A n i n t r o d u c t i otno I n f o r m a t i oS

nysterns C f r u , p t " "f

I

i ' sterclsg{sw*ffikxrywt\wm
mmffi
&"mw*ymaw
' : :st rwo steps
of systems development are systems investigation and analysis. The goal
-- - -:"".steftK
inuexigation is to gain a clear understanding of the problem to be solved or
': .:-,:nity
to be addressed.A cruise line company, for example, may launch a sysrems
,, :-:ation to determine whether a development project is feasibleto automare purchasing
: : : -saround the world. Once an organization understands the problem, the next question
:. :rsrvered is, "Is the problem worth solving?" Given that organizations have limited
,::es-people and money-this question deservescareful consideration. If the decision
' ::ntinue
with the solution, the next step, slstemsanalysis, defines the problems and
:. -:-inities of the existing sysrem.

ll 'l ; t e m s f f i * w \ g m#or w a p T * m w m k mW
t xm
wamm
, t w m m f&
f im
* &f fpi
,'iew
' :- c.'esign determines how the new system wili work to meer the business needs defined
. - si-stems
i analysis. Systemsimpleruenatioz involves creating or acquiring the various
-:-:. :omponents (hardware,
software, databases,etc.) defined in the design srep, assem-
: -jrem, and putting the new system into operation. The purpose of systemsmaintanance
":: : etu is to check and modi$' the sysrem so that it continues to meer changing business

lruF#ffir4eKfrffiw
%w%y#'ws
&w%ffiffi&wTw
r ww%ww{"w%%r
&Wffi&WWW$KWW
w
-::.-:;ion systems
have been developed ro meer the needs of all rypes of organizations and
: .. and their use is spreading throughout the world to improve the lives and business
-.. of many [Link] to provide their enormous benefits, information sysremsmusr
* , .:mented
thoughtfully and carefully. The speed and widespread use of information
:.-: oPensorganizationsand individuals to a variety ofthreats from unethical people.

,r, ::,;nityuWrarawxg,
mm& W"kfuxxmT
&mwuxwm
an&rnYwrwwmtawyh
j i:emc&m&&fu*&mk*rn*t
_:: information systemscan provide enormous benefits, there are a number ofpotential
I. ' : aspectsto their use.35Figure 1.18, for example, shows the percenrageof businesses
:::: organizationsattacked by various means in a one-year period. Figure 1. 19 reveals
t, '.i lossesduring a one-yearperiod of about 250 organizations that responded to a
. :,
- .:iition to attacks
on information systems, computer resources can be wasted, and
; -,=r-related mistakes and misuse have cost organizations millions of dollars. In an act
r : .-ii. or€ fired employee in Australia used a computer to hack into a seweragesysrem
': .:-:d millions
gallons of raw waste into rivers and parks.36He releasedraw waste more
- . ,rmes before he was caught. Computer crime and the invasion of privacy are also
, -. -- rroblems.37
--'.'.ingly, the
ethical use of systemshas also been highlighted in the news. Ethical
: - : .::ern what is generally considered right or wrong. Some IS professionals believe that
'--::s may
create new opportunities for unethical behavior. For example, a faculry
.-- :ia medical school falsified computerized researchresults to get apromorion-and
- -: ..:iary. In another case,a company was charged with using a human resource infor-
- - i rem to
time employee layoffs and firings to avoid paying pensions. More and more,
-::-:t is also associatedwith unethical behavior. Unethical investors have olaced false
' -: \\'rong information
about a company on the Inremet and tried to influence its

1
 Part 1 | l n f o . t . t i o n T e c h n o l o qCyo n c e p t s

TYPE OF ATTACK
@ Virug
Attacks on Businessesand
lnsidar abuse o{
Other0rganizationsin 0ne lntgrnet acceEs
Year
l*aPtoPtheft
lsource: DatafromRivaRichmond,
"Howto FindYourWeakSPots,"/he Unauth0!"izedaccessbY
iilsiderg
29,
Wal!StreetJournadSePtember Senial 0f servife
2993, p. R3.)
gystem Penetrati0n

Th€ft of ProPrietarY
information
Sabotage

Financiaifraud

f raud
Teteeommunicatiens
Te[ecommunications
eavesdroPPlng
Active wiretaP

18a/a E0% ?Qa/a 1$0%

OF
PERCENTAGE
ATTACKED
ORGANIZATIONS

CAUSE
@ Thelt af ProFrietarY
informati0tl
The Costand Causeof
ComputerAttacks nenial 6f service

(Source,DatafromRivaRichmond, Virus
"Howto FindYourWeakSPots,"
Ihe
29, lnsider abuse of
WallStreetJournadSePtember lnteln€t asceSs
2003,p. R3.l
Financialfraud

LaPtoPtheft

SaltDtage

System Penetratidn

A,€tivewiretaP

{raud
Tel€cornmuilieations
UnauthorizedascessbY
insid*rg
Tetecornsnunications
eavesdroPPing
70 80 90 30u
cosT
OFDOLLARsI
IMILLIONS

issue.A few weeksbeforethe $100-

stock price to make money. Stolenproperty is another
million fi;m,Hulh,nr* tii tht big 'i"*' pi'"ttd copieswereavailableon the Internet' after
beforeits formal release'38
a man in New Jerseygot an illeg"i "opy of tht film
.ond,r.t to foster ethical behavior in the use of
Many organizationsh"u. Jod., lf
measuresare controversial'however'
irrf*^"iior, ,yra.^r. So,,,. oth.r secutity^androntrol
11 2001, tefrolist attacks'requires
The uSA PatriotAct, enactedasa resultof the September ,
USA Patriot Act can require
;;n**, to resPond,"-" t*Cft"""-in five dy.":t fewer' The
asbooks checkedout at a
;;;;;;;"", .o ,,rpply n.r"rr"ia and personal-information,such
usesa new computersystemto collect
library. Like many comp"^"*, S"*i omo Mitsui Bank
 An Introductionto InformationSystems I Cnapter f

'\Tithout
any necessary data and make it availableto governmentagenci€s. the new in-
lEnrmrtionsystem,it could take weeksjust to collect the neededdata.3eSomebelievethat
mmisions in this act mayviolate an individual's privacy.
Individualsand organizationscan install securityand control measuresto proted them-
wftrcsagainstsome of the potential negativeaspectsof [Link] example,a
lnmrnherof software products have been developedto d€tect and remove viruses from
[Link] from spam,[Link]
rymrnrms canhelp reducecrime [Link] freecomputercenterin tVellington, New Zealand,
lflimsrtvandalismby keepingyoung peopleoffthe streetand giving peoplein the community
;mrmnse of pride. \Whena pair of headphonesdisappearedfrom the center,the community
mllffiedto make sure that they were promptly returned.
Some individuals and companies install frewalb (software and hardware that protect a
(@puter systemor nerwork from outsideattacls) to avoidvirusesand preventunauthorized
grypft from gaining accessto the computer [Link] numbersand passwords
mmalsobe [Link] individual hasproposedthat \7eb carnerasbe put in critical areasand
*citizen
ruffisa spotters"be hired to monitor the \7ebcams.42In responseto possibleabuses,a
mmnlreroflaws havebeenpassedto protect peoplefrom invasionof their privacy,including
"nM PrivacyAct, enactedin the 1970s.
Use of information systemsalso raisesa number of work concerns,including job loss
nnhmghincreasedefficiency and some potential health problems from making repetitive
mions and other workplace [Link],the study of designingand positioning
{@rn[rltersystems,can help people and companiesavoid health-relatedproblemsof using
@LmP,uref systems.

Gernputerand InformationSystemsLiteracy
[M &e twenty-first century, bgsinesssurvival and prosperiry continue to become more
dt&mulr For example,increasedmergersamong former competitorsto createglobal con-
qil&merates, continued downsizingof corporationsto focus on their core businesses and to
iiihryruve
efficiencies,effortsto reducetradebarriers,and the globalizationof capitalall point
mo,dheincreasedinternationalizationof businessorganizationsand markets. In addition,
lll&mr;mess
issuesand deiisions arebecoming more complex and must be madefaster.\Thatever
oo-mt path you take, an understandingof information systemswill help you cope, adapt,
m$ prosperin this challengingenvironment.
The Internet is one means for advancing your knowledge of information systemsand
fficr professionalstudy. lncreasingly,coursesor entire degreesare being offered over the
mfr'rn€r. One Harvard University professor, for example, staysup late at night to teach a
u&lhnondinical designto doctorsin Asia.43In addition to traditional collegesand universities,
iilemmberof online degreeprogramsareofferedover the Internet.44Online degreeprograms
;mrccqpeciallyaffractive to people with full-time jobs becausethey can learn during nontra-
,ffinal hoursfrom [Link]\flhile somepeoplequestionthe valueof theseonline programs,
believe they foster motivation and determination in working professionals.
A knowledgeof information systemswill help you make a significant contribution on
rn*[Link] will alsohelp you advancein your chosencareeror field. Managersare expected
moi&ilendfr opportunitiesto implement information systemsto improve their [Link]
iho expectedto lead IS projectsin their [Link] meet thesepersonaland
pfuational goals,you must acquireboth computer literacy and information systemslit-
: Computer literacy is a knowledge of computer systemsand equipment and the ways computerliteracy
u\r$rnction. It stresses equipmentand devices(hardware),programsand instructions(soft- Knowledge of computersystems
daabases, and telecommunications. andequipmentandthe waysthey
function;it siressesequipmentand
&formation systemsliteracy goesbeyond a knowledge of the fundamentals of computer programsand
devicesIhardware],
and equipment. Information systems literacy is a knowledge of how data and in- instruciionsIsoftware],databases,
iffimrsrionare usedby individuals,groups,and [Link] includesknowledgeof not andtelecommunications.
q)mputer technologybut alsoaspectsof the broaderrangeof information technology.
 Part 1 | I n f o r m a t i oTn e c h n o L o C
g yo n c e p t s

inf ormation systems Literacy Most important, however, it encompasseshow and why this technology is applied in busi-
Knowledge of howdataand infor- ness. Knowing about various rypes of hardware and software is an example of computer
mationare usedby individuats, Iiterary. Knowing how to use hardware and software to increase profits, cut costs, irnprove
g r o u p sa, n do r g a n i z a t i o n s .
productivity, and increasecustomer sadsfaction is an example of information systemsliterary.
Information systems litruacy can involve a knowledge of how and why people (managers,
employees, stockholders, and other individuals) use information technology; a knowledge of
organizationp, decision-making approaches, management levels, and information needs; and
a knowledge of how organizadons can use computers and information systems to achieve
their goals. Knowing how to deploy transaction processing, management information,
decision support, and special-pulpose systems to help an organization achieve its goals is a
key aspect of information systems literacy.

!nformationSystemsin the Funetisna{Areas *f Susiness

Studies have shown that the involvement of managers and decision makers in all aspects of
information sysremsis a major factor for organizational success,including higher profits and
lower costs. Information systems are used in all functional areasand operating divisions of
business. [Link] and anounting, information systems are used to forecast revenues and
business activity, determine the best sources and uses of funds, manage cash and other fi-
nancial resources,analyze investments, and perform audits to make sure that the organization
is financially sound and that all financial reports and documents are [Link] salesand
marketing,information qysremsare used to develop new goods and services(product analysis),
determine the best location for production and distribution facilities (place or site analysis),
derermine the best advertising and sales approaches (promotion analysis), and set product
prices to get the highest total revenues (price analysis).
In rnanufacnring, information systemsare used to processcustomer orders, develop pro-
duction schedules, control inventory levels, and monitor product qualiry. In addition,
information systems are used to design products (mmputer-asisted design, ot CAD), manu'
facture items (computer-assistedmanufaauring, or CA-MI),and integrate multiple machineq or
pieces of equiprnent (corrquter-integrated manufacturing or [Link] systems are
also used in human resourrc management to screen applicants, administer performance tests
to employees, monitor employee productiviry, and more. Legal information systemsare used
to analyzeproduct liabiliry and warranties and to develop important legal documents and
feports.

Systemsim *nd**stry
tnforryaaticn
lnformation sysremsare usedin almostwery industry or field. The airline industryemploys
Internet auction sitesto offer discount faresand [Link] f'rms use in-
formation s).6tems to analyzn stocks, bonds, options, the futures market, and other financial
insrruments,aswell as to provide improved services to their customers. .Bzalsuse information
systemsto help make sound loansand good investments,aswell asto provide online check
paymentfor [Link] trdnsportdtionindustryusesinformation systemsto sched-
ule trucks and trains to delivergoodsand servicesat the [Link]
information sysremsto analyznmarketsand to developand publish newsPaPers, magazines,
and [Link] systems to diagnose illnesses,plan med-
ical treatment,track patient records, and bill padents. HMOs use \7eb technolory to access
patients' insuranceeligibility and other information held in databases to cut Patient costs.
Raail companies are using the \feb to take customer orders and provide customer service
[Link] information systems to help market products and services,
manageinventory levels,control the supply chain, and forecastdemand. Power manage-
rnentar\dutility conqaniesuseinformadon systemsto monitor and conuol Powergeneration
and [Link] seruicesfrms employ information systemsto improve the speedand
qualiry lf ,.*i... they provide ro [Link] firms use intranets
and extranetsto provideinformation on products,services, skill levels,andpastengagements
to its [Link] be discussed in more detail aswe continue through
the book.
 A n l r t r o d u u r i o r 'Ion [ o - r a -o . / s 1 6 T s Cnapter f
I

rc

. -') f h e . e a r e f o u - o a s i cr y p e so I m o d e L sn: a r r a t i v eo, h y s i c a t ,

..ie 0f [mfonnnation s c h e n , a L i ca, n d m a l h e m a L r c a TL h. e s e m o d e l s s e r v e a s a n
[[mkedto Erow[t
is ddnect[y
a b s l r a c t i o no r a n a p p r o xr r a L i o nl h a t i s u s e d L o r e p r e s e n t
r,.eisioalmakers asfindeve
the ongamlzatt@m"g
r e a l i t v .M o d e l s e n a b l eu s L o e x o L o r ea n d o a i n a n i m o r o v e d
u n d e . s t a n d i n og f r e a l w o r l d s i t - a t i o n s T. r J r a r - a r i v em o d e L
, . ^ s y s t e masr eu s e di n a l m o set v e r yi m a g i n a b l e p r o v i d e sa v e r b a Id e s c r i o l ' o no f r e a L ' L A y . p ^ y s ; c am
L o d e Li s a
., R e g a r d l e s so f y o u r c o [ L e g em a j o r o r c h o s e n i a ^ g i b L ree p r e s c n r a t i oonf r e a l i t Vo, f L e nc o m p u L edr e s i g n e d or
. . . Lf i n dt h a t i n f o r m a L i osny s l e m sa r e i n d i s p e n s c o n s i r u c r e dA. s c h e " q a t i m c o d e l . s a g r a p h ' cr e p r e s e n i a L i o n
. - r e L py o u a c h i e v ey o u r c a r e e ra^s p i r a t i o n sL. e a r n - o ' r e a t i t ys u c ha s a g r a p h c, h a ' i ,i i g - - e ,d i a g r a mi,L l u s t r a t ' o n ,
' '[Link] o r p i c t u r eA . m a L le- m at i c a Im o d e Li s a n a r i t . m e l c r e p r e s e n
s y s l e m sc a n l ' e L py o t ,g e t y o u r f i r s rj o b ,
- -
. l t ; o n s .a n d a d v a n c ev o u r c a r e e T . i a t i o no i r e a i i t y .
. - s s t s o f r a w f a c t s : i n f o r m a i i s ni 5 l 6 l s l r a n s -
'' .';...'';;,i";;' T;.;;;;.., .' o.''.'.n F::3nei";s:e
';
b e t w e e nd a l a r e q u i r e sk n o w L e d g eK. n o w t e d g e
. - : s s a n d u n d e r s t a n d i noof a s e Lo f i n f o ' m a i i o na n d Kmotrrlmgthe poilentlaIlrrnpaet oi lmfo,nlrnatl@n
systehns
"made
'=
i r f o r m a t i o nc a n b e u s e fu L L o s u p p o r ra an€l[na\vgngthe rhitity io pr"rtt[ris 0<novt[.edge
te wor't
: . T o b e v a l u a b L ei n. f o r m a L i o m n u s t h a v es e v e r a I can resru[,t
ima sueees:L'rilLpensonaIeanectr, @;ga0nBza-
. . c s : l Ls h o u L ob e a c c u r a L ec,o m p l e r ee, c o n o m i c a I reachtireIngoals, amda soe[et]rwith a hlgher
tionas',ihall
. ' l e x i b L er ,e L i a b t er ,e L e v a n st ,i m p L et o u n d e r s r a n d , [Link]
o; [frie.
: o L e ,a c c e s s i b L aen , d s e c r r r eT h e v a l r . eo f i n f o r -

. :*ill;;;
;";; ;;i;';"0''
l*'*.'n''' llil ili"i;:i:Til::.=: "-'J:t::J::j
i::lJHffi':::: n a i e I o u t p u Ld) a t a a n d i r f o r n - a f i o n r. ^ p - t i s t h e a c t i v , t yo t
c a p t u r"i g a n d g a L h e rnig n e w d a L a ;p r ^ o c e s s i ni ngv o l v e sc o r ' -
- : j
v e r l i n go r L r a n s f o r m i ndga t a i n r o u s e f u Lo u t p u L sa; n d o u t o u t
:u*p*t*u'so and snfoncmation systems ar-e i n v o L v epsr o d u c i n gu s e f u l ^ f o " m a l i o n . ,ef e d o a c <s l h e o ul p u l
, " : y m a k E n g[ t p o s s d h t e L h a lt s u s e dl o m a k ca d j u s t m e n Losr c h a n g e st o i n p u fo r p - o -
f o n o r g a m d z a t i ot om s
= ;hewayt[leyeomduet busfrncss. "t; ;:.lt;';llln,. comouLer-basedinrormat ionsvsLem
",.
, : s e t o f e t e m e n L st h a t i n L e r a c L oa c c o m p L i s ah i n c i u d eh a r d w a r es. o i t w a r e d. a t a b a s e sL. e L e c o m m u n i coanl s
' and fhe Inter^nep t ,c o o L e a, n d p r o c e d u r e s C . B I S s p L a ya r -
. r o j e c t i v e sT.h e c o m p o n e n t so l a s y s t e mi n c L u d e
; m p o r i a n Ir o l e i r l o d a ys b u s ^ e s s e sa n d s o c i e l y .I h e < e y t o
, - r r i n g m e c h a n i s m sa, n d o u t p u t s .S y s L e m sa L s o
l a r i e s t h a Ls e p a r a t ei h e m f r o m t h e e n v i r o n m e n L u n d e r s t a n d i n gL h e e x r s L i n vg a r i e . yo f s y s f e ^ r sb e g i n sw i L r
-er. L e a r n i n gl h e i r i . r " c i a m e n l a l T
s .h e r y p e so f b u s i n e s si n f o r m a -
F e c d b a c ki s u s e d b y t h e s y s t e r rt o m o r i l o r
. : s o p e r a r i o nt o m a k e s u r e l h a t i t c o n f i n u e st o L i o ns y s i e m su s e dw , . h i " o r g a n i z a L i o nc sa n b e c t a s s i e t d inLc
: and objecLives. m a y b e c t a s s irfe d i n f o u r b a s i cg r o J p s :[ 1 ]e - c o m n e r c ea n d r r c o m m e r c e ,t 2 l t P S
!1ste1s a n d L R P s y s t e m s1, 3 lf l l s a n d D S S ,a " d [ 4 ] s p e c i a i i z ebdu s i -
neymay Deconsr0ereo s r m p L eo r c o m 0 L e xA.
- : a p t i v es y s t e md o e sn o t c h a n g eo v e r r i m e ,w h i L e n e s s i n f o r m a i i o ns v s t e m s .
. =- a p t i v es v s i e md o e s .O n e ns v s L e m si n t e . a c w i ilh E - c o m m e ' c ei n v o l v e sa n v o u s . n e s si - a n s a c L i oenx e c u t e d
'' - e I e c L r o n i c a tb! e t w e e np a r t i e ss - c h a s c o m p a n i e s{ b u s i n e s s
n e n L s : c l o s e ds v s l e m sd o n o L .S o m e s v s i e m s
-:-iLy; permanent. t o - b u s i . e s s l .c o m o a n i e sa n d c o n s u m e r sI b u s i n e s s - L o - c o n
o t h e r sa r e c o n s i d e r e d
: : T o . m a r c e i s m e a s u r e db v i L s e ff i c i e n c va n d s u . n e r ] .b - s i n e s sa n d t h e o u b L i cs e c L o ra. n d c o n s u m e T a snd
. . = . F ff i c i e n c yi s a m e a s u r e o f w h a t i s p r o d u c e d t n " o r o L i .s e c t o r . I h e m a i o r v o L u m eo i e - r o m m - o r c ea n d i L s
-at.s consumed: f a s t e s l - g r o w . n sge g m e n t i s o u s i n e s s - L o - b u s i n efsr sa n s a c -
e f f e c t i v e n e si ss a m e a s u r eo f
. , v h i c ha s y s l e m a c h i e v e si t s g o a t s .A s y s L e m s L i o n st h a t m a h e p u r c h a s i n eg a s : e .I o . o i g c o r p o r a t i o n sE.-
. s t a n d a r di s a s p e c i f i co b j e c t ' v eA. s y s L e mv a r i - c o m m e T Cael s oo f f e r so p p o r r u n i L i e s 'sorra L I o u s i n e s s ebsy
, - r t yo r i t e m t h a tc an b e c o n I r o L L ebdy L l ' ed e c i s i o n enabling l h e mt o m a r k e r a n d s e I a ta I o w c o s L w o r . d w i d e , r n u s
' a t l o w i n gL h e mI o e n i e rt h e g l o b a lr ^ n a r k e; lg f r lI 1 6 ms l a r f u p .
: s h o w ' n u c h o { a p r o d u c lt o p r o d u c e w , hilea
- - : - n e t . e irs a v a l u e o r q u a n t i t yl h a t c a n n o t b e c o n - M - c o m m e r c e i n v o t v e sa n y t i m e ,a n y w h e - ec o m p - L i ^ g t h a t
, , - a s t h e c o s to f r a w m a t e r i a L . r e L i e so n w i r e L e s n
s e L w o r k sa n d s y s t e m s .
 Partl I anOu..i.*

T h em o s If u n d a m e n Lsayls t e m i s t h et r a n s a c t l opnr o c e s s - Frinciple

i n g s y s i e m { T P S l .A i r a n s a c t i o ni s a n y b u s i n e s s - r e L a t e d Systern users, business trnanagers,and informatior
e x c h a n g eT.h e T P S h a n d t e st h e L a r g ev o t u m eo t b u s r n e s s a
systems professionats must work together to buitd
L r a n s a c t i ot nh sa to c c u r d a i l ' y w i t ah ni no r g a n i z a t i oAnne n t e r - successfu[ i nforrnation system'
p r i s er e s o u r c ep l a n n i n g[ E R P )s y s t e mi s a s e t o f i n t e g r a t e d
p r o q r a mtsh a ti s c a p a b [oef m a n a g i nagc o m p a nsyv l t a b l usl- S y s t e md s e v e L o p m ei nn tv o t v ecsr e a t i n go r m o d i f y i negx i s L ' r
n e s so p e r a t i o nf os r a n e n i i r em u l t i s i t eg'l o b aoLr g a n i z a t i o n ' b u s i n e sssy s L e m T s .h em a j o rs t e p so f t h i sp r o c e s as n dt n e
T h e m a n a q e m e ni n L l o r m a L i osny s t e mt M l S l u s e s t h e o o a t si n c L u dsev s i e m isn v e s t i q a t i(ogna i na c L e aur n d e r s t a r :
i n f o r m a t i ofn. o m a T P St o g e n e r a t ien f o r m a t i ouns e f u If o r i l q o fw h a tt h ep r o b l e m i s ) 's y s t e m as n a t y s Ii sd e f i n w e h a tL - '
n a k i n gM. a n a g e m eInntt o r m a t l os ny s - , u r L . t m u s td ot o s o l v et h ep r o b L e m ) 's y s L e m d se s i g nI d e t e '
m a n a g e m e dn ei c i s i om
d p o r t sc o n L a r n m i n ee x a c L thyo wt h e s y s t e mw i L [ w o r k t o m e e t t h e b u sine'
t e m sp r o d u c ea v a r i e t yo i r e p o r t sS c h e d u L er e
o r a c q u i r t
e h eva-
p r e s p e c i f i eidn f o r m a L i oann d a r e g e n e r a t e dr e g u I a r l y ' n e e d s ls,v s i e m si m p t e m e n t a t iIocnr e a l e
d e s i g ns t e p J a' -
D e m a n dr e p o r t sa r eg e n e r a t eodn l ya I t h er e q u e sot l t h e u s e r ' o u s s v s t e mc o m p o n e n tdse f i n e d i n t h e
'
L i s t i n gosf i t e m st h a td o n o Im e e La
e p o r t sc o n t a i n s v s t e m sm a i n t e n a n caen dr e v i e wI m a i n t a i n a n d l h e n m o c
E x c e p t i or n
p r e d e t e r m i n seedto f c o n d i l ' i o n s . t h e s y s t e ms o l h a l i t c o n l i n u etso m e e tc h a n g i n b gu s i n e - '
A d e c i s i osnu p p o rst y s t e m { D S Si Isa n o r g a n i z ecdo L l e c t i o n nee0sJ.
o f p e o p t ep,r o c e d u r eds a, t a b a s easn' dd e v i c e us s e dt o s u p -
n a k i n gA' D S Sd i f fe r sf r o ma n
p o r tp r o b t e m - s p e c idf iecc i s i o m
Frinaiple
M I Si n t h es u p p o rgt i v e nl ' ou s e r s L' h ed e c i s i oenm p h a s i st h' e
d e v e l o p m eannt da p p r o a c h a ,n ds y s l e mc o m p o n e n lssp' e e d ' lnformationsystemsmust be apptiedthoughtfuti:
a n do u t p u t . and carefutly so that society,business,andindustr'
T h e s p e c i a t i z ebdu s i n e s si n f o r m a t i osny s l e m si n l t u d l canreaptheir enonmous benefits
n L e I t i g e n sc yes t e m se' x p e r ts y s t e m sa, n d v l r t u a L
a r t i f i c i ai L
l n fo r m a t i o sny s t e mps t a ya f u n d a m e n l a n I de v e r - e x p a n d
r e a L i l vs v s t e m s A . r t i if c i a t i n t e l t i g e n c (eA l l i n c L u d e as w i d e -
r a n g eo f s y s t e m si n, w h i c ht h ec o m p u t esry s t e m t a k eosn L h e r o [ ei n s o c i e t yb,u s i n e s sa ,n di n d u s t r yB u tt h e i ru s ec a na
r a i s es e r i o u s e c u r i t yp, r i v a c ya,n d e t h i c aiLs s u e s F f f e c -
c h a r a c t e r i s t iocfsh u m a ni n t e l l i g e n cRe o b o L i cl ssa n a r e a0 l
i n f o r m a t i osny s t e m cs a n h a v ea m a j o ri m p a c L on c o r p o ' :'
a r t i f i c i ai nt t e L t i g e nicnew h i c hm a c h i n etsa k eo v e rc o m p l e x '
d a n g e r o u sr o, u t i n eo, r b o r i n gt a s k s ,s u c h a s w e t d i n gc a r s t r a l . e gayn do r g a n i z a t i o ns au Ic c e s sB' u s i n e s s easr o u n d
f r a m e so r a s s e m b [ i ncgo m p u t esr y s t e m sa n d c o m p o n e n L s ' g l o b ea r ee n j o y i nbge l L e r s a f eal ny ds e r v i c eg,r e a t eer l l l ce ' '
Vision s y s l e ma sL[ow robota s n do t h e rd e v i c etso h a v e
"sight' a n de f f e c t i v e n e rsesd, u c e ed x p e n s eas n, di m p r o v edde c ' s
:
a n d I o s t o r ea n d p r o c e s vs i s u a [i m a g e sN a t u r a n g u a g e [ a m a k i n qa n dc o n t r obl 'e c a u soef i n [ o r m a t i osny s t e m sl n o i
,[Link] c a nh e t pt h e i rb u s i n e s s er es a t i zteh e s eb e n e f i t s
o r o c e s s i ni qn v o l v etsh e a b i L i toy{ c o m p u t e rtso u n d e r s t a n d
b ei n d e m a n d w e Li[n L ot h ef u t u r e
a n da c to n v- e r b aol .r w r i t t e nc o m m a n disn E n g L i s S h 'p a n i s h '
o r o L h ehr u m a nL a n g u a g eLse.a r n i nsgy s t e m s g i v e
c o mputers C o m p u t ear n d i n I o r m a l i osny s L e mLsi t e r a cayr e p r e r :
ir:
t h e a b i l i t tvo l e a r nf r o mp a s tm i s t a k eos r e x p e r i e n c essu' c n u i s i t e fso r n u m e r o ujso bo p p o r t u n i t i enso'tj u s ti n L h el S
s 'h i [ en e u r a L C o m p u t e rl i t e r a c y( a k n o w l e d g e o f c o m p u L esr y s t e m s:
a s p L a y i ngga m e so r m a k i n gb u s i n e sdse c i s i o nw
n e t w o r k si sa b r a n c ho f a r t i fi c i a li 'n t e I L i g e ntchea ia I L o wcso m - e q u i p m e nat )n di n fo r m a t i o sny s t e mLs i l e r a cl ay k n o w [ e o g -
h o wd a t aa n di n fo r m a t i oanr eu s e db yi n d i v i d u a g l .rso' u p s: '
p u t e r st o r e c o g n i zaen da c to n p a t t e r n os r t r e n d sA n e x p e r l :
s y s t e mI E S Ji s d e s i g n e dt o a c t a s a n e x p e r Lc o n s u t t a nl to a o r q a n i z a l i o ni ssnJe e d etdo g e Lt h em o s tf r o ma n yi n f o r m a '
, u ! a . t . T o d a Vi n, f o r m a t i osny s l e m a s r eu s e di n a t Lt h e { u -
u s e rw h o i s s e e k i n q advice a b o u ta s p e c i f isci t u a t i o n0 r i g i -
-
naLly,the lerm virtua!reality reterredto immersivevirtual t i o n aal r e a so f b u s i n e s isn, c t u d i nagc c o u n t i nfgi n' a n c es'a
r e a L i t yi n, w h i c ht h e u s e rb e c o m e fsr - r l tiym m e r s e di n a n a r l t - m a r k e t i n qm, a n u f a c t u r i nhgu' m a nr e s o u r c em a n a g e r n : '
d ya c o m p u t e r ' a n dI e q a iLn t o r m a t i osny s t e m sI n . I o r m a t i osny s t e m as r e ; '
f i c i a L3,- D w o r t dt h a ti s c o m p t e t e Lg ye n e r a t e b f
V i r t u a rl .e a [ i t yc a na t s or e f e rt o a p p l i c a t i o nt h s a Ia r e n o tl u L t y u s e di n e v e r yi n d u s t r ys,u c ha s a i r t i n e si 'n v e s t m e nii- - -
i m m e r s i v es ,u c ha s m o u s e - c o n t r o LnLaevdi g a t i ot h n r o u g ha b a n k s ,t r a n s p o r t a t i ocno m p a n i e sp, u b t i s h i n tg? * p u f .
heatthcare f s s i o n asLe T V:' c
r e, t ai L p, o w e rm a n a g e m e npt ,r o e
t h r e e - d i m e n s i o neanLv i r o n m e not n a g r a p h i c sm o n i t o r '
s t e r e ov i e w i n gf r o m t h e m o n i t o rv i a s t e r e og l a s s e ss' t e r e o a n dm o r e .
p r o i e c t i osny s t e m sa, n do t h e r s
 to lnformationsystems
An Introduction I Cfrapter r

ER, 1: [Link] TEST

v'alueof information is direcdy linked to how it helps c. sotrware

ion makers achieve the organization's goals. d. transaction processing sYstem

A intt) is a set of interrelated com- 9. Payroll and order processing are examples of a computer-
that collect, manipulate, and disseminate data and ized management information system. True or false?
flmir€nts rVhat
iffirmation and provide a feedback mechanism to meet an l0. type of system is used when the problem is complex
,iffiiective. and the information needed to make the best decision is
letters, and other characters are represented by
$rilnrmbers, difficult to obtain?

a. TPS
a- image data b. MIS
b. numeric data c. DSS
c. alphanumeric data d. AI
d symmetric data 11. involves anytime, anywhere com-
ffirnowledgeis an awarenessand understanding of a set of merce that useswireless communications.
iihdormation. True or false? System users, business managers, and information systems
computers, and information systerns are constantly professionals must work together to build a successfrrlinfor-
it possible for organizations to improve the way they mation system.
business. 12. \7hat determines how a new qFstemwill work to meet the
A [eo) is a set of elements or comPo- business needs defined during sptems investigation?
mmr61l2ginteract to accomplisha goal. a. systemsimplementation
W,'hichof the following is a way to classif' systems? b. systems review
[. permanent-temPorary c. systems dwelopment
b. simple-dynamic d. systems design
c- input-output Information qctems must be applied thoughtfully and care-
d. open-adaptive frrlly so that society, business, and industry can reap their
ofphysicalmodels.
@qrbs, charts,and figuresareexamPles enormous benefits.
]ilhe or false? 13. literacy is a knowledge of how data and
foS .h" potential impact of information systems and information are used by individuals, grouPs, and
the ability to put this knowledge to work can result in organizations.
personal career' organizations that reach their
-A%&W%fiWTNV'
na&k-X",W
WW..
*WiP*wV .eM&WWW
{ W,&T
md a societywith a higher quality of life.
consists of hardware, soffware, (1) informationqFstem(Z) c(3) True (4) system(5) a (6) False
ffi {tan)
telecommunicati ons, people, and procedures.
,r,l[hmFus65, (7) computer-basedinformation sptem (CBIS) (8) c (9) False
rffimputer progralns that govern the operation of a com- (10) c (11) Mobile commerce (m-commerce) (12) d
(13) lnformation systems
mnumsystemare called
& feedback
b- feedforward

TERMS

d a t a b a s e1 9 enterprise ptanning
resource IERP]
IAll29
[Link]
s e d i n f o r m a t i o ns y s t e m d e c i s i o ns u p p o r ts y s t e mI D S S ]2 7 system 25
lilmffisl17 e - c o m m e r c e2 1 expertsystem30
r literacy35 effectiveness11 extranet20
rlffi e f f i c i e n c y11 f e e d b a c1k6
 Partl I AnOu"rui"*

f o r e c a s t i n g16 mobitecommerce 22
Im-commercel s y s t e mp a r a m e t e r1 1
h a r d w a r e1 7 m o d e 1t 3 s y s t e mp e r f o r m a n c es t a n d a r d11
i n f o r m a t i o n0 5 networks19 s y s t e mv a r i a b [ e1 1
i n f o r m a t i o ns y s t e mI l s l 0 4 o u t p u1t 6 s y s t e m sd e v e l o p m e n3t 2
i n f o r m a t i o ns y s t e m sl i t e r a c y3 6 procedures 21 t e c h n o t o g yi n f r a s t r u c t u r e17
i n p u t1 5 process06 t e [ e c o m m u n i c a t i o1n9s
l n t e r n e t19 processing 15 t r a n s a c t i o n2 5
i n t r a n e t2 0 software18 t r a n s a c t i o np r o c e s s i n gs y s t e m[ T P S I
k n o w t e d g e0 7 system08 25
k n o w l e d g eb a s e3 0 systemboundary 09 v i r t u a Ir e a t i t v3 0
m a n a g e m e n itn f o r m a t i o ns y s t e m
IMls]26

t t I

liter'
lfstlms

DISCUSSION QUESTIONS

1 . \Vhy is the study of information systemsimportant to you? 6. Describe the "ideal" automated auto license plate renewal
\What do you hope to learn from this course to make it system for the drivers in your state. Describe the inpuu,
worthwhile? processing, output, and feedback associated with this
z - \Vhat is a database?\ilZhy is it an important part of a com- system.
puter-based information system? 7. How is it that useful information can varywidely from the
\X4rat is the difference between e-commerce and m-com- quality attributes of valuable information?
merce? 8. Discuss the potential use of virtual reality to enhance tle
4 \7hat is the difference between an MIS and a DSS? learning experience for new automobile drivers. How mighr
5 Suppose that you are a teacher assignedthe task ofdescrib- such a system operate? \fhat are the benefits and potentid
ing the learning processes of preschool children. \7hy disadvantages of such a system?
would you want to build a model of their learning pro- 9. Discuss how information systemsare linked to the businesr
cesses? \7hat kinds of models would you create?\Vhy might objectives of an organization.
you create more than one tyPe of model? 10. \7hat are your career goals and how can a comPuter-basd
information system be used to aihieve them?
 An Introductionto Informationsystems I Cfrapter r

[Link] EXE RCISE S

?=pare a data disk and a backup disk for the problem- Internet, etc.). Use word processing software to Prepare a
;clving exercisesand other computer-basedassignments one-page summary of the different resourcesyou tried and
rm will completein this [Link] directoryfor each their easeof use and effectiveness'
c;pter in the textbook (you should have 14 directories). 4 Create atable that lists all the coursesyou are taking in the
ls 1ou work through the problem-solvingexercisesand first column. The other columns of the table should be the
tVeek l, \7eek 2'
x:nplete other work using the comPuter,saveyour assign- weeks of the semesteror quarter, such as
.rlcntsfor eachchapterin the [Link] the and so on. The body ofthe table should contain the actual
.h,bel of eachdisk, be sureto includeyour name,course,and assignments, quizzes, exams, the final exam, and so forth
v*ro;[Link] one disk write "\Torking Copy''; on the other for each course, Place the table into a database and print
mr:re"Backup." the results. Create a table in the databasefor the first three
$e*.rchthrough severalbusinessmagazines(BusinessWeek, weeks of classand print the results. Create another table in
J"rwtaterworld"PC \Yeek,etc.)for a recentarticlethat dis- the databasefor your two hardest classesfor all weeks and
;rui.i€sthe useof information technologyto deliversignifi- print the results.
nrn businessbenefitsto an [Link] use other 4 . bo ,o-. research to obtain estimates of the rate of growth
to find additional information about the same of e-commerce and m-commerce. use the plotting capa-
".!ffiir,rl-rces
,u,nep-nizadon (Reafur'sGiidz to PeriodicalLiterature, online bilities ofyour spreadsheetor graphics soffivare to produce
mrerchcapabilitiesavailableat your school's library, the a bar chart ofthat growth over a number ofyears. Share
m,n:,pany's public relationsdepartment,'Webpageson the your findings with the class.

EXERCISES

il'frn'uughoutthis book, you will seehow the Internet pro- Try to obtain information on this book. You may be asked
nruidcsa vast afirount of information to individuals and to develop a report or send an e-mail message to your
unwrrnizations.\fle will stressthe \7orld lVide lVeb' or sim- instructor about what you found.
Mirre: Veb, which is an imponant pan of the Internet. 2. Go to an Internet search engine, such as [Link]'cor'1,
riiuiil*u'm
trargeuniversitiesand organizationshavean address and search for information about a company' including its
'\?'eb
illm:h: nrternet,calleda -Websiteor [Link] address site. tWrite a report that summarizes the size of the
miflmeT'eb site for this publisher is [Link]'You company, number of employees, its products, the location
;,,nuge"inaccessto the Internet through a browser,such as ofits headquafters, and its profits (or losses)for last year'
irmm:etExplorer or [Link] an Internet browser, \fould you want to work for this company?
qp,rm*e Veb site for this publisher.\Vhat did you find?
 Partl i [Link]"*

3. Using the Internet, search for information on the use of interests you. How does the organization use technolos/ to
information systems in a company or organization that help it accomplish its goals?

slFi#s,w.*F*H.,.Hst
CAREER EXERCISES

1. In the Career Exercisesfound at the end ofevery chapter, 2. Research the threecareerareasyou selectedand describethe
you will explore how material in the chapter can help you job opponunities,job duties, and the possiblestarting
excel in your college maior or chosen career. \7rite a brief salariesfor eachin a reoort.
report on the career that appeals to you the most. Do the
same for two other careers that interest you.

VIDEO QUESTIONS

\flatch the videoclip Go Inside Krispy Kreme and answerrhese 2. How haveinformation systemsassisted the many
questions: Krispy Kremefranchisesin providing consisrent
productsand servicesfor their customers?
w1 Provide a description of how Krispy Kreme is using each
of the elements of an information sysrem: hardware, soft-
ware, databases,tefecommunications, people, and proce-
dures to provide servicesfor its employees.

CASE STUDIES

Case One c a s h i e r ' sc h e c k s ,a n d o L h e rd o c u m e n t sa; n d p r o c e s s i n g

stor
p a y m e n l sT. h e s e" s l p e r A T M s a L s op r o v i d ec a r C r ^ ^ ^ ' - ^ ^ ^
Federatcredit union exptoresnew ArM
]#::: 5ii;;.,';,:;
J.#;n ..* o..u ..
J;;,;;;..;0.,',*
t a r g e t e dm a r k e L i n gm e s s a g e sT. h e ye v e nh 6 y s6 r n i s n 6 p h 6 p ;
T y n d a LFLe d e r aCLr e d i U t n i o nh a sp r o v ; d ebda n k i n o services a n d s p e a k e r sL op r o v i d ep e r s o n a aI s s i s t a n c e .0 u r m e . n b e r =
t o m i L i L a pr ye r s o n n eaIt T y n d a LALi r r o r c e B a s ei i P a r . a m a L o v et h e c o m p a c L - B A N K T s .h e y p r o v i d ef a s t s e r v i c ed u r i n c
C i t yF. l o r i d as,i n c e1 9 5 6R. e c e n t tLhyec r e d i u L n i o nh a ss t r u g - p e a kh o L r sa n d a r e b e g i n n i n gt o f u LifL L T y n d asLvLi s i o no i 2 4 r -
'
g l e dt o k e e pu p w i L ht h ed e m a n df o r s e r v i c efsr o . ni t s8 0 , 0 0 0 s e r v i c e ,s a y sJ a n e LT u r n e r ,v i c ep r e s i d e n6l f I n l s r e e t i vQ
o or-
m e m b e r sW . a i L i nl gi n e si n i L ss i xb r a n c hl o c a t i o ni sn c r e a s e d v i c e sa LT y n d a LFLC U
i n s i z e ,a n d c u s t o m e ar g g r a v a t i owna s b e g i n n i ntgo s h o w . B y i n s L a [ t i ncgo m p a c L - B A NsKt a l i o n sa r o u n dt h e P a n a n "
A L s ot ,h ec r e d i ut n i o ns h i g h t ym o b i Lm e e m b e rw s e r eu n a b I e Citvarea.
[Link].0.,=L*.= ro,"i"-**." ,.""fi'. ',,
b r a n c hi o c a i i o n sa n d i m p r o v eL o c am
"l
[ o c a r . Vo u Lt r a n s a c L i ow nh s e nt h e vw e r eo u t o f L h ec o u n t r v . L e m b e rs a L i s f a c t i o B
n .u
T v n d a LFLe d e r a t si n f o r m a t i osnv s L e mnse e d e d t o e x o a n df o w h a La b o u t h o s em e m b e r so v e r s e a sT? o a d dr e s st h e ir n e e d s
k e e pu pw i t hi t sg r o w i n gm e m b e r s h i p . T y n d a t Ft e d e ' a th i r e dF u n d s X p r e sFsi n a n c i a L N e t w o rakl ,e a d -
TyndaL F Le d e r ahLi r e dl S s p e c i a L i sf rLosmI B Mt o a s s i s it n i n g p r e v i l s r o f o n L i n ef i n a n c r a sLe r v r c e sr,o o e s i g na W e b -
d e v e l o p i nags o L u L i oInB. M p a r l n e r e w d i L hW i n c o rN i x d o r f , b a s e d b a n k i n g s e r v i c ef o r i L s m e m b e r s . N o w m e r n b e r :
d e s i g n eorf n a n tA T Mm a c h i n e st o, d e v e t owp h a IL h e cy a L L e d s t a t i o n e do v e r s e a sc a n a c c e s sb a n k s e r v i c e ss u c h a s r e a t -
t h e c o m p a c L - B A N K -A anT Mm a c h i n et h a l o f f e r sa t Lo f t h e t i m e a c c o u n tb a t a n c e sa c c o u n tt r a n s [ e r s ,e x t e n d e do n L i n e
s e r v i c east e L l epr r o v i d ei sn a b r a n c hL o c a t i oTnh. ec o m p a c L - e-maiI payments, eLecLronic sLa Lemen Ls,a1c
B A N K sg o b e y o n tdh e s t a n d a r A d T Ms e r v i c ebsy d i s p e n s i n g :;:llffl:ry,
b o L hc a s ra n dc o i n ss; c a n n i nagn dc a s h i n p g e r s o n acIh e c k s ; W h i LTey n d aFt te d e r a
h la ss o L v epdr o b [ e mf os ri t sm e m -
p r o c e s s i n gp a s s b o o kl r a n s a c t i o n sp;r i n i i n g s L a t e m e n t s , b e r s , h a s i t c r e a t e dm a n a g e m e n tp r o b L e m sf o r i l s e L f ?N c
 Ar Ini..oducr:L
oonI n r o r m a t i osnv s . e n s I C f r u , p t u "r

: e d e r a L 'ssy s t e md e v e l o p m e n p tr o j e cw t a sm a n a g e d C r i t i c aTi .h i n k i n g0 u e s t i o n s
^ i t s b r an c ho f f i c eA, TM ,
. Cc on n e c t sa l t o f i t ss y s t e m s - 3 . l f y o uw e r ea b a n ko f t i c eirn c h a r g eo f s e c u r i tay t T y n d a L i
- : - b a s e ds e r v i c e s - t oa c e n t r a t i z e s
d e r v e rf o r e a s y F e d e r awL h, a ts e c u r i tcyo n c e r n1s1yoo ut h i n ka r eI h em o s t
- - r ^ e n tF. r o mt h e m a i n b r a n c h a, m a n a g e cr a n u s e t a d d r e s as n ds o l v ei n d e s i g n i ni gt sc o m p a c L -
i m p o - t a nt o
. - : p o r t i n gt o o l sI o v i e wa n d m o n i t o rt r a n s a c t i o nast
# BANK?
- ' : . . A L s oc,u s L o m ehr sa v ea c c e s L s oc o n s i s t e innt L e r - 4 . W h y m i g h t c r e d i t - u n i om n e m b e r sp r e f e rb a n k i n gi n a
s e r v i c efsr o m a n yo f t h es Y s t e m s . g i i ha n A T M ?
b r a n c ho f f i c eo v e rb a n k i n w

'Tyndatt
:: oniSuestions SOURCES: t r e d i tU n i o n :B a n k i n go n N e x t - G e n e r a t i A
F e d e r aC o nT M s
from IBM andWincorNixdorf, lBM SuccessStories'[Link]/soft-
, , v e r ed e c i d i nogn a c r e d i u I n i o no r b a n kw i t hw h i c h "
ware/success/, accessedJanuary 17, 2004; FundsXpressto Provide0nline
, o u s i n e s sw, o u L dt h e s e r v l : e sp ^ r o v i d ebdy T y n d a t l L e r v i c e st o T y n d a [ tF e d e r a tC r e d i t U n i o n , F u n d s X p r e sps r e s s
F i n a n c i aS
release,ww. [Link]/press/2Affi/ | 1- I 7-2003ht??1 accessed Jan-
= - : L i n f t u e n yc oe u rd e c i s i o nH?o w ?
uary 17,?004;TyndatlFederaLCredit UnionWeb site' [Link]'org/'
. , ' : r e r ee m p | . o y eads a b a n kt e L t ear t T y n d a tFLe d e r a L ' accessedJanuary17,200L.
. r u l d y o u r e a c tt o n e w s t h a t y o u r e m o l o y ew r as
- r g a u t o m a t ecdo m p a c t - B A N aKrso u n dt o w n ?

'S,
: .l.l,ilr$
fraveL S y s t e mL s P { D T S lJ. o h nB r o u g h a np,r e s i d e noff D f S ,
s a y sL h a t h e l T n e e d so i c r u i s es h i po p e r a L o rdsi l t e rf r o m
: -,een Many 2 amdpartalen coi m p a n l e s ,o
t h o s eo f t y p i c aht o t e Ip r o p e r t ym a n a g e m e n
s p e c i a L i zseyds L e mhsa dt o b e c r e a t e d L ob e t t e rs e r v ec r u i s e
- - - l r 4 a r2y { 0 M 2 1i s t h e L a r g e satn d m o s te x p e n s i v e
, ' : e v e rb u i i t .l l i n c l u d e fsi v es w i m m i n gp o o L sa,p t a n - c o mp a n ' e s .
' . ' w o * s t o r y t h e atthear ts e a t s1 , 0 0 0a,c a s i n oa,g y m ' T h eQ u e e nM a r y2 p r o v i d eyse fa n o f h e er x a m p l e oi how

. . : n n e L sa,n u r s e r y s i a f f we di t hB r i t i s hn a n n i e sa'n d i n f o r m a t i osny s t e mas s s i s t w i Lmha n a g e m e fnuIn c t i o n sp,r o -

' -.. raLiroom l i ,b r a r ya, n dw i n ec o L L e c t a i oI sn e a .0 f a [ L v i d i n gv a i u a b l ei n f o r m a L i oann d o f f e ' i n gs e t ' v i c eLsOc u s
: s , t h e o n ec o n s i d e r emd o s tv a L u a bt[oe t h e c r e w t o me r s .
, . : : r n e n ta n d k e yt o i h e f u n c t i o n i nogf t h e v e s s eils
, ' . - : Cn e t w o ra k n di n f o r m a t i osny s t e ma c c e s s i b i[ne t i s e u s s i o nS u e s i i t u n s
'1
. W h a Lc o n v e n i e n c d s e sT h e S h i pP a r t n e ri n f o r m a l i o n
eo
, : : l l m i L l i o nQ M 2 ,c o n s t r u c t eidn t h e s h i p y a r da t
x: - : : L ' A t l a n t i q uFer a, n c ea,n do w n e db yM i a m i - b a s e d
s y s t e mp r o v i dteo p a s s e n g e or sI l h eQ u e e nM a r y2 ?W h a L
b e m a d ea v a i l a b lteo p a s -
e n L e r t a i n m esnel' v i c e cs o u L d
- - : L t d .m , a d eh e rm a i d e vn o y a giene a r t y 2 0 0 P 1 'a. s - s e n g e rtsh r o u g hl h i sd i g i t a L l w o r k ?
n e
- : a c h o f h e r 1 , 3 1 0c a b i n sh a d a c c e s st o d i g i t a l ' a s s i ssf h i p
2 . H o wd o e s T h e S hPi pa r l n e r i n f o r m a LsiyosnL e m
- - - : r t s u c ha s o n - d e m a n m d o v l e sa n d i n t e r a c i i v e m a n a g e rws i t hL h e idr u t i e s a n dr e s p o n s i b i L ities?
- : a c hc a b i nl s a L s ow i r e dw i t hl n t e r n eat c c e s sa n d
- . - . 'c e s ,F o r . e x a m p Lpe: ,u . . n g n : . , . r s e
the network
nking ft uestions
CnitiealThri
: - - - - ee x c u r s i o rne s e r v a t i o nasn dd i n n e rp l a n s .
- : c k i n gi n ,p a s s e n g ear rsep r e s e n t e d w iat h pLastic 3 . H o w d o e sT h e S h i pP a r l n e ri n f o r m a l i osny s t e ma s s t s l
-he C u n a r di n c o m p e t i nign t h e t ' a v e ii n d u s t r yW ? h a to t h e r
-,-d. c a r di s u s e dw h i l eo n b o a r dL om a k e
t r a v e L a n[ d
eisure b e n e l iftr o ma s y s t e m
. n d u s t r i ewso u L d
. - ' c ha r et h e nb i l l e ot o t h e c u s t o m esr a c c o u n i .
- : : d a s g u e s t sL e a vaen dr e t u r ni o t h es h i pt o t r a c k L i k eT h eS h i pP a r t n e r ?
: : : a t i o n lT h es h i p ' sm a s s i v ed a t an e t w o r kb r i n g s L r T h eS h i pP a r t n e r t oh a v ea b a c k u p
4 . W h yi s i t i m p o r t a nf o
- - . : h e r eo n c ew a s c h a o sS. h i pm a n a g e rcsa nr u n s y s t e mH ? o w w o u Lads y s L e m w i fdaei L u raei f e c t h ef u n c -
: . f r gw h r c hp a s s e n g e a r sr eo n b o a r dh, o wm a n y g f t h es h i p ?
tionino
. - ^ J r n gt h e m o r n i n ge x e r c i s ec i a s s ,a n d w h i c h
T :o d dR . W e i s s , N e w0 u e e nM a r y2 O t f e r sH i g hT e c ho n t h e H i g h
. . - ^ c s tp o p u t aar t l a s tn i g h t ' sd i n n e rT. h en e t w o r k SOURCES
Seas," Computerworld, )anuary 12, 2004, www compulerworld'com: Eric
: : : a T eb a c k e du p b yr e d u n d a nsty s t e m st h a ta u t o - T h o m a s , 0 u e e n M a r y 2 , W o r t ds B i g g e s tL i n e r ' A w a i t s l t s C h a m p a g n e
: : o v e Ti f t h e p r i m a r ys Y s t e m fai[s. e r a n c eP r e s s eJ, a n u a r8y , 2 0 0 4 ;T h eC h a n t i e r sd e I A t t a n -
I 4 o m e n t ,, A g e n cF
' - a L i o ns y s l e mc, a l r e dT h eS h i pP a r t n e r , ;uss e d chantiersattantique com/uK/index-uKhtm' accessed
[Link]? ?ii; .www'
- - - - - i t y ,b i L L i ntge,l e p h o nsee r v i c eo, n b o a r tde l e v i -
' , ^ e r o p e r a t i o n sl t. w a s d e s i g n e db y D i s c o v e r y
44 Partl I AnOverview

mrut**n**:l:
*##-+*;'-.".'*ffi*5l
;fil*l*rffi;'ft{':1::il?
ru*ff*ffi
SUETES
-'
" C a s eS t u d y rB o e h r i n g e r
e ra r cS o n g i n i , H e un , C hr i s t o p he r , " M ar i n e M o u s eT a k e sl T t o N e w D e p t h s , "/ n f c
S o u r c e sf o r t h e o p e n i n g v i g n e t t M
Juty 21,2003, www'computer- mationWeek,November 5, 2002,P. 20.
Cures S[ow Reporting,' Computerworld,
5. C L a r k ,D o n , " A 6 4 - B i t B e t o n l t s F u t u r e , " T h e W a l l S t r e e t J o u r n '
w o r l d . c o m ;" B o e h r i n g e rI n g e t h e i mD e p l o y sB a c k W e b ' sO f ft i n e S o L u t i o n
, e c e m b e r1 5 , 2 0 0 3 ; A p r i t2 1 ,2 0 0 3 ,p . B 1 .
f o r t h e P L u m t r e eC o r p o r a t eP o r t a t , "P R N e w s w r r e D " G e r m a nV i s u a tl m a g e F i r m l s H o n o r e d : : '
G o t d s m i g hC, h a r t e s ,
the Boehringer IngeLheimWeb site, [Link]-ingelheimcom/
F i t m G r a p h i c s , "T h e W a l LS t r e e tJ o u r n a l ' F e h r u a r y2 6 , 2 0 0 3 ,p 3 '
cor p ora t e/hom e/hom [Link], accessed J an uary 22' 20O4' "A Dana for Every Schootkid,"Busine::
Wildstrom, Stephen,
Week, Aprit 21, 2003,P. 26.
1. B o o t h - T h o m aC s ,a t h y", T h e S e e - l t - A t t C h i pT,i"m e m a g a z i nsep e c i a I
B r a n d e LS, . " 3 5 Y e a r so f L e a d e r s h i p , "C o m p u t e r w o r t dS, e p t e mb : -
technology s e c t i o n ,0 c t o b e r 2 0 0 3 'p . 4 1 2 .
3 0 , 2 0 0 3p ,. 5 5
2. N u s s b a u m ,B r u c e , " T e c h n o I o g yJ: u s t M a k e l t S i m p [ e r , "B u s i n e s s
B e a u p r e z ,J e n n i f e r , " S t a t e U r g e d t o T h i n k S m a l l , " T h e D e n i :
W e e k , s e p l e m b e r8 , 2 0 0 3 ,P . 3 8 .
P o s t ,J u t y 1 3 , 2 0 0 3 ,P . K 1 .
3. W i t d s t r o m .S t e h e n ," T a b L e P
t C s , "B u s i n e s sW e e k ' A u g u s l4 , 2 0 0 3 '
p.27.
1 0 Smith, Jeff, "snitch or Savior?" Rocky Mountain News, June 2:
2 0 0 3 ,p . 1C .
 An Introductionto Informationsystems I Cfrapter r

, u g e n e ," D o c t o r sB r i n g 3 - D i n t o t h e 0 p e r a t i n g R o o m " ,
l e r n r a i t r eE 28. Chabrow, Eric, "0ntine Ad Sales Rebounding,"lnformation Week,
',tt,mputerwortd, June 2, 2003, p. 25. J a n u a r y6 , 2 0 0 3 ,p . 16 .
flmodey,Stacy,"Software Market Hit by Purchasing Delays," Com- 29. Cuneo,Wileen Cotkin, "Uptick in Care," lnformation Week,Novem'
wterworld, July 1I+,20O3, p.12. b e r 3 , 2 0 0 3 ,p . H 18 .
&:andet, S. "35 Years of Leadership," Computerworld,September Vijayan,Jaikumar, "Booksetter Expandslts Reachwith Integrated
3 [ . 2 0 0 3p
, .55. I nternet Platf orm, Compute rwo rld, June 2, 2003, p. 29.
{{fimg, Jutia, " 0pen f or Inspeclion," Compu terwo rtd, Juty 21, 2003, p. Staff, "lBC Supports DecisionSupport," Health Management Tech-
f nology,September,2003, p.10.
{*arnbten, Matt, "Compression Retives Congestion," Computer- aa Jones, Rebecca,"Distance Learning Brings [Link] Denver," Rocky
m . { d , M a r c h 1 0 , 2 0 0 3 ,p . 3 0 . Mountain News, February 10,2003,pp. 12A.
liilnblen, Matt, "Hote[ Goes Wire[ess," Computerwortd, July 14, 33. Staff, "The Rise of 0utsourcing," lnsurance Day,November 5, 2003.
SW. p. 16. J4. Nash, Emma, "Toyota Puts Brakes on Outsourcing," Computing,
Sroch,Stephane,"lnvasion of the Drones," Forbes, March 17,2003, N o v e m b e 6r , 2 0 0 3 , p . 4 .
1p,52- R e g a l a d oA, n t o n i o , " G r e e n p e a c eW a r n s o f P o l l u t a n t sf r o m N a n -
-firn4urin, Jutia, "Top Online Chemicat Exchange ls Likety Success otechnotogy," The Wall Street Journal,Juty 25, 2003, p, B1.
Ihe Wall Street Journal Januar 8, 2004, p. A15.
or............',y,- Schwartz, Mathew, "Wanted;Security Tag f eam," Computerworld,
funstein, Aliya, "Mashups," Forbes, July 21,2003, p. 1/+5. J u n e 3 0 , 2 0 0 3 ,p . 3 8 .
ffim,:p,Patrick, "What Happenedto the Paper Mortgage," The Wall 37. Siaff, "The Net Detectives,"Busrness and Finance,January30, 2003,
fue€t Journal, p. Rl+. o.85.
0m,en,Atan, "0nline Prescriptionsi"PC Magazine,August 19,2003, 38. Grover, Ronatd and Green, Heather, "Hottywood Heist," Business
tr' frg- Week, July 14,2003,p.73.
'5nnssTown
LeadsWaywith InternetVoting," CNN 2nline, January 39. T h i b o d e a q uP, a t r i c k ," B a n k U s e r s O n l i n eW o r k f l o wt o C o m p t yw i t h
JA 2m3. USA Patriot AcI," Comp u terwo rld, June 2, 2003, p. 26.
fill{hossberg, Walter, "lnstant Messages That Come with Sights, M a n g a l i n d a nM , y t e n e ," D i d n ' t G e t E - M a i t ?T h a t C o u l d B e S p a m ' s
Surumds,-The Wall Street Journal, August 13, 2003, p. D10. Fauti, Too," The Wall Street Journal, Augusl4,2003, p. B1.
ffi'a@r,Diane, "Net Hookups Are Spreading from the Study to the Strecker, Tom, "Computers Cut Vandatism," New Zeatandlnfotech
flrnumnrgRoom, Bedroom, and Kitchen," Business Week, July 21,2803, Weekly, May 12,2003, p. 6.
I rE, G o m e s ,L e e ," l s A n t i t e r r o rP t a nb y P r i c e t i n eF o u n d e rG e n i u so r J u s t
Mr':mriel.S. "35 Years of Leadership," Computerworld,September Goofy?" The WaI I Street Jou rnal, J u ne 30, 2003, p. B 1.
l![, &]3, p. 55. /+3 S a n d b e r g ,J a r e d , " E t i t e C o l t e g e sF i n a l t y E m b r a c eO n t i n e D e g r e e
lif;Mll:pUsa, "Virgin Sets Up Global Intranet," Computing,November Courses," The Wall Street Journal, January15, 2003,p. B1.
r IE3. p. 15. Dunham, Kemba, "Ontine-Degree Programs Surge," The Wall
#mrffi'es,Gary, "Corporate Express Goes Direct," Computerworld, Street Journal, January 28, 2003, p. 88.
S@mber 1,2003,p.17. 45. Fittion,Roger,"ECottegeRecordslts First Profit," TheRockyMoun'
tain News, Juty 23, 2003,p. 2b.
 An Introduction to
Information SYstems
I

:i
I "L"
I
t ' r"Jr' t
I
4
t&
\-
t r.t fr
lt a
ril
,l
/
,
L it

.l
 m,,i s,+ " m, I chaerorI

INFORMATION SYSTEMS IN THE GLOBAL ECONOMY

BOEHRINGER INGELHEIM, GMBH, GERMANY
-:3n nnd Meanwith InformalionSystem5

I a business ovner could forese€ the tuture, d€cisioc would be easy to make
involve litile riek. Unfotunately, [Link] [Link], ta/ot cards, [Link] tea reave€
-d
::re prcven u8elees to bNiness decision makers. Since th€y can't see into the
:irure, theb eoa,l is to trnd out what is cunently happening in thei business.
arr a slnall'buaines3 owner, one who is involved in every tlansaction. staiving
4r€ast of the state of the bNiness is farrly [Link]. But as buainesse€
a:!w and diveEify, it becom$ increa8ingly difidlt to access curent infoma-
: tr:1on which to bale decbions. Informaiion s)..stelrl€ pmvide a solution {pen-
:s ljn€s of communication between a.U business uits md ploviding a
:.trtinuoua str€am of up-tcthe-second information to suppoft fast strEtegic

Boebdnger Ingelheim is anong the world's ?O large€t phaxrnaceutical

:Jrrparrie6. A giad compary with $?.6 bilion in r€venu€ ard 3?,OOOemployeee
: 60 nations, Boehringer has diversilied into segmeDts tbat include manufac-
::ring ard [Link] pbarmaceuiical,s (such aa prescription medicinee ard
:.:sumer healthcaxe produch), product8 for industda.l customerc (such as
r ::emicals [Link].h), and admal [Link] products.
i The sheer srze of the company w?s slowing the flow of inJomation to deshion
in the organization. "I want to b€ told wher€ I stard [Link] whele we ar€
F
t
-alers
:sding," say8 Holger Huela, chief frnancial oftrcer, "I like io lbe able tol see
r:gaiive tlenilE ard comter th€m aa fast E possible." With dch of the
! seaments usina diver* information system€, ii took 3. Bialiflcmt
i'. -:npanys of time to collect ard combine aU of the financia.l records. Each month
F -ountaccounting depaxtment would spend ihree days coUecting ard analyzing
:::
I : :ited rcporis to $eaie the companle monthly rcport-
F
a
lop lngllagerc decided to totally r€vanp the compan/s sysiems with etate-
:i [Link] inlomation systens from SAP, the world's laigest enteryrhe soltwaE
:r5pany. It took 14 monthe to rcU out the new sysi€m, aIId many employees
:.€ded intensive training. In the end, the results werc weU worth the investment
: :ime ar1d money. The software provided a standard system used across 3ll of
:,rehringer's business segrents and ofrer€d convenient Web access to currcnt
:i'ormation. Boehringer is now able to complete monihly r€pofis jusi two hous
r:er the close of business at the end of each month. The new el€tem ha.s made
::: accouniing department much mor€ prcduciive, allowing [Link] to run up to
repo4s whenev€r needed.
-re Boehdnger is €ommitted to providing employees at aI levels of the compary
acces8 to the applicaiions and inforanation they need to n1e€t thei. objec-
-!h About one third of Boebdng€r's employ€es do their work outside the office.
:;es.
:r provide its mobile workforce with up'to ihe'minute atata, the compmy de-
.:.yed soltwarc ftom Ba,ckweb lechnologi€s, which a]lows atcess to curr€nt
.tes infomation through a Web poltd and a custom Web interfsce, whercver
::ployees travet. With the new system, Boehlinger's employees can a!€ess and
range infor@tion pr€sented in the porial when they ar€ ofline, with updates
j:er when they 1og on.
 Pd|1 | Anor er er

By the time Boehringer wa,s flniehed with its technology ma,Leover, the com_
pany ha.d impl€m€nted ovel seven new internonnected infonnation sJstems and
invosted miuions in ha,!dv/ar€. softwrre, databasee, telecommunications, aDd
training. Bui the investmeBt haa paid off. Employees can row access up-tedate
[Link]-wide information, wherever they may be, with ibe click of a mouse
And decision mak€E can rcact as nimbly alld qurckly to chang€s as marv ol
Bo€hling€r's sma]ler competitors.
Asyouroadthis chapter,considerthe fottowing:
. In designing ia new informarion sysros, whar do yotr rhinl were Boehringels most
cririel goalsad coroiderations?
. How &e hardwee, softwm, databmes,teleconnunicatioN, p@Ple, and procedure
used in Boehrinss's information systen to provide valuable &ra?

informationsFlem fisl An infornation sFtlm (lS) is a setofinterelared componenis rhat collec! nuniPdare' sror€,
A sel of Interetated comPonents md disseninate data and hformadon and provide a feedbacl mechanisn to net an
that coltect,manipulate,slore, and [Link] feedbackmechmism helpsorgmizations achi*e their goals,suchasincreasing
dissemnate data and nfofmetion
profitsor improvingcustonersenice.
aid pro v id€a t eedbac k hec han
sm
\{te all intenct daily wirh infomation sysrems,both peromlly ad proftsionally. Ve
use autonaiic reller nrchines at bail6, ch€ckout cleric scanour purcha;es uing bu codes
and s3nne6, we a@e$ information orer the Intelnet, and we get infornation frcn kiocks
with touchsceero. Major Fazzr tOo comPaniesare spending in *cess of $ I billion per
year on infornation rechnology. In tie future, we will depend on hfomadon systens even
more. Knowing the potential of infomation sysems and having the abiliry to put this
loodedge to work cu result io a succesful penonal career,osanizatjons that reach rheir
goals,and a ociery with a higha qualiiyoflife.
Conpuen md infomat;on system ae onsrandy chmgins rheway orgd;arioN @nduct
buines. They ue heoming linly inregnred ino our li'o. busines, and sdiety. They €d helP
orsmizations eJry on daily operatiom (openrional system). for *nple' \{raMan uses
opentional qstem to pull suppliesfrom distriburion coten and ultimately supplien' stock
she}res,and push our prcducc and *Nic6 lkoush cutoma purchoes Compurd and
inforuriod s)'sEm alsoet u onnand od conml qnems iha! monjror Ftroass and help
supwisors controi drn. For eunpie, an tn6c contrcl cotes ur compuros md informrion
srstemsa comad and conrrcl center ro monitor and diNr pldes in rheir air space
 Ar [Link]."sr5c.. I chlptei I

nrormaron sysremsare
everyvvhef e A customefat the 9as
p u m pw a v e sa k e y c h a l n ta 9 a ta
r € a d € . t h ast € n d st h e in i o r m a to nto
a n e t w o r kt o v e r l y t h e cu sto m e r s
p r o ft e a n dc r e dI i n i or m a to n Th e
t€rm nat processesthe transacton
p . i n t sa r e c e i p ta, n dt h e cu sto m e r s
c r e dt / c h e c kc a r d s a !to m a l i ca l l y

L5o!rce:Courtesyot Texas
I n s t r u m e n t sn, c .A t t R q h ts

I odaywe livc in aDinfolmalion [Link] itrlf ho value,and onnoce

:.r involvesthe cxchangeof informatn,o,nther thrn [Link]
:rureru are inceasir$y being ued to cre*e, rore. and [Link]
r: ijnrs infornation sysremsto makemuhimillbn-dollar decisions,financialnrrirutions
the uodd elcctrcnicalll and man'
-.: rnploying then ro trmsfo billionsofdollar around
:-mrers ate using them to onler suppliesand distributegoodsfasterrhan *er before.
:r:puren and infornation systems willcontinue to changcour sociery,our buineses, and
: lins. In rhis ctraprer,we presenta fnnework for underermdiogcohPuters dd
i:'mation sysrcmsand discusswhy n is inponant to studr [Link]
::rrrandingwiil help1ou unlock the potentialofproperh appliedIS concepts.

INFO RM ATI OCO

N NCEPTS

: mtior is a cenrralconceptthroughoutthis bmk. The tern is usedin rhe titlc of the

r .:;. in rhissection,and;i almosteverychapto. 'Io be an effccivemanagerin any areaof
-,,[Link] needto urdersundthat infomarionis oneofm ofgah;zationino$ valuable
r : import$tdources. '1hisrerm,however,is ofrencortusedwith the tern htd.

D at aV ers u sI n f o r m a t i o n
l:ta consissofrarv facc, suchas an enployees nane md number ofhoun worked in a data
.:.1. nNentorypait numben, or salesonien. Ar shownin Table 1.1, s{eBl rypesof dah R a w f a c r ss u c ha s a n e m p l o ye es
n a m ea n d n ! m b e r o f h o u r sw o r ke d
bc usedro iepr6ent rhesefacts.\(hen thesefactsareorsanizcdor armnsedin a nean'
-: i n a w e e k n v e n t o r ypa r tn u m b e r s,
-::rl manrer, rheybecone [Link] is a collecrionof facrso€oired in
-:. l 1'ar thar lhey haveadditionalvrlue beyoodthe valueof the faca thenselvesFor
, :rple, a particularmmger nighr find the knowledgeoftotal monrhly salesto be more
::d ro hisor hupurpose (i.e.,nore valuble)than the nrmber ofsalesfor indMdulsals A coLtectonol facts organiz€d n
on alo help companiesinctease s u c ha w a yt h : t t h e yh a v€a d d i to n a t
:.1renrarirs. Providing [Link]
valuebeyondth€ vatueoI the facts
 Psil I a " o * to .w

E
Typesof Data

GGphlcrmages8ndpklures

Data represenrsaal-wodd things. As we have srated,data+imply raw fads hd litde

value beyond irs oistence. For mple, comider d*a o Pi€cesof nilroad $ack in a nodel
raiLroad kir. In this state, each piee ofuack has linle !€lue beyond its inherent !"lue d .
sinsle object. Hormer, if sone reladomhip is defined mong the piees of the tncl' they
will gain valG. By eFnging the pieces of track in a cenain way, a milroad layout begins to
€nerse Gee Iigure 1.1a). Infornation is much the [Link] relatiomhipscm be set
up ro organjze data into useful, valuable infornation.

@
Definingandorganizing l.l
shipsAmongDat.
Relation
[Link]

tbl

The rype of infornarion created dependson rhe reladonships defined anong *isting
data. For example,the piee ofrnckcoutd be rearanged ro fom ditrerent layou$ GeeFigure
l.1b). Addins nNo! differentdatamems relationships o be redefinedmd nq inbrma-
iior can be [Link] instarce. adding nw piecesro the rrack cm gready inoase the
valurln this case,vaietr dd fun ofthe final product \ve can nN crealea nore elaborate
!.ilmad layout GeeFigure [Link]). Liksise, ou manaser could add specificproductdatato
his salesdaia to cleate nonthly salesinfotnation brckm down by product line This infor
mation codd be u*d by dre nmager to deretnine which Product lines &€ the most popul

Tuning darainro informationis a proes, or a setof logicallyrelatedt*ks perforned

relatedtasks
A set of toglcalLy to achiqe a detued outco-e. The prcces of defining !€latioohiPs among data to ceare
p erfo m€dioac hiev ea def ned usetul [Link] requne knowledge Knowledge is an awroes md undeotoding of a
rt of infomation and rhe wa)6 rhar infornation cm be madeusefulto suppon a spccilic
 An ntfodu.l onro nrormatoi syskm5 | chaetar 1

:k or reach a decision. Pan of the knowledge neded for building a railrcad layour, fot knowted9e
:ence, is undentandinghow lrge an areais auilable for the lalout, how manyrrainswill An aMreness and underslandingof
a sel ol informationandwayslhal
rr on dr tracb and how fasttheywiLlra'[Link] ofseiectingorrejetiog Ecrsarcoiding
i n l o m a t i o nc a n b e m a d eu s€ l u tto
:r rheirrelevancyto particularroks is alsobasedon a qpe ofknowledseued;n the proce$ s u p p o da s p e cf i c l a s k o r r e a cha
:i conveningdarainto [Link], infornarion en be considereddatanade
:ore u*ful rhrcugh rhe appli@[Link] one c*s, datais organiredot pro-
:sd nentally u nuually. In orhercases, acomputeris [Link] the ead;er*nple, tne
:uager could have nmually calculated the sum of the salesof each reptesentarive,or a
rmpurer coutdcalcularethis um. Vhat is inportant is not o much wherethe datacomes
rm or how it is procesedbur whetherrhe resoltsareueful and [Link] tnmtor
Drocesis shownin Fieure1.2.
-rrion

w
ffi[;l TheProcessof Transforning
Dataintolnformation

T heChar a c t e r i s t i co sf V a l u a b l eIn fo r m a tio n

- o bevaluableto magen ud decision mahen, inbrmtion should havethe charrcterisrics
;cnbed in Table [Link] chmcterisricsako nake the informtion morevaluableto an
noiation. Manyorgmizatiom and shippingconparia. for exmple, are able to dear-
:rne rheqact locationof inventoryirens and paclogesin their qttems. Recorly, the U.S.
:.mv Mareriel Connand tagged all ia caryo and food shipments with radio-frequency
ienrificarion chips for shipmeff ro rhe Middle Fa$. Beouse ofthe ety electronic reaieval
: i infornation frcn the tags, the tine neded to take inventory of the elgo when n arrived
rcduad fron the usual2 to 3 daysto jur 22 ninuts.' In addition,ifan organiationt
-:
:irmarion is not accuateor conplere,peopleen nake poor decisions, cosiingorganiza-
: r r ud indi; dualsthousmds,or evennillions, of dollaa. Mmy believe,for *nple, rhat
'-:e colLapseof energr'trading firn Enron in rhe early 2000s wd a result of inaccunre ac-
:rrnting and reportinginformtion, which led invesronard enployees ike to misjudge
re acrualsrateofthe conpmls fimnes md utrer huge posonal loses. Sone believethat
::roni inaccuate accounting was intentional and designed to deeive enployee and in-
and not a simpleaccountingniseke. As anothereumple, ifm inaccunteforeot
-ron dermd indicatesthar oies will be nry high when rheoppositeis rrue,u organi-
:irurule
::don can invest nillions of dollar in a new plant that is not [Link], if
-i6rmario! is not peftinent ro the siruation,not deliv€td ro decisionmkers in a timely
-;hion, o! too cohplex to mdentand, itmaybe oflnde valueto the orguization.
Urful infornarion on nry widely in the value of eachof these quality anributes For
.uple, with narkerinrelligence dara, some inaccuraoymd inonple tenessis aaeprable,
:ut [Link] intelligencenay alen usthat ou conpedror areaboutto
1ke a najor pri.e cui. The eucr derailsand rining of thepricecut nay not bec inponanr
r beins warned far enough h advane rc plan how ro react. On the other hmd, accuncy,
. entiabiliry,md onpletene$ arecriricalfor dalausedin acomring for rhe ue of conpany
!*$ such d csh, inventory. and equipment.

Th eVa l u eoI Informati on

- le value of infornarion is direcdy linled to how n helps decision mkers achiwe their
r3miatior's [Link] *nplo the valueof informationnight be me*ured in rhe time
::q&edto makeadecisionorin increred profitsto [Link]
::rr predicts a high denand for s ns prodrcr. If narket forccor infornatlon is used ro
:. elopthe ns productand lhe conpany is ableto makean additionalproffr of$10,000,
:e valueofrhis informationto the conpdy is $10,000minu the costof the informtion.
, ilmble informatioo can also help mages decide wherher o invest in additional infor-
r*ion systms and technologr.A nw onputerized orderingsystemmay cosi $30,000,
 Pdi 1 | Ai.r M r

inventoryis on handfor a parilculErpart can be usedbyasatesrepresentauve li closinga sale,

byE productionmaiaqerto determlnewhether [Link] n€eded,and bya financat
erecutivelo deiermin€lhe totalvaLue ihe comparryhas invesledrn inventory

maynot be retevantio a computerchipmanufacturen

Tlmelyinformation whenit ls [Link]'sweathercondtionswilt not

is detrvered
hetpwhentry fq to decidewhatcoatio weartoday.

but it mry gcneratean addidonal$50.000in [Link] nlse aAkd by the new systenis
@ rhe additioml serue from lhe ibcreded salesof $20,[Link] corporadotuhrve cosr
of Vatuabte
Chararteristics reductnrns i primary goal. Using infomadon systens,somemanufacturingonpanies
Batr havebeenableto slashinventorycoss by milliors ofdollan.

ANDM O DELI NG
SYSTEM CO NCEPTS
v
Likc infornat;o., [Link] conceprofrhis book is that ofa sysrcn A systemis a rt
A setof e lem ent sof c om ponenls ofclenenrs or componensthrt inrcracrro [Link] elencntsthemselves and
tha t nte fac tt o ac c ohpt is hqoals rhe relationshipsrnong drcn determinehow the sy*em works System hare inpu*, pro
cesing nechanisms,ourpurs,and feedback(ke Fisurc I3). For *amPle, consideran
[Link],rangibiet 1,tJ for the prccss arei dirffqr, [Link] thc
variouscleaningingredierrsuscd. fime, endgy, skill. ard knowledgeare al$ neededrs
inpua to the [Link] and encrgyare b operaterhe [Link] is rhe ab;lity
"eed.d
to succesfullyop.-tr the liquid sprayer,foaming brosh,and air drycr devies Knowledge
is usedro deffne the aepsin the cars'ashopention and dre orderin which thosesteps*e
 rn [Link]. [Link] 5y.rem5 | chalt€r 1

i_..__.._.....,, ,,,...-.--..,'l'
1.","..,..-..,...,..,

'the
?to..$ing [Link] selectingwhich of the cleaningoptiotr you @
.r.r (hsh o.]y, washwith wd, washvith wax dd hand dry, erc) dd comnuni@tins
.Lrr to the opentor ofthe carw*h. Note tharrhereis afedlek nuhan*n lpot xsesrent Componentsof a System
ahow cleanthe car is).Liquid spnyereshoorclearwater,liquid soap,ororwd dePendins Asystem st
sfourcomponentscons
.n *here yorr ct is in rhe proces md which optionsyor [Link] azpzris a donmr' o f n p ! t , p r o c e s s l n 9,
o u tp u l ,a n d
:: is importdt to nore rhat;ndependentelemenaor conponens ofa systen (the liquid
::nyer, fomingbrush, and air daer) inreractto cete a clcanor.

andConcePts
systemComponents
:Lgure1.3sh@s a t?ic.l systemdiagem-asimple [Link] primty pur-
:ose of the car wash is to clean you! auromobile. The slBten boundary defines the tsten
.,d di$inguishes i! frcm serrhlns else(!he envnonment) T h el l m i t s o f l h e s y s te m ;I d sti n
g u i s h e st l r o m e v e r yl h i n eg tsel l h e
The way systemelementsue orsanized or arrdsed is [Link] toafgutat;on. Mtcn]nke
::a, thc relarioruhipsmong elemenain a [Link] ncr
::sa. hrowing the purposeor daired outcone ofa sysen is the fict stepin denningthe
.,"' sysremelenos are [Link] eranple, the desiredourcomeof our systemis a
:ieancar. B*d on pct experiene,*e know thar n would be illogicalro hare the liquid
,rnverelenent precedethe [Link] et *ould be rinsedud thensoap
.,ould be applied,leavingyour car a me$. As you can s€ fion rhis exanple,knowledgeis
[Link] both ro definerelationships amons the inputs to a q,sten (your diny car and in-
,:ru*ions to rhe operator)and to oqanize the systenele-ens usedto proces tne inputs
:he foaning brsh must precederhe liqlid sprayer).ligure l 4 showsa 6w s)-semswirh
:reir elcmenlsand goals.
SystemTypes
:rstens cm be clasifiedalongnmerous dirnensionsTheycan be sinple or compla' open
:r closed,snble or dynanic, adaptiveor nonedaptive,md Pemdent or temPorary'
:able 1.3 [Link]
by SystemType
0rganizations
Ctassilying
\Iosr conpdiescan be [Link] classiffcation schemein Table 1 [Link]'
: [Link] that cloro ofncesafterbusineshoursno* likely reprerents a sinple,
,:eble systembecausethere is a consrant and fiirly steadyneed for its *nices A successful
:omputer mnufacturing cohPany,howser, is tyPially compl* and dlnanic beeuseit
in a chmging environhent. If a companyis nonadaptive,n nay not surive veD-
'oenres
:ng. Many of the culy cooputer conpanies,includingOsborneComputer,which nanu-
:.ftued .ne of rhe fint porable conputere,dd VisicorP, whi.h developedtbe fint
.: readsheetp rcgran, did not changerapidly enoughwirh the changingnarket for conp urere
:,d v,ftwue. As a result,theccornpanie did not survive On the othchand,IBMwas able
 rc nlrrt trrli tion i anuhcr!r( ol i:,e.. !i.i;,l;.[Link],r{r ro.r !i&[Link] ol
clr$.s ol .on,tur.$ rnd a \ofi$xrc rnd \cri..s tro\ iier.

llry
Examp t esof s y s t er n. and Their
Goa ls a nd Elem ent s
L5 ou rc car 5r ev eSm r t h/ G eily
niqe!; !:) 5tanteyRovr'n / [Link]
5ro .I T. qer y O PholoDr . . / 6elly

EW
5ysteins Clas5ifical,onsand
t heir P rl m a ryC h a ra c t€ ri s ti c 5

SimplP arae"&@Mw-%r"ffir,

f3s rewcomponeit3 and the relauonshp or [Link] HasF3nyelemenlr lhar 3re h ght [Link]
b a twe e ie le m e nG5uncompLcatedand5trai ghrtoma'd

Nas no interadon wrh ihe [Link]

Undergoeslery tittle changeover the unde19D es

raprdandcoi stani .hangeov err me

Adaptive [Link]
s abt et 0.--tt
t unqien r e s p c n s o t o . r r a n gnet h5. h not3bl etochargei n respoi 5el o .hanqesi o rhe

[Link] .irr,[Link]*.t-.e.r./.?..n1..4,/A.
Exklslcf a retatveLy
loig perodof iime Ersts fof otrty3 retat vety5hon perdd of iime

!
 Ai irrodldonro ntormrtrsygrms I chspt€r 1

Syste mPerformanc eand S tand a r d s

lrsrem performancecan be measuredin variouswa)[Link] is a meuure ofwhat is elficiency
:roduceddividedby what is [Link] car rmge fron 0 ro 100 [Link] qahPle, A measure ofw hati s pr oduced
d vi dedbyw hals co nsum €d
:re cflicieocyofanoror isthe energrproduced(in termsofwork done)dividedby theenetgy
-!nsumed (in rermsofelectriciryor tuel).Sone notors havem efficiencyof 50 petcentor
' . bec au. eolt h e e .e ' g .l o .r ro tri ri o n a n dh e a tg erer" ti or.
EffLciencyis a relativetem usedto compue qttems. Fo. €*mPle, a gasolineengineis
efficientrha" a stem enginebecause, for the equivalentanount of energJi input (sd
-ore
r coal),rhe guoline engineproducesnore energyourput.
Effectivenessis a [Link] *renr ro which a qnten achievesits goals. lt can be
upuredbydividing thegoalsactuallyachioedby the toralofthe [Link] *ample, A m e a s u r eo l t h e e xl e n tto w h l cha
s y s r e ma c he v e si t s g o a ts i t ca n b e
: ;"npany may havea goal ro reducedmaged para by 100 units. A new conrrol systen mal
computed b y d v l d n gth €9 0 6 tsa ctu -
:: I otalled to help achi*e rhis goal. Actual reducrion in danased parts, however. is only 85 a l l y a c he v e db y l h € to l 6 to f th e
:rits. The eflecdvenesofthe contol rysren is 85 p€rcent(85/100 = 85o/o).Effecrivenes,
:dc ell:iciency, is a ielariverern usedto compte systems. Seethe "lnfornation Systens@
i. o.k box, which describes how Dehai lo*-fare, all-digiralspin-offairlinecalledSongis
r:enpdngto makeDeln moreefficientud effectivewith enhancedsenicesfor pasengen.
:'aluaring systemperformancealsocallsfor the use of pertornancestandrds. A qttem systemperformanrestandard
rerfornare stadud isa specificobjecdveofthe [Link],asysen perfornance A s p e cl i c o b j e c t i v ofl
e h e syste m .
,rndard for a [Link] campaignmighr be ro haveeachsalesrepresenrative se!1
r 100,000of a ceriain q?e of product eachyeu GeeFigure 1.5a).A qsten performarce
.andard €ora certainmanufacruringproces night be to haveno nore rhan I petcentde'
::rive pans Gee Fisure 1.5b). Once $andardsare established, sysren perfornmce is
:easuredand compnedwith the [Link] [Link]

V a r i a b t eas n dP a r a m e te r s
S y s t em
i:ns of a systemareuder directmanagemeor control,while othersarenot. A system*ri'
rble is a quanriqor iten that can be controlledbythe decisionmaker'Theprice a compary A q l a n l t y o r l e m l h € tca n b e co n -
t f o t t € db y t h e d e c i s i o nm a ke r .
:rarses for ns prodlci is a systen vuiable because it cm be contolled A ryste- panne'
:er is a valueor qumtny rhat cannot be conuolled, such as the cost ofa raw [Link]
:urber ofpounds ofa chenical that nut he added to produce a eftain trP€ ofPldiic is A v a t u eo r q l a n t i t yt ha l ca n n o tb e
ir is controlled c o n l r o L l e ds ,! c h a s t h e co sro l a .a w
.rorher exanpleofa qumtityorrelue rhat is not conrrolled by mmagemenq
-, ihe Law ofch€nisirv.
 pefl ti ght.A [Link] osksshodei tnesnt hele. mna andr cd! 'e
DettaSin95a NewSongwith a Focuson Information
[Link]']/iceagents
Syslemg m"leL io
Technotoqy is deeptynf!sed nlo the Songbuslnecs
Tlmesare toLrghfo. U 5 [Link] Wtlr lhe economyn a slLrmp. [Link]. beiefitsand reducedcosLs fof ihe a rLne
heght an esde .u rty i na i rp o rtsa,n da c a u l i o !spl bl itessw
c io
ttrng qrolfd fof nevv nnovanons
DeLtaconedersSongto be a tesunq
[Link]. [Link] situgqLing attlrebdnkofb:nkrLrptry' The otd Eystems andnet^rlechnotog es
Doz€ns of stfeamLined lniormalion
arLne gants [Link] tafgefleels arc partrcutartv Et a on. 4 oeao od
d.dooqa160l .qr ar odo
d [Link] sriaLterand moreslreamUned [Link] enler the Every
[Link]
[Link] aid wn ove. clstome.! wilh towe. fares [Link] a'e dddcri o ooa ob" a
" o oo p" r '!.do -u_d
crperreit ng wilh newbls nessmodetsandpracticeshopnqto wth Songwllt be nieg€tedinto Dettas [Link] iar
fnd onelhatworkEn thLsh!hly conrpettlve [Link]€ttas nl o r m anonsyst em st og
from!nql ei n tsuseofi echnotogyand
t oNf aie. a ttd g ta t s p n o ff a l rti n ec a l te dS onq s one such an advaniageln a chattenging [Link] .tt
expeflmentSonguses technotoqystate-01_the arl nr'rmaton st them
msrketsrclyon [Link]
systems,and good otd fashoned clstomer serv.e to wn in accomptshing mor€iof less
Theimptementationof newandimproved svstems
[Link]
Songcrters to ts passenqeEthrolgh a nlmber o1 n fight ..e in manycasesdEmaticaLty chanqingthe wa]7
emplovees do
ament [Link] ts th,riy_s r 757sL5f!.nshedwthroomyleatl-rer rego" I oal onb-snd- 0oe,6 r000 A dc :<
Lq" oo..
seatsthrcuqholtihesircfaft Passengers areoiieredan extense c-oo l r .< po
men! of [Link] andsnacksirom welt knownvendo|ssuchas n-ranagement. [Link]
P z z ef la U n o .C n n a bLoenn d e .s .a n d Yo pi at-aLl ol w hrchthevcanw hati heyneedtodow thoutdetay theya.e abt et aaccom pt Lsh
p: y lor w thth es w p eo fa c fe dt c .rd Bl t th emosti nn' vatve aod
, nt ecctonbeb, lee
a nd
i nagvenperodF.l [Link] s m ni mi zed
appeaL i n S g o fn gs s e tu c e s to p a s s e n gsetocal
rs ednthP se' tback andcustomersbecomesl's3 stressed
[Link],
above the fotddown tf.y a persooEtvrdeo montor with
''tolchscreen technoLogy and [Link] ca.d swpe cap3bittv
Passengers [Link] atl dlgtattiveD SH Nettlork
D i scussi on 0uesti ons
[Link] per ! ewpfogrammng Thevcan lsethe d spta}, _
d-A dd ar':o p a a r6 Pd
'oo" op- o la t,. o a .o 6 o o .o p' H o^- " .e, '_aao
I
MP3mls c. Theyca. elenlo n n an nleractvemlLliptavef video the dut es of ch€ckrnagentsandl t ightat t endar t s?
g: m ewt h o th epf a s s e n g e rs o n th e l tiOqihhle.l LC D
. eatLrfec' 1the 2 W hatdoyoul hnkarethebi ggest chaLt enqesf o. . hec
disptayncllde rn nteractvemap programto vew laidm2fks aqentsandl tghl attendants l n dea t inqwlt h cust om er sI
belov rco. i n e .tn q g .te rn l o mi to n a t th e upcomn! stop 0' the tfadrtonata rtl neb!si nessmo det ?Howdo t he inlo'
shoppnqffom anonlneversoroftheskl Dallcatatog matl onsystemsS ong !ses attowt hese wor ker st o be
To make slch lLrx!.iols [Link] and effecti ve?
mo.e effi ci ent
passenlle.s at a low {.re song has streamLnedtc
'r'fmaton
systemsto [Link] afldt!rn ftghtsarclnd morequckty C ri ti calThi nki ng0!esti ons
Sriq prdes onspending 23pefcentmoret m€ in lhe [Link] hafdshps ofa rtrave l t he seaf chior cheap
3 C onsl [Link]
'lsetf
a [Link] rnDetta s ma n tne Son!s ptanesreq!i.eonty50mlnltes rates,tonq check_i ntrnesal the t er m inat back! ps at
bet weeta n n d l nagn dL a kn go ff.M o fe tm e n thea.:nd tessontand E ecrfty checkponts, deLayeda nd cancet edf t ight s
a(ow5fo. mofeftghtsandmore ncomeIof thecompanysongs [Link] dedseati ng, andhoufsol w a t ngt r m e HowhasSan
[Link] arrpodgales dolbLe usedi echnotoqy and .[Link] onsvslem sl0 sor t enihese
jut
[Link]|.orllms sLrclas TheThingThatWauldnt Get hardshps?W hatmofe coutdthe com panvd'?
,llhe lisle a.e [Link]. Thesem n fitmseniertan pass€ngers as
4 C onsi [Link]:[Link] on [Link]: lr an ship lax ano
theywail fo. the I flght and educatelhe.n on l-rowto makethe b!s D o theseothef [Link] of t he sam echat
boafdrng [Link].!nmoresmoothty andq!ickty Lengesthat S ong h:s rddfessedw t h lnf or m aton sy.
Sonq prcvdesan [Link] tems? C o!Ldother [Link] ionar eas benef t f iom
book iig fL g h ts .U n ti k e m o Eto n l n e fL i ghtfesetual i onsvsl [Link] ongonqs appfoach I
. us t om e rs c aena s rty c o mp a re o ri c e s a crosE avari ei vol depa' t!re
andieL u rn d a y s a n d ti me sWong
R e s e ry a l o n s n radethfoughS eb 'Deltas len Pitot,lTai SonqDeLta s New
soURcES,lGthteen Me{ymuka
s te saveSong$,i per i[ght overthosemadethrought'adLtonaL Low Cost AirL'ne!i t, Canputeyartd, Argrsr 1A 2043, w'ahpLtel
re5ervairon systemsAne-t cketrigk oskatloc c!st0mer'ro ryorrl .m:'songl l nve Gl heWortdsMostS oph s l i c atedSngl eA s tel n_Fti q
'neck EnteftaLnmeit Syslem PF /r'eryJw,€ November17 2003;songwebste
themseGs n [Link] at the tem nal and altomatLcattv ww ysonq con, a..essed Jdnrary 16 2041
d spens€sa [Link] sav,ngthe companv$5 pe. clstome'

-."---t
 s!3Er3.!d:$!l)0r00j_
I

[Link] System @
Tlc real world is ompl* md dynanic. So when we wnt to tot different relationshipsard
SyslemPerformance
:heir effects,we u* modelsof qsrens, which are sinplilied, insteadof real slrrems A
Stendards
oodel is an abstmction or an approximaiion that is usedto represenrrealiry. Models enable
;s ro explore ud gain an inproved undesffding of real-world sinarions.
Sincethe besinnins of recordedhistory. pople haveus€dmodels A written desuiPtion
.'i a banle, a physiel rnock-tp ofm mcient building, od rhe use of synbols to represent Anabslraction o r a n ap p r o xm a l r o n
that s usedlo representreatlY.
noney, numben, and [Link] relarionships a.e 311umples ofnodek. Today, mn
:sen and decisionnake$ usemodelsto help then understandwhat is happeningin rheir
uearizations and nake be$er [Link].
There arevarious type of nodeis. The najor onesae narmrive, phlsical schenaic. ad
arrhenatic.l, as shown in Figrte L6. A unathe nodel, * the nme implies, is bsed on
..ords; rhu, n is a logical md nor a physical nodel Borh verbal md written descriptionsof
 FEt 1 | rnromatm r{hnotay corcars

reliry are €onsid€r€dn ralive nodels. In an orguiation, iePorts' docunents' dd convec

sarions concernins a systen de a[ inPorant namtives. A Phynal nod'l B a t^9ible
reprcentarion ofrealiry. Mmy physical models are [Link] designedor construcied An
enginer may develop a physical nodel ofa chenical ractor to gain imPoftanr infomarior
about how a large*cale rwtor might perform, or a builder nay d*elop a scalenodel of a
new shopping center ro give a potenrial investor informadon about th€ ov€rall aPPdmc(
and approach ofthe deelopment A$he,natic nad.l is a SraPhicrepre*ntation ofrediry
@ Gephs, chars, figuies, diagrms, illurtiations, md pictures te all gpes ofschemadc models
FourTypesof Modets Schematic nodels are used exrersively in d*eloping compur€r program dd svstems x
[Link]€lwords,sPoken or blueprint for a n* building, a graph that showsbudga and GnancialPrcj<rions, electiicn
writenl Physicalltangbtel *iring diagrams,and gmphs rhat show when cenain raks or acriviria must be conpleted rc
schematic (graphcl, and stay on schedulere mples of schemaricnodds usedlnbwinqs Antthnudcal nodz,
malhemat caLlarithmeticlmod€ts. is an uithneric representation of reality. Conputers *cel ar solving narhenatic,l nodels'

lsource:o Boboaemmrich/ Retail chains, for exarnple,havedevelopcdmttrematical models to identifv all .he activities
PhotoEditi scloelty
@PhotoD effoft, and time {sociated with planning, building, and oPenirg a new storeso that thev car
forerut how long ir will take to compl€te a stor..

Narlative
Rlglonat5.1€5
JamesEtoclronica
$ 2 5 00 0 0 dc bi c .ai oi s y [Link] d,
dilruc. aloiq r di3. ro'E ii Y d I
$200,000

$ 1 5 0 ,0 0 0

$ 1 0 0 ,0 0 0

$50,000

$0

MEthematicat

In daeloping any model, rccuJacyis critical. Ar inaccuratenodel will uuallv leadto a

inaccuraresotudon to a prcbtern Most modelscontainmany assumPrions,and it is imPond
rhat they be a realisiic s possibl€ Por€nlial uses of the model must be awarc of $
ssunptions under which ihe model ws d*eloped.
 Al rLrdlrro.r. .r. irrs,ttmq I c h l p t oi 1

WHATIS AN I NFO RM ATI OSYSTEM

N ?
v
.. rncnrionedprevnruly, an [Link] svsrcm(lS) is a set of inenelated dementsor
rponcns rhat collec (inpud, nanipulate (proc$) and store,and disrdih*e (output)
:::: rnd informarion aod provide a feedbacLnechanisn ro hed an obtdive
,.: Figure 1.7).The fedback nechuisrn hcLpsorganizations achievetheit goals,suchas
-[Link] dr inprclingcusiond seNice.

@
The Componenls of an

F e e d b a c ks f f t c a t l o t h e
s u c c e s s i uol p e € l i o nof a sysl e m .

, oc e s s i n g0 ,u t p u t ,F e e d b a ck
I nput Pr
Inpur
- :nfomurion ryslems,input is the acdvityofgadcring and [Link] &tl In pro
: : ingpay c hec k s ,fo re n n p l e ,th e n rmb e to fh ounevervempl oyaw orksnutbecoLl ectedT h ea c l i v t y o fg a t h e rn g a n d
::rre paychecks can be ehulated or prirted. ln a univeniry gradingsysten, individual
- ,:ucror mustsubmitsrudeotgrades beforea sunmaryofgradesfot thesenestcorquaner
.:: [Link] and sentto the studens.
lnput can takcmany [Link] in inturndtion s)'srcndesignedto producepaycbecl-s.
: [Link]'eerime cardsm ight be the inftial inpur. ln a 9 I I eme€encyt€lephone
,ren, an inconing ellwould be considered d irpur. lnput to a markedngsysrennight
':lude cctoner suweyresponses. Car nrnuActurers areexperinentingwnh a iingeryrint
::rtification input delicein their cxr kcuriryq{rem. You nay soonbe ableto gnr entry
: Lrr and srarrn with the touch of a frnger. lhis un;que input devicewill alo adjust
- :[Link] srcenns-wheel position,the tenpcrarure,md the .adb for D indilidual's sirc
: .: preferences. Regardlesof the s$ten involvcd,rhe q'pe ofinpur is deterninedby the
:..red ourpur of the system.
lnput canbe a manualor auromaredpioc6s. A rcanrer ar a [Link] readsbxr
les od enrersrhe groceryiteh dd price inro a compureritd esh registeris a type of
..lmated nrput process. Regaidlesofthe inpur nethod, accunteinput is citical to achioe

Processing
. [Link] sysrems,procesing inrclves convoting or trusforming data i"ro useful
.[Link]@€ssing an involvenaking calcularions, naling comparisons and Bkjng alrer' C o n v e r l i nogf i r a n s t ofmn 9 d a ta
::nt acdons,md storing darafor future [Link] data inro usetulinfomation is
:: :icali. buine$ settings.
l\oce$ing canalsobe done manuallyorwith [Link] the PaFoll appli-
::ion, [Link]'snunberofhours *orked nut be conrertedinm net, or take-hone,
r:,. Other inpurs often includeempLole ID number and depanment-The requiredpro-
:::!!rscan nrst involvenultiplyins the dunbd ofhourworked bythe enployees houdy
: :, nre ro get grosspay. If weekiy hour worked exceed40 hours, [Link] Paynay also be
:luded. Then deductions for *ample, federaland starerdes,[Link] h*lth and
:: insu.d.e or savingsplars-are subractedfrom gros pal to se! nel Pay.
Once thesecalcuLarions and conprisons are performed,the resuL$de typically
: red. sroragr involves kepiog daa and infornation available for future use, including
i.P'n, dscuseo nexr.
 Pdi 1 | , nm r , r : , , , Lir r t . i! . d :

0utput
In informathn sysrcms, output involvesproducingusefulinfornarior, usullv in thc form
t ol ls ef ut nt or m at on.
Prod uc on ofdocumens rnd [Link] crn includepaychecLs lir employees' reportsfor man-
uslatty n t he f of m of doc um ent s agcn, and infonmtion supplied to stockholdos, banks, sovdnmenr asencies,and orhd
[Link] sone cdes,outPut fron one sl std can become inpur for anolhd For *nrple'
onrpur f.o- . systcrnthat pn,ctscs sales ordos can be used rs inpui ro a custo'rcr billing
[Link]', liom one s)stcm can be nsed as input to control otho svstcm ot
""tput furnirutc is complicatcd with
[Link] instln.c. rhe design dd mnufacure of oliice
nany rriables. Thc salespervrn, customer,od furnimrc designcrcan go throughsoeral
desigr ireratn,nsto meetrhe cutomcL s neds Spccialcomputerprcgnms md cquipment
crcaterhe origilal design and allorvrhe designcrro opidly rcviseir' once rhc last design
mock-upn apprcvcd,the compuro creaas a bill ofmalenJs rh.r goesto ndruiacruing ro

Ourputcanbe producedin a uricty of mvs ForI comfuto. prhrer and dispLavscrced

are common output [Link] can alsobe r nanuil [Link];ng hrndi{riiled
rePortsaro docune!6.
Feedback
Ininfomation systems, feedbackisoutput that is usedto makechangcs to inputorproces*ng
0 utp utt hats us - Adt om akc€hanges [Link] exanplc, elor or prcblens might n*e i! decesrrvro corrcctinpur dataor
1 o ipu t or pr o. es sng ac t v f es . change a [Link] a pavrollexanpl€ Perhaps the number ofhouro rn cntplovet
*"' i,"" omputet t 400 insteadof 40 hous Forrunatll. nosr iftbr
-...a "
-",*.a
na ,n systems checkto makesurerhatdatrlalh *nhincertain rangesF-orn unber ofhours
worked, the rangemight be ion 0 to 100 hours becauseit is unlikcly that an cmplovee
would sork moe than 100 houn for anv givenrvck. So, the infornratnrnsvstemwodd
deterninerhat.100hoursis out of ruge and providefeedback, suchu an eror repon Tle
feedbackis urd to checkand corect the input on the number ofhouB workedro 40. If
uidetecrcd,rhis tror sould t6ult in r rery high nci Payon the Prined PavdrecFSome
blane rh. August 14. 2003, porverbhckour io the U S.'sNonhexsror a ]allrv comPuter
systemthatmr\ ablero providesecond-bv*con,]lecdback.l
Fealbackis alsoinportanr for nuagen and decisionmakes for example'a beddins
makeruseda computcrizedfeedbacksysteom link irssuppliersod plarrs The output frcn
an informarn,nsyren might indicarethatinvenroryleltis for afcw itehs tuegeilinglow
a potorial ptoblen. A managercould uc this fecdbackto decidcto orderrnoreinrentorv
&on a [Link] nev inventoryorder thenbecone inpur ro rhe sv$tm h addii;dnro
this reacrheapproach,acomputersystemcanalm be proactn'e predicringfunue evemsto
a"oid proble-i. This concept,ofro calLedforecaring, can be usedto estimte futre sales
t f ut ur eev ent st o av od
[Link] rc ng and ordermore innntorybefi,re a shorrage [Link]

d fo r m a tioSystems
M a n u aal n dCo m p u te r izeIn n
As discuscdearlier,rn infouation svsrenen be manud or conpureri?ed foi example,
sone inuestmentan,lyss nanually draw chrns od trcnd lin€s to issistthem in naking
[Link]! od sockprics (inpu$ overrhe hv fervnonthsorvcus'
thcseanallss dcvelopprtems on gnph prper (processing) thar help then dereLninewhat
s@k p.;cesr€ likely tu dd in the nexrfo dap or rteks (ourpur) Sone nNqtor havenade
nillions ofdollar usingnanuai stockorlysis infotnation s1rlemsOfouse todavmml
exceent compuleizedinfornadon slsrcmshavebeo dereloPed o follo$ [Link]
markos and to suggeswhcn large blocLsof stcks should be purchasedor sold (called
?rostu/r rzLns) to oke ^dvantaseof market discra rnctes.
Many i ormarionsystemsbegin* mnual qntens ard beconeconpurcrized loL ex'
anple, consido the *v the U.S. Poshl SeNi€ softsnail. At one tinc' nost letterswere
visuallyscorcd by posai enployeesto determinethe ZIP codeand wcr€ lhen nanualLv
placedin m approptiatebin. 1b&y the b&coded addrcseson ]ettes passingthrough the
poslal systcn are @d €latrcnicallv and autohrically rouled to thc aPproPriatebin via
io"'eyon. The c"mpurcrizedsortingsystenLezults inspeedietpracssbg dme md provides
maiagemenrwith informarionto heLpplan [Link] is inrfortalr io s!ress
[Link] siftply computerizinga manual in6rmarion systen does nor guanntet
 Proqramt€d ng systemsattow
r r a d e 6 t o k e e p u pw t h sw i ft
c h a n g € si n s t o c kp r l c e sa n d m a ke
betler dec sionsf or their nvestofs
l s o u r c e :O R € u t e r sN e w M e d i lan c/
c 0 R B t Sl

:r:oved q'sen performna. lfthe undolying infornation slstem is [Link] ac of

apuer;ing ir mighr onv nlgnilr the inpad of rheseflavs.

Comput er- B a s eIdn f or m a t i o nS yste m s

. ;o-puter-basedinformationsysten(CBIS) isa singlesetofhudwarc,oftmre, daraboes, compuler-based
information
,.:ommunicadons,people,andproedurcsthataLeconfiguredtocollcct,rnaripulate,stote, system{CBlSl
: pftEe$ darainto [Link] ennple, a company'sp4toll rystem, order entry A s nqle set of hardwarc,softwa.e,
d a t a b a s e sl e t € c o m m u n r ca o tn s
::n, orinventorycontol systerns arccxamplesofa [Link] onponena ofa CBIS art p e o p t ea, n dP r o c e d u r eth s a ta r e
.f..red in liigur L8. (ltpuario" techflolorJ,
IT,ls a rclarcdrerm For ourpurPoses,IT conligured t o c o t t e c tm a n i p !ta t€ ,
r:; to rhc technolos componentsof hardware,softwre, databases, and telecommunio- store and processdata nto
: . I A busine$'st(hnolog infttnucture includesall the hardwre, software,dasbases,
, -.omnuricarions,people,and procedures rltararecoofiguredto collcct,m anipulote,srorc,
: procs daraturc informatn,[Link] techology [Link] is r scr of sharedIS re' technotogy
inlre5tructure
. -,<s th:t fom the foundationoferch individualcomputerbted infonmtion sntem. Allthe hardwafa,soltware,dala
b a s e st,e l e c o m m u n p e o p te ,
c a tr o n s,
: n d p r o c e d u r etsh a l a r e co n fg u f€ d
, a n p ! t a t e,sto € a n d
l o c o l l e c tm
processdara nto nfofmalion.

@
The C omponents
ofa
Computer-Ba5edlnf ormation
system

:rrdwue consisrsofcomputer equipmenturd to perftrn input, processing, and output

Computerequ p m e n tu se dto p e r
..-.,ties.r lnputdoices includekcyboards, autnatic scarningdevic, equipnent that can
Iorm input processing,and outpur
:: magnericink characrers, and many other [Link] firms often usc rcje
: dd orh.r infomat;on 6ing ordinaryspoken
rc allo* custonen to gertheirbalances
"xc
 P*r 1 j irom3r onrechnoLosy
comepts

rnlena(, The Sdipp{ Instiruijon of Oeenosraphydryeloped \pccjal

a undeMa,er(
[Link] Dpur dfl'(e @xor a djrer6deeps r00 [Link] rocorurctM udeMarer@
wh r.h @< lormsly onEolJed by a compurersysremud
moue on rtle surface..procs
oevrce\Indude [Link] prccessing unirdd main [Link] spccdis impor
in oeadrs video inases.6 Liftlile no./ie chancr€rs such ar GoIlJra
in &; rud of ;e A
show,whJr is pGdblewiLhrodi.y; tur prccesK l\4e,,1 t-Ae,
.f ce.*y ,;d p;,
oe unrred )rars hrvc."rd su(h r\@d_winninBimrgerendedng
[Link] re(lx
ud herpd€.isn e,-'. $ch a d,e steel ,trapa ol Meredg Ben?
:s, i.1,9 'o Khi,
)P(rar [Link] &dq m hasal$ beenus€dir schooh,o helpsrud€niitwn 3 w

Thee:re muy ourput deu_crs. inctudingse@ndrrysloage doie. prinren. and o

pure' rtreni. onc @mpoy, for exarnpte,ue compurer
hudware in irs srors ro al
.usromeB,oordcrirem dur re nor on nore,[Link] hadMe
hetp,[Link] _
,he ule- nd incres [Link] De[. fobder.f D. t*.,
bii.* .h"i;d;
wili increrdnsly include rery smal devie thar are conneaed to
orhei [Link] dwics.
sid, "Ndorechnolo$ and .olmuiqrions wil be in *errhin& A[ kinds of oder dw
will attach ud link mgether, centered,r thjnk, wid, the pc."s
Noorechnologt @ inv(
noleculesi4d lEdwarc d*i6., There .re also many sp".i"l_p,.p"se h-j;. de,i
compudiz€d adr data .corden (EDRs) ate now b.i,s pl*d
in; ,$i"1".. Lik. ,
pbe, bhr[ bo:. tDtu_record J lehidei spced.p*.;Lt *g_. -
probtems.a ddv
pcrrsmrce, ,nd morc. The [Link], n beingLDedro moni,o;
rehicteope,&[Link]
m,ne, he.!ue oi<,dens. rnd [Link] Lrud drirer,are
otins;quiRd bre
In r [Link] FDR s"! 6ed @ hetpcon,icr a &iver ot whi(ule
homi;ide.,oA susr
q"((nu'8 a [Link] (ompurer sdeo dd
6ing a ioF(iLk cM viry up ro 2.000 di6 or (;
ycr,onr eJe4ot, pari6( 5bodybefor
pwi*ly remo inga [Link]"[Link],rica
input dd ourpur dqices e rnaking surgery more precise,which
can savelives.i

F lard w a re i cs oa mp o n € n to
af
computerBased Inforharion
System endinctudes input,
processr.g, and0utput.
[source:Courtesy
ofAcerAmerka

Software
Softs"E [Link] rhe compurerprogrmr dut gorrn the opcradon
Thecomputef programsthargovern of dr ompurc
rn6. [Link] a ompurer ro processpayto , sendbi s ro cuiromer.
lheop e E to n o tth ceo mp u te r. ud p;ti(
man ge^.v[h [Link] to [Link]€ prbfrs. redue coss. and provide
[Link]
opleon wdk anldme at dyplac.. On, oip b&l ro rhe UniE
rtacs rrom Au5ualiaed No 7eJmd. SrryeBallmr. CtO of Micrcrti
[Link],.
could wry my.:lida. ould erry my e malt. | .ould .ajry anldring
_l I [Link] rc re,d.
courdcery my lire with me l_ m wry pouertut..r, Thde de Mo
b6ic rypesof softva&
slAtem $tt*Ec, such er 'Windos )0, which @trtrols b4ic ompu.e.
oieEriois sch a
str-uptrd prinr;[Link] rppl;.!rions sucl a Omce 20dJ, $hich altowsjDecif
'oliwn.
ra|c ro be rc(omplilhed.s{ch s wo.d prcesingor t butar;ngnumben.
 A n n r m d u d o n t on f o i m d m s F b m s I c h a p t4 ! r

0atabase5
\ darabse is u olgmird col@rion of facrsand iiforn,iion, rypicaily consisting ofttu or
iore relarcd dara files. An orsanization's databasecd @nrain fecis ad information on A n o r g a i 2 e dc o t l e c ti o o
n l l a cts a n d
:uronerl enployes, inventory, competitors salesi omation, online purchdes, dd
nuch more. Most nurgers and secu rivesbelim a darab$ is one of rhe nosr uluble and
:nponat pans of a computer-bmd inbrmtion system. Incre{ingly, orgmizations are
[Link] imponant databses on the Internet, discused next.'a
Tetecommunicalions.
[Link] Inlernet
Telecohnunicationsi the elecronic uaqmjssion of signalsfo. communications, which telecommunications
:nable orgmiations to cary out rheir [Link] tasksthrough ef6ctirt computer net- Theeleciron
ctransmission
olsig-
*orks.r) lnge resraurartchaim, for ermplq car use telecommications sl,stemsand n6l sf orcommuni calionsienables
organi2atiofs to carryoutthelr
qrellites to link hundreds ofresraurana to plants and coryorare headquanen to speedcredir
processes andtaskslhr ough
ird authorization and r€poft salesand payroll data.N€oorls are usedrc cornecr compurem elfectivecomputernehaorks.
ud computerequipmenrin abuilding, uound the country,or round the world ro enable
:lectronic [Link] 6ns cm w wireles networis ro omect thousuds
oipeople with then orporate offres. H otel Crnmonwealth in Boston us wircles telecon- C omputers andcomput er equp-
aunietiors to allow gue*s to @nnect ro the Internet, get voi@ ne$a8es, and perforn other menii na bui l dng arcund
lhe
couniry,or aro!ndthewortdto
:icdons witlnut plugg;ngtheircomputenor mobile devicesinto awall outlet.'oWireless enabteetectron c comm un
cat ons
:ssnission is alsoallowingdrones,like Boeing'sScanEagle,to nonnotpower lines,build-
rgs, ud other commercialestablishmenrs.'7 The dronesare smalletand les-erpensive
of the Predaror md Global Hawk drones that were ued succesiirlly in the
':siom
\fthuistan md Iraq conllicrs by the U.S. n nary. One conpany usesa privne network to
:omectoffras in rhe United Srates, Gernany,China,Korea,andothei [Link]'r
re a public nemork awilable to weryono such u the Intemet, discusd qexr.
The Internet is the uorld's largest computer nework, actully consisting of thousmds lnternel
:iinrqconn€cred nefforks, all frcely exdunsing information. Researchfirms, colleges,uni- Thew ortds l argest com put er nei-
jusr a few mples work,acluatly consstingot thou-
':6iries, hish sch@ls, ud buinass are of oryanizariom usiry rhe
sandsof int€rconnectednelworks,
all h€etyexchangjnginlormaton
The lnternetis uwd by most buinses md [Link],for *mple, is
a hternet site that allows conpuies to buy md sell chenicals and chemical products on-
:re.13The Internetsite is the large$online chenicalnadiry sirewirh more rhm $8 billion
unual [Link] addition to being able to cheaplydownload music, audio [Link] and the
-::ternet allow peopleto changea ong's tempo, createmixesoftheir hvorite runes,and
rodift soundracks o suit rheir personalIste. ft is ev€n posible to play two or morc ongs
;,multmeouly, called zzrl;2s.l' Monsge ompmis use the Intener ro help malc loos
:: turomes. I:nding rhrough the Internet ha grown [Link] from about $260 biiiion
i 100I ro more ihan $800biilion in 2003, represenring almosr30 percentof rhe rot,l lorn
=[Link] Medo Herlth Online, a subsidi*y of Merck & Company, receiwd nore rhan a
:ilion dollas in sal€sthroughns [Link] Inrenethu alo beenusedin public
:rdom.:: Anien, a subuS of Genem, rru the 6st city in Swieerla !o use ihe lnt€rn€r
: a public, binding vote. Busineses re increaingly u{ng insant wsnsjng (IM) a con-
;unicate.a Ill4 allows nmages ad enployees to insrotly comunicare ow rhe Inrerner
:rng rext messages, video, md even sound. Today, bedmom, srudies,kitches, dd living
:mms are being connected to the Inte net.'?aIn addition, ravelere who can gah acces to
Inr€net .d .[Link] with ayone elseonthe Interna, includingrhoe who ae in
-i
:l:Shr. Someairline companiesde stariing Interner serie on their flighrs ro ,llow people to
<nd dd receivee-nail, check inrestnors, and browse the Intenet. Acording to \nnon
one of the pioneereof the lnternet, "There will be a very large ruber of deviceson
-<rf,
:. N€t-appliances, rhings you wer md cany around, md things that are enbedded in
r^sive rhings like wine cork and your socks."'75Table L4 lkts onpmies that haveued the
:.reroe! to rh€ir advdtase.
 r-r | ! r . . r i, Li, q r c o , : , r L r
' "' , . ' , ,

Tl ' [Link] r devel oD ed

d /[Link] ab F l " l pr retci . t . . r a owscLeloner !
l o bJvard sl rp.l -[Link] ps.
A ..oroi nq X a I ano,d re cr [Link] G od\ o D r 4 ,
"ThiEwas sel upfrcm {he b€glnningto' [Link] money. ln [Link]. ontine
sal esfdve> odf" dbynoF hal tOo"eacrre.r.

Theofgani zat on.l [Link] nvi fonmeniDalefense [Link] ! t t y

usedthe nternetto aterlpeopl e to [Link] i ceof Gtchinqshar ks,. em ov-
n9thei ffi nsfor so!p,andreturnn9themto l he ocea nt o d [Link] er net
site aLsohelpedpeopt€faxatmost10,000tettefsto membefsof [Link]
aboutthepfad ce.A [Link] ng to FredK rupp,theexeculved r ect or of t he
Fund," Thel .terneti s i he uti i mai eexpr ession
E rvi roi menl at of t hink

.Eetler -l ecofpsrvueedtheI' l erl et ol -a-enpl oyeestosellsoecat r v! henr car s

[Link] i es. i l sreddof bri rgi i g hFn to V ampLsl f ort a r r . [Link] n9
l o ore Fi e.J_i /e,our rel erti o" ral e s n rchi [Link] E1dwe . er oveoo weel.
fol ,.ai i .9l . V en' ol E w l c1 neanrD i gsavrga L5 inqr her r t er let lower "d
thFhoJl !cos ol f d| ,n9ai [Link]" e4ongl 000toonlr gqo.

U sl ngthe nternet,i he company,

w hi chb!i tdsandservcespowerpt ant s,
w asabl el o [Link] ente.i [Link] vng clsr om e. sThe
ni erneisoU ton costaboul$60,000 compared w i i ha hadironalsoluton
ihai wouLdhav€co.t of $600,000.

0ol;n€n Th" company ru< es l achi rel ool sal ow acabl etost aslt he I ner t lalps ho
f l tar [Link] on o-. nor l l s l o a w ee"usr19lhe I ler 1el o l. lp
- [Link] " boLr
aootdlruteparti siid with its [Link] ptanls.

-l [Link]:rv [Link]
d1 l r l 6r s r6 l o- w 10' .< aer s o ( or pne eq! p-
[Link] hotesal ' ar ersusethe
si tetonake bet t er decisons
pri cesotvari ous
aboulthefeaturesand p ecesof complt efequipm ent The
.
systematlowswhotesaLersto connectto Partnershp Amerlcas slte usingceLl
phones.W henmanyol oufc!sl omersneed i nl [Link],t hey. e not at t hei.
desks, saysonecompanyrepreseniative.

@ the waid Vile web (wIYI'Yt or the \(eb is a nerwork of li*s on rhe Int*n* r,
documenrscorrrinnB idt, graphics,video,and souM. tnlbnnarior about Lhedocumen.
and a@e$ro rhcm arc .ontrolled and pm'ided b).rensol drousrndsofspeci:i compucr,
calledweb scncr. The \Yeb is oneofnranyservices arailablcorc LhrInternetanrlprc;de
rcccs ro [Link],vn,illionsofdcumenrs.
Thc rcc-hnology usul o createthe Interncris now rlso beinsapplieds ithin companie
and oigadizarions [Link] ar intraner,which allo$s pcopl.w;fiii d orgrniatn,n rc c\-
An n ler nalnet wor kbas edonW eb chang€intormirion and workon piotds. The Virgir CLoup,for cxanpLc,nes m iotnne:
techn ologies lhat aLt owspeopLe
t, connectits200 globalopcfutirg cohpan;esand 20,[Link] Accordirgto Ashle,
wlh n an or ganz al on t o er c hanqe
nto rm aton andwor k on pr olec t s Sn)ckr€ll ofrhe Virgnr crorp, "One ofour key challenges ar Viigh is ro providr high
tlualiry servicero orr family [Link]. One key rool ro hch trs proride th;s rva\ rh.
d*elopment of an nrrranetmd exr:net. An extmnetis r ncr*ork bred on Weh tech
A n etw or kbas edonW ebt e. hnot o nologiesthat allovr sclcctedoutsirlers,such as busines parrncrsrnd custonr*, r, accer
9resthat attowssetectedouts ders, authorizedresourccs ofrhe intanet ofa compaw. CorDpaDics canmoyr rI ormosr i* thei;
su cfras bus nes spar ln€r sand. us -
to mer s t oac c es saulhonz ed
business rciiviriesro an [Link] sie for (trpoEr cu"omer. Marypcople useertanes even
resou f c esof lhe nt anel of a day nithout realizingit to mck shipperlgoods,oder producs from thcir supplie*, o,
[Link] [Link] on ro drc fcdEx sitcLocleck the *ru,
ola package, torermrplc, and you te usingan exrraner.
 A i n r m d u . t o i r oi f d m d m s F t . m s I c b l p t .i I

Peopte
[Link] a.e the nost inpondt el€hent in nosr @hpurerbaed iofomadon s)[Link]-
rmaion sFtemspeBomel includeall the peoplewho nanase,r!n, [Link],and nainrain
:re sysrm. Largebmks cm hire hundredsofIS per$mel to speedup the doelopment of
rmputer relaredpmjects. Usenarepeoplewho rrseinfomation sysremsto [Link]
r;lude finmcial *ecutircs, narketing represenatires,
manufacturingoperaros,and nmy
ilhels. Certainconputer usersarealsoI5 peronnel.
P r oc edut eg
Proceduesinclude the straregies,policies,nerhods, and nnesfor using the CBIS. Ior
:ranple, someproedures describewhen eachprcgrm is to be run or erecutat. othen Thestraleg es potcies,methods,
:.rcribe who can haveacas ro faca in the [Link] other proedures desqibe whar is a n d r u l e sf o r u s i n g€ C Bl 5 .
:r be done in cm a dister, such as a fire, an euthquake, or a huricane thauendas the

Now that we have looked at conputer bced informrion s)'stds in general, we will
:rrcIlv gmine rhe most comnon types uad in busine$ today. Thse IS tpes ale cor€red
. doie deiail in Pan 3.

BU5INE55INFORMATION
SYSTEMS
1c mosrcoomon typesofinformarionq,srns usedin buines oryaniz:tionsareelecrronic
::d mobile connerce q'stems,$aiEactionproce$;ngsysrems,rnanagemenr informtion
r- rems, md [Link] addition,sone organizations enployspecial-pur-
:o r sprems suchasanificial intelligence systens, erpen syaens, and vimral realiry sysrerns.
ogerher,thesesysens helpenployeesinorganizadons acconplishborh roudnemd special
:ks-from recording sales,ro procesing payrolls, to supponingdecisionsin vdious de-
:rmenrs, to providins alErnarives for lalse{cal€ projecrs and opporuniries. Fisure 1.9
:'es a simple o"eriw of rhe developnenrof imponant busines information sysrens
::cusred in this rcrion.

@
TheDev€tophenlof lmporlant
Businessl ormationSystehs

Ete ctro n icand Mobi teC ommerc e

E<omnerce involvesan)'buin6s mnsactionsrcuted electronically betweenparries such
:.onpaDi€s (busines-ro-buinas,B2B),ompan;esaid consunen (buines+o-consumer, A n yb u s i n € s lsr a n s a c l i o ne x€ cu l e d
llC), consunersand othe. consumers(@nsuner'to'consuner,C2C), busine$ and rhe e t e c t r o n l c € tbt ye t @ enp a r te s su ch
a s c o m p a n i eIsb u s i f ess- r o -
.trblic *.tor, and consmer md the public cctor. Peoplemayassunethat e-onnerce is b u s i n € s s cl ,o m p a n i eas i d co n -
:sntd nainly for onsunen visitingweb si€s for [Link] \reb shopp;ngis
::.1r a smll pan of the e-commerc [Link]€j fte najor volume of e commeeand its c o n s L m e ras n d o t h e rco n sL m e r s
:lesr'[Link] s€medr-is business'to-busin€ss (B2B) Eansctionsthar nake purcha!dg {c o n s u m e tro c o n s ! me r l b , u si n e ss
=ier for olporatioru. Thi gowrh ;s being stinulated by indeased Inernet acces, grqing a n dt h e p u b t c s e c t o r,a n d
c o n s u m e ras n d t h e p u b tc se cto ..
:.rr conlidene, beaer payment rystems,and iapidly inproving Intenet md Weh securir/.
-nrpofale Expre$,@ olie{upply companylrrard in Brcomfield,Colohdo, 6d a so-
linicaled B2B sl^t€d to @ordinatebillionsofdollam ofoffice suppliesthar flow fron ia
.'"fplie!s,through its [Link], ro ns cutoners.' Today,more thd [Link] its 75.000 drily
::Jer anive electroniclly throrgh B2B on the Intdnei. E commerceoffersopponunities
rr snall burinesses, too, by enablingthen to narket andsellai a [Link] worldwide,thus
 Pdt 1 | r".htLoqyco-"pt,
"rr.d ""

IBMPa . t i€r wor ld@s af ex am pt e

o l 82 B lbusnes s t o bus i. es s l
e -co m m er c teh6t pr ovdes m em ber
comp anies w t h r es our c es lor
p rod uc lm 6r k et ing,
t ec hnc at

Order rnd track products

i 5co,n;-|Ire1etr,4:!.,-,,-!9tr9,!j1,.t1-Lq!iJ!!-
i.-,.-.--... Hm

[Link]]ih'.lshll|.o|ddlsconol'l'

[Link]'pircB'M'dlndF'laisbn&|doi3]

6 E!t!!!-!!r!!t!t4!41]}i 6*s - un ,r, ror

I udbd se€€ (P$! :!!!r!l4r!)
a qrild, (pwss '1. t*'o)

allowing then to €nter rle global mrker right fmm snn-up Mobile .onnme
(m'onnde) at rnnecrions conductedanivhoe, anyride M-comnerce reljeson the
Tr€nsacilonscof ductedanywhere, ue of wneles comuniarions [Link] nanasersand corpontions to placeorden and
.o ndr.r burne' sui ng hodl -el dcomourer'pormbl epFore' .l aproponpur er com e.t ed
rc a network,and orh- mobil€ devic6.
Consunen who havetried online shopping appreciatethe eae ofe-commere. Thev can
avoidfightingcrowdsin the nalls, shoponlineat any dme frcm the @nfortoftheir hme'
md hm goods delivered to then direcdy As a resuft, advertisen plar to increu spending
by6.3 percentonlineversus4 7 perceniin [Link] addirion,curenr laws
[Link] online purchNs exenpt purchcers fron paying state satesldes How*r, e-
commerceis not without ia [Link] @ntinueto haveoncerns aboutsending
credit ord information over lhe Internel to siteswirh larying secuiry measud, whe'e high'
tech ffininals could obtain it. In addition, denial of+ervice attacls rhat ovenvh€ln the
capacnyofsone of the Veb\ mostestablished md popularsits h*e nisednewonerns
[Link] so*rh of e-connerce. Privacy n [Link] rmt to
know what data is sthered when a consner visi$ a V/eb sire and whar conpadies do with
the collected datar ome hae mld dara ro nultiple sources' leadins markerins compmies to
know nore than we would like. Se rhe "Ethiel and Scieral Issues"box,whicn dncuses
orher potentialproblems of e-omerce
t-r3hin9
forVisaCardCustomers etectmncattywtlr the. .lstome.s and to r:onduclbls nesson
o'.r". ?,d . be om, n ..6 ...9 .p ,q d .d
tin€.'Ai slakeis our !e rytfLrstt hatthe [Link]. be€ledupon
" ! d
Io odod o md D_.-
-- .! conslm.s [Link] dentityTh 5 hiesiscam '.
Jevans, .harmaf of the Antl Plrslr ng [Link] Group
-
'9bd o,.d u .e .e n a d n d W6 b rd o bo o
:: :rners ntorev€tng privaternformaton lMannphlshing ary).
: l fthey Soh^/arelools dasgnedto detectplrshing:cams typcatty
- ee. c techrclogyto
es y s t em s re ty o n th
prolide e trl
sate ands to fth e p
sec!re a rtrcpai i s
[Link], dentifyonty50
to 70pefcenl ofaLtphony systemsTheontydefeise
-:tthe
6 / o . t d Lo , o .o .t 6 wr L 4 - 6 ,o ' .r ' e hf"
consumershaveaga nstsrrchscams5 [Link] [Link]
e"
teeryofanye-ma tf| om. companyl hrLrsksyoutovst Web ! page
::: io.e [Link]{do padiesaverthe
to [Link] on.C h€ckw l l rthecompanyat
ft sof f. iat
: .:. foolproofsy5temsexsi to quaraflee thal the
::-is ir.e whotheycLaimto [Link]
this Web sle lo conlimr that such .eqLrest5 a.e [Link] beiore

: : iiq s c amw a s rc c c n tty L a l n c h e d :g a n sVt i saca.d

: - . f d s er v es
a5a l e x tb (n e
k ra m p teo fL h ete c h nqua. A C .i ti catThi nki ngQuesti ons
: - ., lwas 5enttolntemeluse.s,,!ithanoffcialtookinqVsa H on " p" op' -po," I e^.e 6ro b o- ! d.
_ :rlress .laming to havecame hom Vsa [Link]
ti m of a phi shl ngscam?
2 W [Link] theydi [Link] t he. pf
_ .[Link].!d:nd s [Link]
vate ni ofmrt;onhrs beenstotent
, ::.d [Link] a nry"secutysystemto
:: avoidpossbtet€ld actons andask-ad userstoclrcka
WhalWoutdYouDo?
:r:tlateyouracco!nt. TheLnkwaspr ntedas
'.-:n lsers dcked theLink, '14M/sa Youve receivedan e mart from yoLrrcoLtegesFlnancalAd
il tookthemto a Webs te that
.l theysaWebsite-wihanofflcatVsatogo,artworkand Depaftmeni thatcongrat!laies yoLron beng the rcc plenlol llnds
.6,1 Vi TL6 frcm a [Link] [Link] yoof $2 0!01o.
: :: J..t lnformaton nctudrng theifVisacfeditcadnumbe. thls 5emesteryau are lEq! r.d 1ovlsI the F nancatAd Websit-"
:: _ . ids t s ihefha d b o th a c L rs to m e rs .c c onLuro t
mberand lwr"[Link] and slbmt a brel ont.e
spptcatof [Link] tilngo![Link] [Link].m6toi
o do. dd o .o^o/uLlp6 sl ch asyoLfnam€, addross phonedateofbi fth.:cl roo D nlm
l be.
.i ..6 LL ,,,an 61160 l on SocaLSec!ity [Link] bankacco!nlnurnberllof rltom.t;c
: :_ : ma ts [Link] rsesiimatedihai 5 to 20 percenlol depostl,yo! ctck theSrbmlbuttonandheado!t lo cotebrateyo!r
: : . e. poidt oph s h n g s c a msfi.h e V s as c a m,th eo wners goodfoduneAftera week,the moneyhas)€t to bc [Link]
:-lLtcnt siteshuldownandd si]ppearad priorLodiscry€ry youareqetl.g concerned.
'- them an [Link] [Link]
3.
: : _t hey s t ot ec o l td b e s o L d i n th e !n d e rq r.u n [Link] ca.d W hat n thi Escen..o sugqests
tl ratth s m ght bea ph slr
. : _als c dby c r oo k s a nthdi a w s toa s s u m the ed e n ti t yof
the
: :-l nrakeittegaL p'rfchases 4 i f yo! w era .esponsi bte
l oi [Link] onsec!rty at yo! .
: :_ _! scams arc [Link] d {flcLrttLo [Link] 5choot, w hatsystemm qht yo! des gn to ass!.e st udenls
: - : . m at s andWe b s i te s to l doeknct a ttoo d qn a tc o r porate l hal offi cat [Link] comes
tty rf omt he
' : :-lence andWebstes Webaddresses appeartegltnrate schootandnotl .om an mposte.?

: :l .on atthebottomotthebrMserwindMl Slchscams SoURCES,Paul Robeds Late5t Ph shing ScamTafqersLsa Cunomers,

Canpute otld, Ae@nbet 26 2A03 crowth [Link] Keycon-
mmu..Le .en n2AA4, [Link].r.6 January5 2004;lheAnt Phsh nq
grcrp we6 slre, Mant [Link].9, acces5edlaiuary t7 200,1
 Ps i r d", m "t * T" hnor oe y c o n . e P r s
I

wo*
[Link] of !he conrm' e-commtrr oF€rsmsv advuuses for tremlining
'oiR (J rhr
iviriA. fistr L I0 pr@id6 r bridrunPle ol how e-@mmere 'imPIiry Prc@5
the msud sts
fo. pu*h,riiq n.* om.. tu mnue from dn omce-{pph 'ompmv t ndet
*.',, *' ler mur ge apprcvrlfor r pu'hu rharos moreLbana anaj n
ih,, [Link]"" go.. rhepurc}uing depanmor' which generrr' r form2iPu(hr*
-'p.*i..m*
^o-,. to procue the gmdr'ofrcn the approved rendor' Busines-o busnss e-conmerc€
order
,he *,'" r;**' Emplovego dirctlv ro r}e t pplieri veb n re find r}e irm
"r,.*"1 ri aPProvr
in it'uralos, md orderwhdrrheyneedet J Pric 'et b) theemPlovee 'comPdv
e-cometgvrems g'N'5
is req"ired,ihe app'o'er [Link] auromadcallvAs rhe ueof
r-heirrndirional svro' fhe eulring growrh ote omere is
pf,*l"g-,
-p-;*,*
creating nany new bustnessopPortuntles'
l-i*-"-" .* r'""" . p*itive imPa€i on stock Prices md t}le marker value of firns'
brick-and-monaJ
To&y, sweral e-conmerce firm hare tened up with inore rEdiiioml
a"" m- eaa *hert srengths. some e-comnerce cusornes can order prcducts
s..*i.
through an Internet site md pick then up at a local store close bv

[Link] [Link]

[Link] [Link]

@ In addition to e<ommace, businesshbrmtion qttems include the use

of teleconml
(''P/octtl
ni@tios and th€ Intenet to perforrn mv related tasls Electv"i' Pncament
E-comm€raa Graatly
pdis at
Slmltili€[Link] zezy', fc *anple, involn using information qstem md t}te Internet to acquire
.uoplie. ui.e hformxion .ysrem' and the Inarner' i lzmo* batwt tbrcim) gce' t
* i*r"ae rhe ue ofinformario' vstens:nd rfie Inrm* o perfom '
"."i "-.'i*
'U-i*.'*f""a *f" f"[Link], slch a! accountins, fime' maLedng' mmuhaunr
md human reouces -a activi ties. Ebctoaic nanageMt (e-tb'4setunt) iwolves tta we
 /n [Link] :o nr mr i i }l Fn! | chal t€r 1

and rhe Internetr manageprofitand nonprofit organizatiors,

: i,rmationsysrenrs incLud
:: governmentalagencies,the militry, md religious and charirablc organizations.
lnagemenr indude all aspects ofstaffing and hiring, directing,onuolling, and other

T rans ac t i oPnr o c e s s i nSgy s t e m sa n En

d te r p r ise
P
R es ourc e l an n i n g
Processing
Tran5action Systems
. :,:. dre 1950sconpuft^ lave beenusedto pcrforn commonbusine$applic ions. lhe
rcriveof manv ofthee earlysystenss'as to rcducecostsby automatingmany routine, A n yb u s i n € s sr e l a l e de xch a n g e
s u c ha s p a y m e n t lso e h p to ye e s
1r inrensivebusinessy*[Link] is lny busincv relatedexchange sucbaspay-
5 a t e 5t o c u s l o m e r sa ndp a ym e n l s
: rs ro emplolees,salestu customosi or palmerts ro suppiicrs. l hus,pro6$ing busine$
-:rrrcdons q'rs the first applietion of computr^ ftr n6i orgdriarions. A transaction
:[Link] sstem (TPS) ;s !n orsanized<nlection of peoplc, proccdurcs,sofnvarc, Tra.5actionprocessin9
system
:::r5rscs,and deices usedto record onpleeJ buiness [Link] undcntard a tTPSI
::,:rcrion proc$ing s).ted is to undentrnd basicbusincss operarions and tunctions. A n o r g a nz e d c o t t e c to n o l p € o p te ,
procedufessoftwafe,darabases,
One ofrhe fint busines systens ro bc conputcrized ivas rhe [Link] systemGeeligure
a n dd e v l c e u
s s e d r or cco fdco m p te t
ir. l he primary idputs for e pavmll TPS arc the rumbers of errployee hoursworked
: r og theweekand pay nre. The prinarv output corsists ofpaychecks. Early pryroll systens
.-. rl'lc ro producee-ployee paychecks, along with important cmployee-rclrted repons
,:rrcd by srateand fideralagedcies. su.h xs the Iniernal Rcvmuc [Link] rcutile
.[Link] includesales [Link] bilhrg andcustomerrelarionshipn,anagement.
:rror1 contrcl, and nany oiher [Link],fot romple.
.. rheir TPS to buv billions of doilareof nccdcdpans ech 1er through Internet snes.
-.-.rre rLesesrrtemshodle rnd proces dallybusncs exchinses,o. ransaclions,lhey ffe
--rsilied o TPSs.

w
A [Link]
Proces5in95y5tem
T h e n p u t s{i u m b e . sof e m p to ye e
h o u 6 w o r k e da n dp a yr a te slq o
t h r o u g ha l r a n s f o r m a l i opnfo ce ssto
p . o d u . eo u t p u t sl p a ych e cksl .

n idpov.d forms, rhcsel-l'Ss e srili tu mot nodern orga arions: Corsider

'ital
. r .w,uld happenif a organizationhad ro tunction withort irs TPs for .ven onc day.
.: .Lnanv emploies would bc paid and paid tbe correctamount?How mnr sJeswouid
. ::cordedrd procs*d? Truscrion pro@$ingsystensrepresentrhe applicarionofin-
-rlion conccptsand tcchnologyto routine, r€petitnt, md usurllv ordinary busines
i .:[Link] dur arc criricalro rhediily tuncdonsof tk t businc$.
:nterpriseResource
Ptanning
: enterpriseremurceplanirg (ERP)systemisa serof integrated prognns tkrt is capablc enterpriseresourceptanning
.rrlrgnrgacohpan)"svnel bninessoperations foran globJ orgdiation.
enrirehulrisite, IERPIsystem
.! srstemscanreplacemany applications with oneunifiedserofpn,gnns. Sutt* HeJrh, A s€t of ntegratedprogramscapa-
b l e o f m a n a gi g a c o m p a n ys vi ta t
:::. nerwo.kof33 hdpiels with ovcr 4 nillion patienlsin [Link] a!
b ! s n e s so p e r a i i o n f5o r a n e n ti r e
,.:.1srsremb [Link] nedicrl fansactionsandto exchange infornation berweenhospitals, m u t l i st e . g l o b a lo r g an i za ti o n .
-. . ic r ns , andm p l o y e rs .z e Al th o u g h th c s c o p eofa.E R P systehnarvaryfmmconpaD y
to strpporrrh. nduAcruring
-oNpanv,host ERP systemsprovideintegnted sofsare
: rlnancebusines functioro ofan [Link]. In suchan enrnonmox, a forecm is
, .i i .:rrcd rharesrimates cdtoner demandfor several rveks. TheERP systenchecksrvharis
 Pu t1 | ir o n r L NiT e .h n ,h qy..ft,pE

SAPAG , 6G er m ans olt war e

co mpanYis oneof t he t €adng
s!p pt eE of ERPs of t war [Link] (r*' ,.,.! i 'i 1't
/,*6.!-i9dd- Qt* {j :,.1,
companyemptoysnearty30 000 !86
pe op t ein m of et han50 c ounk ies .

f- -- -,
--.

*6r',5r$r6fdT *o!"u?taft $
FQa *ffiAr,268
';gwg\ANT

WWW
{r

!lread).available
in nnishedproducrinventorrto meertheprojec€[Link]
hst the. prcduceinvenroryto elimimc anyshorr@[Link] developingrhe [Link]
*hedule, rhe ERI slsremcheclGthe hw nadialand packing-narerialinvcntoriesddc
ternines whar needs !o be ordercd to neet the khedule. Mosr tsRL qrrens dlso hav(
purchsins subsirremrhat order the neededitem. In addhion ro rhesecore busin
prodses, sotueERP sFrens cu suppon additionalbusine$tuncrions,suchashmd ,
sources,sales,and [Link] relarionshipnanasenenr (CRM) fertures,i
example,help organiationsnmage all aspecaofcustomerinrcncrions,includinginquin
saies,deliveryofpoducts and sefu;ces, and supporrafterrhe [Link], ERIj cohpr.
havelnterner-based systensto nanagecuromer relarionships. The prinary boefits ofn
pleDenting an ERI systen include €s;ng adoprion of improved work processes r
inproviog accessro timely darafor [Link] tuking. An ERIr rysremca! r.!c a largenumb
ofsepatatesptens developedovera nunber ofy@s by o organiation and replacethe
whh one unified serof prosramqnaking rhe sysremeasierro useand more e$ective.

In fo r m a tio an n dDe cisio Su

n p p o rSystems
t
The benefirsprovidedby an eFectiveTPS aretansibleaodjusrifiesthen rsociatedcoss
.ohpurins equipmenr,conpuier prograd, dd specialized peNonneland [Link]
speedbusine$[Link] reducedencal [Link] [Link] accounrinsand filarc
TPSSwere [Link] valuable, conpanies son realized rhar the data stored in rhescsystc
could be usedo help nanagersnale beter decisionsin lheir respecrjve busin6s ee
whetherhumanresource ndagement, harkedne o. administrarion. Sadsfringihe need
mamgersud decisionnake6 continuesto be a rojor facor in doeloping informtir

Management
IntormationSystems
manag€m€nt inlormation A md€€m€nt information ryst€m (MIS) is !n orsanized collecrion ofpeople, prdedur
systemlMlsl [Link], darabases,dd d$ices urd to provide rcurine infornetion ro nanagers and de
An o r qaniz ed of people
c ot lec lion sion makers. The focus of an MIS is primily on operarional efficiency. Mafkedr
procedures software,&tabases,
production,findce, and o!he. tuncrionalared de supponedby MISSand linlad rhrou
and dev ces usedto provideroulin€
inlo fm aton lom anager sand a comnon databse. Management informarion sysrem tlpically provide snndard repo
generared with dateand informationfron rheTPS (*e Figdre 1.12).
Managementinformation systems werefinr developed ir the 1960sandarechancreiz
by the m of infornatioo sysros ro [Link] most cases,theseea
reporrswtre [Link] periodically-dailv, weekly,nontbly, or [Link] coin
seneraredaily reponsthar rell rhen sraffwhat specificcurones like. Sone casihosknc
 .[Link] chspte,r
" ." ,-s, ". I

@
F u n c l i o n aml anagemenl
nformationsystemsdrawdatalrom
t h e o r g a n i z a l i osnt r a n sa cto n

1
SYSTEM

. ::irer a cenain cuslomerlikes ltowes in her roon or a bsenqe in his hand and can
. nodr . e r nd; v i d u a l n e e d ,od,rn re ' . l e n o J i l R pon\rep,i [Link] reb,[Link].,o,hq 4r
. .J nhet/rkd repolt\ [Link] repor$ heLpnanasers perfofunrheir duties. Ior emple,
. . n " D r epo, , ' f ro rr' p l r)' o l l .6 r. ri g h r h e l pa n a..ourrrngrr4r,.od." t fu;re
:- ioll [Link] iheir value ro mnasers, MISS haveprotiftratedrhroughourrhe
::gcrncnr [Link],rhe roralpayrcllsumary repon producedinitialy foran
: rnriDs nanagd misht also be ureful ro a producrionnanager to help nonitor and
-:!l laborandjob [Link] scleduledreporlsa.e usedto helpmamgen from a wiew
' ::parlmerrs conrol cusroner cr€dir, [Link] to suppliers,rhe performanccofsales
:::::entatires,invenrorylevels,and nore.
Jrher rypes of repors were also d*eloped during rhe [Link] sragesof MtSs. Dr,r,/
-i wcredelelopedro gived€cisionmaken cenaininftrhadon on reaue$.For esnoie.
- . . . t o. ing r , Je . a .a J .,re p re .c n rrrn e
mi s h \eet " derund .0" " 1." _,.1
.:rory existsfor a panicdar irem. This reporr would telt the represenradve ""
wherher
' .;h invcnroryis on hand to fill rhe custons: ordet. Et ebtios rcroft desibc lnst.J
. . r i, ir uJ r ion...u .h J . l o w :n ,c n to ryJ e re ,,.{ "
ercori o; ..pori r. p oouad onJl i r "
:-:i,n condiriondisrs-in ihis case,[Link] [Link] emple,
. . . lem J nuf r , ' r ,,n g .o n p M ,.rn e r.e p ri ,,n ,e D o fl mi [Link],hc14t:i f
- . : .mbcr of bicycleseatsis too low and more shouldbe ordered.
:€cieionSupportSystems
: ::: 1980s,dramaricinpmrements in cchnotogyresuled
in inforturion srstehs rhar
. ( \ pen, r e hu t mo ,ep u r-rtu t,h rn e r t,e ,,, .,en.. [Link] e" r aI l e\[Link]& i /r,i .1.
i:::r !!!g persnal@nprters rc do a [Link] rheywereno longersoletydependenr
:::. IS d€prtmenr for .ll their infornation [Link], peoplequict<lyrecosnird thar
:utcr systemscould suppo{ addirionaldecision-naktngacriviries. A decisionsuppon de.ision5upportsysteml0SSl
'--m (Dss) is an orsani,edcollecriorofpeople,procedures, rcftsde, darabaFs,anJde A n o . g a nz e dc o l t e c to n ol p e o p te ,
::. ied to supponproblehrpecific dcision [Link] fcus ofa DSS is on decision- procedures,sofhaare databases,
- rris efiiciiEn6s. \flheres an MIS helpsan organization"do rhingsrighr," a DSS hetps a . d d e vc e su s e dt o s u p p o .tp fo b -
"do t e m - s p e c icf d € c l so . m a ki .g .
4ger $e right thing.' Otrord Bookstore,lGated in Crlcurta,ues a DSSand tle
' .: rer ro allowb@k loves in I ndiaro p urchase lhen favonreb@ksar orford's rndj rionat
.: rroresor thtough its Intener [Link] Inrcrnersirepro;des a wealthof inhrmdon
Jp peoplemakebenerbook-purch$ingdecisiors.30 Blue Cro$ of ponsylvdia lses a
.r :ron [Link] ro help n $pport level-olcae [Link]
i DSSsupporrsdd assisls all *pe.$ ofproblem{pecinc decisionmakinq.A DSS can
. pp" r r. ur om e n b v ra p rd t)re .p o rJ rs ,o ,h e i rph,,ne e n: , ,nqi tri e..I o:s
" nd
::,i . ey ondar €dir i o n J M l S b y p ro v i d i n g i mme d i a reassi sl ancei nsol vi ng@ [Link]-
, - . \Iiny of rheF problehs areuntquedd nor srraightfoMard,and [Link] is otien
. :dt to dbrain. For instane, d auto hanu6crurer nish! uy ro [Link] rhe ksr
::::on to build a lcw nmufac ring faciliry,or d oi1companynight Nanr ro disover
 Pdil I nrormaim T{hnotoqyco(epls

rhe bestplace to drill for oil. Somebig oil @mPanid se a DSS to nack md mage ptoject
ard emplo}ts in @mds aromd the world. Traditioml MISs are seldom ued lo solv
thee types of prcblens; a DSS cm helP by sugg€stingalterMtive ed csisring in fim

0€c iso n e e d npgro vd e sd e c i s i o n Decision suppo.r s/stens de wd when the prcblem is conpl* and tie informatio
supportsoitwarecatledCrystat
neded to male the best decision is dificult ro obtain and ue So' a DSS also inrclv'
5 u s i n € spse o P l e o t
B at L ,wchhh e tp b
all typesassessrisksendmake megerid judgment and [Link] often play ar activerole in t}te developmt
Iorecasrs. Sh@nhereis the md inplemenradon of the DSS. A DSS rognias that diflercnt nanagerial stylesand dt
i nb e i n gu 5 e dl o ro i t
Ed i o
s t and a rd cision rypes require ditreror s'stems. For exmPlq two Producrion nmagqs in the s,r
position rying to solt the soe problen night require diFerent infornation md suppor
The ovenll emphasisis to suppon, ratier than replace,namgerial decision naking.
lsource:CrystatBattscreenshol
courresy Inc.l
of Dec5ioneering, The gsenrial elemena ofa DSS hclude a ollrcrion of models ued ro suppon a decisio
maker or Mr (nodel basd, a ollection of factsad inforrnation to ssist in decisionmakir
([Link]),ad syserns ard procedute (dialogue nanlget that help decision naker ai
orher usersinreract with the DSS (seeFigure I t3). Softwte is often used ro manage tl
datab*e (the danbue management s),sien, DBMS) ad the rnodel bte (the mod
managementsystern,MMS).
In addition to DSSsthat suppon irdividual decision nuLiry, there de grouP [Link].
uppon sptems and erective suppon systeos that usethe sameoverali appreh ofa DS
A sroup decisionsuppon sysren, aho cdled'a gnq *2p,rl16tu ' includes rhe DSSelenei
iust described md oft*are, cz]Jed' groupuare, to help goups make dlicrire decisions l
q€cutive suppor systemiako cdledavtatiue infomdtiob !1sten, idps ro1tqel narr'get
inctuding a firmi prcsident, vie [Link], dd menben of the board of dnecton' nal
better decisiotr. An *curive suppon sptem en be used ro csisr with straagic plannin
ropJevel orgmizing and sraffing, srrategicontrol, and crisis mmagenenr.
 Anrnrmdurr,on
fo sr*.' I cup.' t
""-" -

w
Esssntl€lDSSElemcnts

SpecializedBusinessInformationSystems!Artif i€ial
ExportSystems,and Yirtual Reality
Intetligence,
Ir .ddition to TPSS, MIS, and DSss, orgeiarions ofrcn usc spaialized system. Onc of
lae systemsis basedon the mrion ofartiAci.t inreffg€qce (AI), where the omputd s1srcn [Link] [Link]€nce l,lll
116 [Link] chancteristiG ofhumd inie [Link]€ fi€ld ofanificial intelligence indudes Afieldiowhich lhecomputers)stem
nEal $bfields G€eFisuE 1.14). lakes on the characlerislicsof

M
TheMaiorElemonts
ofAnf lcht
Intcttigence
 Pdir I nior m dm T. . m ot o q y c . f t e P r .

ArtificiatIntettigence
r.S.,i. i *';[Link] intelligence in which nachinesrakeoverconplex dangetous
- ".-f
' ouunr. or bori ngr* k . u.h * ' frrms ' " uembl i ng '"m ou n t t m ' s1
^ " .l d' ng prcess vsMr
.osDoncn$. Vision svstos allow robotsmd other devicesIo see'store'and
pr€essing ;nvolves the abilitl ofompu ten to undastud md act
[Link] luguage
* i".l.r *i."" in English,Spanish,or other hunan languagc Learning
- ""--andsabrl [Link] l ea'n ftom prr mFr* e' ot dper r r nre 'u h I PLr nne
* ,Lemrei \econpurer'rhe
qd+ oi maki ngbu' i ne- deci non' . neurdlnevorl ' L a brann of r r i6cr al r nr clligen'
and
."rr.' Ar.*, . .ecognize and act on panernsor irends Sone succ$sfulstck'
".-p** ;* neworks to spot rends and mke rhem note
o*iom. md tutures ln,t*'
"*"1
profieble whh then invesments.
ExpertSystems
, rheooliryrc n"ke 'uggc'rion rndI r like r cxoer t in
r,J"" .v"*' *i*
'r,. que vaue ol erpen' rrem' i ' rharth ev allor or gan'r r t ion't o
-rpure
th a tg i v e a
A s y s te m s c o mP u t€ rtn e o-,i ." r,' nal r l . ui
abitiy to ma k es u g g e sotn sa n oa c I " ,1" of open ' a.d ' pe.i rnr' Therel o r ever F ot exPer ien'e dnd
." i -,. ..a
lik €a ne x P€ rtn a P a .n c u l aertl d ^. -U " m
' o.,;tl ..t" tt' ,,." " ,.o-olb.,ppl
.rel l l orw he'al' humoerpordi
i edro mor " nl i el d ordr{ic' re' P
' r'l dl e rl\+l"r
i ne "not hel
pei^vnet u h'r ebeen
i .S . r" o.' w u.-...n
' p* fom m edi'Jdr a€r ce lo'"t e
rc' moni to'rompl .' ' y.' ..' ..t'
^ed ^ " " .1. I(" * t' r'
po* i bl erepai prcbl
r em..de' i gn,nd onGgure ' oml onor\' Pt r lor r \ Rda. f lJr ur iu!
de' el op ma l e,i ngp| r' forz no produ' L' r no i nve!men t! Er ! gr c\ '
" .d *d rehtionshipsth* nusr be followedto achi*e valueor the
.iL", p--ai'i.,
'i*, o-. i ' , on' " i n.J i n rhe.(perr kno" ' 1' dge bo e
[Link]" ,ou' . ' )' t(m '
fhe end ofrh. ruenueh .enru4 broughr ad' r.e' rn borh r if i'r J inr elligen'e
"nd
The cotteclionofdata, tuLes,Ptuce-
t hat m us l
du res ,andr et at ions hips qpen Ystem Morc and nore orgnizadom aresingthae {'stemsm slvelodpldPrcb-
be followedt oac hlev ev at ! eor lhe hms ani upport difficult decis;ons. Hwoer, danv issuesremaintoberesolrcd'and nore
work is neededro refinetheiJmedninsfuluses.
VirtuatReatity
ihat@bbeexPeden
ri**r Ji.y i, ,r'".n"rationof a rcalor imainedenvironnent
Jir r u r enlin
The simutalronol a real or imaqined i n th,.edi m' roi on' Oi gi nal \" i (uJ rcrl rDrcl er' d ro r m m cFik
' i ' u" l l v i i) $or ld | lnnokier '
t hatc a. be ex Per i
en vi . onm ent w hnh mcu' r-heu' er be' ome'ful l vrmeFed i n an rri fi (i J 'hJt
t hf eedr m ens ons
en ce dv ls uaLt y in qenerated by a [Link] vntual wodd is presented in ftll scale od relates properlvto
',r'" such * a building' ar
r''--ii*. It nay reprsent dv 3-D sening,reai or absrract'
anhreol ogi cal o-' rti on' i re rhehuman' naromvr' ' !l pure' or r 'nr c"oer "obr t u'
im n'nl'n r neu't
don.V i [Link] d' onbe,nj mrted.i nrem' ri re' rndshar' d Thr "r gh
can sein a deexr understanding of the virtual world'sbehaviorandfuncriomliry'
i ufinp"t d"ui-, a had-nounted disphvs(*e Figu€ 1 15)' dah glov€
'-i.w 'uch the u*r ro ndigate ihrcush a virtua
GeeFisurei.16), ioysticks,and handheldwmds allow
."u-i--. i. with vituat objecs D;ectional sound' ractile and force feel
back devic. -a -*-.t
voie recognition, and other technologicsde N€d to ori'h rhe ;me$iq
Be€s ol hl
ooe,i en.e.S e" eelpeopi e,r' i rar od rnrem' rIn i he \ne cn\ i'onm ear '
.bi ' rv real ;rr.r' nbe, pow edulmdl i um for' ommuni'r r io
' i rrual

'"*lili;".r'o *. thatre nottullvinncni"e'suchx mou'

toapplicarions
"*.efer m oir ct r cr eo t 'ot n
.onrrol l ednari gati on rhough : J D envi ronment " n r gmphic'
l rom $e mon,ror" i ,.rero gl s.e. ' rereopr" recti on 1" cm\' rd or hd \ or evr nur r ca|r
aoolicationsallow vitm oieal en;romens wirh superimposed virtual objecc. Motio
,ii.r.. of doer or athietesfor subsequenr studiesin imersiv
'r'" -.*nenssrstens (e g.' rclemedicine,
-."i.- Telepre*nce
vinuat rmliry. inmene a vtewettn
telerobot;cs)
for the roor
real wold that is caprucd by vido oneras at a dismt loation md allow
r h'r vilL
mrni pJai on ot rej obj c.r' ' i r robor rm\ rd mri puL' on M 'nv br lj*e
;' * * ,pi ^g e i nhrrmJ'ronr e'hnolon
i " * ,rd, e b€seenpeoP lrnd bv of f erins n'
,
" Ji ,i '* idem creativeln
*-, i. i"[Link]' visulize prcesses,and exprcs
Useful-.--L*
apoliotions ofvirual realitvincludetra;ningin avariervofareas(militarv' na
rvnur l pr 'ior yPint ) Jr 'n
i cJ,.qui [Link] ope,,[Link]..r eduori on dci gn * Juatrun
ol sem h
rc.t' ' j .al t ti rcugts hu-r' fa.,or' anJ crgonomi ' rudie'. r m 'r llion
tasks,asisrancefor thr hudicapped' studv ud ueatnent '
*q"""-'
-d -"i;**
 I nr':.r-r,. L [Link] : r.,[Link] C hapi e r l

@
A H ead-Mounted
Dispt ay
Th. headmounl .dd . playI HMDl
w asthefnrt [Link] s k nd
P r o v0 , i q r n €w e a f F fw r h a n
m m a E v e e x p e rc f c e . Al yp .a L
H M Dh o l s e 5 t w o m n al u r e d sp ta y
5 . r e e n sa n d a n o p t . J L.y!te mth a t
. h a n n e Llth . i m i q € s l r o m th - a
s . r e e n 5r 0 t l r e . y e . t h e r e b y
p r o s e n in q a 5 1 . r o ov e w o ta v r tu a L
w o n d A m o l o n t r . c k er
. o n t . u o l s t y m e J r u f e sth e p o st o n
. n d o f e i l a t o n o t t h e use rt h .a d
a n da t t o w 5t l r e m a g e ,!e fe r a tn g
c o m p u l e fl o a d t u s lt h e 5 ce n €
r e p r e 5 e n t a t , o1not h e .u r e f l v e w
A s a r e t u l t l h . v e w e r .a n to o k
:i, .fflving), .lkririnmcrr, md, oicousc. !ifturl .[Link] taking
: r o u n . l . n d w J L kl h r o u!h th c
.,.,i ihc NJodcnrhesidcn* rt the llfiv.$irr of t)enrtr, r.€ ablc ro .hrt wirtr
s u r o u n d n 9 w t u a L e nyr 0 n m .n r
. ' acirs, Vhite I lqtrc rdninrrlror, .nd XLshireron [Link]
: 0 u r : e m a g eL 0 u i e ;, 0 \u

@
R e a L t t r .n t e f a c to n 5w th v ft!i l
o l r l e . t sv a r ! . h d e vc es.i a d a l d
qLove t h a t s o n r e sh a n dp o et o n
a l L o wi o r m : n p u t a to i o p e r a to n
. n d . o i f t o L o l v r l u a t w o r l d s.
l s o u r e : m a q eC o u f t esy
of 5Dl

.1ificrjr to pLedicrwhcrt irti,rnarion slrems :nd rcchro|,$.rvill b. in t0 ro 20

,.-rms,horever, rhrt irc rre jur besimtrll. n, d;co!.i full rangcofdreir use-
[Link] has beer i"rproving rnd cxparrling rr rn 'hr f.r.j [Link]
':.rearing
r rl .hi ngc arf expecredfor rern ro coni. Yrit hour qucsrion. r [Link]. of rhe
rsc ofinlbrmrtnn slstcmswill be crlricalllr managosbo'h noq..nd h rhe kmg
,r hos, irc rlr* [Link] ssterrs cLcarcd?
 Ps . 1 | n om at onTe. hn o t o q y c o n . e p ',

DEVELOPMENT
SYSTEMS
v
syrtemsdev€topm€nl S1srcm d*elopmnt is the rcriviry of creating o nodi&ing [Link] businesssysie
The activly of creatingof modifyng Psple imide r compoy tu doelop systems,or [Link] lsE oasou/ciag, hir!,nt
existin9 businesssyslems. outside compuy to perform some ot all ofa s1'stensdevelopnent prcjecr. Outsour
allom a company ro focu on what it does best and delegateother functions to ompa
wirh €xp€nisein sysEmsds'€lopment. Cox InsuranceHoldings, for mple, oursource
omercirl underwritiog operations to another [Link] Outsourcing embled Cox
sumce to strmlire in openrions od rcdrc cs. Outsourcing, howEver,is not the l
alternatie for all ompmies. Toyoa recendy stoppoJ oureurcing its financial services
staned to perform rhe ffnmcial senie fiuction inarnally.l Acording rc the directo
Toyota Financial Sedie, " You dcpend on thn sewie prwider. 1ou wory about wha
or not it will be in buines n*t yeu, and wherher or nor it will be able to seryie
coroistody thoughout the terms ofttre agrenent and beyond." Other conpaie h
used ousoucing fo oftw*e dwelopnmt, &rabase de"eloprnent, ard other *pect
qstems devetoPment.
Developing inbrnation system to neet busines needsis higtrly comple* and diffft
so rnuch so that it is comnon for IS prcjecs ro ovenun budgets and ereed rhatr
completion [Link] mages would iike the dwelopment proess to be nore n
ageble, apecirlly with predictable co$s md timing One stratery 6r impoving rhe res
ofa sysrem dmtopnenr proj€ct is ro divid€ it into sevenl steps,€echwiih a well-dd
goal and set of tasksto aconplish (r Figure 1.17). Thse st€psare sumarizpd nert.

w
An ovorviow ol Systems
5YSIE||5 tNVESI|GAT|ON

SYSTE|,'|S
AllALYSlS

SYSTEMS DESIOII
3.1..t .nd pl.n b.d &tutlon

gYSTEMS IMPIEIlENTAIIOII
Pl..e $tulion [Link]

lrlAll{TENANCE
SYSTEMS
[Link].t. r..ulk ot rotutio.