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38 Chapter 2 InformationSystems:ConceptsandManagement
WhatWeLearnedfromThisCase
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2.1 TypesofInformationSystems
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Computer-BasedInformationSystems
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2.1 Types of Information Systems 39
Expertsystems,dashboards,
businessintelligencesystems,
OAS
Dashboards
Businessintelligencesystems,
dashboards,expertsystems,
FAIS,OAS
Dashboards,expertsystems,
FAIS,OAS
FAIS,OAS
Knowledgeworkers
ExecutivesStrategicdecisions
MiddlemanagersTacticaldecisions
Lower-levelmanagers
Operationaldecisions
Clericalstaff


































































EnterpriseResourcePlanningSystems
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40 Chapter2 InformationSystems:ConceptsandManagement
Hardware isadevicesuchastheprocessor,monitor,keyboard,andprinter.Togetherthese
devicesacceptdataandinformation,processit,anddisplayit.
Software isaprogramorcollectionofprogramsthatenablesthehardwaretoprocessdata.
Adatabase isacollectionofrelatedfilesortablescontainingdata.
A networkisaconnectingsystem(wirelineorwireless)thatpermitsdifferentcomputersto
shareresources.
Procedures arethesetofinstructionsabouthowtocombinetheabovecomponentsinorder
toprocessinformationandgeneratethe desiredoutput.
People arethoseindividualswhousethehardwareandsoftware,interfacewithit,oruseits
output.
Computer-basedinformationsystemshavemanycapabilities.Table2.1summarizesthemost
importantones.
TABLE2.1 MajorCapabilitiesofInformationSystems
Performhigh-speed,high-volumenumerical Allowquickandinexpensiveaccesstovastamountsof
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Performhigh-speed,high-volumenumerical
computations
Providefast,accuratecommunicationandcollaboration
withinandamongorganizations
Storehugeamountsofinformationinasmall,easy-to-
accessspace
Allowquickandinexpensiveaccesstovastamountsof
informationworldwide
Interpretvastamountsofdataquicklyandefficiently
Increasetheeffectivenessandefficiencyofpeopleworking
ingroupsinoneplaceorinseverallocationsanywhere
Automatebothsemiautomaticbusinessprocessesand
manualtasks
ITsAboutBusiness
2.1InformationTechnologyandtheNationalFootballLeague
TheNationalFootballLeague(NFL www.nfl.com)
isamulti-billion-dollarentertainment-basedbusi-
ness, driven by broadcasts, merchandise sales,
box-office revenue, marketing, and event plan-
ningandexecution.Keyinformationtechnologies
areinplacetosupportthevariousfunctionsof
ApplicationPrograms
An application program is a computer program designed to support a specific task or business
process.Eachfunctionalareaordepartmentwithinabusinessorganizationusesdozensofappli-
cationprograms.Notethatapplicationprogramsaresynonymouswithapplications.Forinstance,
thehumanresourcesdepartmentsometimesusesoneapplicationforscreeningjobapplicantsand
another for monitoring employee turnover. The collection of application programs in a single
departmentisusuallyreferredtoasadepartmentalinformationsystem.Forexample,thecollec-
tionofapplicationprogramsinthehumanresourcesareaiscalledthe human resources informa-
tionsystem(HRIS).WecanseeinFigure2.1thattherearecollectionsofapplicationprogramsthat
is,computer-basedinformationsystemsintheotherfunctionalareasaswell,suchasaccounting
andfinance.ITsAboutBusiness2.1showshowavarietyofapplicationsenabletheNationalFoot-
ballLeaguetosuccessfullyserveitscustomers.

2.1 Types of Information Systems 41
Americas favorite sport, including global posi-
tioning systems (GPS), electronic commerce,
wiredandwirelessnetworking,voiceoverInter-
net Protocol (VoIP), data security, storage, and
project management. These technologies help
theNFLeffectivelymanagetheareasoflogistics,
customer relationship management, and the
securestorageofteam-andmedia-relateddata.
Letslookattwoexamples.
BehindtheScenesattheSuperBowl
TheBusinessProblem
TheGamedayManagementGroup(www.game-
daymanagement.com)hasagreatdealofexpe-
riencewithlargecrowds.Inadditiontoworking
10SuperBowls,Gamedayhasexperiencewith
theOlympicsandhasoverseensucheventsas
PopeBenedictXVIsvisittoAmerica.Behindthe
scenesattheSuperBowl,theprospectsforsuc-
cessorfailureforthebiggamerestheavilywit h
Gamedaystaffmembersnowknowwhenthe
stadium is ready to accept a bus or limo, and
theycanseehowmanyminutesawayeachvehi-
cleisfromthestadium.They staggerallarrivals
to minimize potential confusion, ensuring, for
example,thatbusesforopposingteamsdonot
arriveatthesametime.
TheResults
ThankstoGamedaysuseofinformationtechnol-
ogy,theSuperBowl(andotherlargeevents)func-
tionsseamlessly,anoperationthatnoonenoti ces.
ThatisjustthewaythatGamedaywantsit.
ImprovingtheFanExperienceattheUniversity
ofPhoenixStadium
TheBusinessProblem
Traditionally,stadiumsimplementedseparatepro-
prietary networks to operate building systems,
video surveillance, ticket sales, merchandise
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cessorfailureforthebiggamerestheavilywit h
Gameday. The business problem for the com-
panyisensuringthatthebusesandli mostrans-
porting NFL team members, pro football
executives,celebrityperformers,corporateVIPs,
and other constituent groups to the event are
operating in perfect synchronization with the
perfectlytunedSuperBowlschedule.
TheITSolution
In the past, the 100-plus Gameday employees
working the game had to stay close to their
walkie-talkies to keep on top of ever-shifting
transportation dynamics. Gameday used to
employradiostocommunicatewithpolice,enter-
tainmentrepresentatives,teamofficials,andcor-
porate personnel. Now they use a solution from
U.S.FleetTracking,enabledbyinformationtech-
nologyfromKORETelematics(www.koretelemat-
ics.com). The KORE solution combines online
map technology with GPS sensors, allowing
Gameday staff members to receive real-time
informationontheirlaptopsconcerningtheloca-
tion of every key vehicle as it makes its way to
andfromthestadium.Ananimatedmapflashes
on each screen, pinpointing every bus and limo
en route. This satellite-based technology
improvesthetimelinessandprecisionoftheinfor-
mationflowtoGamedayemployees.
sales,andotherneeds.Thissituationdidnotopti-
mize stadium operations or stadium security.
Mostimportantly,however,itdidnotoptimizethe
fan experience at events. The University of
PhoenixStadiuminGlendale,Arizona,usesinfor-
mationtechnologytosolvetheseproblems.
TheITSolution
The University of Phoenix Stadium deployed
technologyfromCiscosConnectedSportssolu-
tions(www.cisco.com/web/strategy/sports/con-
nected_sports.html ) that combines data, voice,
video,wireless,andsocialnetworkingtocreate
a single, secure network that serves every
stadium-related function. These functions
include watching for potential terrorist threats,
scouting opposing teams game films, selling
tickets,andmarketingfanexperienceitems.
The technology applies across all types of
events.Thestadiumisamulti-eventfacilitythat
hostsconcerts,sportingeventsotherthanpro-
fessional football, car shows, food shows, and
all types of expos. Anyone who visits the sta-
diumcanusetheCisconetworkconnectionon
thefloororanywhereelseinthefacility.
TheResults
Fans with Cisco IP (Internet Protocol) phones
cannowtouchtheirscreenstogetleague-wide

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+ 7 6 + - ; ; 17 6 ; 7 : * = A = 8 + 7 5 16 / / ) 5 - <1+ 3 - <;
. : 7 5 * 7 @ 7 . . 1+ - ; <) . . ) 6 ; + ) 6 ) 4; 7 = ; - 4) + 3
- : : A; 1 0 7 6 - ; ) 6 , 7 <0 - : ? 1: - 4- ; ; , - > 1+ - ; <7
+ 0 - + 3 = 8 7 6 <0 - 1: ) 6 <) ; A 7 7 <* ) 44 ; <) <1; <1+ ; 7 :
; 6 ) 8 ) 8 0 7 <7 7 . <0 - 5 ; - 4> - ; ) < <0 - / ) 5 - ) 6 , -
5 ) 14 1< <7 <0 - 1: . : 1- 6 , ;
7 ) + 0 - ; + ) 6 ; - 6 , / ) 5 - . 145 ) 6 , ; 8 - + 1) 4 . - )
<= : - ; * ) + 3 ) 6 , . 7 : <0 * - <? - - 6 <0 - ; <) , 1= 5 ) 6 ,
<- ) 5 0 - ) , 9 = ) : <- : ; 6 ) , , 1<17 6 8 7 41+ - 7 . . 1+ - : ;
7 = <; 1, - <0 - ; <) , 1= 5 ) 6 , ; - + = : 1<A 7 . . 1+ 1) 4; ? 1<0 16
1< + ) 6 - 5 ) 14 - ) + 0 7 <0 - : ) * 7 = < <: ) . . 1+ = 8 , ) <- ;
) 6 , ; = ; 8 1+ 17 = ; 16 + 1, - 6 <;
Sources 7 5 8 14- , . : 7 5 A6 + 0 : 1B7 6 ) ) :
, 16 ) 4; " <) , 1= 5 7 - ; 1/ 0 # - + 0 ? 1<0 & 1: - 4- ; ;
) / ) B16 - + <7 * - : + ) . . - : <A
7 ? <0 - ; $ ; 16 / = ; 16 - ; ; # - + 0 6 7 47 / A ) 6 ,
6 . 7 : 5 ) <17 6 # - + 0 6 7 47 / A # 7 / - <0 - : ) ; - 416 - ) /
) B16 - = / = ; < ! , ) 5 ; # 0 -
6 7 ? ; & 0 ) < ( 7 = 1, ) ; < 1/ 0 < # 0 - & ) 44 " <: - - <
7 = : 6 ) 4 - * : = ) : A - ? ) : , 16 ) 4; " <)
, 1= 5 : - ) <- ; $ 4<15 ) <- & 1: - 4- ; ; @8 - : 1- 6 + - . 7 :
) 6 ; - , 1) ) 6 , " <) . . www.mobileaccess.com
8 : 14 %144) 6 7 6 6 <- : > 1- ? ? 1<0
145 ; ) : : A & 7 48 - : + 7 5 ) 6 = ) : A
) 5 - , ) A ) 6 ) / - 5 - 6 < " + 7 : - ; - ) 4
. 7 : " = 8 - : 7 ? 4 ` : 4) 6 , 7 = ; 16 - ; ; 7 = : 6 ) 4
= / = ; < www.n.com http://www.azcardi-
nals.com/stadium ) + + - ; ; - , ) 6 = ) : A

, - 6 <1. A <0 - > ) : 17 = ; + 7 5 8 = <- : * ) ; - , 16 . 7 : 5 )
<17 6 ; A; <- 5 ; = ; - , * A <0 -
& 0 ) < 1; < 0 - ; * 1/ / - ; < + 7 5 8 - <1<1> - ) , > ) 6
<) / - 7 > - : 7 <0 - : 5 ) 27 : ; 8 7 : <; * 7 <0 ) 5 ) <- = :
) 6 , 8 : 7 . - ; ; 17 6 ) 4 ; <0 1; ) , > ) 6 <) / - : - 4) <- , <7
16 . 7 : 5 ) <17 6 ; A; <- 5 ; " = 8 8 7 : < A7 = : ) 6 ; ? - :
) 6 <0 - ; = ; <) 16 1<; + 7 5 8 - <1<1> - ) , > ) 6
<) / - & 0 A 7 : ? 0 A 6 7 < 16 < & 0 ) < ) : - <0 -
* ) : : 1- : ; <7 - 6 <: A . 7 : <0 -
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Certaininformationsystemssupportpartsoforganizations,otherssupportentireorganizations,and
stillotherssupportgroupsoforganizations.Wediscusseachofthesetypesofsystemsinthissection.
Aswehaveseen,eachdepartmentorfunctionalareawithinanorganizationhasitsowncol-
lectionofapplicationprograms,orinformationsystems.Thesefunctionalareainformationsystems
arelocatedatthetopofFigure2.1.Eachinformationsystemsupportsaparticularfunctionalarea
intheorganization.ExamplesareaccountingIS,financeIS,production/operationsmanagement
(POM)IS,marketingIS,andhumanresourcesIS.
JustbelowthefunctionalareaISaretwoinformationsystemsthatsupporttheentireorgani-
zation:enterpriseresourceplanningsystemsandtransactionprocessingsystems.Enterpriseresource
planning(ERP)systems aredesignedtocorrectalackofcommunicationamongthefunctionalarea
ISs.ERPsystemswereanimportantinnovationbecausethevariousfunctionalareaISswereoften
developedasstand-alonesystemsanddidnotcommunicateeffectively(ifatall)withoneanother.
ERPsystemsresolvethisproblembytightlyintegratingthefunctionalareaISsvia acommondata-
base.Indoingso,theyenhancecommunicationsamongthefunctionalareasofanorganization.For
thisreason,expertscreditERPsystemswithgreatlyincreasingorganizationalproductivity.Nearly
allERPsystemsaretransactionprocessingsystems(whichwediscussnext),buttransactionpro-
cessingsystemsarenotallERPsystems.
supportsthemonitoring,collection,storage,andpro-
cessingofdatafromtheorganizationsbasicbusinesstransactions,eachofwhichgeneratesdata.For
example,whenyouarecheckingoutofWal-Mart,eachtimethecashierswipesanitemacrossthe
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Sections
Chapter 1The Modern Organization in the Global, Web-Based Environment2
Chapter 2Information Systems: Concepts and Management34
2.1Types of Information Systems38
Chapter 3Ethics, Privacy, and Information Security70
3.2Threats to Information Security83
3.3Protecting Information Resources99
Chapter 4Data and Knowledge Management122
4.2The Database Approach128
4.3Database Management Systems132
Chapter 5Network Applications158
5.1Network Applications162
5.3E-Learning and Distance Learning185
Chapter 6E-Business and E-Commerce196
6.5Ethical and Legal Issues in E-Business223
Chapter 7Wireless, Mobile Computing, and Mobile Commerce236
7.1Wireless Technologies241
7.5Wireless Security266
Chapter 8Organizational Information Systems276
8.1Transaction Processing Systems280
8.2Functional Area Information Systems282
8.3Enterprise Resource Planning Systems292
Chapter 9Customer Relationship Management304
Chapter 10Supply Chain Management330
Chapter 11Managerial Support Systems352
Chapter 12Acquiring Information Systems and Applications388
The Modern Organization in the Global, Web-Based Environment
1.1Business Processes and Business Process Management 7
1.1Business Processes and Business Process Management
1.2Information Systems: Concepts and Definitions
1.3The Global Web-Based Platform
1.4Business Pressures, Organizational Responses, and IT Support 15
1.4Business Pressures, Organizational Responses, and IT Support
1.5Why Are Information Systems Important to Me? 23
1.5Why Are Information Systems Important to Me?
1.6The Plan of the Book 27
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1.6The Plan of the Book
2.1Types of Information Systems
2.2Competitive Advantage and Strategic Information Systems 45
2.2Competitive Advantage and Strategic Information Systems
2.3Why Are Information Systems So Important to Organizations and Society?
2.4Managing Information Resources
3.1Ethical Issues 75
3.2Threats to Information Security 83
3.2 Threats to Information Security
3.3Protecting Information Resources 99
3.3 Protecting Information Resources
4.2 The Database Approach
4.3 Database Management Systems
4.4Data Warehousing 139
4.6 Knowledge Management
5.1 Network Applications
5.3E-Learning and Distance Learning 185
5.3 E-Learning and Distance Learning
6.1Overview of E-Business and E-Commerce
6.2Business-to-Consumer (B2C) Electronic Commerce
6.3Business-to-Business (B2B) Electronic Commerce 215
6.3Business-to-Business (B2B) Electronic Commerce
6.4Electronic Payments
6.4Electronic Payments 217
6.5Ethical and Legal Issues in E-Business 223
6.5Ethical and Legal Issues in E-Business
7.1Wireless Technologies 241
7.1Wireless Technologies
7.2Wireless Computer Networks and Internet Access
7.3Mobile Computing and Mobile Commerce 255
7.3Mobile Computing and Mobile Commerce
7.4Pervasive Computing 261
7.4Pervasive Computing
7.5Wireless Security
8.1Transaction Processing Systems
8.2Functional Area Information Systems
8.3Enterprise Resource Planning Systems
9.1Defining Customer Relationship Management 307
9.1Defining Customer Relationship Management
9.2Operational CRM
9.3Analytical CRM
9.4Other Types of CRM 319
9.4Other Types of CRM
10.1Supply Chains
10.2Supply Chain Management 335
10.2Supply Chain Management
10.3Information Technology Support for Supply Chain Management 341
10.3Information Technology Support for Supply Chain Management
11.1 Managers and Decision Making
11.2 Business Intelligence
11.3Data Visualization Technologies 369
11.3 Data Visualization Technologies
11.4 Intelligent Systems
12.1Information Technology Project Management
12.2Planning for and Justifying IT Applications
12.2Planning for and Justifying IT Applications 395
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12.3Strategies for Acquiring IT Applications
12.4The Traditional Systems Development Life Cycle
12.5Alternative Methods and Tools for Systems Development
12.6Vendor and Software Selection 411
12.6Vendor and Software Selection
TG1.1Introduction
TG1.2Strategic Hardware Issues
TG1.3Innovations in Hardware Utilization 423
TG1.3Innovations in Hardware Utilization
TG1.4Computer Hierarchy
TG1.5Input and Output Technologies
TG1.6The Central Processing Unit
TG1.7Computer Memory 437
TG1.7Computer Memory
TG2.1 Significance of Software
TG2.2Software Issues 453
TG2.3Systems Software 457
TG2.4 Application Software
TG2.5 Programming Languages
TG3.2 Behavioral Actions
TG3.3 Computer-Based Actions
TG3.3Computer-Based Actions 475
TG4.1The Telecommunications System
TG4.2Types of Networks
TG4.2Types of Networks 507
TG4.3Network Fundamentals 509
TG4.3Network Fundamentals
TG5.1The Internet
TG5.2The World Wide Web
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