CONTENTS
MODULE I Introduction = 1
1 Introduction to Information Systems = 2
SECTION I : The Importance of Information Systems = 4
Why Information Systems Are Important = 4
An End User Perspective = 4
The Real World of Information Systems = 5
Analyzing waldenbooks = 5
Real World Case : Waldenbooks : Competing with Information Systems = 6
International and Ethical Dimensions of IS = 5
Technological and Behavioral Dimensions of Is = 7
Careers in Information Systems = 8
Academic Programs in IS = 8
IS Specialists = 8
What Business End Uers Need to Know = 10
A Framework for End Users = 10
SECTION II : Fundamentals of Information Systems = 13
Systems Concepts = 13
Feedback and Control = 13
Other System Characteristics = 15
Components of an Information Systems = 15
Information System Resources = 17
People Resources = 17
Hardware Resources = 17
Software Resources = 18
Data Resources = 19
Data versus Information = 19
Information System Activities = 19
Input of data Resources = 20
Processing of Data into Information = 20
Output of Information Products = 20
Storage of Data Resources = 21
Control of System Performance = 21
Recognizing Information Systems = 21
Analyzing Waldenbooks'Information Systems = 22
Overview of Information Systems = 23
The Roles of Information Systems = 24
Types of Information Systems = 24
Real World Case : Federal National Mortage Association : At the Cutting Edge of IT = 26
Real World Problems : United Airlines = 29
Baxter Healthcare = 29
Fltcher Construction = 29
J. R. Simplot Company = 30
Continuing Real World Case : Omaha Vision Center-Part I = 33
MODULE II Technology = 37
2 Introduction to Computer Hardware = 38
SECTION I : Computer Systems : Micros, Minis, Mainframes, and Networked Computers = 40
The Computer System Concept = 40
Computer System Components = 41
The Central Processing Unit = 41
Multiple Processors = 42
RISC Processors = 43
Computer Processing Speeds = 43
Primary and Secondary Storage = 44
Computer Storage Capacities = 44
Types and Trends in Computers = 45
Computer Origins = 45
Computer Generations = 46
Computer Categories = 48
Microcomputer Systems = 49
A Microcomputer System = 49
Microcomputer Applications = 51
Minicomputer Systems = 52
Applications = 53
Mainframe Computer Systems = 53
Applications = 53
Supercomputer Systems = 54
Networked Computer Systems = 54
Applications = 55
Real World Case : Richmond Savings : Banking on Networked PCs = 56
SECTION II : Computer Peripherals : Input, Output, and Storage Devices = 57
Input / Output Hardware Trends = 57
Pointing Devices = 58
Pen-based Computing = 59
Video Input / Output = 60
Printed Output = 61
Voice Recognition and Response = 62
Optical and Magnetic Recognition = 63
Optical Scanning = 63
Magnetic Data Entry = 64
Storage Trends and Trade-Offs = 64
Direct and Sequential Access = 65
Semiconductor Memory = 66
Semiconductor Secondary Storage = 67
Magnetic Disk Storage = 67
Types of Magnetic Disks = 67
Magnetic Tape Storage = 69
Optical Disk Storage = 69
Real World Case : The U. S. Govermment : From Magnetic Tape to CD-ROM = 71
SECTION III : How Comuters Work = 72
How Computers Execute Instructions = 72
Executing an Instruction = 72
The Order of Execution = 72
How Computers Represent Data = 74
The Binary Number System = 74
The Hexadecimal Number Systems = 75
The ASCII and EBCDIC Codes = 75
Bits, Bytes, and Words = 76
Representing Data = 77
Real World Problems : Fingerhut Companies, = 81
The Winter Olympics = 82
Sprint = 82
Karsten Manufacturing Company = 82
3 Introduction to Computer Software = 86
SECTION I : System Software : Computer System Management = 88
Introduction to Software = 88
Software Trends = 89
System Software Overview = 89
Operating Systems = 90
Operating System Functions = 91
Popular Operating Systems = 93
Database Management Systems = 94
Telecommunications Monitors = 94
System Support Programs = 94
Programming Languages = 94
Machine Languages = 95
Assembler Languages = 95
High-Level Languages = 96
Fouth-Generation Languages = 96
Object-oriented Languages = 98
Language Translator Programs = 99
Programming Tools = 100
Real World Case : Smith Barney Shearson and the South Florida Water Management District : Using Spreadsheets = 101
SECTION II : Applications Software : End User Applications = 102
Application Software for End Users = 102
General-Purpose Programs = 102
Application-Specific Programs = 102
Word Processing Packages = 102
Electronic Spreadsheet Packages = 104
What-If Analysis = 104
Database Management Packages = 105
Telecommunications Packages = 105
Graphics Packages = 106
Integrated Packages = 107
Other End User Packages = 108
Real World Case : Kraft General Foods and Equipment Maintenance Services : Beyond Spreadsheets = 109
Real World Problems : Garber Travel Servies = 111
Shell Oil Company = 111
American, Lufthansa, and Britannia Airlines = 112
Sun Hydraulics = 112
4 Introduction to Database Management = 116
SECTION 1 : A Manager's View of Database Management = 118
Data Resource Management = 118
A Manager's View of File and Database Processing = 118
Management Problems of File Processing = 119
Data Duplication = 119
Lack of Data Integration = 119
Data Dependence = 119
Other Problems = 119
The Database Management Solution = 120
The Database Approach = 120
Database Processing = 121
Using Database Management Software = 122
Database Development = 122
Database Interrogation = 123
Database Maintenance = 125
Application Development = 125
Types of Databases = 126
Text Databases = 127
Image Databases = 128
Managerial Considerations for data Resource Management = 128
Benefits and Limitations of Database Management = 128
Database Administration = 129
Data Administration = 129
Data Planning = 130
Real World Case : From the Bank of Boston to U. S. West : Businesses Dabate the Information warehouse = 131
SECTION II : Technical Foundations of Database Management = 132
Logical Data Elements = 132
Character = 132
Field = 132
Rocord = 133
File = 133
Database = 133
Database Structures = 133
Hierarchical Structure = 134
Network Structure = 135
Relational Structure = 135
Object-oriented Structure = 135
Evaluation of Database Structures = 135
Database Development = 136
Data Planning and Modeling = 136
Accessing Files and Databases = 138
Key Fields = 138
Sequential Organization and Access = 139
Direct Organization and Access = 139
Real World Case : Renaissance Technology Corporation : Object-Oriented Relational Databases = 141
Real World Problems : Volkswagen Corporation = 144
Digital Technologies and the Los Angeles Times = 144
Artec Elegant Designs, Inc. = 144
Shell Oil Company = 145
Continuing Real World Case : Omaha Viston Center-Part II
MODULE III Telecommunications = 151
5 Introduction to Telecommunications = 152
SECTION I : An Overview of Telecommunications = 154
Why Telecommunications Is Important = 154
Trends in Telecommunications = 154
Industry Trends = 154
Technology Trends = 156
Open Systems = 156
Application trends = 156
The Information Superhighway = 157
A Telecommunications Network Model = 158
Types of Telecommunications Networks = 159
Wide Area Networks = 159
Local Area Networks = 160
Internetworks = 161
The Internet = 161
Real World Case : Times Mirror, U. S. West, and Others : Building the Information Superhighway = 163
SECTION II : Technical Telecommunications Alternatives = 164
Telecommunications Media = 164
Twisted-Pair Wire = 164
Coaxial Cable = 164
Fiber Optics = 165
Terestrial Microware = 166
Communications Satellites = 166
Cellular Radio = 167
Wireless LANs = 167
Telecommunications Carriers = 167
Common Carriers = 167
Value-Added Carriers = 168
Telecommunications Processors = 169
Modems = 169
Multiplexers = 170
Internet Processors = 170
Private Branch Exchange = 170
Front-End Processors = 171
Telecommunications Software = 171
Common Software Functions = 171
Telecommunications Network Topologies = 173
Star, Ring, and Bus Networks = 173
Network Architectures and Protocols = 174
Communications Channel Characterstics = 176
Transmission Speed = 176
Transmission Mode = 176
Switching Alernatives = 176
Access Methods = 177
Real World Case : United Airlines and the Denver International Airport : State-of-the-Art Networking = 179
Real World Problems : The Information Superhighway = 181
Cable TV and the Telephone Companies = 182
Pacific Health Care Systems = 182
Pitney Bowes Inc. = 183
6 Business Applications of Telecommunications = 186
SECTION I : Telecommunications for End User Collaboration = 188
Applications of Telecommunications = 188
End User Collaboration = 188
Work Group Computing = 188
Electronic Communications Systems = 190
Electronic Mail = 191
Voice Mail = 191
Bulletin Board Systems = 192
Public Information services = 192
Videotex = 192
Facsimile = 194
Electronic Meeting Systems = 194
Teleconferencing = 196
Telecommuting = 196
Business on the Internet = 197
Real World Case : Businesses Online : Using the Internet = 199
SECTION II : telecommunications for Enterprisewide Computing = 200
Client / Server Computing = 200
Distributed Processing = 202
Cooperative Processing = 202
Online Transaction Processing = 202
Electronic Funds Transfer = 202
Electronic Data Interchange = 203
Benefits of EDI = 204
Interorganizational Networks = 205
Real World Case : Entergy Corporation, Florida Power, and Pacific Gas & Electric : Moving to Client / Server Networks = 206
Real World Problems : Hughes Aircraft Co. = 208
Toyota Motor Manufacturing USA = 208
Lawrence Livemore National Laboratory = 209
Household Finance Corporation = 209
7 Management Issues in Telecommunications = 214
SECTION I : The Business value of Telecommunications = 216
A Managerial Perspective = 216
Adding Value with Telecommunications = 218
Strategic Advantage through Telecommunications = 219
Breaking Time Barriers = 219
Breaking Geographic Barriers = 220
Breaking Cost Barriers = 221
Breaking Structural Barriers = 221
Real World Case : Patricai Seybold on the Internet : Just Say Yes = 223
SECTION II : Business Strategies for Telecommunications = 224
Developing a Business Vision for Telecommunications = 224
Developing a Telecommunications Architecture = 225
The Reach and Range of Telecommunications = 226
Managerial Criteria for Telecommunications = 227
Managing Telecommunications = 229
Global Telecommunications Issues = 230
Real World Problems : great west Life Assurance = 233
Commonwealth Edison and Air Canada = 234
Feferal National Mortgage Association = 234
Barclays Bank = 234
MODULE IV Applications = 237
8 Information Systems in Business Management = 238
SECTION I : Information Systems for Operations and Management = 240
The Expanding Roles of Information Systems = 240
Oprations and Management Classifications = 241
Information Systems for Business Operations = 242
Transaction Processing Systems = 242
Process Control Systems = 243
Office Automation Systems = 243
Information Systems and Management = 243
IS and the Functions of Management = 245
IS and the Roles of Management = 245
IS and the Levels of Management = 246
IS and Decision Making = 247
Information for the Intelligence Stage = 248
Information for the Design Stage = 249
Structured Decisions = 249
Unstructured Decisions = 250
Information for the Choice Stage = 251
Information for the Implementation Stage = 251
Management Information systems = 251
Information Reporting Systems = 252
Decision Support Systems = 253
Executive Information Systems = 253
Other Classifications of Information Systems = 253
Expert Systems = 254
End User Computing Systems = 254
Business Information Systems = 255
Integrated Information Systems = 255
Real World Case : NYPRO, Inc. : Customer Partnering through Information Systems = 257
SECTION II : Information Systems for Strategic Advantage = 258
Competitive Strategy Concepts = 258
Strategic Roles for Information Systems = 259
Improving Operational Efficiency = 259
Barriers to Entry = 260
Lock in Customers and Supplier = 260
Promoting Business Innovation = 261
Switching Costs = 261
Building Strategic IT Resources = 262
A Strategic Information Base = 262
Real World Case : Digital Equipment, InterCon Systems, and MecklerMedia : Strategic Marketing on the Internet = 264
Real World Problems : Boeing, Nike, and Wal-Mart = 267
Bank One and the State of Delaware = 267
Sandoz Consumer Pharmaceuticals = 268
RJR Nabisco = 268
9 End User Computing and Office Automation = 272
SECTION I : End User Computing = 274
The Growth of End User Computing = 274
The Hidden Backlog = 275
The Microcomputer Revolution = 275
Components of an End User Computing System = 275
Resources for End User Computing = 265
Hardware Resources : End User Vorkstations = 275
Software Resources : End User Packages = 276
People Resources : The Information Center = 277
Data Resources : Multiple Databases = 278
End User Computing Applications = 278
Office Automation = 278
Information Management and Retrieval Applications = 278
Decision Support Aplications = 279
End User Applications Development = 279
Work Group Computing = 280
The Information Center = 280
The Role of the Information Center = 282
Management Implications of End User Computing = 282
The Risks of End User Computing = 283
Managerial Solutions = 285
Real World Case : Goodyear Tire & Rubber : Laptop Sales Presentations = 286
SECTION II : Office Automation Systems = 287
Introduction = 287
Information System Activities = 287
Word Processing = 288
Desktop Publishing = 288
Image Processing = 291
Computer Graphics = 291
Presentation Graphics = 293
Multimedia Presentations = 294
Hypertext and Hypermedia = 294
Interactive Video = 294
Office Management Systems = 295
Management Implications of Office Automation = 295
OA Benefits = 296
OA Limitations = 297
Real World Case : General Foods Corporatation : Using Groupware = 298
Real World Problems : Dow Jones & Co. = 301
Duke University = 301
Chevron Corporation = 301
Autora National Life and Canadian Broadcasting Systems = 302
10 Transaction Processing and Business Information Systems = 306
SECTION I : Transaction Processing Systems = 308
Transaction Processing = 308
Strategic TPS = 308
The Transaction Processing Cycle = 308
The Data Entry Process = 308
Traditional Data Entry = 308
Source Data Automation = 311
Electronic Data Interchange = 312
Batch Processing = 313
Batch Processing Activities = 313
Advantages and Disadvantages = 313
Realtime Processing = 314
Fault Tolerant Processing = 315
advantages and Disadvantages = 315
Database Maintenance = 316
Document and Report Generation = 317
Inquiry Processing = 318
Real World Case : Silverstri Fitz & Floyd : Transaction Processing with Wireless LANs = 320
SECTION II : Business Information Systems = 321
IS in Business = 321
Cross-Functional Information Systems = 321
Marketing Information Systems = 322
Sales Management = 322
Sales Force Automation = 322
Product Management = 324
Advertising and Promotion = 324
Sales Forecasting = 324
Market Research = 324
Marketing Management = 325
Manufacturing Information Systems = 325
Computer Integrated Manufacturing = 326
Process Control = 328
Machine Control = 329
Robotics = 329
Computer-Aided Engineering = 330
Human Resource Information Systems = 331
Staffing = 332
Training and Development = 333
Compensation Analysis = 333
Governmental Reporting = 333
Accounting Information Systems = 334
Order Processing = 334
Inventory Control = 334
Accounts Receivable = 334
Accounts Payable = 336
Payroll = 336
General Ledger = 336
Financial Information Systems = 336
Cash and Securities Management = 338
Capital Budgeting = 338
Financial Forecasting = 338
Financial Planning = 338
Real World Case : Marks & Spencer : Smart Marketing for New Business = 340
Real World Problems : Catherines Stores = 343
Hughes Aircraft Co. = 343
Chemical Banking Corp. = 344
Merck & Co. and Others = 344
11 Managerial Information and Support Systems = 348
SECTION I : Executive Information and decision Support Systems = 350
Information Reporting Systems = 350
Attributes of Information Quality = 351
Information Reporting Alternatives = 351
Information Reporting versus Decision-Making Support = 352
Desicion Support Systems = 354
Examples of DSS Applications = 354
Components of a Decision Support System = 356
Models for Decision Support = 357
Software for Decision Support = 357
DSS and Electronic Spreadsheets = 358
Using Decision Support Systems = 358
Analytical Modeling alternativies = 358
Group Decision Support Systems = 361
Group Decision Making = 361
GDSS Packages = 362
Executive Information Systems = 362
Rationale for EIS = 363
Components of an EIS = 363
Example of an EIS = 364
Developing DSS and EIS = 364
Real World Case : Ron Compton of Aetna Life & Casualty : Executive Information Systems = 368
SECTION II : Artificial Intelligence and Expert Systems = 369
An Overview of Artificial Intelligence = 369
The Domains of Artificial Intelligence = 369
Knowledge-Based Information Systems = 371
Expert-Assisted IS = 372
Components of an Expert System = 374
Examples of Expert Systems = 374
Expert System Applications = 376
Developing Expert Systems = 379
Expert System Suitability = 379
Expert Systems : Make or Buy? = 380
Knowledge Engineering = 381
A Managerial Perspective = 381
Benefits of Expert Systems = 381
Limitations of Expert Systems = 383
Real World Case : Reckitt & Colman Inc. : Forecasting with Expert Systems = 382
Real World Problems : ABC / Satellite Music Network = 386
Bank-America and Others = 386
Thermo Electron = 387
The U. S. Army and Price Waterhouse = 387
Continuing Real World Case : Omaha Vision Center-Part III
MODULE V Development and Management = 393
12 Developing Information System Solutions = 394
SECTION I : Developing Information System Applications = 396
The Systems Approach = 396
The Systems Development Cycle = 396
Systems Investigation = 398
Information Systems Planning = 398
Feasibility Studies = 400
Systems Analysis = 403
Organizational Anlysis = 403
Analysis of the Present System = 403
Functional Requirements Analysis = 404
Systems Design = 405
User Interface, Data, and Process Design = 404
System Specifications = 405
Computer-Aided Systems Engineering = 406
Prototyping = 407
The Prototyping Process = 408
Checklist for Systems Analysis and Design = 408
Real World Case : Toyota Camry Division : Systems Development with CASE = 412
SECTION II : Implementing Information System Solutions = 413
Implementing Information Systems = 413
Acquiring Hardware, Software, and Services = 413
Hardware and Software Suppliers = 413
Suppliers of IS Services = 415
Evaluating Hardware, Software, and Services = 415
Hardware Evaluation Factors = 419
Software Evaluation Factors = 419
Evaluating IS Services = 419
Other Implementation Activities = 420
Testing = 420
Documentation = 421
Training = 421
Conversion Methods = 422
Maintenance = 422
End Users and Implementation = 424
Real World Case : Richardson Electronics, Manadnock Paper Mills, and Toronto Stock Exchange : Vendor Selection Criteria = 426
SECTION III : Using Systems Development Tools = 426
Systems Development Tools = 427
Overview of Systems Development Tools = 427
System Components and Flows = 428
The User Interface = 428
Data Attributes and Relationships = 428
Datailed System Processes = 428
A Case Study Example : ABC Auto Parts = 429
The Retail Automation Issue = 429
Planning and Investigation = 429
The Present System = 430
The Proposed System = 430
System Flowcharts = 432
Data Flow Diagrams = 434
System Component Matrix = 437
Using CASE Tools = 439
System Repostitories = 440
Real World Problems : University of Maini = 444
Blue Cross / Blue Shield of Florida = 444
CITICORP Mortage Corp. = 445
U. S. General Services Administration = 445
13 Managing Information Technology = 450
SECTION I : Information Resource Management = 452
Managers and Information Technology = 452
Information Systems Performance = 454
Management Involvement = 455
Organizations and Information Technology = 456
Centralization versus Decentralization = 458
Changing Trends = 459
Information Resource Management = 460
Strategic Management = 461
The Chief Information Officer = 461
Functional Management = 461
Managing Systems Development = 461
Managing IS Operations = 462
Resource Management = 463
Data Administration = 464
Technology Management = 464
Advanced Technology Management = 464
Distributed Management = 465
Managing End User Computing = 465
Real World Case : Texaco, Great-West Life, and the TVA : Restructuring the IS Function = 467
SECTION II : Global Information technology Management = 468
The International Dimension = 468
Cultural, Political, and Geoeconomic Challenges = 468
Global Business and IT Strategies = 468
Global Business and IT Applications = 471
Global IT Platforms = 473
Global Data Issues = 473
Global Systems Development = 474
You are Global IT Management = 475
Real World Case : Eric Singleton : Client / Server in Europe = 476
Real World Problems : Ryder Systems, Inc. = 480
Federal National Mortage Association = 480
General Motors Europe = 480
Compaq Europe = 481
14 Security and Ethical Challenges of Information Technology = 486
SECTION I : Information Systems Security and Control = 488
Why Controls Are Needed = 488
What Controls Are Needed = 488
Information System Controls = 488
Input Controls = 489
Processing Controls = 490
Output Controls = 491
Storage Controls = 492
Procedural Contols = 492
Separation of Duties = 492
Standard Procedures and Documentation = 493
Authorization Requirements = 493
Disaster Recovery = 493
Physical Facility Controls = 493
Physical Protection Controls = 493
Biometric Controls = 494
Telecommunications Controls = 494
Computer Failure Controls = 495
Controls for End User Computing = 495
Auditing Information Systems = 495
Real World Case : Group One, the EPA, and Others : Security on the Internet = 498
SECTION II : Ethical and Societal Challenges of Information Technology = 499
The Ethical Dimension = 499
Ethical Foundations = 499
Business Ethics = 501
Ethical and Societal Dimensions of IT = 501
Ethics and Information technology = 503
IT and Employment = 503
IT and Individuality = 504
Computer Monitoring = 505
Privacy Issues = 506
Computer Crime = 507
Computer Crime Laws = 508
Examples of Computer Crime = 508
Health Issues = 512
Ergonomics = 512
Societal Solutions = 513
You are Ethical Responsibility = 513
Real World Case : Microsoft Corporation : Software Piracy in Europe = 515
Real World Problems : Rice University = 518
First Bancorporation and Eastman Kodak = 518
National Association of Working women and Communications Workers of America = 519
Time Warner Inc. = 519
Continuing Real World Case : Omaha Vision Center-Part IV
Glossary for Managerial End User G-1
Index = Ⅰ
