Essentials of Management Information Systems, Fifteenth Edition
By Kenneth C. Laudon, Jane P. Laudon and Carol Guercio Traver
Contents:
Preface 18
I Information Systems in the Digital Age 31
1 Business Information Systems in Your
Career 32
Chapter-Opening Case
Smart Shelves Reinvent the Retail Space 33
1-1 Understand why information systems are essential
for running and managing a business. 35
How Information Systems are Transforming
Business 35 • Key Challenges in Management
Information Systems 36 • Globalization Challenges
and Opportunities: A Flattened World 36 • Business
Drivers of Information Systems 38
1-2 Define an information system, explain how it
works, and identify its people, organizational,
and technology components. 41
What is An Information System? 41 • It Isn’t
Simply Technology: The Role of People and
Organizations 43 • Dimensions of Information Systems 44
Spotlight On: Technology
UPS Competes Globally with Information Technology 48
1-3 Apply a four-step method for business problem
solving to solve information system-related
problems. 49
The Problem-Solving Approach 50 • A Model of the
Problem-Solving Process 50 • The Role of Critical
Thinking in Problem Solving 53 • The Connections
among Business Objectives, Problems, and Solutions 53
1-4 Describe the information systems skills and
knowledge that are essential for business careers. 54
How Information Systems Will Affect Business
Careers 54 • Information Systems and Business
Careers: Wrap-Up 57 • How This Book Prepares You
for the Future 57
Spotlight On: People
Will a Robot Steal Your Job? 58
1-5 Understand how MIS can help your career. 61
The Company 61 • Position Description 61 • Job
Requirements 61 • Interview Questions 61 • Author Tips 62
Review Summary 62 •
Key Terms 63 • Review
Questions 63 • Discussion
Questions 64 • Hands-On
MIS Projects 64
Management Decision
Problem 64 • Achieving Operational Excellence:
Creating an Executive Payroll Register with Spreadsheet
Software 65 • Improving Decision Making: Using
the Internet to Locate Jobs Requiring Information
Systems Knowledge 65 • Collaboration and Teamwork
Project 65
Business Problem-Solving Case
Adyen and Fintech: Driving Change in the Financial
Services Industry 66
Chapter 1 References 68
2 Global E-business and
Collaboration 70
Chapter-Opening Case
Microsoft Teams Helps Toyota Motor North
America (TMNA) Do Even Better 71
1 Identify the major features of a business that
are important for understanding the role of
information systems. 73
Organizing a Business: Basic Business Functions 73 •
Business Processes 74 • Managing a Business and
Firm Hierarchies 76 • The Business Environment 77
The Role of Information Systems in a Business 78
2-2 Explain how information systems serve
different management groups in a business, and
how systems that link the enterprise improve
organizational performance. 78
Systems for Different Management Groups 79
Spotlight On: Organizations
Carbon Lighthouse Lights Up with the
Internet of Things (IoT), Big Data, and Cloud
Computing 83
Systems for Linking the Enterprise 85 • E-business,
E-commerce, and E-government 87
2-3 Understand why systems for collaboration,
social business, and knowledge management are
so important and the technologies they use. 88
What is Collaboration? 88 • What is Social Business?
89 • Business Benefits of Collaboration and Social
Business 90 • Building a Collaborative Culture and
Business Processes 90 • Tools and Technologies for
Collaboration and Social Business 92
Spotlight On: Technology
Zoom: Quality Videoconferencing for Every Budget 94
Systems for Knowledge Management 97
2-4 Describe the role of the information systems
function in a business. 98
The Information Systems Department 98 •
Information Systems Services 99
2-5 Understand how MIS can help your career. 100
The Company 100 • Position Description 100 • Job
Requirements 100 • Interview Questions 101 •
Author Tips 101
Review Summary 101 •
Key Terms 102 • Review
Questions 103 •
Discussion Questions 103
Hands-On MIS
Projects 104
Management Decision Problem 104 • Improving
Decision Making: Using a Spreadsheet to
Create a Town Budget 104 • Achieving Operational
Excellence: Using Internet Software to Plan Efficient
Transportation Routes 105 • Collaboration and
Teamwork Project 105
Business Problem-Solving Case
How Much Does Technology Help
Collaboration? 106
Chapter 2 References 108
3 Achieving Competitive Advantage with
Information Systems 110
Chapter-Opening Case
N26: A Bank Without Branches 111
3-1 Demonstrate how Porter’s competitive forces
model, the value chain model, synergies, core
competencies, and network-based strategies
help companies use information systems for
competitive advantage. 113
Porter’s Competitive Forces Model 113 •
Information System Strategies for Dealing
with Competitive Forces 114
Spotlight On: People
Customer Experience Management: A New Strategic
Weapon 117
The Internet’s Impact on Competitive
Advantage 119 • The Business Value Chain
Model 120 • Synergies, Core Competencies,
and Network-Based Strategies 123 • Disruptive
Technologies: Riding the Wave 125
2 Describe how information systems help
businesses compete globally. 126
The Internet and Globalization 127 • Global
Business and System Strategies 127 • Global System
Configuration 128
3-3 Describe how information systems help
businesses compete using quality and
design. 129
What is Quality? 129 • How Information Systems
Improve Quality 130
3-4 Explain the role of business process
management (BPM) in enhancing
competitiveness. 132
What is Business Process Management? 132
Spotlight On: Organizations
GCB Bank: A Digital Transformation 135
3-5 Understand how MIS can help your
career. 136
The Company 136 • Position Description 136 •
Job Requirements 137 • Interview Questions 137 •
Author Tips 137
Review Summary 137 •
Key Terms 138 •
Review Questions 139 •
Discussion Questions 139 •
Hands-On MIS
Projects 140
Management Decision Problem 140 • Improving
Decision Making: Using a Database to Analyze Sales
Performance 140 • Improving Decision Making: Using
Web Tools to Configure and Price an Automobile 141
- Collaboration and Teamwork Project 141
Business Problem-Solving Case
Offline, Online, and Back: The Evolution of the UK
Grocery Market 142
Chapter 3 References 144
4 Ethical and Social Issues in Information
Systems 146
Chapter-Opening Case
Apps That Track: A Double-Edged Sword 147
4-1 Identify the ethical, social, and political issues
raised by information systems. 149
A Model for Thinking about Ethical, Social, and
Political Issues 150 • Five Moral Dimensions of the
Information Age 151 • Key Technology Trends that
Raise Ethical Issues 152
4-2 Describe principles for conduct that can be
used to guide ethical decisions. 154
Basic Concepts: Responsibility, Accountability,
Liability, and Due Process 154 • Ethical
Analysis 155 • Ethical Principles 155 • Professional
Codes of Conduct 156 • Some Real-
World Ethical
Dilemmas 156
4-3 Explain how contemporary information
systems technologies and the Internet pose
challenges to the protection of individual
privacy and intellectual property. 157
Information Rights: Privacy and Freedom in the
Internet Age 157 • Property Rights: Intellectual
Property 163
4-4 Discuss the issues that contemporary
information systems raise with respect to
system quality, accountability and control, and
the quality of everyday life. 166
System Quality: Data Quality and System
Errors 166 • Accountability and Control: Software
and Internet Liability Issues 167
Spotlight On: Organizations
Section 230: Should the Law That “Created” Today’s
Internet Be Repealed or Revised? 168
Quality of Life: Equity, Access, Boundaries, and
Health 170
4-5 Understand how MIS can help your
career. 174
The Company 174
Spotlight
On: Technology
Immersed in the Metaverse: What Will It Mean for
the Future? 175
Position Description 176 • Job Requirements 177 •
Interview Questions 177 • Author Tips 177
Review Summary 177 •
Key Terms 178 • Review
Questions 178 • Discussion
Questions 179 • Hands-On
MIS Projects 179
Management Decision Problem 179 • Achieving
Operational Excellence: Creating a Simple Blog 179 •
Improving Decision Making: Analyzing Web Browser
Privacy 180 • Collaboration and Teamwork Project 180
Business Problem-Solving Case
Facebook’s Many Ethical Challenges 181
Chapter 4 References 183
II Information Technology
Infrastructure 185
5 IT Infrastructure: Hardware and
Software 186
Chapter-Opening Case
Southeast Asia’s Grab Leverages Information
Technology to Enhance Its Services 187
5-1 Identify the components of IT
infrastructure. 188
IT Infrastructure Components 189
5-2 Describe the major computer hardware, data
storage, input, and output technologies used
in business and major hardware trends. 191
Types of Computers 191 • Storage, Input, and Output
Technology 193 • Contemporary Hardware Trends 193
Spotlight On: People
The Mobile Platform Visits Disney Theme Parks 195
Spotlight On: Technology
“Smart” Cities Become Smarter with Edge
Computing 201
5-3 Describe the major types of computer
software used in business and major software
trends. 204
Operating System Software 204 • Application Software
and Desktop Productivity Tools 206 • HTML
and HTML5 207 • Web Services 208 • Software
Trends 209
5-4 Identify the principal issues in managing
hardware and software technology. 211
Capacity Planning and Scalability 211 • Total Cost
of Ownership (TCO) of Technology Assets 211 •
Using Technology Service Providers 212 • Managing
Mobile Platforms 213 • Managing Software
Localization for Global Business 214
5-5 Understand how MIS can help your
career. 214
The Company 214 • Position Description 214 • Job
Requirements 214 • Interview Questions 215 •
Author Tips 215
Review Summary 215 •
Key Terms 217 • Review
Questions 217 • Discussion
Questions 218 • Hands-On
MIS Projects 218
Management Decision Problem 218 • Improving
Decision Making: Using a Spreadsheet to Evaluate
Total Cost of Ownership (TCO) for PC Desktop
Systems 218 • Improving Decision Making: Using
Web Research to Budget for a Sales Conference 219 •
Collaboration and Teamwork Project 219
Business Problem-Solving Case
How Green Is the Cloud? 220
Chapter 5 References 222
Foundations of Business Intelligence:
Databases and Information
Management 224
Chapter-Opening Case
Data Insights Send Envision Virgin Racing to the
Finish Line 225
6-1 Define a database and explain how a relational
database organizes data. 227
Entities and Attributes 228 • Organizing Data
in a Relational Database 228 • Establishing
Relationships 230
6-2 Describe the principles of a database
management system. 233
Operations of a Relational DBMS 234 • Capabilities
of Database Management Systems 234 • Nonrelational
Databases, Cloud Databases, and Blockchain 236
Spotlight On: Technology
New Cloud Database Tools Help Vodafone Fiji Make
Better Decisions 238
6-3 Identify the principal tools and technologies for
accessing information from databases to improve
business performance and decision making. 240
The Challenge of Big Data 241 • Business Intelligence
Technology Infrastructure 241 • Analytical Tools:
Relationships, Patterns, Trends 244 • Databases and
the Web 247
6-4 Explain why data governance and data quality
assurance are essential for managing a firm’s
data resources. 248
Ensuring Data Quality 248
6-5 Understand how MIS can help your career. 249
The Company 249 • Position Description 249
Spotlight On: Organizations
Higher Data Quality Helps Vyaire Save Lives 250
Job Requirements 251 • Interview Questions 251 •
Author Tips 251
Review Summary 252 •
Key Terms 253 •
Review Questions 253 •
Discussion Questions 254
Hands-On MIS
Projects 254
Management Decision Problem 254 • Achieving
Operational Excellence: Building a Relational Database
for Inventory Management 254 • Improving Decision
Making: Searching Online Databases for Overseas Business
Resources 255 • Collaboration
and Teamwork Project 255
Business Problem-Solving Case
Pursuing Sustainability with Blockchain 256
Chapter 6 References 258
7 Telecommunications, the Internet, and
Wireless Technology 260
Chapter-Opening Case
Digital Twin Helps Doosan Optimize Its Wind
Farms 261
7-1 Identify the principal components of
telecommunications networks and key
networking technologies. 263
Networking and Communication Trends 263 •
What is a Computer Network? 264 • Key Digital
Networking Technologies 266
7-2 Compare the different types of networks. 268
Signals: Digital Versus Analog 268 • Types of
Networks 269 • Transmission Media and
Transmission Speed 270
7-3 Explain how the Internet and Internet
technology work, and how they support
communication and e-business. 270
What is the Internet? 271 • Internet Addressing and
Architecture 271
Spotlight
On: Technology
Can Low Earth Orbit (LEO) Satellite Internet
Systems Solve the Digital Divide? 274
Internet Services and Communication Tools 275
Spotlight On: People
Monitoring Employees on Networks: Unethical or
Good Business? 278
The Web 281
7-4 Identify the principal technologies
and standards for wireless networking,
communication, and Internet access. 287
Cellular Systems 287 • Wireless Computer Networks
and Internet Access 288 • RFID and Wireless Sensor
Networks 290
7-5 Understand how MIS can help your
career. 292
The Company 292 • Position Description 292 • Job
Requirements 293 • Interview Questions 293 •
Author Tips 293
Review Summary 294 •
Key Terms 295 • Review
Questions 296 • Discussion
Questions 296 •
Hands-On MIS
Projects 296
Management Decision Problem 296 • Improving
Decision Making: Using Spreadsheet Software
to Evaluate Wireless Services 297 • Achieving
Operational Excellence: Using Search Engines
for Business Research 297 • Collaboration and
Teamwork Project 297
Business Problem-Solving Case
Google, Apple, and Meta Battle for Your Internet
Experience 298
Chapter 7 References 300
8 Securing Information Systems 302
Chapter-Opening Case
Ransomware Everywhere: Cyberattacks in the Asia-
Pacific 303
8-1 Explain why information systems are vulnerable
to destruction, error, and abuse. 304
Why Systems Are Vulnerable 305 • Malicious
Software (Malware) 307 • Hackers and Computer
Crime 309 • Internal Threats: Employees 314 •
Software Vulnerability 314
Spotlight On: Technology
Race Against Time: The Scramble to Fix the
Log4Shell Zero-Day Vulnerability 315
8-2 Describe the business value of security and
control. 317
Legal and Regulatory Requirements for Electronic
Records Management 317 • Electronic Evidence and
Computer Forensics 318
8-3 Identify the components of an organizational
framework for security and control. 319
Information Systems Controls 319 • Risk
Assessment 320 • Security Policy 321 • Disaster
Recovery Planning and Business Continuity
Planning 322 • The Role of Auditing 322
8-4 Identify the most important tools and technologies
for safeguarding information resources. 323
Identity and Access Management and
Authentication 323 • Firewalls, Intrusion Detection and
Prevention Systems, and Anti-Malware Software 324 •
Securing Wireless Networks 326 • Encryption and
Public Key Infrastructure 327 • Securing Transactions
with Blockchain 328 • Ensuring System
Availability 329 • Achieving Digital
Resiliency 329 •
Internet of Things, Cloud Computing, and Mobile
Platform Security Issues 330
Spotlight On: Organizations
DHL: Digital Resilience Strategy 331
Ensuring
Software Quality 334
8-5 Understand how MIS can help your career. 334
The Company 334 • Position Description 334 •
Job Requirements 335 • Interview Questions 335 •
Author Tips 335
Review Summary 335 •
Key Terms 336 • Review
Questions 337 •
Discussion Questions 338
Hands-On MIS
Projects 338
Management Decision Problem 338 • Improving
Decision Making: Using Spreadsheet Software to
Analyze Security Events 338 • Improving Decision
Making: Evaluating Security Outsourcing Services 339 •
Collaboration and Teamwork Project 339
Business Problem-Solving Case
Solarwinds Shines a Light on Software Supply Chain
Attacks 340
Chapter 8 References 342
III Key System Applications for
the Digital Age 345
9 Achieving Operational Excellence
and Customer Intimacy: Enterprise
Applications 346
Chapter-Opening Case
Lenzing Sustainably Balances Supply and Demand 347
9-1 Explain how enterprise systems help businesses
achieve operational excellence. 348
What are Enterprise Systems? 349 • Enterprise
Software 350 • Business Value of Enterprise
Systems 351
9-2 Describe how supply chain management
systems coordinate planning, production, and
logistics with suppliers. 352
The Supply Chain 352 • Information Systems and
Supply Chain Management 353 • Supply Chain
Management Software 355 • Global Supply Chains
and the Internet 355 • Business Value of Supply Chain
Management Systems 357
9-3 Explain how customer relationship
management systems help firms achieve
customer intimacy. 357
What is Customer Relationship Management? 358 •
Customer Relationship Management Software 358 •
Operational and Analytical CRM 362 • Business Value
of Customer Relationship Management Systems 362
Spotlight On: Organizations
MillerKnoll Uses Salesforce.com to Transform Its
Business Strategy 363
9-4 Describe the challenges that enterprise
applications pose and how enterprise
applications are taking advantage of new
technologies. 364
Enterprise Application Challenges 364 •
Next-Generation Enterprise Applications 365
Spotlight On: Technology
Versum’s ERP Transformation 367
9-5 Understand how MIS can help your
career. 368
The Company 368 • Position Description 369 • Job
Requirements 369 • Interview Questions 369 •
Author Tips 369
Review Summary 370 •
Key Terms 371 • Review
Questions 371 • Discussion
Questions 371 • Hands-On
MIS Projects 372
Management Decision Problem 372 • Improving
Decision Making: Using Spreadheet Software to Select
Suppliers 372 • Achieving Operational Excellence:
Evaluating Supply Chain Management Services 373 •
Collaboration and Teamwork Project 373
Business Problem-Solving Case
The Coronavirus Pandemic Disrupts Supply Chains
Around the World 374
Chapter 9 References 376
10 E-commerce: Digital Markets, Digital
Goods 378
Chapter-Opening Case:
Chewy Blends B2C and B2B E-commerce 379
10-1 Identify the unique features of e-commerce,
digital markets, and digital goods. 380
E-commerce Today: Social, Local, Mobile 381 •
Why E-commerce is Different 383 • Key Concepts
in E-commerce: Digital Markets and Digital Goods in
a Global Marketplace 386 • Digital Markets 387 •
Digital Goods 388
10-2 Compare the principal e-commerce business
and revenue models. 389
Types of E-commerce 389 • E-commerce Business
Models 389
Spotlight On: Technology
Lemonade Disrupts the Insurance Industry with
“Insurtech” 392
E-commerce Revenue Models 394
10-3 Explain how e-commerce has transformed
marketing. 395
Behavioral Targeting 396 • Social Network Marketing
and Social E-commerce 399
Spotlight On: Organizations
Engaging “Socially” with Customers on TikTok 401
10-4 Describe how e-commerce has affected
business-to-business transactions. 403
Electronic Data Interchange (EDI) 403 • New Ways of
B2B Buying and Selling 404
10-5 Describe the role m-commerce has in business
and the most important m-commerce
applications. 406
Location-Based Services and Applications 407 •
Mobile App Payment Systems 407
10-6 Identify the issues that must be addressed when
building an e-commerce presence. 408
Develop an E-commerce Presence Map 409 • Develop
a Timeline: Milestones 410
10-7 Understand how MIS can help your career. 410
The Company 410 • Position Description 410 •
Job Requirements 411 • Interview Questions 411 •
Author Tips 411
Review Summary 411 • Key Terms 412 • Review
Questions 413 • Discussion Questions 413 •
Hands-On MIS Projects 414
Management Decision
Problem 414 • Improving
Decision Making: Using
Spreadsheet Software to
Analyze an E-commerce
Business 414 • Achieving
Operational Excellence:
Evaluating E-commerce Hosting Services 415 •
Collaboration and Teamwork Project 415
Business Problem-Solving Case
Uber Discovers That Becoming the Uber of
Everything Is Not So Easy 416
Chapter 10 References 418
11 Improving Decision Making and
Managing Artificial Intelligence 420
Chapter-Opening Case
Big Data Analytics: A New Way to Fight Wildfires 421
11-1 Identify the different types of decisions and explain
how the decision-making process works. 423
Business Value of Improved Decision
Making 423 • Types of Decisions 423 • The
Decision-Making Process 425 • High-Velocity
Automated Decision Making 426 • Quality of
Decisions and Decision Making 426
2 Describe how business intelligence and business
analytics support decision making. 426
What is Business Intelligence? 427 • The Business
Intelligence Environment 427 • Business Intelligence
and Analytics Capabilities 430 • Business
Intelligence Users 433
11-3 Define artificial intelligence (AI) and explain
how it differs from human intelligence. 437
Evolution of AI 437
11-4 Identify the major types of AI techniques and
show how they benefit organizations. 437
Expert Systems 438 • Machine Learning 439 •
Neural Networks 442 • Genetic Algorithms 445 Natural Language Processing, Computer Vision
Systems, and Robotics 446
Spotlight On: Technology
What Happened to Watson Health? 447
Spotlight On: People
Do You Know Who Is Using Your Face? 449
Intelligent Agents 450
11-5 Understand how MIS can help your career. 451
The Company 451 • Position Description 451 •
Job Requirements 451 • Interview Questions 452 •
Author Tips 452
Review Summary 452 •
Key Terms 453 • Review
Questions 454 • Discussion
Questions 454 •
Hands-On MIS
Projects 455
Management Decision Problem 455 • Improving
Decision Making: Using Pivot Tables to Analyze
Sales Data 455 • Improving Decision Making: Using
Intelligent Agents for Comparison Shopping 455 •
Collaboration and Teamwork Project 456
Business Problem-Solving Case
Should an Algorithm Make Our Decisions? 457
Chapter 11 References 459
IV Building and Managing
Systems 461
12 Making the Business Case for Information Systems and Managing
Projects 462
Chapter-Opening Case:
Al-Asasyah Implements a Modern ERP
Solution 463
12-1 Explain how managers should build a business
case for the acquisition and development of a
new information system. 465
The Information Systems Plan 466 • Portfolio Analysis
and Scoring Models 467 • Determining Solution Costs
and Benefits 468
12-2 Identify the core problem-solving steps
for developing a new information system. 471
Defining and Understanding the Problem 471 •
Developing Alternative Solutions 472 • Evaluating
and Choosing Solutions 473 • Implementing the
Solution 473
12-3 Compare the alternative methods for building
information systems. 475
Traditional Systems Development Life Cycle 476 •
Prototyping 476 • End-
User Development 477 •
Application Software Packages, Software Services, and
Outsourcing 478 • Mobile Application Development:
Designing for a Multiscreen World 480 • Rapid
Application Development for E-business 481
Spotlight On: Technology
McAfee Turns to Automated Software Testing 48
4 Describe how information systems projects
should be managed. 483
Project Management Objectives 484 • Managing
Project Risk and System-Related Change 484
12-5 Understand how MIS can help your
career 488
The Company 488 • Position Description 488 • Job
Requirements 488
Spotlight On: Organizations
Sauder Woodworking Gets ERP Implementation
Right 489
Interview Questions 490 • Author Tips 490
Review Summary 491 •
Key Terms 492 • Review
Questions 492 • Discussion
Questions 493 •
Hands-On MIS
Projects 493
Management Decision Problem 493 • Improving
Decision Making: Using a Database to Clarify
Business Strategy 494 • Achieving Operational
Excellence: Analyzing Website Design and Information
Requirements 494 • Collaboration and Teamwork
Project 494
Business Problem-Solving Case
Can Blockchain Digitize the Global Supply
Chain? 495
Chapter 12 References 498
Glossary 500
Index 515