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Information Technology for Management: Transforming Organizations in the Digital Economy
Synopses & Reviews
Thoroughly Updated Sixth Edition!
Social networks are transforming how people communicate, work, and play. This comprehensive new edition highlights this new technology and scores of others that are changing how organizations operate and compete in the current global environment.
The cover depicts two examples of social network. The larger image is a visualization of the trust relationships in a web-based social network. The smaller figures are default avatars from Second Life, a multi-layered, 3D virtual world that is imagined, created, and owned by its residents.
See chapter 4 for more information on social networks.
For more information on Second Life, visit second life.com or see Second Life: the Official Guide by Rymaszewski et al. at www. sybex.com/go/secondlife
For more information on the trust network, visit trust.mindswap.org
Information technology has changed how businesses operate and succeed in today’s global economy. Organizations can now use IT to transform themselves and achieve a tremendous competitive advantage. Information Technology for Management: Transforming Organizations in the Digital Economy, Seventh Editionhighlights how this new technology is changing the current business environment and what effect it has on today’s students. The text addresses the major principles of MIS in order to prepare managers to understand the role of information technology in the digital economy. Revised and updated for a junior or senior level MIS or MBA course, this title will give students what they need to succeed in the emerging digital economy.
About the Author
Dr. Efraim Turban obtained his M.B.A. and Ph.D. degrees from the University of California, Berkeley. His industry experience includes eight years as an industrial engineer, three of which were spent at General Electric Transformers Plant in Oakland, California. He also has extensive consulting experience to small and large corporations as well as to governments. In his over thirty years of teaching, Professor Turban has served as Chaired Professor at Eastern Illinois University, and as Visiting Professor at City University of Hong Kong, Nanyang Technological University in Singapore, and University of Science and technology in Hong Kong. He has also taught at UCLA, USC, Simon Fraser University, Lehigh University, California State University, Long Beach, and Florida International University.
Dr. Turban was a co-recipient of the 1984/85 National Management Science Award (Artificial Intelligence in Management). In 1997 he received the Distinguished Faculty Scholarly and Creative Achievement Award at California State University, Long beach.
Dr. Turban has published over 110 articles in leading journals including the following: Management Science, MIS Quarterly, Operations research, Journal of MIS, Communications of the ACM, International Journal of Electronic Commerce, Information Systems Frontiers, Decision Support Systems, International Journal of Information Management, Heuristics, Expert Systems with Applications, International Journal of Applied Expert Systems, Journal of Investing, Accounting, Management and Information Systems, Computers and Operations research, Computers and Industrial Engineering, IEEE Transactions on Engineering Management, Omega, International Journal of Electronic Commerce, and Electronic Markets. He has also published 23 books, including best seller such as Neural Networks: Applications in Investment and Financial Services (2nd edition) (co-editor with R. Trippi), Richard D. Irwin, 1996; Decision Support Systems and Business Intelligence (Prentice Hall, 8th edition, 2007); Expert Systems and Applied Artificial Intelligence, (MacMillan Publishing co., 1992), Electronic Commerce: A Managerial Approach, 5th edition, (Prentice Hall, 2008), Introduction to Information Technology 4th edition (Wiley, 2007), and Introduction to Electronic Commerce (Prentice Hall, 2003). His newest book, Business Intelligence (Prentice Hall) is coming in 2007.
Professor Turban is a Visiting Scholar with the Pacific Institute for Information Systems Management College of Business University of Hawaii at Manoa, His major research interests include electronic commerce, strategy, and implementation.
Dr. Dorothy Leidner is the Randall W. and Sandra Ferguson Professor of Information Systems and Director of the Center for Knowledge management at Baylor University. Prior to rejoining the Baylor faculty, she was associate professor at INSEAD and at Texas Christian University. She has also been visiting Professor at Instituto tecnologico y des Estudios Superiores de Monterrey, Mexico, at the Institut d' Administration Des Entreprises at the Universite de caen, Frande, and at Southern Methodist University. Dr. Leidner received her Ph.D. in Information Systems from the University of Texas at Austin, where she also obtained her M.B.A. and her B.A. in Plan II. Dr. Leidner's research has been published in a variety of journals, such as MIS Quarterly, Information Systems, Decision Sciences, Decision Support Systems, and Organization Science. She has received best-paper awards in 1993 from the Hawaii International Conference on Systems Sciences, in 1995 from MIS Quarterly, and in 1999 from the Academy of Management. She is currently serving as co-editor of the Journal Data Base for Advances in Information Systems. She is also an associate editor for MIS Quarterly and a senior editor for the Journal of Strategic Information Systems, and is on the editorial board of MISQ Executive.
Dr. Ephraim R. McLean earned his Bachelor of Mechanical Engineering degree from Cornell University in 1958. After brief service in the U.S. Army Ordinance Corps, he worked for the Procter & Gamble Co. for seven years, first in manufacturing management and later as a computer systems analyst. In 1965, he left P&G and entered the Sloan School of Management at the Massachusetts Institute of Technology, obtaining his master's degree in 1967 and his doctorate in 1970.
While at M.I.T., he began an interest in the application of computer technology to medicine, working on his dissertation at the Lacey Clinic in Boston. While there, he was instrumental in developing the Lahey Clinic Automated Medical History System. During the Same period, he served as an instructor at M.I.T and also assisted in the preparation of the books The Impact of Computers on Management (MIT Press, 1967), the Impact of Computes on Collective Bargaining (MIT Press, 1969), and Computers in Knowledge-Based Fields (MIT Press 1970),. While at M.I.T., he was elected to Sigma XI, the scientific research society.
Dr. McLean left .I.T. and joined the faculty of the Anderson Graduate School of Management at The University of California, Los Angeles (UCLA) in winter 1970. He was the founding Director of the Information Systems research Program and the first Chairman of the Information Systems ar4ea, both within the Anderson Graduate School of Management. In fall 1987, he was named to the George E. Smith Eminent Scholar's Chair in the Robinson College of Business at Georgia State University in Atlanta; in 2002, was appointed Regent's Professor in the University System of Georgia.
Dr. James C. Wetherbe is Stevenson Chair of Information Technology at Texas Tech University as well as Professor of MIS at the University of Minnesota where he directed the MIS research Center of 20 years. he is internationally known as a dynamic and entertaining speaker, author, and leading authority on the use of computers and information systems to improve organizational performance and competitiveness. He is particularly appreciated for his ability to explain complex technology in straightforward, practical terms that can be strategically applied by both executives and general management.
Dr. McLean has published over 125 articles in such publications as the Harvard Business review, Sloan Management review, California Management Review, Communications of the ACM, MIS Quarterly, Information Systems Research, Management Science, Journal of MIS, Information & Management, DATABASE, InformationWeek, DATAMATION, computer World, and the Proceedings of ICISA. HICSS, and AMCIS. He is the co-author (with John Soden of Mckinsey & co.) of Strategic Planning for MIS (Wiley Interscience, 1977), co-editor of a book of programs entitled APL Applications in Management (UCLA, 1981), and co-editor of The Management of Information Systems (Dryden Press, 2nd ed., 1994). He was a founding associate editor for research of the MIS Quarterly, and for seven years the senior co-editor of the DATA BASE for Advances in Information Systems.
He has served four times on the national executive Council of the Society for Information Management (SIM). In 1980, he co-chaired the organizing committee for the International Conference on Information Systems (ICIS) and was Conferences Co-chairman in 1981 in Cambridge, MA; Conference Chairman in 1986 in San Diego, CA; and Conference Co-Chairman in 1997 in Atlanta, CA. He is currently the Executive Director of the ICIS and of the Association for Information Systems (AIS) of which he was one of the founding members. In 1999, he was named a fellow of the AIS, one of the first in the world so honored. In 2003, he was named IS Educator of the Year by the Special Interest Group on Education of the Association for Information technology Professionals (AITP).
Dr. Wetherbe is the author of 18 highly regarded books and is quoted often in leading business and information systems journals. He has also authored over 200 top dozen information technology consultants, and is the first recipient of the MIS Quarterly Distinguished Scholar Award. He has also served on the Faculties of the University of Memphis, where he was Fed Ex Professor and Director of the Center for Cycle Time Research, and the University of Houston.
Dr. Wetherbe received his Ph.D. from Texas Tech University.
Table of Contents
PART I: IT In the Organization.
1. IT Support of Organizational Performance.
Chip War: Intel versus AMD.
1.1 Doing Business in the Digital Economy.
1.2 Business Pressures, Organizational Performance and Responses, and IT Support.
1.3 Information Systems and Information Technology.
1.4 The Adaptive, Agile, Real-Time Enterprise.
1.5 Information Technology Developments and Trends.
1.6 Why Should You Learn About Information Technology?
1.7 Plan of the Book.
1.8 Managerial Issues.
Minicase: 1. Dartmouth College Goes Wireless.
Minicase: 2. A Digital Hospital Increases Performance and Saves Lives.
Appendix 1A Porter’s Models.
2 Information Technologies: Concepts and Management.
Building an E-Business at FedEx Corporation.
2.1 Information Systems: Concepts and Definitions.
2.2 Classification and Types of Information Systems.
2.3 How IT Supports People and Organizational Activities.
2.4 How IT Supports Supply Chains and Enterprise Systems.
2.5 Information Systems Infrastructure and Architecture.
2.6 Emerging Computing Environments: SaaS, SOA, and More.
2.7 Managerial Issues.
Minicase: 1. E-Commerce Supports Field Employees at Maybelline.
Minicase: 2. How TrueCredit Utilizes SOA to Build Fast, Reliable Applications.
Appendix 2A Build-to-Order Production.
Appendix 2B Basics of Supply Chains.
PART II: IT INFRASTRUCTURE.
3 Data Management: Data, Databases, and Warehousing.
Finding Diamonds by Data Mining At Harrah’s.
3.1 Data Management: A Critical Success Factor.
3.2 File Management.
3.3 Databases and Database Management Systems.
3.4 Creating Databases.
3.5 Data Warehousing.
3.6 Marketing Databases in Action.
3.7 Web-Based Data Management Systems.
3.8 Managerial Issues.
Minicase: 1. Homeland Security Data Integration.
Minicase: 2. Precision Buying, Merchandising, and Marketing at Sears.
4 Networking: Discovery, Communication, Collaboration.
Super Bowl XXXIX Collaboration Portal.
4.1 Network Computing—Overview and Drivers.
4.2 Discovery, Search, and Customized Delivery.
4.4 Messaging and Collaboration.
4.5 Social and Ethical Issues.
4.6 Managerial Issues.
Minicase: 1. Dresdner Kleinwort Wasserstein Uses Wiki for Collaboration.
Minicase: 2. Converged Networks Support Complex and Global Business Relationships.
Appendix 4A The Future of Networking Infrastructure.
PART III: THE WEB REVOLUTION.
5 E-Business and E-Commerce.
Dell Is Using E-Commerce for Success.
5.1 Overview of E-Business and E-Commerce.
5.2 Major EC Mechanisms.
5.3 Business-to-Consumer Applications.
5.4 B2B Applications.
5.5 Major Models of E-Business: From E-Government to C2C.
5.6 E-Commerce Support Services: Advertising, Payment, and Order Fulfillment.
5.7 Ethical and Legal Issues in E-Business.
5.8 Managerial Issues.
Minicase: 1. From Paper to E-Payments: The Story of Wells Fargo Home Mortgage.
Minicase: 2. E-Commerce Improves Inventory Control at Hi-Life Corporation.
6 Mobile, Wireless, and Pervasive Computing.
Food Lion Excels with Wireless Technologies.
6.1 Mobile Computing and Commerce: Overview, Benefits, and Drivers.
6.2 Mobile Applications in Financial Services.
6.3 Mobile Shopping, Advertising, and Content- Providing.
6.4 Mobile Enterprise and Interbusiness Applications.
6.5 Mobile Consumer Services and Entertainment.
6.6 Location-Based Services and Commerce.
6.7 Pervasive Computing.
6.8 Managerial Issues.
Minicase: 1. Hertz Goes Wireless.
Minicase: 2. Washington Township Fire Department Goes Wireless.
PART IV: ORGANIZATIONAL APPLICATIONS.
7 Transaction Processing, Functional Applications, and Integration.
Wireless Inventory Management System at Dartmouth-Hitchcock Medical Center.
7.1 Functional Information Systems.
7.2 Transaction Processing Information Systems.
7.3 Managing Production/Operations and Logistics.
7.4 Managing Marketing and Sales Systems.
7.5 Managing the Accounting and Finance Systems.
7.6 Managing Human Resources Systems.
7.7 Integrating Functional Information Systems.
7.8 How IT Supports Compliance.
7.9 Managerial Issues.
Minicase: 1. Dollar General Uses Integrated Software.
Minicase: 2. Musco Food Uses IT to Improve Sales and Operations.
8 Enterprise Systems.
Chevrontexaco Modernized its Supply Chain with IT.
8.1 Essentials of Enterprise Systems and Supply Chains.
8.2 Supply Chain Challenges.
8.3 Supply Chain Opportunities.
8.4 Business Value of Enterprise Systems.
8.5 Enterprise Resource Planning Systems.
8.6 Business Process Management.
8.7 Product Life Cycle Management.
8.8 Customer Relationship Management.
8.9 Managerial Issues.
Minicase: 1. ERP Helps Productivity at Northern Digital Inc.
Minicase: 2. QVC Provides Superb CRM.
9 Interorganizational and Global Information Systems.
Limited Brands Creates a Superb Supply Chain.
9.1 Interorganizational Activities and Order Fulfillment.
9.2 Interorganizational Information Systems and Virtual Corporations.
9.3 Global Information Systems.
9.4 Facilitating IOS and Global Systems: From Demand-Driven Networks to RFID.
9.5 Interorganizational Information Integration.
9.6 Partner Relationship Management and Collaborative Commerce.
9.7 Managerial Issues.
Minicase: 1. How Volkswagen Runs Its Supply Chain in Brazil.
Minicase: 2. How UNICEF Manages Its Global IT.
Appendix 9A Electronic Data Interchange (EDI).
Appendix 9B Extranets, XML, and Web Services.
PART V: MANAGERIAL AND DECISION SUPPORT SYSTEMS.
10 Knowledge Management.
Knowledge Management at Infosys Technologies.
10.1 Introduction to Knowledge Management.
10.2 Organizational Learning and Memory.
10.3 Knowledge Management Activities.
10.4 Approaches to Knowledge Management.
10.5 Information Technology in Knowledge Management.
10.6 Knowledge Management Systems Implementation.
10.7 Roles of People in Knowledge Management.
10.8 Ensuring Success of KM Efforts.
10.9 Managerial Issues.
Minicase: 1. Data Sharing That’s Saving Lives.
Minicase: 2. Buckman Labs Improves Global Knowledge Sharing.
11 Business Intelligence and Corporate Performance Management.
Toyota uses Business Intelligence to Excel.
11.1 A Framework for Business Intelligence: Concepts and Benefits.
11.2 Business Analytics, Online Analytical Processing, Reporting, and Querying.
11.3 Data, Text, Web Mining, and Predictive Analytics.
11.4 Data Visualization, Geographical Information Systems, and Virtual Reality.
11.5 Real-Time Business Intelligence and Competitive Intelligence.
11.6 Business (Corporate) Performance Management, Scorecards, and Dashboards.
11.7 Managerial Issues.
Minicase: 1. Lexmark International Improves Operations with BI.
Minicase: 2. State Governments Share Geospatial Information.
12 Management Decision Support and Intelligent Systems.
New Balance Makes Sure That Shoes Fit.
12.1 Managers and Decision Making.
12.2 Decision Support Systems: For Individuals, Groups, and the Enterprise.
12.3 Intelligent Support Systems: The Basics.
12.4 Expert Systems.
12.5 Other Intelligent Systems.
12.6 Automated Decision Support (ADS).
12.7 Managerial Issues.
Minicase: 1. A DSS Reshapes the Railway in the Netherlands.
Minicase: 2. Singapore and Malaysia Airlines Intelligent Systems.
PART VI: IMPLEMENTING AND MANAGING IT.
13 IT Strategy and Planning.
Boeing’s IT Strategic Alignment: The Early Engagement System.
13.1 IT Strategic Alignment.
13.2 Competitive Forces Model.
13.3 Value Chain Model.
13.4 Strategic Resources and Capabilities.
13.5 IT Planning.
13.6 Interorganizational and International IT Planning.
13.7 Managing the IS Department.
13.8 Managerial Issues.
Minicase: 1. Verizon and Rivio Use the Web to Offer Big Benefits for Small Businesses.
Minicase: 2. Scenario Planning at National City Bank Aligns IT with Business Planning.
14 Information Technology Economics.
Justifying IT Investment in the State of Iowa.
14.1 Financial and Economic Trends and the Productivity Paradox.
14.2 Evaluating IT Investment: Benefits, Costs, and Issues.
14.3 Methods for Evaluating and Justifying IT Investment.
14.4 IT Economics Strategies: Chargeback and Outsourcing.
14.5 Economic Aspects of IT and Web-Based Systems.
14.6 Managerial Issues.
Minicase: 1. How American Express Makes Superb Investment Decisions.
Minicase: 2. Outsourcing Its IT, Kone Is Focusing on Its Core Competencies.
15 Acquiring IT Applications and Infrastructure.
How Sterngold Acquired an E-commerce System.
15.1 The Landscape and Framework of IT Application Acquisition.
15.2 Identifying, Justifying, and Planning IT Systems Applications (Step 1).
15.3 Acquiring IT Applications: Available Options (Step 3).
15.4 Outsourcing, Application Service Providers, and Utility Computing.
15.5 Selecting an Acquisition Approach and Other Implementation Issues.
15.6 Connecting to Databases, Enterprise Systems, and Business Partners: Integration (Step 4).
15.7 Business Process Redesign.
15.8 Managerial Issues.
Minicase: 1. Web Services Give Merrill’s Legacy Systems New Life in the Web World.
Minicase: 2. NCBJ Achieves a 500 Percent–Plus ROI by Rebuilding Its IT Infrastructure.
Security Failure Moves Stock Price at Choicepoint.
16.1 Securing the Enterprise.
16.2 IS Vulnerabilities and Threats.
16.3 Fraud and Computer Crimes.
16.4 IT Security Management Practices.
16.5 Network Security.
16.6 Internal Control and Compliance Management.
16.7 Business Continuity and Disaster Recovery Planning.
16.8 Implementing Security: Auditing and Risk Management.
16.9 Computer Forensics.
16.10 Managerial Issues.
Minicase: 1. Preventing and Detecting Operational Risk Caused by Employees.
Minicase: 2. Accounting Fraud at NEC Leads to Five-Year Earnings Restatement.
17 Impacts of IT on Individuals, Organizations, and Society*.
17.1 Perspectives on IT Impacts.
17.2 IT Is Eliminating the Barriers of Time, Space, and Distance.
17.3 Information Is Changing from a Scarce Resource to an Abundant Resource.
17.4 Machines Are Performing Functions Previously Performed by Humans.
17.5 Information Technology Urges People to Reexamine Their Value Systems.
17.7 Managerial Issues.
Minicase: 1. The Distributed Megachurch.
Minicase: 2. RFID for Consumer Products.
T3 Data and Databases*.
T5 The Internet and the Web*.
T6 A Technical View of System Analysis and Design*.
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