MIS (Management Information System), Tenth Edition
By Hossein Bidgoli
Contents:
Part 1
Fundamentals of Information Systems
1 Information Systems in Business 2
1-1 Computers and Information Systems in Daily
Life 3
Smartphones Everywhere and for Everything 4
A New Era of Marketing: YouTube 5
Social Networking and the Vulnerability of Personal
Information 6
1-2 Computer Literacy and Information Literacy 7
1-3 T he Beginning: Transaction-Processing Systems 7
Information Technologies at Domino’s Pizza 8
1-4 Management Information Systems 9
1-5 Major Components of an Information System 9
1-5a Data 9
1-5b Database 10
1-5c Process 11
1-5d Information 11
1-5e Examples of Information Systems 11
1-6 Using Information Systems and Information
Technologies 12
Information Technologies at Home Depot 12
1-6a The Importance of Information Systems 13
Human Resource Information Systems in Action 13
Information Technologies at UPS 14
1-6b Using Information Technologies for a Competitive
Advantage 15
Information Technologies at Walmart 16
1-6c Porter’s Five Forces Model: Understanding the
Business Environment 17
Information Technologies at Netflix 18
Digital Innovation in Retail Industry Using
Information Technologies 19
1-7 T he IT Job Market 20
1-7a CTO/CIO 21
1-7b Manager of Information Systems Services 21
1-7c Systems Analyst 21
1-7d Network Administrator 21
1-7e Database Administrator 21
1-7f Computer Programmer 21
1-7g Webmaster 21
1-8 Outlook for the Future 22
Module Summary 24
Key Terms 24
Reviews and Discussions 25
Projects 25
Module Quiz 25
Case Study 1-1: Using Information Technologies
at Federal Express 26
Case Study 1-2: Mobile Technology: A Key Player for
Future Shopping 26
2 Computers and Their Business
Applications 28
2-1 Defining a Computer 29
2-1a Components of a Computer System 30
2-2 T he History of Computer Hardware and
Software 31
IBM Watson: A Supercomputer with Artificial
Intelligence Capabilities 33
2-3 T he Power of Computers 33
2-3a Speed 33
2-3b Accuracy 34
2-3c Storage and Retrieval 34
2-4 Computer Operations 34
A Supercomputer in Your Pocket 35
2-5 Input, Output, and Memory Devices 35
2-5a Input Devices 35
Touchless Computing: The New Paradigm in User
System Interface 36
2-5b Output Devices 37
2-5c Memory Devices 38
2-6 Classes of Computers 40
Summit: The Fastest Supercomputer in the World 40
Popular iPad Business Applications 41
2-6a Server Platforms: An Overview 42
Ubiquitous Computing 42
2-7 What Is Software? 43
Microsoft Office 365: Making Data and Applications
Portable 43
2-7a Operating System Software 44
iOS: The Brain Behind Apple Devices 44
2-7b Application Software 45
2-8 Computer Languages 47
2-9 Object-Oriented Programming: A Quick
Overview 48
Module Summary 50
Key Terms 50
Reviews and Discussions 51
Projects 51
Module Quiz 51
Case Study 2-1: Become Your Own Banker and Financial
Advisor 52
Case Study 2-2: iPads: New Productivity Tools for
Service Workers 53
3 Data and Business Intelligence 54
3-1 Databases 55
3-1a Types of Data in a Database 56
BI in Action: Law Enforcement 57
3-1b Methods for Accessing Files 57
3-2 Logical Database Design 58
3-2a The Relational Model 60
3-3 Components of a DBMS 61
3-3a Database Engine 61
3-3b Data Definition 61
3-3c Data Manipulation 61
Graph Databases Move Relational Databases One Step Forward 62
3-3d Application Generation 63
3-3e Data Administration 63
3-4 R ecent Trends in Database Design and Use 64
3-4a Data-Driven Web Sites 64
3-4b Distributed Databases 64
3-4c Object-Oriented Databases 65
3-5 Data Warehouses 66
Data Warehouse Applications at Marriott
International 66
3-5a Input 67
3-5b ETL 67
3-5c Storage 68
3-5d Output 68
3-6 Data Marts 69
Data Mining and the Airline Industry 70
3-7 Business Analytics 70
Mobile Analytics in Action: Airbnb 71
3-8 T he Big Data Era 72
Predictive Analytics in Action 72
3-8a Who Benefits from Big Data? 73
3-8b Tools and Technologies of Big Data 73
3-8c Big Data Privacy Risks 73
Big Data in Action 74
3-8d Integration of IoT with Big Data Analytics 74
3-9 Database Marketing 75
Database Marketing in Action: Caterpillar Corporation 76
3-10 Tableau and Power BI: Two Popular BI
and Visualization Platforms 77
3-10a What Is Tableau? 77
3-10b What Is Power BI? 77
Module Summary 78
Key Terms 79
Reviews and Discussions 79
Projects 80
Module Quiz 80
Case Study 3-1: Data Mining Helps Students Enroll in
Courses with Higher Chances of Success 81
Case Study 3-2: Data Mining Tools at Pandora Radio 81
4 Personal, Legal, Ethical, and
Organizational Issues 82
4-1 Privacy Issues 83
Social Networking Sites and Privacy Issues 83
Employee Monitoring: Improving Productivity
or Invasion of Privacy? 84
4-1a General Data Protection Regulation (GDPR) 87
4-1b E-mail 87
4-1c Data Collection on the Web 88
E-Mail and Corporate Data Leakage 88
A Significant Unethical Behavior at Facebook 89
4-2 Ethical Issues of Information Technologies 90
Ten Commandments of Computer Ethics 91
4-2a Computer Networks Ethics 92
4-2b Censorship 92
4-2c Intellectual Property 93
Software Piracy: A Global Problem 95
4-2d Social Divisions and the Digital Divide 96
Cybersquatting is on the Rise 96
4-3 T he Impact of Information Technology in the
Workplace 97
The Digital Divide in Action 97
4-3a Information Technology and Health Issues 99
Health and Social Issues of Online Gaming 99
4-4 Green Computing 101
Module Summary 102
Key Terms 103
Reviews and Discussions 103
Projects 103
Module Quiz 104
Case Study 4-1: Telecommuting with a New Twist 104
Case Study 4-2: Privacy and Other Legal Issues at
Google 105
5 Protecting Information
Resources 106
5-1 R isks Associated with Information Technologies 107
5-1a The Costs of Cyber Crime to the Global
Economy 107
5-1b Spyware and Adware 107
5-1c Phishing, Pharming, Baiting, Quid Pro Quo,
SMiShing, and Vishing 108
5-1d Keystroke Loggers 108
5-1e Sniffing and Spoofing 108
5-1f Computer Crime and Fraud 108
Challenges of Insiders’ Threats 109
Identity Theft at the Internal Revenue Service 110
Types of Hackers 111
5-2 Computer and Network Security: Basic
Safeguards 111
Nearly All Organizations Get Hacked 112
5-3 Security Threats: An Overview 113
5-3a Intentional Threats 113
Protecting Against Data Theft and Data Loss 115
Google and Facebook were victims of Social
Engineering 116
5-4 Security Measures and Enforcement: An
Overview 118
5-4a Biometric Security Measures 118
Biometrics at Phoebe Putney Memorial Hospital 119
Face Recognition Technology in Action 120
5-4b Nonbiometric Security Measures 121
5-4c Physical Security Measures 123
5-4d Access Controls 124
Lost and Stolen Laptops 125
5-4e Virtual Private Networks 126
5-4f Data Encryption 126
5-4g E-Commerce Transaction Security Measures 128
5-4h Computer Emergency Response Team 128
5-4i Zero Trust Security 129
5-5 Guidelines for a Comprehensive
Security System 129
5-5a Business Continuity Planning 130
Sarbanes-Oxley and Information Security 130
Module Summary 132
Key Terms 132
Reviews and Discussions 133
Projects 133
Module Quiz 134
Case Study 5-1: Vulnerabilities of Medical Devices 134
Case Study 5-2: Security Breach at Equifax 135
Part 2
Data Communication, the Internet,
E-Commerce, and Global Information
Systems
6 Data Communication: Delivering
Information Anywhere and
Anytime 136
6-1 Defining Data Communication 137
6-1a Why Managers Need to Know About Data
Communication 137
Go To Meeting: Example of an E-Collaboration
Tool 138
6-2 Basic Components of a Data Communication
System 138
6-2a Sender and Receiver Devices 139
6-2b Modems 139
6-2c Communication Media 139
6-3 Processing Configurations 141
6-3a Centralized Processing 141
6-3b Decentralized Processing 141
6-3c Distributed Processing 141
Google Invests in Communication Media 141
6-3d Open Systems Interconnection Model 142
6-4 T ypes of Networks 143
6-4a Local Area Networks 143
6-4b Wide Area Networks 143
6-4c Metropolitan Area Networks 144
6-5 Network Topologies 145
6-5a Star Topology 145
6-5b Ring Topology 145
6-5c Bus Topology 146
6-5d Hierarchical Topology 146
6-5e Mesh Topology 147
6-6 Major Networking Concepts 147
6-6a Protocols 147
6-6b Transmission Control Protocol/Internet
Protocol 147
6-6c Routing 148
6-6d Routers 149
6-6e Client/Server Model 149
6-7 Wireless and Mobile Networks 152
Mobile Computing and Mobile Apps 153
6-7a Wireless Technologies 153
6-7b Wi-Fi 154
6-7c WiMAX 154
6-7d Bluetooth 154
6-7e Mobile Networks 155
Mobile Computing in Action: The Apple
iPhone 157
6-8 Wireless Security 157
Privacy and Ethical Issues of Mobile Devices 158
6-9 Convergence of Voice, Video, and Data 158
Telepresence: A New Use of Data Communication
and Convergence 159
Module Summary 160
Key Terms 161
Reviews and Discussions 162
Projects 162
Module Quiz 163
Case Study 6-1: Data Communication at Walmart 163
Case Study 6-2: Protecting the Security and Privacy of Mobile Devices 164
7 A Connected World 166
7-1 T he Internet 167
7-1a The Domain Name System 168
Major Events in the Development of the
Internet 169
7-1b Types of Internet Connections 170
What Is HTML? 171
7-2 Navigational Tools, Search Engines,
and Directories 171
7-2a Navigational Tools 172
7-2b Search Engines and Directories 172
7-3 Internet Services 173
7-3a E-Mail 174
7-3b Newsgroups and Discussion Groups 174
7-3c Instant Messaging 174
7-3d Internet Telephony 175
7-4 Web Applications 175
7-4a Tourism and Travel 175
7-4b Publishing 175
7-4c Higher Education 175
7-4d Real Estate 176
7-4e Employment 176
7-4f Financial Institutions 176
7-4g Software Distribution 177
7-4h Health Care 177
Electronic Health Records Pay Off for Kaiser Permanente 178
7-4i Politics 178
7-5 Intranets 179
7-5a The Internet versus Intranets 180
7-5b Applications of an Intranet 180
7-6 Extranets 180
10 Best Intranets of 2019 181
7-7 T he Web Trends 183
7-7a Blogs 183
7-7b Wikis 183
LinkedIn: A Professional Social
Networking Site 184
7-7c Social Networking Sites 184
7-7d Business Application of Social Networks 185
Social Media Applications at Walmart 185
7-7e RSS Feeds 186
7-7f Podcasting 186
Twitter: Real-time Networking with Your
Followers 187
7-8 T he Internet of Everything and Beyond 188
The Internet of Things in Action 189
Module Summary 192
Key Terms 193
Reviews and Discussions 193
Projects 194
Module Quiz 194
Case Study 7-1: Scotts Miracle-Gro’s Intranet: The
Garden 194
Case Study 7-2: Social Networking in Support of Small
Businesses 195
8 E-Commerce 196
8-1 Defining E-Commerce 197
8-1a The Value Chain and E-Commerce 197
Using Instagram to Promote Your Products
and Services 199
Showrooming and Webrooming 200
8-1b E-Commerce versus Traditional Commerce 200
8-1c Advantages and Disadvantages of
E-Commerce 201
The Home Depot Gets into E-Commerce 201
8-1d E-Commerce Business Models 202
E-Commerce in 2025 203
8-2 Major Categories of E-Commerce 204
8-2a Business-to-Consumer E-Commerce 204
8-2b Business-to-Business E-Commerce 204
8-2c Consumer-to-Consumer E-Commerce 204
8-2d Consumer-to-Business E-Commerce 205
8-2e Government and Nonbusiness E-Commerce 205
8-2f Organizational or Intrabusiness E-Commerce 206
8-3 B2C E-Commerce Cycle 206
8-3a B2C E-Commerce Evolution: Multichannel, Cross-
Channel, and Omnichannel 207
8-4 B2B E-Commerce: A Second Look 209
8-4a Major Models of B2B E-Commerce 209
E-Procurement at Schlumberger 210
B2B E-Commerce Growth and Best Practices 211
8-5 Mobile and Voice-Based E-Commerce 211
Mobile Commerce in Action: Fast-Food
Restaurants 212
8-6 E-Commerce Supporting Technologies 213
8-6a Electronic Payment Systems 213
Challenges in Using Mobile Payment Systems 214
8-6b Web Marketing 215
8-6c Mobile Marketing 216
Mobile Marketing at Starbucks 216
8-6d Search Engine Optimization 217
Challenges in Using Digital Ads 217
8-7 E-Commerce and Beyond: Social Commerce 218
Social Commerce at Coca-Cola Company 219
8-8 Hypersocial Organizations 219
8-9 Social Media Information Systems 220
Hyper-Social Organization in Action:
Spotify 221
Module Summary 223
Key Terms 223
Reviews and Discussions 224
Projects 224
Module Quiz 225
Case Study 8-1: Widespread Applications of Mobile
Ads 225
Case Study 8-2: Bridging the Gap Between E-Commerce
and Traditional Commerce 226
9 Global Information Systems 228
9-1 Why Go Global? 229
Global Information Systems at Rohm & Haas 230
9-1a E-Business: A Driving Force 230
9-1b Growth of the Internet 230
Making a Company Web Site Global 231
Global Internet: Presents a Huge Payoff for Global
E-commerce 232
9-1c The Rise of Non-English Speakers on the Internet 232
9-1d Mobile Computing and Globalization 233
9-2 Global Information Systems: An Overview 233
9-2a Components of a Global Information System 234
The Internet and Globalization in Action 235
9-2b Requirements of Global Information Systems 235
Video-Conferencing Systems Support
Globalization 236
Globalization in Action: Alibaba 237
9-2c Implementation of Global Information Systems 237
9-3 Organizational Structures and Global Information
Systems 238
9-3a Multinational Structure 238
9-3b Global Structure 238
9-3c International Structure 239
9-3d Transnational Structure 240
9-3e Global Information Systems Supporting Offshore
Outsourcing 241
Global Information System at FedEx 241
9-4 Obstacles to Using Global Information
Systems 242
9-4a Lack of Standardization 242
9-4b Cultural Differences 243
9-4c Diverse Regulatory Practices 243
9-4d Poor Telecommunication Infrastructures 244
9-4e Lack of Skilled Analysts and Programmers 244
Module Summary 245
Key Terms 245
Reviews and Discussions 245
Projects 246
Module Quiz 246
Case Study 9-1: Global Information Systems at Toyota
Motor Company 246
Case Study 9-2: Information Technologies Support
Global Supply Chain 247
Part 3
IS Development, Enterprise Systems,
MSS, and Emerging Trends
10 Building Successful Information
Systems 248
10-1 Systems Development Life Cycle: An Overview 249
10-2 Phase 1: Planning 249
10-2a Formation of the Task Force 251
10-2b Feasibility Study 251
A Feasible Project Becomes Unfeasible 252
10-3 Phase 2: Requirements Gathering
and Analysis 254
10-4 Phase 3: Design 256
10-4a Computer-Aided Systems
Engineering 256
10-4b Prototyping 257
10-5 Phase 4: Implementation 259
10-5a IT Project Management 259
10-5b Request for Proposal 260
Preventing IT Project Failures Using Best
Practices 262
10-5c Implementation Alternatives 263
10-6 Phase 5: Maintenance 265
10-7 New Trends in Systems Analysis
and Design 265
10-7a Service-Oriented Architecture 265
10-7b Rapid Application Development 266
10-7c Extreme Programming 266
Extreme Programming in Action 266
10-7d Agile Methodology 267
Agile Methodology at HomeAway, Inc. 268
Module Summary 268
Key Terms 269
Reviews and Discussions 270
Projects 270
Module Quiz 270
Case Study 10-1: Systems Development at SEB
Latvia 271
Case Study 10-2: Crowdsourcing Pays Off 271
11 Enterprise Systems 272
11-1 Supply Chain Management 273
11-1a SCM Technologies 274
Supply Chain Management at Coca-Cola
Company 275
Green SCM in Action: Walmart 276
3D Printing in Action: The Medical Field 280
Coca-Cola Company Uses RFID-Based Dispensers
for Generating Business Intelligence 283
QR Codes in Action 284
11-1b Global Supply Chain Management 285
11-2 Customer Relationship Management 285
11-2a CRM Applications 286
CRM at Delta Air Lines 287
11-2b Personalization Technology 288
Amazon’s Personalization Assists Sellers on Its
Marketplace 289
11-3 Knowledge Management 290
11-4 Enterprise Resource Planning 291
Knowledge Management in Action 291
11-5 Cloud-Based Enterprise Systems 293
ERP Streamlines Operations at Naghi Group 293
Module Summary 295
Key Terms 295
Reviews and Discussions 295
Projects 296
Module Quiz 296
Case Study 11-1: ERP at Johns Hopkins
Institutions 297
Case Study 11-2: CRM at Starbucks 297
12 Supporting Decisions
and Processes 298
12-1 T ypes of Decisions in an Organization 299
12-1a Phases of the Decision-Making Process 299
12-2 Decision Support Systems 301
12-2a Components of a Decision Support System 301
12-2b DSS Capabilities 302
12-2c Roles in the DSS Environment 303
12-2d Costs and Benefits of Decision Support
Systems 304
12-3 Executive Information Systems 304
Decision Support Systems at Family
Dollar 305
12-3a Reasons for Using EISs 307
12-3b Avoiding Failure in Design and Use of EISs 307
Executive Information Systems at Hyundai Motor
Company 308
12-4 Geographic Information Systems 308
12-4a GIS Applications 310
12-5 Collaboration Systems 310
GISs for Fighting Disease 311
12-5a Types of Collaboration Software 312
New Generations of Video-Conferencing
Systems 313
Microsoft Office SharePoint Server: A Popular
Collaboration Platform 314
12-5b Which Collaboration Software Is Right for
You? 314
Remote Collaboration with Google Apps for
Work 315
12-6 Guidelines for Designing a Management Support
System 315
Module Summary 316
Key Terms 317
Reviews and Discussions 317
Projects 317
Module Quiz 318
Case Study 12-1: UPS Deploys Routing Optimization with
a Big Payoff 318
Case Study 12-2: GPS Technology and Analytics Combat
Crime 319
13 Artificial Intelligence and
Automation 320
13-1 What Is Artificial Intelligence? 321
13-1a AI Technologies Supporting Decision
Making 321
Computers Understanding Common Sense 322
AI in Action: Retail Industry 323
13-1b Robotics 324
13-2 Expert Systems 325
Medical Robotics in Action 326
13-2a Components of an Expert System 327
13-2b Uses of Expert Systems 329
Expert Systems in the Baltimore County Police
Department 329
13-2c Criteria for Using Expert Systems 330
13-2d Criteria for Not Using Expert Systems 330
13-2e Advantages of Expert Systems 330
13-3 Case-Based Reasoning 330
13-4 Intelligent Agents 331
13-4a Shopping and Information Agents 331
13-4b Personal Agents 332
13-4c Data-Mining Agents 332
Intelligent Agents in Action 332
13-4d Monitoring and Surveillance Agents 333
13-5 Fuzzy Logic 333
13-5a Uses of Fuzzy Logic 334
Fuzzy Logic in Action 335
13-6 Machine Learning 335
13-7 Genetic Algorithms 336
Neural Networks in Microsoft and the Chicago
Police Department 337
13-8 Natural-Language Processing 338
13-9 Integrating AI Technologies Into Decision Support
Systems 338
NLP in Action: The Health Care Industry 339
13-10 Contextual Computing: Making Mobile Devices
Smarter 339
AI Technologies for Decision Making 340
Contextual Computing in Action 341
13-11 A I and Automation 341
13-12 Ethical issues of AI 342
Module Summary 344
Key Terms 345
Reviews and Discussions 345
Projects 345
Module Quiz 346
Case Study 13-1: AI-Based Software Helps Businesses
Better Understand Customers 346
Case Study 13-2: NLP: Making a Smartphone
Smarter 347
14 Emerging Trends, Technologies,
and Applications 348
14-1 T rends In Software and Service
Distribution 349
14-1a Pull and Push Technologies 349
14-1b Application Service Providers 350
14-2 Virtual Reality 351
14-2a Types of Virtual Environments 352
14-2b Components of a Virtual Reality
System 352
14-2c CAVE 353
14-2d Virtual Reality Applications 353
Virtual Reality at Lockheed Martin 354
14-2e Obstacles in Using VR Systems 355
14-2f Virtual Worlds 355
14-2g Augmented Reality 356
14-2h Mixed Reality 357
Mixed Reality in Action 358
14-3 Cloud Computing: Foundation, Applications,
and Models 358
14-3a Grid Computing 359
14-3b Utility (On-Demand) Computing 359
14-3c Cloud Computing 360
14-3d Cloud Computing Components 360
Cloud Computing in Support of Small
Businesses 361
14-3e Cloud Computing Alternatives 362
14-3f Edge Computing 362
Edge Computing in Action 363
14-3g Cloud Computing Security 364
14-4 Nanotechnology 364
14-5 Blockchain Technology and Cryptocurrency 365
Blockchain Technology in Action: Walmart and
Alibaba 366
14-6 Quantum Computing 367
14-6a Popular Applications of Quantum Computing 368
Module Summary 369
Key Terms 370
Reviews and Discussions 370
Projects 370
Module Quiz 371
Case Study 14-1: Cloud Computing at Intercontinental
Hotels Group (IHG) 371
Case Study 14-2: Virtual Reality Enhances Try Before You
Buy Concept 372
Endnotes 373
Index 392