Management Information Systems: Managing the Digital Firm, Seventeenth Edition
By Jane Laudon and Kenneth C. Laudon
Contents:
PART ONE Organizations, Management, and the Networked Enterprise 33
Chapter 1 Information Systems in Global Business Today 34
Opening Case: Smart Stores Reinvent the Retail Space 35
1-1 How are information systems transforming business, and why are they so
essential for running and managing a business today? 37
What’s New in Management Information Systems? 37 • Globalization
Challenges and Opportunities: A Flattened World 39
Interactive Session | Organizations Will the Coronavirus Pandemic Make
Working from Home the New Normal? 40
The Emerging Digital Firm 42 • Strategic Business Objectives of Information Systems 43
1-2 What is an information system? How does it work? What are its
management, organization, and technology components? Why are
complementary assets essential for ensuring that information systems
provide genuine value for organizations? 46
What Is an Information System? 46 • Dimensions of Information Systems 48
Interactive Session | Technology Digital Transformation of Healthcare at Singapore’s
Jurong Health Services 53
It Isn’t Just Technology: A Business Perspective on Information
Systems 54 • Complementary Assets: Organizational Capital and the
Right Business Model 55
1-3 What academic disciplines are used to study information systems,
and how does each contribute to an understanding of information systems? 58
Technical Approach 58 • Behavioral Approach 58 • Approach of This Text:
Sociotechnical Systems 59
1-4 How will MIS help my career? 60
The Company 60 • Position Description 60 • Job Requirements 61 •
Interview Questions 61 • Author Tips 61
Review Summary 62 • Key Terms 63 • Review Questions 63 •
Discussion Questions 64
Hands-On MIS Projects 64
Collaboration and Teamwork Project 65
Case Study: Changes in the Financial Industry: Adyen and Fintech 66
References: 69
Chapter 2 Global E-business and Collaboration 70
Opening Case: Enterprise Social Networking Transforms Sharp Corporation
into a More Innovative Connected Organization 71
2-1 What are business processes? How are they related to information systems? 73
Business Processes 73 • How Information Technology Improves Business Processes 75
2-2 How do systems serve the different management groups in a business,
and how do systems that link the enterprise improve organizational performance? 76
Systems for Different Management Groups 76 • Systems for Linking the
Enterprise 81 • E-business, E-commerce, and E-government 84
Interactive Session | Organizations The City of Mississauga Goes Digital 85
2-3 Why are systems for collaboration and social business so important,
and what technologies do they use? 86
What Is Collaboration? 86 • What Is Social Business? 88 • Business
Benefits of Collaboration and Social Business 89 • Building a Collaborative
Culture and Business Processes 89 • Tools and Technologies for
Collaboration and Social Business 90
Interactive Session | Technology Higher Education Redefined: Virtual Education
at Ahlia University 92
2-4 What is the role of the information systems function in a business? 96
The Information Systems Department 96 • Organizing the Information
Systems Function 97
2-5 How will MIS help my career? 98
The Company 98 • Position Description 98 • Job Requirements 99 •
Interview Questions 99 • Author Tips 99
Review Summary 100 • Key Terms 101 • Review Questions 101 •
Discussion Questions 102
Hands-On MIS Projects 102
Collaboration and Teamwork Project 103
Case Study: Is Social Business Good Business? 104
References: 106
Chapter 3 Information Systems, Organizations, and Strategy 108
Opening Case: N26: A Bank Without Branches 109
3-1 Which features of organizations do managers need to know about to
build and use information systems successfully? 111
What Is an Organization? 111 • Features of Organizations 114
3-2 What is the impact of information systems on organizations? 118
Economic Impacts 118 • Organizational and Behavioral Impacts 120 •
The Internet and Organizations 122 • Implications for the Design and
Understanding of Information Systems 122
Contents 7
3-3 How do Porter’s competitive forces model, the value chain
model, synergies, core competencies, and network economics
help companies develop competitive strategies using information systems? 123
Porter’s Competitive Forces Model 123 • Information System Strategies for
Dealing with Competitive Forces 125
Interactive Session | Organizations Shipping Wars 126
The Internet’s Impact on Competitive Advantage 129 • The Business Value
Chain Model 130
Interactive Session | Technology Singapore as a Smart Nation 131
Synergies, Core Competencies, and Network-Based Strategies 135
3-4 What are the challenges posed by strategic information systems, and
how should they be addressed? 138
Sustaining Competitive Advantage 138 • Aligning IT with Business
Objectives 138
3-5 How will MIS help my career? 139
The Company 139 • Position Description 140 • Job Requirements 140 •
Interview Questions 140 • Author Tips 140
Review Summary 141 • Key Terms 142 • Review Questions 142 •
Discussion Questions 143
Hands-On MIS Projects 143
Collaboration and Teamwork Project 144
Case Study: Offline, Online, and Back: The Evolution of the UK Grocery Market 145
References: 148
Chapter 4 Ethical and Social Issues in Information Systems 150
Opening Case: Your Smartphone: Big Brother’s Best Friend 151
4-1 What ethical, social, and political issues are raised by information systems? 153
A Model for Thinking about Ethical, Social, and Political Issues 154 • Five
Moral Dimensions of the Information Age 156 • Key Technology Trends that
Raise Ethical Issues 156
4-2 What specific principles for conduct can be used to guide ethical decisions? 159
Basic Concepts: Responsibility, Accountability, and Liability 159 •
Ethical Analysis 159 • Candidate Ethical Principles 160 •
Professional Codes of Conduct 161 • Some Real-World
Ethical Dilemmas 161
4-3 Why do contemporary information systems technology and the Internet
pose challenges to the protection of individual privacy and intellectual property? 161
8 Contents
Information Rights: Privacy and Freedom in the Internet Age 162 • Property
Rights: Intellectual Property 168
4-4 How have information systems affected laws for establishing
accountability and liability and the quality of everyday life? 171
Computer-Related Liability Problems 172
Interactive Session | Management The Boeing 737 Max Crashes: What
Happened and Why? 173
System Quality: Data Quality and System Errors 175 • Quality of Life:
Equity, Access, and Boundaries 175 • Health Risks: RSI, CVS, and
Cognitive Decline 180
Interactive Session | Technology Do Smartphones Harm Children? Maybe,
Maybe Not 181
4-5 How will MIS help my career? 182
The Company 182 • Position Description 183 • Job Requirements 183 •
Interview Questions 183 • Author Tips 183
Review Summary 184 • Key Terms 184 • Review Questions 185 •
Discussion Questions 185
Hands-On MIS Projects 186
Collaboration and Teamwork Project 187
Case Study: Facebook Privacy: Your Life for Sale 188
References: 191
PART TWO Information Technology Infrastructure 193
Chapter 5 IT Infrastructure and Emerging Technologies 194
Opening Case: Southeast Asia’s Grab Leverages Information Technology to Enhance
Its Services 195
5-1 What is IT infrastructure, and what are the stages and drivers of IT
infrastructure evolution? 197
Defining IT Infrastructure 197 • Evolution of IT Infrastructure 199
Technology Drivers of Infrastructure Evolution 203
5-2 What are the components of IT infrastructure? 207
Computer Hardware Platforms 208 • Operating System Platforms 210 •
Enterprise Software Applications 210 • Data Management and
Storage 211 • Networking/Telecommunications Platforms 211 • Internet
Platforms 211 • Consulting and System Integration Services 212
5-3 What are the current trends in computer hardware platforms? 212
The Mobile Digital Platform 212 • Consumerization of IT and BYOD 212 •
Quantum Computing 213 • Virtualization 213 • Cloud Computing 214
Interactive Session | Organizations Glory Finds Solutions in the Cloud 216
Edge Computing 219 • Green Computing 219 • High-Performance and
Power-Saving Processors 220
5-4 What are the current computer software platforms and trends? 220
Contents 9
Linux and Open Source Software 220 • Software for the Web:
Java, JavaScript, HTML, and HTML5 221
Interactive Session | Technology Open Source Innovation: The New
Competitive Advantage 222
Web Services and Service-Oriented Architecture 224 • Software Outsourcing
and Cloud Services 225
5-5 What are the challenges of managing IT infrastructure and management
solutions? 228
Dealing with Platform and Infrastructure Change 228 • Management and
Governance 229 • Making Wise Infrastructure Investments 229
5-6 How will MIS help my career? 232
The Company 232 • Position Description 232 • Job
Requirements 232 • Interview Questions 233 • Author Tips 233
Review Summary 234 • Key Terms 235 • Review Questions 235 •
Discussion Questions 236 • Hands-On MIS Projects 236
Collaboration and Teamwork Project 237
Case Study: Project JEDI: A Cloud of Controversy 238
References: 240
Chapter 6 Foundations of Business Intelligence: Databases and
Information Management 242
Opening Case: Astro: Leveraging Data for Customer-Driven Service 243
6-1 What are the problems of managing data resources in a traditional file
environment? 245
File Organization Terms and Concepts 245 • Problems With the Traditional
File Environment 246
6-2 What are the major capabilities of database management systems
(DBMS), and why is a relational DBMS so powerful? 248
Database Management Systems 249 • Capabilities of Database Management
Systems 251 • Designing Databases 254 • Nonrelational Databases, Cloud
Databases, and Blockchain 256
Interactive Session | Technology New Cloud Database Tools Help Vodafone Fiji
Make Better Decisions 258
6-3 What are the principal tools and technologies for accessing information
from databases to improve business performance and decision making? 260
The Challenge of Big Data 260
Interactive Session | Management Big Data Baseball 261
Business Intelligence Infrastructure 262 • Analytical Tools: Relationships,
Patterns, Trends 265 • Databases and the Web 268
6-4 Why are data governance and data quality assurance essential for
managing the firm’s data resources? 269
Assuring Data Quality 270
6-5 How will MIS help my career? 271
The Company 271 • Position Description 271 • Job Requirements 271 •
Interview Questions 272 • Author Tips 272
10 Contents
Review Summary 273 • Key Terms 274 • Review Questions 274 •
Discussion Questions 275
Hands-On MIS Projects 275
Collaboration and Teamwork Project 276
Case Study: Big Data in the Asia-Pacific Takes On the COVID-19 Pandemic 277
References: 279
Chapter 7 Telecommunications, the Internet, and Wireless Technology 280
Opening Case: Alibaba: Redefining Traditional Retailing 281
7-1 What are the principal components of telecommunications networks
and key networking technologies? 283
Networking and Communication Trends 283 • What Is a Computer
Network? 284 • Key Digital Networking Technologies 286
7-2 What are the different types of networks? 288
Signals: Digital Versus Analog 288 • Types of Networks 289 •
Transmission Media and Transmission Speed 290
7-3 How do the Internet and Internet technology work, and how do they
support communication and e-business? 291
What Is the Internet? 291 • Internet Addressing and Architecture 292 •
Internet Services and Communication Tools 295
Interactive Session | Management Monitoring Employees on Networks:
Unethical or Good Business? 298
The Web 299
Interactive Session | Technology Talking Cars Make for Better Road Safety 307
7-4 What are the principal technologies and standards for wireless
networking, communication, and Internet access? 308
Cellular Systems 308 • Wireless Computer Networks and Internet
Access 309 • RFID and Wireless Sensor Networks 312
7-5 How will MIS help my career? 314
The Company 314 • Position Description 314 • Job Requirements 315 •
Interview Questions 315 • Author Tips 315
Review Summary 316 • Key Terms 317 • Review Questions 317 •
Discussion Questions 318
Hands-On MIS Projects 318
Collaboration and Teamwork Project 319
Case Study: Google, Apple, and Facebook Battle for Your Internet Experience 320
References: 323
Chapter 8 Securing Information Systems 324
Opening Case: Cyberattacks in the Asia-Pacific Target the Weakest Link: People 325
Contents 11
8-1 Why are information systems vulnerable to destruction, error, and abuse? 327
Why Systems are Vulnerable 327 • Malicious Software: Viruses, Worms, Trojan
Horses, and Spyware 330 • Hackers and Computer Crime 332 • Internal
Threats: Employees 336
Interactive Session | Technology Capital One: A Big Bank Heist from the Cloud 337
Software Vulnerability 338
8-2 What is the business value of security and control? 339
Legal and Regulatory Requirements for Electronic Records
Management 340 • Electronic Evidence and Computer Forensics 341
8-3 What are the components of an organizational framework for security
and control? 341
Information Systems Controls 342 • Risk Assessment 343 • Security
Policy 343 • Disaster Recovery Planning and Business Continuity
Planning 345 • The Role of Auditing 345
8-4 What are the most important tools and technologies for safeguarding
information resources? 346
Identity Management and Authentication 346 • Firewalls, Intrusion
Detection Systems, and Anti-malware Software 348 • Securing Wireless
Networks 350 • Encryption and Public Key Infrastructure 350 •
Securing Transactions with Blockchain 352 • Ensuring System
Availability 352 • Achieving Digital Resiliency 353
Interactive Session | Management PayPal Ups Its Digital Resiliency 354
Security Issues for Cloud Computing and the Mobile Digital Platform 355 •
Ensuring Software Quality 357
8-5 How will MIS help my career? 357
The Company 357 • Position Description 358 • Job Requirements 358 •
Interview Questions 358 • Author Tips 358
Review Summary 359 • Key Terms 359 • Review Questions 360 •
Discussion Questions 361
Hands-On MIS Projects 361
Collaboration and Teamwork Project 362
Case Study: Bulgaria: A Whole Nation Hacked 363
References: 365
PART THREE Key System Applications for the Digital Age 367
Chapter 9 Achieving Operational Excellence and Customer Intimacy:
Enterprise Applications 368
Opening Case: Lenzing Sustainably Balances Supply and Demand 369
9-1 How do enterprise systems help businesses achieve operational
excellence? 371
12 Contents
What Are Enterprise Systems? 371 • Enterprise Software 372 • Business
Value of Enterprise Systems 373
9-2 How do supply chain management systems coordinate planning,
production, and logistics with suppliers? 374
The Supply Chain 374 • Information Systems and Supply Chain
Management 376 • Supply Chain Management Software 377 • Global
Supply Chains and the Internet 378 • Business Value of Supply Chain
Management Systems 380
9-3 How do customer relationship management systems help firms achieve
customer intimacy? 381
What Is Customer Relationship Management? 381 • Customer
Relationship Management Software 382 • Operational and Analytical
CRM 385 • Business Value of Customer Relationship Management
Systems 386
Interactive Session | Organizations CRM Helps Adidas Know Its Customers
One Shoe Buyer at a Time 387
9-4 What are the challenges that enterprise applications pose, and how are
enterprise applications taking advantage of new technologies? 388
Enterprise Application Challenges 388 • Next-Generation Enterprise
Applications 389
Interactive Session | Technology Versum’s ERP Transformation 391
9-5 How will MIS help my career? 392
The Company 392 • Position Description 393 • Job Requirements 393 •
Interview Questions 393 • Author Tips 393
Review Summary 394 • Key Terms 395 • Review Questions 395 •
Discussion Questions 395
Hands-On MIS Projects 396
Collaboration and Teamwork Project 397
Case Study: The Coronavirus Pandemic Disrupts Supply Chains Around the
World 398
References: 400
Chapter 10 E-commerce: Digital Markets, Digital Goods 402
Opening Case: E-commerce Comes to the Dashboard: The Battle for the “Fourth
Screen” 403
10-1 What are the unique features of e-commerce, digital markets, and digital
goods? 405
E-commerce Today 405 • The New E-commerce: Social, Mobile,
Local 406 • Why E-commerce is Different 409 • Key Concepts in
E-commerce: Digital Markets and Digital Goods in a Global Marketplace 411
10-2 What are the principal e-commerce business and revenue
models? 414
Types of E-commerce 415 • E-commerce Business Models 415 •
E-commerce Revenue Models 418
Interactive Session | Technology Deliveroo: Global Food Delivery App 419
10-3 How has e-commerce transformed marketing? 422
Contents 13
Behavioral Targeting 422 • Social E-commerce and Social Network
Marketing 426
Interactive Session | Management Engaging “Socially” with Customers 428
10-4 How has e-commerce affected business-to-business transactions? 429
Electronic Data Interchange (EDI) 430 • New Ways of B2B Buying and
Selling 431
10-5 What is the role of m-commerce in business, and what are the most
important m-commerce applications? 433
Location-Based Services and Applications 434 • Other Mobile Commerce
Services 434 • Mobile App Payment Systems 435
10-6 What issues must be addressed when building an e-commerce
presence? 436
Develop an E-commerce Presence Map 436 • Develop a Timeline:
Milestones 437
10-7 How will MIS help my career? 438
The Company 438 • Job Description 438 • Job Requirements 438 •
Interview Questions 438 • Author Tips 439
Review Summary 440 • Key Terms 441 • Review Questions 441 •
Discussion Questions 442
Hands-On MIS Projects 442
Collaboration and Teamwork Project 443
Case Study: An iDEAL Solution to the Single Online EU Market 444
References: 447
Chapter 11 Managing Knowledge and Artificial Intelligence 448
Opening Case: Artificial Intelligence Beats Radiologists in Reading
Mammograms 449
11-1 What is the role of knowledge management systems in business? 451
Important Dimensions of Knowledge 451 • The Knowledge Management
Value Chain 453 • Types of Knowledge Management Systems 455
11-2 What are artificial intelligence (AI) and machine learning? How do
businesses use AI? 456
Evolution of AI 457 • Major Types of AI 457 • Expert Systems 458 •
Machine Learning 459 • Neural Networks 461
Interactive Session | Technology Do You Know Who Is Using Your Face? 463
Genetic Algorithms 466 • Natural Language Processing, Computer Vision
Systems, and Robotics 467 • Intelligent Agents 468
Interactive Session | Organizations Will AI Kill Jobs? 469
11-3 What types of systems are used for enterprise-wide knowledge
management, and how do they provide value for businesses? 471
Enterprise Content Management Systems 472 • Locating and Sharing
Expertise 473 • Learning Management Systems 473
11-4 What are the major types of knowledge work systems, and how do they
provide value for firms? 474
Knowledge Workers and Knowledge Work 474 • Requirements of Knowledge
Work Systems 474 • Examples of Knowledge Work Systems 474
14 Contents
11-5 How will MIS help my career? 476
The Company 476 • Position Description 476 • Job Requirements 477 •
Interview Questions 477 • Author Tips 477
Review Summary 478 • Key Terms 479 • Review Questions 479 •
Discussion Questions 480
Hands-On MIS Projects 480
Collaboration and Teamwork Project 481
Case Study: Are Self-Driving Cars Ready for the Road? 482
References: 485
Chapter 12 Enhancing Decision Making 486
Opening Case: Eastspring: Targeted Enterprise System Building 487
12-1 What are the different types of decisions, and how does the
decision-making process work? 489
Business Value of Improved Decision Making 489 • Types of
Decisions 490 • The Decision-Making Process 491
12-2 How do information systems support the activities of managers and
management decision making? 492
Managerial Roles 493 • Real-World Decision Making 494 • High-Velocity
Automated Decision Making 495
12-3 How do business intelligence and business analytics support decision
making? 496
What Is Business Intelligence? 496 • The Business Intelligence
Environment 496 • Business Intelligence and Analytics Capabilities 498
Interactive Session | Organizations Predictive Maintenance in the Oil and Gas
Industry 501
Interactive Session | Management GIS Help Land O’Lakes Manage Assets
Strategically 504
12-4 How do different decision-making constituencies in an organization use
business intelligence? 505
Decision Support for Operational and Middle Management 505 • Decision
Support for Senior Management: Balanced Scorecard and Enterprise
Performance Management Methods 508
12-5 How will MIS help my career? 510
The Company 510 • Position Description 510 • Job Requirements 510 •
Interview Questions 510 • Author Tips 511
Review Summary 512 • Key Terms 512 • Review Questions 513 •
Discussion Questions 513
Hands-On MIS Projects 513
Collaboration and Teamwork Project 514
Case Study: Should an Algorithm Make Our Decisions? 515
References: 517
Contents 15
PART FOUR Building and Managing Systems 519
Chapter 13 Building Information Systems 520
Opening Case: Vinci Energies Builds a New Mobile Employee Time Sheet App 521
13-1 How does building new systems produce organizational change? 523
Systems Development and Organizational Change 523
Interactive Session | Organizations Business Process Redesign at DP
World 525
Business Process Redesign 526
13-2 What are the core activities in the systems development process? 529
Systems Analysis 530 • Systems Design 531 • Completing the Systems Development
Process 532
13-3 What are the principal methodologies for modeling and designing
systems? 535
Structured Methodologies 535 • Object-Oriented Development 537
13-4 What are alternative methods for building information systems? 538
Traditional Systems Life Cycle 539 • Prototyping 540 • Application
Software Packages, Software Services, and Outsourcing 541
13-5 What are new approaches for system building in the digital firm era? 544
Rapid Application Development (RAD), Agile Development, Automated Software
Testing, and DevOps 544
Interactive Session | Technology McAfee Turns to Automated Software Testing 546
Mobile Application Development: Designing for a Multiscreen World 547
13-6 How will MIS help my career? 548
The Company 548 • Position Description 548 • Job Requirements 549 •
Interview Questions 549 • Author Tips 549
Review Summary 550 • Key Terms 551 • Review Questions 551 •
Discussion Questions 552
Hands-On MIS Projects 552
Collaboration and Teamwork Project 554
Case Study: Pick n Pay’s Cloud Migration to Enhance Business Intelligence 555
References: 557
Chapter 14 Making the Business Case for Information Systems and Managing Projects 558
Opening Case: Al-Asasyah Implements a Modern ERP Solution 559
14-1 How should managers build a business case for the acquisition and
development of new information systems? 561
The Information Systems Plan 562 • Portfolio Analysis 564 • Scoring
Models 565 • Determining Solution Costs and Benefits 566
14-2 What are the objectives of project management, and why is it so
essential in developing information systems? 568
16 Contents
Runaway Projects and System Failure 568 • Project Management Objectives 569
14-3 What are the principal risk factors in information systems projects? 570
Dimensions of Project Risk 570 • Change Management and the Concept of Implementation 571
14-4 How can project risks be managed? 573
Managing Technical Complexity 574 • Formal Planning and Control
Tools 574 • Increasing User Involvement and Overcoming User
Resistance 576 • Designing for the Organization 577
Interactive Session | Management Sauder Woodworking Gets ERP Implementation Right 578
Project Management Software Tools 579
Interactive Session | Technology Arup Moves Project Management to the Cloud 580
14-5 How will MIS help my career? 581
The Company 581 • Position Description 581 • Job
Requirements 582 • Interview Questions 582 • Author Tips 582
Review Summary 583 • Key Terms 583 • Review Questions 584 •
Discussion Questions 584
Hands-On MIS Projects 584
Collaboration and Teamwork Project 585
Case Study: Pennsylvania’s Unemployment Compensation Modernization
System: Unfinished Business 586
References: 588
Chapter 15 Managing Global Systems 590
Opening Case: The Bel Group: Laughing All the Way to Success 591
15-1 What major factors are driving the internationalization of business? 593
Developing an International Information Systems Architecture 594 • The
Global Environment: Business Drivers and Challenges 595
Interactive Session | Management Rethinking Global Supply Chains 597
State of the Art 599
15-2 What are the alternative strategies for developing global businesses? 600
Global Strategies and Business Organization 600 • Global Systems to
Fit the Strategy 601 • Reorganizing the Business 602
15-3 What are the challenges posed by global information systems and
management solutions for these challenges? 603
A Typical Scenario: Disorganization on a Global Scale 603 • Global Systems
Strategy 604 • The Management Solution: Implementation 606
15-4 What are the issues and technical alternatives to be considered when
developing international information systems? 607
Computing Platforms and Systems Integration 608 • Connectivity 608
Contents 17
Interactive Session | Organizations Digital Nationalism 610
Software Localization 611
15-5 How will MIS help my career? 612
The Company 612 • Position Description 612 • Job Requirements 612 •
Interview Questions 613 • Author Tips 613
Review Summary 614 • Key Terms 614 • Review Questions 615 •
Discussion Questions 615
Hands-On MIS Projects 615
Collaboration and Teamwork Project 616
Case Study: Souq.com: Amazon’s Entry into the Middle East 617
References: 619
Glossary 622
Indexes 634