 431 Using Intrusion Detection Software 463
Types of Maintenance 432 Using Managed Security Service Providers
The Request for Maintenance Form 432 (MSSPs) 464
Performing Maintenance 433 Preventing Crime on the Internet 464
The Financial Implications of Maintenance 433 Privacy 465
The Relationship Between Maintenance and Privacy and the Government 465
Design 433 Privacy at Work 465
Systems Review 434 Email Privacy 465
Types of Review Procedures 434 Privacy and the Internet 466
Factors to Consider During Systems Review 435 Fairness in Information Use 467
System Performance Measurement 436 Individual Efforts to Protect Privacy 468
Summary 436 The Work Environment 469
Self-Assessment Test 438 Health Concerns 469
Review Questions 439 Avoiding Health and Environmental
Discussion Questions 439 Problems 470
Web Exercises 439 Ethical and Societal Issues: Kettle Botnet
Case One: Open Source Project Aims to Create Heats Up 471
Artificial Life 440 Ethical Issues in Information Systems 472
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Summary 473 World Views Case: Facebook: A Platform
Self-Assessment Test 474 for Cyberbullying, and Cyber Racism
Review Questions 475 or Not? 481
Discussion Questions 475
Web Exercises 475
Answers to Self-Assessment Tests 483
Case One: Open Access Pirates 475
Glossary 487
Case Two: The Encryption Row Is Back 476
Index 499
Case Three: On Patrol With the Love Police 478
Credits 505
Notes 479
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Preface
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IS Principles First, Where They Belong
Exposing students to fundamental IS principles is an advantage for students who do not later
return to the discipline for advanced courses. Since most functional areas in business rely on
information systems, an understanding of IS principles helps students in other course work. In
addition, introducing students to the principles of IS helps future business function managers
employ information systems successfully and avoid mishaps that often result in unfortunate
consequences. Furthermore, presenting IS concepts at the introductory level creates interest
among general business students who may later choose IS as a field of concentration.
IS Principles
Principles of Business Information Systems, although comprehensive, cannot cover every aspect
of the rapidly changing IS discipline. The authors, having recognized this, provide students with
an essential core of guiding IS principles to use as they face career challenges ahead. Think of
principles as basic truths or rules that remain constant regardless of the situation. As such, they
provide strong guidance in the face of tough decisions. A set of IS principles is highlighted at
the beginning of each chapter. The ultimate goal of Principles of Business Information Systems
is to develop effective, thinking, action-oriented employees by instilling them with principles to
help guide their decision making and actions.
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professional views issues through a global perspective that encompasses the entire organiza-
tion and the broader industry and business environment in which it operates.
The scope of responsibilities of an IS professional today is not confined to just his or her
employer but encompasses the entire interconnected network of employees, suppliers, custom-
ers, competitors, regulatory agencies and other entities, no matter where they are located. This
broad scope of responsibilities creates a new challenge: how to help an organization survive
in a highly interconnected, highly competitive global environment. In accepting that challenge,
the IS professional plays a pivotal role in shaping the business itself and ensuring its success.
To survive, businesses must now strive for the highest level of customer satisfaction and loyalty
through competitive prices and ever-improving product and service quality. The IS professional
assumes the critical responsibility of determining the organization’s approach to both overall
cost and quality performance and therefore plays an important role in the ongoing survival of
the organization. This new duality in the role of the IS employee – a professional who exercises
a specialist’s skills with a generalist’s perspective – is reflected throughout the book.
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Changes to the Third Edition
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Structure of the Text
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Chapter 7 Operational Systems
Operational systems, such as transaction processing systems, allow firms to buy and sell. With-
out systems to perform these functions, the firm could not operate. Organizations today are
moving from a collection of non-integrated transaction processing systems to highly integrated
enterprise resource planning systems to perform routine business processes and maintain
records about them. These systems support a wide range of business activities associated with
supply chain management and customer relationship management. This chapter examines
transaction processing systems and enterprise resource planning systems.
Chapter 8 Management Information and Decision Support Systems
This chapter begins with a discussion of decision making and examines the decision-making
process. Both management information systems and decision support systems are examined
in detail. Their ability to help managers make better decisions is emphasized.
Chapter 9 Knowledge Management and Specialized Information Systems
A discussion of knowledge management leads onto a discussion of some of the special-
purpose systems discussed in the chapter, including expert and knowledge-based systems.
The other topics discussed include robotics, vision systems, virtual reality and a variety of other
special-purpose systems. We discuss embedded artificial intelligence, where artificial intelli-
gence capabilities and applications are placed inside products and services.
Chapter 10 Pervasive Computing
The move of information systems to leave the office desktop and enter every aspect of our lives
is well underway. Many businesses are exploiting this to their advantage, as are their custom-
ers. This chapter examines some of the technologies that are enabling all of this to happen.
New ones are being introduced almost every month. It is important that businesses understand
the potential benefits they can bring.
Chapter 11 Systems Analysis
This chapter and the next examine where information systems come from. Systems investiga-
tion and systems analysis, the first two steps of the systems development, are discussed. This
chapter provides specific examples of how new or modified systems are initiated and analyzed
in a number of industries. This chapter emphasizes how a project can be planned, aligned with
corporate goals and rapidly developed.
Chapter 12 Systems Design and Implementation
This chapter looks at how the analysis discussed in Chapter 11 can be used to design and
build IT solutions. The chapter mainly looks at developing a new system but also examines
solving a problem by buying an existing IS that has already been developed.
Chapter 13 Security, Privacy and Ethical Issues in Information Systems
This last chapter looks at security, privacy and ethical issues, something that is in the back-
ground throughout the text. A wide range of non-technical issues associated with the use of
IS provide both opportunities and threats to modern organizations. The issues span the full
spectrum – from preventing computer waste and mistakes, to avoiding violations of privacy, to
complying with laws on collecting data about customers, to monitoring employees.
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About the Authors
Acknowledgements
We are indebted to the following reviewers for their perceptive feedback and expert insight on
early drafts of this text and previous editions:
■ Scott Bingley, Victoria University, Australia
■ Duane Boucher, Fort Hare University, South Africa
■ Timothy Cleary, London Metropolitan University, UK
■ Amare Desta, London South Bank University, UK
■ Oyetola Emmanuel-Ebikake, Edgehill University, UK
■ Matthias Meckel, University of Central Lancashire, UK
■ Jane Nash, Rhodes University, South Africa
■ Holly Tootell, University of Wollongong, Australia
■ Indrit Troshani, University of Adelaide Business School, Australia
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300
PART 1
Overview
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01
An Introduction to
Information Systems
Computers and information systems ■ Name the components of an information system and
are constantly making it possible for describe several system characteristics.
organizations to improve the way they
conduct business.
Knowing the potential impact of ■ Identify the basic types of business information systems
information systems and having the and discuss who uses them, how they are used and
ability to put this knowledge to work can what kinds of benefits they deliver.
result in a successful personal career,
organizations that reach their goals and a
society with a higher quality of life.
System users, business managers and ■ Identify the major steps of the systems development
information systems professionals must process and state the goal of each.
work together to build a successful
information system.
Information systems must be applied ■ Describe some of the threats to security and privacy that
thoughtfully and carefully so that society, information systems and the Internet can pose.
business and industry can reap their ■ Discuss the expanding role and benefits of information
enormous benefits. systems in business and industry.
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1
Why Learn About Information systems are used in almost every imaginable profes-
sion. Sales representatives use information systems to advertise
Information Systems? products, communicate with customers and analyze sales trends.
Managers use them to make major decisions, such as whether to
build a manufacturing plant or research a cancer drug. From a small music store to huge multinational compa-
nies, businesses of all sizes could not survive without information systems to perform accounting and finance
operations. Regardless of your chosen career, you will use information systems to help you achieve goals.
This chapter presents an overview of information systems. The sections on hardware, software, data-
bases, telecommunications, e-commerce and m-commerce, transaction processing and enterprise
resource planning, information and decision support, special purpose systems, systems development, and
ethical and societal issues are expanded to full chapters in the rest of the book. We will start by exploring
the basics of information systems.
What is a System?
system A set of elements or A central concept of this book is that of a system. A system is a set of elements
components that interact to or components that interact to accomplish goals. The elements themselves
accomplish goals.
and the relationships among them determine how the system works. Systems
have inputs, processing mechanisms, outputs and feedback (see Figure 1.1).
A system processes the input to create the output. For example, consider an automatic car
wash. Tangible inputs for the process are a dirty car, water and various cleaning ingredients.
Time, energy, skill and knowledge also serve as inputs to the system because they are needed
to operate it.
The processing mechanisms consist of first selecting which cleaning option you want (wash only,
wash with wax, wash with wax and hand dry, etc.) and communicating that to the operator of the
car wash. Liquid sprayers shoot clear water, liquid soap or car wax depending on where your car is
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in the process and which options you selected. The output is a clean car. As in all systems, indepen-
dent elements or components (the liquid sprayer, foaming brush and air dryer) interact to create a
clean car. A feedback mechanism is your assessment of how clean the car is.
System performance can be measured in various ways. Efficiency is a mea- efficiency A measure of what
sure of what is produced divided by what is consumed. For example, the effi- is produced divided by what is
consumed.
ciency of a motor is the energy produced (in terms of work done) divided by the
energy consumed (in terms of electricity or fuel). Some motors have an efficiency
of 50 per cent or less because of the energy lost to friction and heat generation.
Effectiveness is a measure of the extent to which a system achieves its effectiveness A measure of
goals. It can be computed by dividing the goals actually achieved by the total the extent to which a system
achieves its goals; it can be
of the stated goals. For example, a company might want to achieve a net profit computed by dividing the goals
of €100 million for the year with a new information system. Actual profits, how- actually achieved by the total of
ever, might only be €85 million for the year. In this case, the effectiveness is the stated goals.
85 per cent (85/100 = 85 per cent).
Evaluating system performance also calls for using performance standards.
A system performance standard is a specific objective of the system. For system performance standard
example, a system performance standard for a marketing campaign might be A specific objective of the
system.
to have each sales representative sell €100 000 of a certain type of product
each year (see Figure 1.2a). A system performance standard for a manufacturing process might
be to provide no more than 1 per cent defective parts (see Figure 1.2b). After standards are
150 000
Good Figure 1.2 System Performance
Standards
125 000 (a) Sales broken down by sales
person
100 000 Standard = 100 000 (b) Percentage of defective parts
Sales ( )
75 000
Bad
50 000
25 000
3
Defective parts (%)
2 Bad
1 Standard = 1%
Good
2 4 6 8 10 12
Production day
(b)
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1 established, system performance is measured and compared with the standard. Variances from
the standard are determinants of system performance.
What is Information?
Information is one of those concepts that we all seem intuitively able to grasp, but find tricky
to define. In the 1940s, mathematician Claude Shannon defined it as: information is that which
reduces uncertainty. Shannon was working on the technical problems involved in sending mes-
sages over communication networks, and his concept of information is actually quite different
from what we in business information systems mean by ‘information’. Nevertheless, we can
use his definition as a starting point. Imagine you are unsure of what today’s weather will be
like. Getting out of bed you open the curtains to see that the sun is shining. You now know a bit
more about what’s it’s going to be like: your uncertainty about the weather has been reduced.
Therefore looking out the window gave you information. When you turn on your radio and hear
a detailed weather report, your uncertainty has been reduced further. When you look at the
temperature gauge in your car, again your uncertainty has gone down. According to Shannon’s
definition, each of these events has therefore given you information.
However his definition does not really capture what we would think of when we consider the
information in, say, a management report. Therefore we simply define information as a collection
of facts. These facts can take many forms. The temperature gauge in the car gives information in
the form of a number. The radio gives audio information. Looking out of the window gives visual
information. Other forms of information include text, images and video clips.
Another term that is closely related to information is ‘data’. It’s not intuitive but a philosopher
might define data as ‘variation’. To explain this: a blank page contains no data, but as soon
as there is a mark on the page, that is, as soon as there is variation in the blankness, then
data exist. Again this doesn’t really capture what we mean by data in the context of busi-
ness information systems. The traditional information systems view is that the input to an
information system is data, and the output from the system is information. This means there-
fore that the difference between them is to do with how much processing has been done:
unprocessed facts are data, processed facts are information. Unfortunately, however, this
distinction is of little practical use. Therefore we will simply use the terms ‘information’ and
‘data’ interchangeably and define them as a collection of facts which can come in a variety
of formats. (Incidentally, strictly speaking, the term data is plural, so we would say ‘data are
used’ rather than ‘data is used’. However this is often not adhered to and we won’t worry too
much about it here.)
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300
data for future use. In a payroll application, the number of hours each employee worked must
be converted into net, or take-home, pay. Other inputs often include employee ID number and
department. The required processing can first involve multiplying the number of hours worked
by the employee’s hourly pay rate to get gross pay. If weekly hours worked exceed basic
hours, overtime pay might also be included. Then tax must be deducted along with contribu-
tions to health and life insurance or savings plans to get net pay.
After these calculations and comparisons are performed, the results are typically stored. Storage
involves keeping data and information available for future use, including output.
Output involves producing useful information, usually in the form of documents output Production of useful
and reports. Outputs can include paycheques for employees, reports for manag- information, often in the form
ers, and information supplied to stockholders, banks, government agencies and of documents and reports.
other groups. In addition, output from one system can become input for another.
For example, output from a system that processes sales orders can be used as input to a customer
billing system. Computers typically produce output on printers and display screens. Output can also
be handwritten or manually produced reports, although this is not common.
Lastly, feedback is information from the system that is used to make feedback Output that is used
changes to input or processing activities. For example, errors or problems might to make changes to input or
make it necessary to correct input data or change a process. Consider a payroll processing activities.
example. Perhaps the number of hours an employee worked was entered as
400 instead of 40 hours. Fortunately, most information systems check to make sure that data
falls within certain ranges. For number of hours worked, the range might be from 0 to 100 hours
because it is unlikely that an employee would work more than 100 hours in a week. The informa-
tion system would determine that 400 hours is out of range and provide feedback. The feedback
is used to check and correct the input on the number of hours worked to 40.
Feedback is also important for managers and decision makers. For example, a furniture maker
could use a computerized feedback system to link its suppliers and manufacturing plants. The
output from an information system might indicate that inventory levels for mahogany and oak are
getting low – a potential problem. A manager could use this feedback to decide to order more
wood from a supplier. These new inventory orders then become input to the system. In addition
to this reactive approach, a computer system can also be proactive – predicting
future events to avoid problems. This concept, often called forecasting, can be forecasting Predicting future
used to estimate future sales and order more inventory before a shortage events.
occurs. Forecasting is also used to predict the strength of hurricanes and pos-
sible landing sites, future stock-market values and who will win a political election.
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300
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That women hold in full great reverence.
Now will I turn again to my sentence.
A col fox, full of sly iniquity,
That in the grove had wonned yearés three,
By high imagination forecast.
The samé night throughout the hedges brast
Into the yard where Chanticleer the fair
Was wont, and eke his wivés to repair,
And in a bed of wortés still he lay
Till it was passed undern of the day,
Waiting his time on Chanticleer to fall,
As gladly do these homicidés all
That in await liggen to murder men.
O falsé murderer! rucking in thy den,
O newé Scariot, newé Ganelon!
O false dissimuler, O Greek Simon!
That broughtest Troy all utterly to sorrow.
O Chanticleer, accursed be the morrow
That thou into thy yard flew from thy beams
Thou were full well ywarnéd by thy dreams
That thilké day was perilous to thee:
But what that God forewot must needés be,
After the opinion of certain clerkés,
Witness on him that any perfect clerk is,
That in schoolé is great altercation
In this matteré, and great disputision,
And hath been of a hundred thousand men:
But I ne cannot boult it to the bren,
As can the holy Doctor Augustin,
Or Boece, or the Bishop Bradwardin,
Whether that Godde’s worthy foreweeting
Straineth me needly for to do a thing
(Needely clepe I simple necessity)
Or elles if free choice be granted me
To do the samé thing or do it naught
Though God forewot it ere that it was wrought,
Or if his weeting straineth never a deal
But by necessity conditional.
I will not have to do of such mattere;
My Tale is of a Cock, as ye may hear,
That took his counsel of his wife with sorrow,
To walken in the yard upon the morrow
That he had met the dream, as I you told.
Womenne’s counsels be full often cold;
Womenne’s counsels brought us first to woe,
And made Adam from Paradise to go,
There as he was full merry and well at ease:
But for I n’ot to whom I might displease
If I counsel of women wouldé blame—
Pass over, for I said it in my game.
Read authors where they treat of such mattere,
And what they say of women ye may hear,
These be the cocke’s wordés and not mine:
I can none harm of no womán devine.
Fair in the sand to bathe her merrily
Li’th Partelote, and all her sisters by,
Against the sun, and Chanticleer so free
Sang merrier than the mermaid in the sea,
(For Phisiologus sayeth sikerly
How that they singeth well and merrily).
And so befell that as he cast his eye
Among the wortés on a butterfly,
He was ware of this fox that lay full low,
Nothing he list him thenné for to crow,
But cried anon, “Cok! cok!” and up he start
As man that was affrayed in his heart,
For naturally a beast desireth flee
From his contráry if he may it see,
Though he ne’er erst had seen it with his eye.
This Chanticleer, when he ’gan him espy,
He would have fled, but that the fox anon
Said: “Gentle sir, alas! what will be done?
Be ye afraid of me that am your friend?
Now, certes, I were worse than any fiend
If I to you would harm or villany.
I am not come your counsel to espy;
But truély the cause of my coming
Was only for to hearken how ye sing,
For truély ye have as merry a steven
As any angel hath that is in heaven;
Therwith ye have of music more feeling
Than had Boece, or any that can sing.
My Lord, your father (God his soulé bless!)
And eke your mother of her gentleness,
Have in my house ybeen to my great ease,
And certés, Sir, full fain would I you please.
But for men speak of singing, I will say,
(So may I brouken well my eyen tway,)
Save you, ne heard I never man so sing
As did your father in the morrowning:
Certés it was of heart all that he sung:
And for to make his voice the moré strong
He would so pain him, that with both his eyen
He musté wink, so loud he wouldé crien,
And standen on his tiptoes therewithal,
And stretchen forth his necké long and small.
And eke he was of such discretion,
That there n’as no man in no región
That him in song or wisdom mighté pass.
I have well read in Dan Burnel the ass
Among his Vers, how that there was a cock,
That for a Priestés son gave him a knock
Upon his leg when he was young and nice
He made him for to lose his benefice;
But certain there is no comparison
Betwixt the wisdom and discretion
Of youré father and his subtilty.
Now singeth, Sir, for Sainté Charity:
Let see, can ye your father counterfeit?
This Chanticleer his wingés ’gan to beat,
As man that could not his treason espy,
So was he ravished with his flattery.
Alas! ye lordés, many a false flatour
Is in your court, and many a losengeour,
That pleaseth you well moré, by my faith,
Than he that sothfastness unto you saith.
Readeth Ecclesiast of flattery:
Beware ye lordés of their treachery.
This Chanticleer stood high upon his toes
Stretching his neck, and held his eyen close,
And ’gan to crowen loude for the nones;
And Dan Russell the fox start up at once,
And by the gargat henté Chanticleer
And on his back toward the wood him bear,
For yet ne was there no man that him sued.
O destiny! that mayst not be eschew’d,
Alas that Chanticleer flew from the beams,
Alas his wife ne raughté not of dreams!
And on a Friday fell all this mischance.
TO MY EMPTY PURSE
To you, my purse, and to none other wight,
Complain I, for ye be my lady dear;
I am sorry now that ye be so light,
For certés ye now make me heavy cheer;
Me were as lief be laid upon a bier,
For which unto your mercy thus I cry,
Be heavy again, or ellés must I die.
L’ENVOI
O ye women! which be inclinéd
By influence of your natúre
To be as pure as gold yfinéd,
And in your truth for to endure,
Armeth yourself in strong armúre,
(Lest men assail your sikerness,)
Set on your breast, yourself t’assure,
A mighty shield of doubleness.
Chaucer was called the Morning Star of Song, and his immediate
followers proved to be satellites of far less magnitude.
John Skelton, an early Poet Laureate, was of a buffoon type of
humor, yet thus speaks of his own verse.
Though my rhyme be ragged,
Tattered and gagged,
Rudely rainbeaten,
Rusty, moth-eaten,
If ye take well therewith,
It hath in it some pith.
HOW THE WELSHMAN DYD DESYRE SKELTON TO AYDE HIM IN HYS SUTE
TO THE KYNGE FOR A PATENT TO SELL DRYNKE
Scogin on a tyme had two egs to his breakfast, and Jack his
scholler should rost them; and as they were rosting, Scogin went to
the fire to warme him. And as the egs were rosting, Jacke said: sir, I
can by sophistry prove that here be three egs. Let me se that, said
Scogin. I shall tel you, sir, said Jack. Is not here one? Yes, said
Scogin. And is not here two? Yes, said Scogin; of that I am sure.
Then Jack did tell the first egge againe, saying: is not this the third?
O, said Scogin, Jack, thou art a good sophister; wel, said Scogin,
these two eggs shall serve me for my breakfast, and take thou the
third for thy labour and for the herring that thou didst give mee the
last day. So one good turne doth aske another, and to deceive him
that goeth about to deceive is no deceit.
Scogin divers times did lacke money, and could not tell what shift
to make. At last, he thought to play the physician, and did fill a box
full of the powder of a rotten post; and on a Sunday he went to a
Parish Church, and told the wives that hee had a powder to kil up all
the fleas in the country, and every wife bought a pennyworth; and
Scogin went his way, ere Masse was done. The wives went home,
and cast the powder into their beds and in their chambers, and the
fleas continued still. On a time, Scogin came to the same Church on
a sunday, and when the wives had espied him, the one said to the
other: this is he that deceived us with the powder to kill fleas; see,
said the one to the other, this is the selfe-same person. When Masse
was done, the wives gathered about Scogin, and said: you be an
honest man to deceive us with the powder to kill fleas. Why, said
Scogin, are not your fleas all dead? We have more now (said they)
than ever we had. I marvell of that, said Scogin, I am sure you did
not use the medicine as you should have done. They said: wee did
cast it in our beds and in our chambers. I, said he, there be a sort of
fooles that will buy a thing, and will not aske what they should doe
with it. I tell you all, that you should have taken every flea by the
neck, and then they would gape; and then you should have cast a
little of the powder into every flea’s mouth, and so you should have
killed them all. Then said the wives: we have not onely lost our
money, but we are mocked for our labour.
There was a man of Gottam did ride to the market with two
bushells of wheate, and because his horse should not beare heavy,
he caried his corne upon his owne necke, & did ride upon his horse,
because his horse should not cary to heavy a burthen. Judge you
which was the wisest, his horse or himselfe.
One said, that hee could never have his health in Cambridge, and
that if hee had lived there till this time, hee thought in his conscience
that hee had dyed seven yeeres agoe.
A Judge upon the Bench did aske an old man how old he was. My
Lord, said he, I am eight and fourscore. And why not fourscore and
eight? said the Judge. The other repli’d: because I was eight, before
I was fourescore.
A rich man told his nephew that hee had read a booke called
Lucius Apuleius of the Golden Asse, and that he found there how
Apuleius, after he had beene an asse many yeeres, by eating of
Roses he did recover his manly shape againe, and was no more an
asse: the young man replied to his uncle: Sir, if I were worthy to
advise you, I would give you counsell to eate a salled of Roses once
a weeke yourselfe.
A country man being demanded how such a River was called, that
ranne through their Country, hee answered that they never had need
to call the River, for it alwayes came without calling.
A C. Mery Talys
OF THE MERCHAUNTE OF LONDON THAT DYD PUT NOBLES IN HIS
MOUTHE IN HYS DETHE BEDDE
A man there was whose wyfe, as she came over a bridg, fell in to
the ryver and was drowned; wherfore he wente and sought for her
upward against the stream, wherat his neighboures, that wente with
hym, marvayled, and sayde he dyd nought, he shulde go seke her
downeward with the streme. Naye, quod he, I am sure I shall never
fynde her that waye: for she was so waywarde and so contrary to
every thynge, while she lyvedde, that I knowe very well nowe she is
deed, she wyll go a gaynste the stream.
A few further bits are added, being witty sayings from Camden,
Bacon and the Jest Books and manuscripts of the period.