View the step-by-step solution to: Read the case study on page 345-346 In detail, answer all case

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Read the case study on page 345-346 In detail, answer all case study questions on page 346. You must have a title and reference page and be written in APA format. Also let me know if you can answer it thoroughly so i can know if i want to cancel.
Management_Info_Systems.pdf

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INTEGRATING BUSINESS WITH T ECHNOLOGY
By completing the projects in this text, students will be able to demonstrate business knowledge, application
software proficiency, and Internet skills.These projects can be used by i nstructors as learning assessment tools
and by students as demonstrations of business, software, and problem-solving skills to f uture employers. Here
are some of the skills and competencies students using this text will be able to demonstrate:
Business Application skills: Use of both business and software skills in real-world business applications.
Demonstrates both business knowledge and proficiency in spreadsheet, database, and Web page/blog creation
tools.
Internet skills: A bility to use Internet tools to access i nformation, c onduct research, or p erform online
calculations and analysis.
Analytical, writing and presentation skills: Ability to research a specific topic, analyze a problem, think
creatively, suggest a solution, and p repare a clear written or oral presentation of the solution, working either
individually or with others in a group.
Business Application Skills
BUSINESS SKILLS

SOFTWARE SKILLS

CHAPTER

Spreadsheet charts

Chapter

Spreadsheet formulas

Chapter 10

Finance and Accounting
Financial statement analysis

2*

Spreadsheet downloading and formatting
Pricing hardware anrj software

Spreadsheet formulas

Chapter 5

Technology rent vs. buy decision
Total Cost of Ownership (TCO) analysis

Spreadsheet formulas

Chapter

5*

Analyzing telecommunications services anrj costs

Spreadsheet formulas

Chapter

7

Risk assessment

Spreadsheet charts and formulas

Chapter 8

Retirement planning

Spreadsheet formulas and logical functions

Chapter 11

Capital budgeting

Spreadsheet formulas

Chapter 14
Chapter 14*

Human Resources
Employee training and skills tracking

Database design
Database querying and reporting

Chapter 13*

Job posting database and Web page

Database design
Web page design and creation

Chapter 15

Analyzing supplier performance and pricing

Spreadsheet date functions
Database functions
Data filtering

Chapter

Inventory management

Importing data into a database
Database querying and reporting

Chapter 6

Bill of materials cost sensitivity analysis

Spreadsheet data tables
Spreadsheet formulas

Chapter 12*

Database querying and reporting

Chapter 1

Manufacturing and Production
2

Sales and Marketing
Sales trend analysis

Customer reservation system

Database querying and reporting

Chapter 3

Improving marketing decisions

Spreadsheet pivot tables

Chapter 12

Customer profiling

Database design
Database querying and reporting

Chapter

Customer service analysis

Database design
Database querying and reporting

Chapter 9

Sales lead and customer analysis

Database design
Database querying and reporting

Chapter 13

Blog creation and design

Blog creation tool

Chapter

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Using online software tools to calculate shipping costs

Chapter

1

Using online interactive mapping software to plan efficient transportation routes

Chapter

2

Researching product information and evaluating Web sites for auto sales

Chapter

3

Using Internet newsgroups for marketing

Chapter

4

Researching travel costs using online travel sites

Chapter

5

Searching online databases for products and services

Chapter

6

Using Web search engines for business research

Chapter

7

Researching and evaluating business outsourcing services

Chapter

8

Researching and evaluating supply chain management services

Chapter

9

Evaluating e-commerce hosting services

Chapter 10

Using shopping bots to compare product price, features, and availability

Chapter 11

Using online software tools for retirement planning

Chapter 12

Redesigning business processes for Web procurement

Chapter 13

Researching real estate prices

Chapter 14

Researching international markets and pricing

Chapter 15

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MMcnyniiCH, \w piniiy cti iH Pcocontatinn QI\M o
BUSINESS PROBLEM

CHAPTER

Management analysis of a business

Chapter

1

Value c hain and competitive f orces analysis
Business strategy formulation

Chapter

3

Formulating a corporate privacy policy

Chapter 4

Employee productivity analysis

Chapter

7

Disaster recovery planning

Chapter

8

Locating and evaluating suppliers

Chapter

9

Developing an e-commerce strategy

Chapter 10

Identifying knowledge management opportunities

Chapter 11

Identifying international markets

Chapter 15

*Dirt Bikes Running Case on MyMISLab

6*

4

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Management
Information
Systems
MANAGING THE DIGITAL FIRM
TWELFTH EDITION

Kenneth C. Laudon
New York University

Jane P. Laudon
Azimuth Information Systems

Prentice Hall
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Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this
textbook appear on the appropriate page within the text (or on page P1).
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book is not sponsored or endorsed by or affiliated with the Microsoft Corporation.
Copyright © 2012, 2010, 2007, 2006 by Pearson Education, Inc., Upper Saddle River, New
Jersey, 07458. Pearson Prentice Hall. All rights reserved. Printed in the United States of America. This
publication is protected by Copyright and permission should be obtained from the publisher prior to
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Pearson Education Upper Saddle River, New Jersey

10 9 8 7 6 5 4 3 2 1
ISBN-13: 978-0-13-214285-4
ISBN-10: 0-13-214285-6

About the Authors

Kenneth C. Laudon is a Professor of Information Systems at New York University’s Stern
School of Business. He holds a B.A. in Economics from Stanford and a Ph.D. from Columbia
University. He has authored twelve books dealing with electronic commerce, information
systems, organizations, and society. Professor Laudon has also written over forty articles
concerned with the social, organizational, and management impacts of information systems,
privacy, ethics, and multimedia technology.
Professor Laudon’s current research is on the planning and management of large-scale
information systems and multimedia information technology. He has received grants from
the National Science Foundation to study the evolution of national information systems at
the Social Security Administration, the IRS, and the FBI. Ken’s research focuses on enterprise system implementation, computer-related organizational and occupational changes in
large organizations, changes in management ideology, changes in public policy, and understanding productivity change in the knowledge sector.
Ken Laudon has testified as an expert before the United States Congress. He has been a
researcher and consultant to the Office of Technology Assessment (United States Congress),
Department of Homeland Security, and to the Office of the President, several executive
branch agencies, and Congressional Committees. Professor Laudon also acts as an in-house
educator for several consulting firms and as a consultant on systems planning and strategy
to several Fortune 500 firms.
At NYU’s Stern School of Business, Ken Laudon teaches courses on Managing the Digital
Firm, Information Technology and Corporate Strategy, Professional Responsibility (Ethics),
and Electronic Commerce and Digital Markets. Ken Laudon’s hobby is sailing.

Jane Price Laudon is a management consultant in the information systems area and the
author of seven books. Her special interests include systems analysis, data management,
MIS auditing, software evaluation, and teaching business professionals how to design and
use information systems.
Jane received her Ph.D. from Columbia University, her M.A. from Harvard University,
and her B.A. from Barnard College. She has taught at Columbia University and the New York
University Graduate School of Business. She maintains a lifelong interest in Oriental languages and civilizations.
The Laudons have two daughters, Erica and Elisabeth, to whom this book is dedicated.
iii

Brief Contents
Part One

Organizations, Management, and the Networked
Enterprise 1

Chapter 1
Chapter 2
Chapter 3
Chapter 4

Information Systems in Global Business Today 2

Part Two

Information Technology Infrastructure 161

Chapter 5
Chapter 6

IT Infrastructure and Emerging Technologies 162

Chapter 7
Chapter 8

Telecommunications, the Internet, and Wireless Technology 244

Part Three

Key System Applications for the Digital Age 333

Chapter 9

Achieving Operational Excellence and Customer Intimacy: Enterprise
Applications 334

Chapter 10
Chapter 11
Chapter 12

E-Commerce: Digital Markets, Digital Goods 370

Part Four

Building and Managing Systems 485

Chapter 13
Chapter 14
Chapter 15

Building Information Systems 486

Global E-Business and Collaboration 40
Information Systems, Organizations, and Strategy 78
Ethical and Social Issues in Information Systems 120

Foundations of Business Intelligence: Databases and Information
Management 206
Securing Information Systems 290

Managing Knowledge 414
Enhancing Decision Making 452

Managing Projects 526
Managing Global Systems 558
(available on the Web at www.pearsonhighered.com/laudon)

References R 1
Glossary G 1
Photo and Screen Shot Credits P 1
Indexes I 1

iv

Complete Contents
Part One

Organizations, Management, and the Networked
Enterprise 1

Chapter 1

Information Systems in Global Business Today 2
◆Opening Case: The New Yankee Stadium Looks to the Future 3
1.1
The Role of Information Systems in Business Today 5
How Information Systems Are Transforming Business 5 • What’s New In
Management Information Systems? 6 • Globalization Challenges and
Opportunities: A Flattened World 8
◆Interactive Session: Management MIS in Your Pocket 10
The Emerging Digital Firm 11 • Strategic Business Objectives of
Information Systems 12
1.2
Perspectives on Information Systems 15
What is an Information System? 15 • Dimensions of Information
Systems 17
◆Interactive Session: Technology UPS Competes Globally with Information
Technology 22
It Isn’t Just Technology: A Business Perspective on Information Systems 24 •
Complementary Assets: Organizational Capital and the Right Business
Model 26
1.3
Contemporary Approaches to Information Systems 28
Technical Approach 29 • Behavioral Approach 29 • Approach of This Text:
Sociotechnical Systems 29
1.4
Hands-on MIS Projects 31
Management Decision Problems 31 • Improving Decision Making: Using
Databases to Analyze Sales Trends 31 • Improving Decision Making: Using
the Internet to Locate Jobs Requiring Information Systems Knowledge 32
Learning Track Modules: How Much Does IT Matter?; Information Systems and
Your Career, The Emerging Mobile Digital Platform 32
Review Summary 33 • Key Terms 34 • Review Questions 34 • Discussion
Questions 35 • Video Cases 35 • Collaboration and Teamwork: Creating a Web Site
for Team Collaboration 35
◆Case Study: What’s the Buzz on Smart Grids? 36

Chapter 2

Global E-Business and Collaboration 40
◆Opening Case: America’s Cup 2010: USA Wins with Information Technology 41
2.1
Business Processes and Information Systems 43
Business Processes 43 • How Information Technology Enhances Business
Processes 44
v

vi

Contents

2.2

Types of Business Information Systems 45
Systems for Different Management Groups 45 • Systems for Linking the
Enterprise 51

◆Interactive Session: Organizations Domino’s Sizzles with Pizza Tracker 52
E-business, E-commerce, and E-government 55
2.3
Systems for Collaboration and Teamwork 55
What is Collaboration? 56 • Business Benefits of Collaboration and
Teamwork 57 • Building a Collaborative Culture and Business Processes 58
• Tools and Technologies for Collaboration and Teamwork 59
◆Interactive Session: Management Virtual Meetings: Smart Management 62
2.4
The Information Systems Function in Business 68
The Information Systems Department 68 • Organizing the Information
Systems Function 69
2.5
Hands-on MIS Projects 70
Management Decision Problems 70 • Improving Decision Making: Using a
Spreadsheet to Select Suppliers 70 • Achieving Operational Excellence:
Using Internet Software to Plan Efficient Transportation Routes 71
Learning Track Modules: Systems from a Functional Perspective; IT Enables
Collaboration and Teamwork; Challenges of Using Business Information Systems;
Organizing the Information Systems Function 72
Review Summary 72 • Key Terms 73 • Review Questions 73 • Discussion
Questions 74 • Video Cases 74 • Collaboration and Teamwork: Describing
Management Decisions and Systems 74
◆Case Study: Collaboration and Innovation at Procter & Gamble 75

Chapter 3

Information Systems, Organizations, and Strategy 78
◆Opening Case: Verizon or AT&T—Which Company Has the Best Digital
Strategy? 79
3.1
Organizations and Information Systems 81
What Is an Organization? 82 • Features of Organizations 84
3.2
How Information Systems Impact Organizations and Business Firms 89
Economic Impacts 89 • Organizational and Behavioral Impacts 91 • The
Internet and Organizations 93 • Implications for the Design and
Understanding of Information Systems 94
3.3
Using Information Systems to Achieve Competitive Advantage 94
Porter’s Competitive Forces Model 95
Information System Strategies for Dealing with Competitive Forces 96 •
The Internet’s Impact on Competitive Advantage 99
◆Interactive Session: Organizations How Much Do Credit Card Companies Know
About You? 100
The Business Value Chain Model 102
◆Interactive Session: Management Is the iPad a Disruptive Technology? 103
Synergies, Core Competencies, and Network-Based Strategies 106

Contents

3.4

vii

Using Systems for Competitive Advantage: Management Issues 111
Sustaining Competitive Advantage 111 • Aligning IT with Business
Objectives 111 • Managing Strategic Transitions 112

3.5

Hands-on MIS Projects 113
Management Decision Problems 113 • Improving Decision Making: Using a
Database to Clarify Business Strategy 113 • Improving Decision Making:
Using Web Tools to Configure and Price an Automobile 114

Learning Track Module: The Changing Business Environment for Information
Technology 115
Review Summary 115 • Key Terms 116 • Review Questions 116 • Discussion
Questions 117 • Video Cases 117 • Collaboration and Teamwork: Identifying
Opportunities for Strategic Information Systems 117
◆Case Study: Will TV Succumb to the Internet? 118

Chapter 4

Ethical and Social Issues in Information Systems 120
◆Opening Case: Behavioral Targeting And Your Privacy: You’re the Target 121
4.1
Understanding Ethical and Social Issues Related to Systems 123
A Model for Thinking About Ethical, Social, and Political Issues 124 • Five
Moral Dimensions of the Information Age 125 • Key Technology Trends
That Raise Ethical Issues 126
4.2
Ethics in an Information Society 129
Basic Concepts: Responsibility, Accountability, and Liability 129 • Ethical
Analysis 129 • Candidate Ethical Principles 130 • Professional Codes of
Conduct 131 • Some Real-World Ethical Dilemmas 131
4.3
The Moral Dimensions of Information Systems 131
Information Rights: Privacy and Freedom in the Internet Age 131 •
Property Rights: Intellectual Property 138 • Accountability, Liability, and
Control 141 • System Quality: Data Quality and System Errors 143 •
Quality of Life: Equity, Access, and Boundaries 143
◆Interactive Session: Organizations The Perils of Texting 147
◆Interactive Session: Technology Too Much Technology 151
4.4
Hands-on MIS Projects 153
Management Decision Problems 153 • Achieving Operational Excellence:
Creating a Simple Blog 154 • Improving Decision Making: Using Internet
Newsgroups for Online Market Research 154
Learning Track Modules: Developing a Corporate Code of Ethics for Information
Systems 155
Review Summary 155 • Key Terms 155• Review Questions 156 • Discussion
Questions 156 • Video Cases 156 • Collaboration and Teamwork: Developing a
Corporate Ethics Code 156
◆Case Study: When Radiation Therapy Kills 157

viii

Contents

Part Two

Information Technology Infrastructure 161

Chapter 5

IT Infrastructure and Emerging Technologies 162
◆Opening Case: BART Speeds Up with a New IT Infrastructure 163
5.1
IT Infrastructure 165
Defining IT Infrastructure 165 • Evolution of IT Infrastructure 166 •
Technology Drivers of Infrastructure Evolution 170
5.2
Infrastructure Components 175
Computer Hardware Platforms 175 • Operating System Platforms 177 •
Enterprise Software Applications 177
◆Interactive Session: Technology New to the Touch 178
Data Management and Storage 179 • Networking/Telecommunications
Platforms 180 • Internet Platforms 180 • Consulting and System
Integration Services 181
5.3
Contemporary Hardware Platform Trends 181
The Emerging Mobile Digital Platform 181 • Grid Computing 182 •
Virtualization 182 • Cloud Computing 183 • Green Computing 184 •
Autonomic Computing 185 • High-performance and Power-saving
Processors 185
◆Interactive Session: Organizations Is Green Computing Good for Business? 186
5.4
Contemporary Software Platform Trends 187
Linux and Open Source Software 187 • Software for the Web: Java and Ajax
188 • Web Services and Service-Oriented Architecture 189 • Software
Outsourcing and Cloud Services 191
5.5
Management Issues 194
Dealing with Platform and Infrastructure Change 194 • Management and
Governance 194 • Making Wise Infrastructure Investments 195
5.6
Hands-on MIS Projects 198
Management Decision Problems 198 • Improving Decision Making: Using a
Spreadsheet to Evaluate Hardware and Software Options 198 • Improving
Decision Making: Using Web Research to Budget for a Sales Conference 199
Learning Track Modules: How Computer Hardware and Software Work; Service
Level Agreements; The Open Source Software Initiative; Comparing Stages in IT
Infrastructure Evolution 200
Review Summary 200 • Key Terms 201 • Review Questions 202 • Discussion
Questions 202 • Video Cases 202 • Collaboration and Teamwork: Evaluating Server
Operating Systems 202
◆Case Study: Salesforce.com: Cloud Services Go Mainstream 203

Chapter 6

Foundations of Business Intelligence: Databases and
Information Management 206
◆Opening Case: RR Donnelley Tries to Master Its Data 207
6.1
Organizing Data in a Traditional File Environment 209
File Organization Concepts 209 • Problems with the Traditional File
Environment 210

Contents

6.2

ix

The Database Approach to Data Management 212
Database Management Systems 212 • Capabilities of Database Management
Systems 217 • Designing Databases 219

6.3

Using Databases to Improve Business Performance and Decision
Making 221 • Data Warehouses 222 • Tools for Business Intelligence:
Multidimensional Data Analysis and Data Mining 224

◆Interactive Session: Technology What Can Businesses Learn from Text
Mining? 227
Databases and the Web 228
6.4
Managing Data Resources 230
Establishing an Information Policy 230 • Ensuring Data Quality 230
◆Interactive Session: Organizations Credit Bureau Errors—Big People
Problems 232
6.5
Hands-on MIS Projects 234
Management Decision Problems 234 • Achieving Operational Excellence:
Building a Relational Database for Inventory Management 235 • Improving
Decision Making: Searching Online Databases for Overseas Business
Resources 236
Learning Track Modules: Database Design, Normalization, and EntityRelationship Diagramming; Introduction to SQL; Hierarchical and Network Data
Models 236
Review Summary 237 • Key Terms 238 • Review Questions 239 • Discussion
Questions 239 • Video Cases 239 • Collaboration and Teamwork: Identifying
Entities and Attributes in an Online Database 239
◆Case Study: The Terror Watch List Database’s Troubles Continue 240

Chapter 7

Telecommunications, the Internet, and Wireless
Technology 244
◆Opening Case: Hyundai Heavy Industries Creates a Wireless Shipyard 245
7.1
Telecommunications and Networking in Today’s Business World 247
Networking and Communication Trends 247 • What Is a Computer
Network? 247 • Key Digital Networking Technologies 250
7.2
Communications Networks 252
Signals: Digital vs. Analog 252 • Types of Networks 253 • Physical
Transmission Media 255
7.3
The Global Internet 257
What Is the Internet? 257 • Internet Addressing and Architecture 258 •
Internet Services and Communication Tools 261
◆Interactive Session: Organizations The Battle Over Net Neutrality 262
◆Interactive Session: Management Monitoring Employees on Networks:
Unethical or Good Business? 266
The Web 268
7.4
The Wireless Revolution 275
Cellular Systems 276 • Wireless Computer Networks and Internet
Access 276 • RFID and Wireless Sensor Networks 279

x

Contents

7.5

Hands-on MIS Projects 282
Management Decision Problems 282 • Improving Decision Making: Using
Spreadsheet Software to Evaluate Wireless Services 282 • Achieving
Operational Excellence: Using Web Search Engines for Business
Research 282

Learning Track Modules: Computing and Communications Services Provided by
Commercial Communications Vendors; Broadband Network Services and
Technologies; Cellular System Generations; Wireless Applications for CRM, SCM,
and Healthcare; Web 2.0 283
Review Summary 284 • Key Terms 285 • Review Questions 286 • Discussion
Questions 286 • Video Cases 286 • Collaboration and Teamwork: Evaluating
Smartphones 286
◆Case Study: Google, Apple, and Microsoft Struggle for Your Internet
Experience 287

Chapter 8

Securing Information Systems 290
◆Opening Case: You’re On Facebook? Watch Out! 291
8.1
System Vulnerability and Abuse 293
Why Systems Are Vulnerable 293 • Malicious Software: Viruses, Worms,
Trojan Horses, and Spyware 296 • Hackers and Computer Crime 298 •
Internal Threats: Employees 302 • Software Vulnerability 303
◆Interactive Session: Management When Antivirus Software Cripples Your
Computers 304
8.2
Business Value of Security and Control 305
Legal and Regulatory Requirements for Electronic Records
Management 306 • Electronic Evidence and Computer Forensics 307
8.3
Establishing a Framework for Security and Control 308
Information Systems Controls 308 • Risk Assessment 309 • Security Policy
310 • Disaster Recovery Planning and Business Continuity Planning 310 •
The Role of Auditing 312
8.4
Technologies and Tools for Protecting Information Resources 312
Identity Management and Authentication 312 • Firewalls, Intrusion
Detection Systems, and Antivirus Software 314 • Securing Wireless
Networks 316 • Encryption and Public Key Infrastructure 317 • Ensuring
System Availability 318 • Security Issues for Cloud Computing and the
Mobile Digital Platform 320 • Ensuring Software Quality 320
◆Interactive Session: Technology How Secure Is the Cloud? 321
8.5
Hands-on MIS Projects 323
Management Decision Problems 323 • Improving Decision Making: Using
Spreadsheet Softwa...

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