Management Information Systems - Managing the Digital Firm 15th Edition 2018

600 Part Four Building and Managing Systems

15-3 What are the challenges posed by global

information systems and management solutions
for these challenges?

Table 15.4 lists the principal management problems posed by developing inter-
national systems. It is interesting to note that these problems are the chief dif-
ficulties managers experience in developing ordinary domestic systems as well.
But these are enormously complicated in the international environment.

A Typical Scenario: Disorganization on a Global Scale

Let’s look at a common scenario. A traditional multinational consumer-goods
company based in the United States and operating in Europe would like to
expand into Asian markets and knows that it must develop a transnational
strategy and a supportive information systems structure. Like most multina-
tionals, it has dispersed production and marketing to regional and national
centers while maintaining a world headquarters and strategic management in
the United States. Historically, it has allowed each of the subsidiary foreign
divisions to develop its own systems. The only centrally coordinated system is
financial controls and reporting. The central systems group in the United States
focuses only on domestic functions and production.

The result is a hodgepodge of hardware, software, and telecommunications.
The e-mail systems between Europe and the United States are incompatible.
Each production facility uses a different manufacturing resources planning
system (or a different version of the same ERP system) and different market-
ing, sales, and human resource systems. Hardware and database platforms are
wildly different. Communications between different sites are poor, given the
high cost of European intercountry communications.

What do you recommend to the senior management leaders of this com-
pany, who now want to pursue a transnational strategy and develop an infor-
mation systems architecture to support a highly coordinated global systems
environment? Consider the problems you face by reexamining Table 15.4. The
foreign divisions will resist efforts to agree on common user requirements; they
have never thought about much other than their own units’ needs. The systems
groups in American local sites, which have been enlarged recently and told
to focus on local needs, will not easily accept guidance from anyone recom-
mending a transnational strategy. It will be difficult to convince local managers
anywhere in the world that they should change their business procedures to
align with other units in the world, especially if this might interfere with their
local performance. After all, local managers are rewarded in this company for

TABLE 15.4 MANAGEMENT CHALLENGES IN DEVELOPING
GLOBAL SYSTEMS

Agreeing on common user requirements
Introducing changes in business processes
Coordinating applications development
Coordinating software releases
Encouraging local users to support global systems

Chapter 15 Managing Global Systems 601
meeting local objectives of their division or plant. Finally, it will be difficult to
coordinate development of projects around the world in the absence of a pow-
erful telecommunications network and, therefore, difficult to encourage local
users to take on ownership in the systems developed.

Global Systems Strategy

Figure 15.4 lays out the main dimensions of a solution. First, consider that not all
systems should be coordinated on a transnational basis; only some core systems
are truly worth sharing from a cost and feasibility point of view. Core systems
support functions that are absolutely critical to the organization. Other systems
should be partially coordinated because they share key elements, but they do
not have to be totally common across national boundaries. For such systems, a
good deal of local variation is possible and desirable. A final group of systems is
peripheral, truly provincial, and needed to suit local requirements only.

Define the Core Business Processes

How do you identify core systems? The first step is to define a short list of criti-
cal core business processes. Business processes are defined and described in
Chapter 2, which you should review. Briefly, business processes are sets of logi-
cally related tasks to produce specific business results, such as shipping out cor-
rect orders to customers or delivering innovative products to the market. Each
business process typically involves many functional areas, communicating and
coordinating work, information, and knowledge.

FIGURE 15.4 LOCAL, REGIONAL, AND GLOBAL SYSTEMS

Agency and other coordination costs increase as the firm moves from local option systems toward
regional and global systems. However, transaction costs of participating in global markets probably
decrease as firms develop global systems. A sensible strategy is to reduce agency costs by developing
only a few core global systems that are vital for global operations, leaving other systems in the hands
of regional and local units.

Source: From Managing Information Technology in Multinational Corporations by Edward M. Roche, © 1993. Adapted by
permission of Prentice Hall, Inc., Upper Saddle River, NJ.

602 Part Four Building and Managing Systems

The way to identify these core business processes is to conduct a business
process analysis. How are customer orders taken, what happens to them once
they are taken, who fills the orders, and how are they shipped to the customers?
What about suppliers? Do they have access to manufacturing resource planning
systems so that supply is automatic? You should be able to identify and set priori-
ties in a short list of 10 business processes that are absolutely critical for the firm.

Next, can you identify centers of excellence for these processes? Is the cus-
tomer order fulfillment superior in the United States, manufacturing process
control superior in Germany, and human resources superior in Asia? You
should be able to identify some areas of the company, for some lines of busi-
ness, where a division or unit stands out in the performance of one or several
business functions.

When you understand the business processes of a firm, you can rank-order
them. You then can decide which processes should be core applications, cen-
trally coordinated, designed, and implemented around the globe and which
should be regional and local. At the same time, by identifying the critical busi-
ness processes, the really important ones, you have gone a long way to defining
a vision of the future that you should be working toward.

Identify the Core Systems to Coordinate Centrally

By identifying the critical core business processes, you begin to see opportu-
nities for transnational systems. The second strategic step is to conquer the
core systems and define these systems as truly transnational. The financial
and political costs of defining and implementing transnational systems are
extremely high. Therefore, keep the list to an absolute minimum, letting expe-
rience be the guide and erring on the side of minimalism. By dividing off a
small group of systems as absolutely critical, you divide opposition to a trans-
national strategy. At the same time, you can appease those who oppose the
central worldwide coordination implied by transnational systems by permitting
peripheral systems development to progress unabated with the exception of
some technical platform requirements.

Choose an Approach: Incremental, Grand Design,
Evolutionary

A third step is to choose an approach. Avoid piecemeal approaches. These surely
will fail for lack of visibility, opposition from all who stand to lose from transna-
tional development, and lack of power to convince senior management that the
transnational systems are worth it. Likewise, avoid grand design approaches
that try to do everything at once. These also tend to fail because of an inability
to focus resources. Nothing gets done properly, and opposition to organizational
change is needlessly strengthened because the effort requires extraordinary
resources. An alternative approach is to evolve transnational applications
incrementally from existing applications with a precise and clear vision of the
transnational capabilities the organization should have in five years. This is
sometimes referred to as the “salami strategy,” or one slice at a time.

Make the Benefits Clear

What is in it for the company? One of the worst situations to avoid is to build
global systems for the sake of building global systems. From the beginning, it
is crucial that senior management at headquarters and foreign division manag-
ers clearly understand the benefits that will come to the company as well as to
individual units. Although each system offers unique benefits to a particular
budget, the overall contribution of global systems lies in four areas.

Chapter 15 Managing Global Systems 603

Global systems—truly integrated, distributed, and transnational systems—
contribute to superior management and coordination. A simple price tag can-
not be put on the value of this contribution, and the benefit will not show up in
any capital budgeting model. It is the ability to switch suppliers on a moment’s
notice from one region to another in a crisis, the ability to move production
in response to natural disasters, and the ability to use excess capacity in one
region to meet raging demand in another.

A second major contribution is vast improvement in production, operation,
and supply and distribution. Imagine a global value chain with global suppli-
ers and a global distribution network. For the first time, senior managers can
locate value-adding activities in regions where they are most economically
performed.

Third, global systems mean global customers and global marketing. Fixed
costs around the world can be amortized over a much larger customer base.
This will unleash new economies of scale at production facilities.

Last, global systems mean the ability to optimize the use of corporate funds
over a much larger capital base. This means, for instance, that capital in a sur-
plus region can be moved efficiently to expand production of capital-starved
regions; that cash can be managed more effectively within the company and
put to use more effectively.

These strategies will not by themselves create global systems. You will have
to implement what you strategize.

The Management Solution: Implementation

We now can reconsider how to handle the most vexing problems facing
managers developing the global information systems architectures that were
described in Table 15.4.

Agreeing on Common User Requirements

Establishing a short list of the core business processes and core support systems
will begin a process of rational comparison across the many divisions of
the company, develop a common language for discussing the business, and
naturally lead to an understanding of common elements (as well as the unique
qualities that must remain local).

Introducing Changes in Business Processes

Your success as a change agent will depend on your legitimacy, your authority,
and your ability to involve users in the change design process. Legitimacy is
defined as the extent to which your authority is accepted on grounds of com-
petence, vision, or other qualities. The selection of a viable change strategy,
which we have defined as evolutionary but with a vision, should assist you in
convincing others that change is feasible and desirable. Involving people in
change, assuring them that change is in the best interests of the company and
their local units, is a key tactic.

Coordinating Applications Development

Choice of change strategy is critical for this problem. At the global level there is
far too much complexity to attempt a grand design strategy of change. It is far
easier to coordinate change by making small incremental steps toward a larger
vision. Imagine a five-year plan of action rather than a two-year plan of action,
and reduce the set of transnational systems to a bare minimum to reduce coor-
dination costs.

604 Part Four Building and Managing Systems

Coordinating Software Releases

Firms can institute procedures to ensure that all operating units convert to new
software updates at the same time so that everyone’s software is compatible.

Encouraging Local Users to Support Global Systems

The key to this problem is to involve users in the creation of the design without
giving up control over the development of the project to parochial interests.
The overall tactic for dealing with resistant local units in a transnational com-
pany is cooptation. Cooptation is defined as bringing the opposition into the
process of designing and implementing the solution without giving up control
over the direction and nature of the change. As much as possible, raw power
should be avoided. Minimally, however, local units must agree on a short list of
transnational systems, and raw power may be required to solidify the idea that
transnational systems of some sort are truly required.

How should cooptation proceed? Several alternatives are possible. One alter-
native is to permit each country unit the opportunity to develop one transna-
tional application first in its home territory and then throughout the world. In
this manner, each major country systems group is given a piece of the action
in developing a transnational system, and local units feel a sense of owner-
ship in the transnational effort. On the downside, this assumes the ability to
develop high-quality systems is widely distributed and that a German team, for
example, can successfully implement systems in France and Italy. This will not
always be the case.

A second tactic is to develop new transnational centers of excellence, or a
single center of excellence. There may be several centers around the globe that
focus on specific business processes. These centers draw heavily from local
national units, are based on multinational teams, and must report to world-
wide management. Centers of excellence perform the initial identification and
specification of business processes, define the information requirements, per-
form the business and systems analysis, and accomplish all design and testing.
Implementation, however, and pilot testing are rolled out to other parts of the
globe. Recruiting a wide range of local groups to transnational centers of excel-
lence helps send the message that all significant groups are involved in the
design and will have an influence.

Even with the proper organizational structure and appropriate management
choices, it is still possible to stumble over technology issues. Choices of technol-
ogy platforms, networks, hardware, and software are the final element in build-
ing transnational information systems architectures.

15-4 What are the issues and technical alternatives to

be considered when developing international
information systems?

Once firms have defined a global business model and systems strategy, they
must select hardware, software, and networking standards along with key sys-
tem applications to support global business processes. Hardware, software, and
networking pose special technical challenges in an international setting.

One major challenge is finding some way to standardize a global computing
platform when there is so much variation from operating unit to operating unit
and from country to country. Another major challenge is finding specific soft-
ware applications that are user-friendly and that truly enhance the productivity

Chapter 15 Managing Global Systems 605

of international work teams. The universal acceptance of the Internet around
the globe has greatly reduced networking problems. But the mere presence of
the Internet does not guarantee that information will flow seamlessly through-
out the global organization because not all business units use the same appli-
cations, and the quality of Internet service can be highly variable (just as with
the telephone service). For instance, German business units may use an open
source collaboration tool to share documents and communicate, which is
incompatible with American headquarters teams, which use Microsoft solu-
tions. Overcoming these challenges requires systems integration and connec-
tivity on a global basis.

Computing Platforms and Systems Integration

The development of a transnational information systems architecture based
on the concept of core systems raises questions about how the new core sys-
tems will fit in with the existing suite of applications developed around the
globe by different divisions and different people and for different kinds of
computing hardware. The goal is to develop global, distributed, and integrated
systems to support digital business processes spanning national boundaries.
Briefly, these are the same problems faced by any large domestic systems
development effort. However, the problems are magnified in an international
environment. Just imagine the challenge of integrating systems based on the
Windows, Linux, Unix, or proprietary operating systems running on IBM, Ora-
cle Sun, HP, and other hardware in many different operating units in many
different countries!

Moreover, having all sites use the same hardware and operating system does
not guarantee integration. Some central authority in the firm must establish
data standards as well as other technical standards with which sites are to com-
ply. For instance, technical accounting terms such as the beginning and end of
the fiscal year must be standardized (review the earlier discussion of the cul-
tural challenges to building global businesses) as well as the acceptable inter-
faces between systems, communication speeds and architectures, and network
software.

Connectivity

Truly integrated global systems must have connectivity—the ability to link
together the systems and people of a global firm into a single integrated network
just like the phone system but capable of voice, data, and image transmissions.
The Internet has provided an enormously powerful foundation for providing
connectivity among the dispersed units of global firms. However, many issues
remain. The public Internet does not guarantee any level of service (even in
the United States). Few global corporations trust the security of the Internet
and generally use private networks to communicate sensitive data and Internet
virtual private networks (VPNs) for communications that require less security.
Not all countries support even basic Internet service that requires obtaining
reliable circuits, coordinating among different carriers and the regional tele-
communications authority, and obtaining standard agreements for the level
of telecommunications service provided. Table 15.5 lists the major challenges
posed by international networks.

While private networks have guaranteed service levels and better security
than the Internet, the Internet is the primary foundation for global corporate
networks when lower security and service levels are acceptable. Companies

606 Part Four Building and Managing Systems

TABLE 15.5 CHALLENGES OF INTERNATIONAL NETWORKS

Quality of service
Security
Costs and tariffs
Network management
Installation delays
Poor quality of international service
Regulatory constraints
Network capacity

can create global intranets for internal communication or extranets to exchange
information more rapidly with business partners in their supply chains. They
can use the public Internet to create global networks using VPNs from Internet
service providers, which provide many features of a private network using the
public Internet (see Chapter 7). However, VPNs may not provide the same level
of quick and predictable response as private networks, especially during times
of the day when Internet traffic is very congested, and they may not be able to
support large numbers of remote users.

The high cost of PCs and low incomes limit access to Internet service in
many developing countries (see Figure 15.5). Where an Internet infrastructure
exists in less-developed countries, it often lacks bandwidth capacity and is unre-
liable in part due to power grid issues. The purchasing power of most people in
developing countries makes access to Internet services very expensive in local
currencies. In the case of India, uneven Internet service and an undeveloped
infrastructure for distributing and paying for goods have hampered the growth
of e-commerce (see the Interactive Session on Organizations).

FIGURE 15.5 INTERNET POPULATION IN SELECTED COUNTRIES

Internet Population in Selected Countries

Global Internet Penetration Rates120% % Internet Users
Finland100%
U.S.A.
80%
Brazil60%
China40%
Libya20%
Guatemala
Somalia0%

Country

The percentage of the total population using the Internet in developing countries is much smaller than
in the United States and Europe, but it is growing rapidly.

Source: Based on data from Internerworldstats.com, 2015; Pew Global Attitudes Project, 2015; and authors.

Chapter 15 Managing Global Systems 607

INTERACTIVE SESSION: ORGANIZATIONS

Indian E-commerce: Obstacles to Opportunity

After China, India has the world’s second-largest Zomato, and the What’s App messaging service are
number of Internet users, more than 400 million rapidly gaining followers, but only 25 percent of
by the end of 2015. Rising smartphone ownership, urban dwellers and 5 percent of rural Indians have
with 4G networks rapidly replacing 3G in urban cen- made an online purchase. Pending completion of
ters and slower, more affordable data plans in rural Modi’s broadband superhighway, growth will still be
areas, has made this possible. Still, this represents driven by falling smartphone and mobile data plan
only 32 percent of India’s population of 1.25 billion. prices, with two-thirds of the projected 11 million
E-commerce in India is expected to surge in the next new 2016 users accessing the Internet via portable
five years, but it faces some hefty challenges. device.

For example, a government initiative to lay fiber- E-commerce travel sites are especially popular.
optic cable and connect hundreds of thousands of MakeMytrip.com, Yatra.com, and Indian Railways’
villages to the national Internet backbone formulated IRCTC website along with a number of smaller play-
in 2011 has stalled due to inaccessibility of remote ers account for 75 to 80 percent of all e-commerce
areas, unwillingness of the large telecoms to invest purchases. Another top sector is digital downloads,
(even with government financing) in non-lucrative including e-books, music, and content subscriptions,
sparsely populated areas, and red tape engendered also traditionally a breakthrough sector. The remain-
by overlapping authority between governmental ing 20 percent of the business-to-consumer (B2C)
bodies in India’s seven union territories, 29 states, e-commerce market is composed of durable goods,
and numerous districts and smaller administrative financial instruments such as online bill payment
divisions. services and insurance products, and online clas-
sified ads, including job, dating, and matrimonial
Because standard infrastructure in India is primi- services driven by a growing middle class with rising
tive—including poor and even nonexistent roads disposable incomes.
and bridges—less than 5 percent of the planned
million miles of cable had been completed by the The rush to capitalize on the projected $70 billion
end of 2015. What’s more, India’s electrical grid is in online purchases by 2020 has been led by online
woefully inadequate, many villages lack sufficient giants Amazon and eBay. Amazon is following an
power lines, and electrical service is spotty at best. unconventional path in India with Junglee.com,
Bureaucratic right-of-way conflicts stalled work in a transaction facilitator site that connects buyers
15 percent of villages scheduled to be connected, and sellers while providing product and price com-
while a duct shortage and glitches with government- parison services, making it unambiguously a direct
developed technology to connect the cables to their competitor to eBay India. eBay India was a pioneer,
endpoints caused additional delays. setting up shop in 2005. Credit card adoption is still
in its infancy, and eBay had to pave the way in gain-
Prime Minister Narendra Modi is determined ing consumer trust. The Indian iteration of PayPal,
to hook up 600 million rural Indians, including Paisa Pay, remits payment to the seller only after the
schools, community centers, and hospitals, by 2019. buyer has received the item and refunds payment if
Along with healthcare, educational, and other gov- the item is not shipped within three days. (Two days
ernment services, he wants to ensure that online is the goal.) Coupons, a guarantee of full refund or
banking and e-commerce are universally available. replacement within 30 days if the buyer is not sat-
Modi has tried to reduce intergovernmental body isfied, and a Power Ship service have aided eBay’s
red tape and to curb corrupt state border officials, efforts. About 30,000 domestic and 15,000 worldwide
and he has also created the Committee on the sellers, mostly small, many artisans, and some from
National Fibre Optic Network to jump-start state the poorest areas of the country, sell 16 products
government and private sector cooperation in both every minute to 128 million buyers in more than 30
construction and maintenance and wrest control countries. The key to this success was appreciating
from state-owned giants. the unique nature of Indian consumers and tailoring
the shopping experience and transaction flow to sat-
The picture is mixed. In 2015, 94 percent of Inter- isfy their needs.
net usage was conducted by 276 million mobile
phone users. Uber rival Ola, restaurant search site

608 Part Four Building and Managing Systems e-commerce war is likely to be won by those compet-
itors with the best mobile app. On low-price smart-
Still, not all the kinks have been ironed out. Some phones feasible for most Indian consumers, many
states insist on requiring buyers to complete a form apps come preinstalled, and there is little space on
that must be sent to the seller before the product can the phone for additional app storage. In this emerg-
ship. Less than 2 percent of Indian consumers own ing market, profits are yet to be realized, and market
credit cards, so most e-commerce sites must offer consolidation is ongoing. Developing a strong brand
a cash-on-delivery (COD) payment option. In 2015 and effective customer service and, for some compa-
60 to 70 percent of Indian e-commerce purchases nies, cultivating a vibrant market niche will be the
were cash-on-delivery. About 45 percent of custom- keys to survival.
ers reject these COD orders at the point of delivery,
making this a very expensive and probably unsus- Sources: Sean McLain and Newley Purnell, “India Startups Vie to Win
tainable business model. Making matters worse, E-Commerce Battle,” Wall Street Journal, October 22, 2015; Joanna
many e-tailers offer free shipping to acquire and Sugden, “In ‘Digital India,’ a 15-Minute Wait for Email,” Wall Street
retain customers. The national Indian poverty rate Journal, August 20, 2015; Sean McLain, “India to Become World’s
runs between 22 and 25 percent depending on how Second-Largest Internet User Base,” Wall Street Journal, November 17,
the rate is measured. 2015; “The Quest for E-commerce Dominance in India,” Bloomberg
News, July 31, 2015; Arun Shroff, “E-Commerce in India: Trends,
All retailers face steep costs for warehouses and Opportunities and Challenges,” India Advisory Board, February 1,
logistics systems to overcome poor transporta- 2013; Ramnath Subbu, “Indian E-commerce Market Is Nowhere Near
tion infrastructure, bad roads, and traffic conges- Maturity—eBay India MD,” The Hindu, April 21, 2014.
tion. Until India’s infrastructure catches up, the

CASE STUDY QUESTIONS 3. Will non-Indian companies like Amazon.com and
eBay flourish in India? Explain.
1. Describe the technical, cultural, and organiza-
tional obstacles to e-commerce growth in India.

2. How do these factors hamper companies from
doing business in India or setting up Indian
e-commerce sites?

In addition, many countries monitor transmissions. Governments in China,
Singapore, Iran, and Saudi Arabia monitor Internet traffic and block access to
websites considered morally or politically offensive. On the other hand, the
rate of growth in the Internet population is far faster in Asia, Africa, and the
Middle East than in North America and Europe, where the Internet population
is growing slowly if at all. Therefore, in the future, Internet connectivity will be
much more widely available and reliable in less-developed regions of the world,
and it will play a significant role in integrating these economies with the world
economy.

Software Localization

The development of core systems poses unique challenges for application soft-
ware: How will the old systems interface with the new? Entirely new interfaces
must be built and tested if old systems are kept in local areas (which is com-
mon). These interfaces can be costly and messy to build. If new software must
be created, another challenge is to build software that can be realistically used
by multiple business units from different countries given that business units
are accustomed to their unique business processes and definitions of data.

Aside from integrating the new with the old systems, there are problems of
human interface design and functionality of systems. For instance, to be truly

Chapter 15 Managing Global Systems 609

INTERACTIVE SESSION: MANAGEMENT

Steelcase Designs Goes for Global Talent Management

You may not have heard of Steelcase Designs, but planning to align the firm’s human resources with
if you work in a modern office, you may very well its business strategy so that the firm has the quan-
have used one of its chairs or interactive white- tity and quality of employees with the skills it
boards. Steelcase produces office furniture and needs to improve business performance and reach
architectural and technology products for office envi- its goals. Human resources talent management
ronments and the education and healthcare indus- includes capabilities for recruiting, developing,
tries and is the largest office furniture manufacturer retaining, and rewarding employees as well as stra-
in the world. It has facilities, offices, and factories in tegic workforce planning.
the Americas, Asia, the Middle East, and Australia
with 10,000 employees and more than 800 dealers. Steelcase had been using SAP’s ERP HCM (Human
Steelcase’s fiscal 2015 revenue was $3.1 billion. Capital Management) software, but it was too out of
date and required workarounds for the talent man-
The company started in 1912 as the Metal Office agement functionality that it needed. The old sys-
Furniture Company in Grand Rapids, Michigan, and tem was not able to define jobs in enough detail to
is noted for its innovations. Steelcase’s first patent in address the level of workforce planning and develop-
1914 was for a strong, low-cost fireproof steel waste- ment management desired.
basket, considered a major breakthrough at a time
when many people smoked at work. Fortunately, Steelcase did not have to discard its
SAP system entirely. SAP’s HCM version 6.0 featured
Steelcase is also noted for its close attention to new talent management functionality that would
people issues. If you go to the Steelcase website, meet its needs, such as being able to define jobs by
you’ll see articles about employee engagement, pro- job family, task functionality, and the functional area
ductivity, technology-empowered learning, and how of the business to create a variety of ways to combine
Steelcase products help people work more comfort- work. The new system’s ability to organize data by
ably, unlock creative potential, and support social, career level, type, and talent group helps the Steel-
economic, and environmental sustainability. case HR team create better services, such as career
planning for employees. Employees can match their
Steelcase tries to similarly nurture its own current skill sets against any job in the company and
employees, realizing that the company’s continuing know what competencies will be required and how
innovation and success depend on their skills and their current performance evaluations compare with
insights. Employees are its greatest asset. Until a few what will be required in future roles they are inter-
years ago, management felt this asset was underuti- ested in.
lized, especially on the global level. Management
questioned whether the company’s information sys- To take advantage of new talent management
tems were supporting company goals of promoting capabilities to support global operations, Steelcase
innovation, global integration, and attracting and needed much more standardization than in the
retaining world-class employees in all of the com- past. Simply searching for a name or term is very
pany’s locations around the globe. different depending on the country or the region
in terms of how the name is entered in the system.
Like other organizations expanding globally, Steelcase faced a challenge in trying to standardize
Steelcase needed to manage its global workforce and what that looks like and how it is used globally as
talent pool as well as its relationships with custom- well as understanding the definitions of common
ers and suppliers worldwide. Management needed ways to identify the workforce. For example, terms
to understand the needs of the company’s skilled like salary and hourly, which are used for classi-
global workforce and align business processes with fying and determining pay for employees in the
local customs and practices. In addition to maintain- United States, don’t exist on a global scale. Other
ing accurate job information on a worker, Steelcase countries define their workforce differently. For
wanted to keep track of future career opportunities reporting or analytics, Steelcase needed to define,
and ensure proper planning from a worker engage- collect, and use data in a way that is uniform across
ment and budgetary perspective. the globe.

When the company evaluated its systems in The SAP ERP HCM software enables Steelcase
2014, it found that it needed more capabilities for to create an enterprise-wide talent profile, which
talent management. Talent management involves

610 Part Four Building and Managing Systems For the future, Steelcase is looking more toward
the cloud and most likely will adopt a hybrid cloud
maintains data for each employee on external job model. According to Lucinda Pick, Steelcase’s Global
experience as well as their work within Steelcase; Workforce Strategy Consultant, the company wants
showcases their achievements from one job to the to bring the results from the SAP SuccessFactors tal-
next; and notes aspirations and future career goals. ent review back to the on-premises core system to
Managers can use the system to review assessments, analyze core demographic data and use some of the
qualification skill sets, and training demands. Steel- on-premises capabilities for talent management.
case’s HR team can now assign the company’s high- That way, when HR is analyzing talent review data
potential talent to a specific talent group and create on performance and future leadership potential, it
a learning and development curriculum for them. can see how many high-potential employees the
Without these capabilities, Steelcase had difficulty company has according to region, gender, or age
showcasing the skills of its workforce. group. All those data reside in the core SAP system.
Another plan is to integrate talent profiles with
Steelcase recently contracted with SuccessFactors, learning management to support Steelcase’s goal of
an SAP company, to implement SAP SuccessFactors fostering a learning culture.
Performance & Goals and take succession planning
to the cloud. (Succession planning is the process According to Pick, for talent management to be
of identifying and developing employees with the effective, Steelcase needs to be able to match the
potential to fill key business leadership positions in employee with the right skills to a complete set of
the company.) Steelcase will be using this capability job requirements. With the new SAP ERP HCM and
to complete organizational talent reviews of its work- SuccessFactors systems, the company can now do
force and issue employee ratings based on overall that. Competition for talent is great. The more Steel-
performance and leadership potential as a way of case can automate its business processes and the
identifying high-potential talent. These assessments more it understands its workforce market, the more
are more strategically oriented than a typical annual it can make sound and timely decisions.
employee performance review and can determine
potential risk and bench strength (the competence Sources: www.steelcase.com, accessed January 3, 2016; www.sap
of employees ready to fill vacant leadership and .com, accessed January 4, 2016; and Natalie Miller, “Steelcase
other positions). When staffing positions worldwide, Designs Form-Fitting Talent Management,” SAP Insider Profiles,
Steelcase can identify roles and career paths to October 17, 2015.
match its high-potential talent and segment them for
promotion.

CASE STUDY QUESTIONS 3. Describe the capabilities of the SAP ERP HCM and
SuccessFactors systems that were helpful to Steel-
1. Why are human resources and talent management case. How did these systems improve global oper-
so important at Steelcase? ations and decision making?

2. Identify the problem described in this case. What
management, organization and technology factors
contributed to this problem? What role did global-
ization play?

useful for enhancing productivity of a global workforce, software interfaces
must be easily understood and mastered quickly. Graphical user interfaces are
ideal for this but presuppose a common language—often English. When inter-
national systems involve knowledge workers only, English may be the assumed
international standard. But as international systems penetrate deeper into
management and clerical groups, a common language may not be assumed and
human interfaces must be built to accommodate different languages and even
conventions. The entire process of converting software to operate in a second
language is called software localization.

Chapter 15 Managing Global Systems 611

What are the most important software applications? Many international sys-
tems focus on basic transaction and management reporting systems. Increas-
ingly, firms are turning to supply chain management and enterprise resource
planning systems to standardize their business processes on a global basis and
to create coordinated global supply chains and workforces (see the Interactive
Session on Management). However, these cross-functional systems are not
always compatible with differences in languages, cultural heritages, and busi-
ness processes in other countries (Accenture, 2014;). Company units in coun-
tries that are not technically sophisticated may also encounter problems trying
to manage the technical complexities of enterprise applications.

Electronic Data Interchange (EDI) systems and supply chain management
systems are widely used by manufacturing and distribution firms to connect to
suppliers on a global basis. Collaboration systems, e-mail, and videoconferenc-
ing are especially important worldwide collaboration tools for knowledge- and
data-based firms, such as advertising firms, research-based firms in medicine
and engineering, and graphics and publishing firms. Internet-based tools will
be increasingly employed for such purposes.

Review Summary

15-1 What major factors are driving the internationalization of business?
The growth of inexpensive international communication and transportation has created a world

culture with stable expectations or norms. Political stability and a growing global knowledge base
that is widely shared also contribute to the world culture. These general factors create the conditions
for global markets, global production, coordination, distribution, and global economies of scale.

15-2 What are the alternative strategies for developing global businesses?
There are four basic international strategies: domestic exporter, multinational, franchiser, and

transnational. In a transnational strategy, all factors of production are coordinated on a global scale.
However, the choice of strategy is a function of the type of business and product.

There is a connection between firm strategy and information systems design. Transnational
firms must develop networked system configurations and permit considerable decentralization of
development and operations. Franchisers almost always duplicate systems across many countries
and use centralized financial controls. Multinationals typically rely on decentralized independence
among foreign units with some movement toward development of networks. Domestic exporters
typically are centralized in domestic headquarters with some decentralized operations permitted.

15-3 What are the challenges posed by global information systems and management solutions for these
challenges?

Global information systems pose challenges because cultural, political, and language diversity
magnifies differences in organizational culture and business processes and encourages proliferation
of disparate local information systems that are difficult to integrate. Typically, international sys-
tems have evolved without a conscious plan. The remedy is to define a small subset of core busi-
ness processes and focus on building systems to support these processes. Tactically, managers will
have to co-opt widely dispersed foreign units to participate in the development and operation of
these systems, being careful to maintain overall control.

15-4 What are the issues and technical alternatives to be considered when developing international
information systems?

Implementing a global system requires an implementation strategy that considers both business
design and technology platforms. The main hardware and telecommunications issues are systems
integration and connectivity. The choices for integration are to go either with a proprietary

612 Part Four Building and Managing Systems

architecture or with open systems technology. Global networks are extremely difficult to build and
operate. Firms can build their own global networks or they can create global networks based on the
Internet (intranets or virtual private networks). The main software issues concern building inter-
faces to existing systems and selecting applications that can work with multiple cultural, language,
and organizational frameworks.

Key Terms Legitimacy, 575
Multinational, 569
Business driver, 564 Particularism, 567
Cooptation, 576 Software localization, 582
Core systems, 573 Transborder data flow, 567
Domestic exporter, 569 Transnational, 570
Franchisers, 569
Global culture, 565
International information systems architecture, 564

MyLab MIS

To complete the problems with the MyLab MIS, go to EOC Discussion Questions in MyLab MIS.

Review Questions 15-3 What are the challenges posed by global infor-
mation systems and management solutions for
15-1 What major factors are driving the internation- these challenges?
alization of business?
• List and describe the major management
• List and describe the five major dimensions issues in developing international systems.
for developing an international information
systems architecture. • Identify and describe three principles to fol-
low when organizing the firm for global
• Describe the five general cultural factors business.
leading toward growth in global business and
the four specific business factors. Describe • Identify and describe three steps of a man-
the interconnection among these factors. agement strategy for developing and imple-
menting global systems.
• List and describe the major challenges to
the development of global systems. • Define cooptation and explain how can it be
used in building global systems.
• Explain why some firms have not planned for
the development of international systems. 15-4 What are the issues and technical alternatives
to be considered when developing international
15-2 What are the alternative strategies for develop- information systems?
ing global businesses?
• Describe the main technical issues facing
• Describe the four main strategies for global global systems.
business and organizational structure.
• Identify some technologies that will help
• Describe the four different system configu- firms develop global systems.
rations that can be used to support different
global strategies.

Discussion Questions 15-6 Describe ways the Internet can be used in
MyLabMIS international information systems.
15-5 If you were a manager in a company that
MyLabMIS operates in many countries, what criteria

would you use to determine whether an
application should be developed as a global
application or as a local application?

Chapter 15 Managing Global Systems 613

Hands-On MIS Projects

The projects in this section give you hands-on experience conducting international market research, ana-
lyzing international systems issues for an expanding business, and building a job posting database and web
page for an international company. Visit MyLab MIS’s Multimedia Library to access this chapter’s Hands-on
MIS Projects.

Management Decision Problems

15-7 United Parcel Service (UPS) has been expanding its package delivery and logistics services in China, serv-
15-8 ing both multinational companies and local businesses. UPS drivers in China need to use UPS systems and
tools such as its handheld Delivery Information Acquisition Device for capturing package delivery data.
UPS wants to make its WorldShip, CampusShip, and other shipping-management services accessible to
Chinese and multinational customers via the web. What are some of the international systems issues UPS
must consider in order to operate successfully in China?

Your company manufactures and sells tennis racquets and would like to start selling outside the United
States. You are in charge of developing a global web strategy, and the first countries you are thinking of
targeting are Brazil, China, Germany, Italy, and Japan. Using the statistics in the CIA World Factbook and
other online sources, which of these countries would you target first? What criteria did you use? What
other considerations should you address in your web strategy? What features would you put on your web-
site to attract buyers from the countries you target?

Achieving Operational Excellence: Building a Job Database and Web Page for an
International Consulting Firm

Software skills: Database and web page design
Business skills: Human resources internal job postings

15-9 Companies with many overseas locations need a way to inform employees about available job openings in
these locations. In this project you’ll use database software to design a database for posting internal job
openings and a web page for displaying this information.
KTP Consulting operates in various locations around the world. KTP specializes in designing, devel-

oping, and implementing enterprise systems for medium- to large-size companies. KTP offers its employees
opportunities to travel, live, and work in various locations throughout the United States, Europe, and Asia.
The firm’s human resources department has a simple database that enables its staff to track job vacancies.
When an employee is interested in relocating, she or he contacts the human resources department for a list
of KTP job vacancies. KTP also posts its employment opportunities on the company website.

What type of data should be included in the KTP job vacancies database? What information should
not be included in this database? Based on your answers to these questions, build a job vacancies database
for KTP. Populate the database with at least 20 records. You should also build a simple web page that incor-
porates job vacancy data from your newly created database. Submit a copy of the KTP database and web
page to your professor.

Improving Decision Making: Conducting International Marketing and Pricing Research

Software skills: Internet-based software
Business skills: International pricing and marketing

15-10 In this project you’ll use the web to research overseas distributors and customs regulations and use
Internet-based software to calculate prices in foreign currencies.
You are in charge of marketing for a U.S. manufacturer of furniture that has decided to enter the

international market. You want to test the market by contacting a European office furniture retailer to offer
it a specific desk that you have to sell at about $125. Using the web, locate the information needed to locate
and contact this firm and to find out how many euros you would get for the chair in the current market.
One source for locating European companies is Europages. In addition, consider using a universal currency
converter website, which determines the value of one currency expressed in other currencies. Obtain both
the information needed to contact the firm and the price of your chair in its local currency. Then locate and

614 Part Four Building and Managing Systems

obtain customs and legal restrictions on the products you will export from the United States and import into
the country of the retailer you have selected. Finally, locate a company that will represent you as a customs
agent and gather information on shipping costs.

Collaboration and Teamwork Project

Identifying Technologies for Global Business Strategies

15-11 With a group of students, identify an area of information technology and explore how this technology
might be useful for supporting global business strategies. For instance, you might choose e-mail, smart-
phones, virtual private networks, enterprise systems, collaboration software, or the web. It will be neces-
sary to identify a business scenario to discuss the technology. You might choose an automobile parts
franchise or a clothing franchise, such as Express, as example businesses. Which applications would you
make global, which core business processes would you choose, and how would the technology be help-
ful? If possible, use Google Docs and Google Drive or Google Sites to brainstorm, organize, and develop
a presentation of your findings for the class.

Crocs Clambers to Global Efficiency

CASE STUDY

Crocs, Inc. is a world leader in innovative casual foot- Regionally, this meant that highly customized sys-
wear for men, women and children. From the first tems evolved in order to integrate functions. This in
mall kiosk in 2004, Crocs has grown to more than turn meant that integration across regions became
500 branded retail locations around the world. It has increasingly difficult if not impossible. Basic business
outlets in more than 30 countries including Australia, functions such as closing the books required manu-
New Zealand, China, Japan, South Korea, the United ally collating and reconciling spreadsheets from
Kingdom, France, Germany, and the Netherlands but multiple countries and regions, punctuated by mul-
sells footwear in more than 90. The company now tiple phone calls and e-mails in pursuit of missing
produces more than 300 four-season styles includ- or incorrectly formatted data. Order entry began in
ing boots, wedges, flip-flops, sandals, loafers, slippers, numerous locales but had to proceed through three
rain boots, and sneakers. different systems before the order was placed. What’s
more, points of failure were unwieldy to locate.
Rapid expansion from 2005 through 2007 was ampli-
fied by the acquisitions of footwear companies Ocean By 2011, it became clear that Crocs’s patchwork
Minded and Bite Footwear, Dutch messenger bag system was unsustainable. Cross-currency and mul-
company Tagger, South African third-party distributor tilanguage orders were unmanageable, and local
Tidal Trade, and Jibbitz, a manufacturer of charms that or country-specific business regulations had to be
snap into the holes of the classic clogs. Unsurprisingly, managed manually. Crocs began scrutinizing and
this resulted in a number of disparate IT systems. To revamping its business processes and embarked on
keep pace with short-term growth, Crocs purchased an enterprise-level IT project named Sunlight. Only
best-of-breed systems in a variety of categories for after all vital business processes had been re-envi-
order management, warehouse management, retail sioned to support and serve the way the company
merchandising and reporting, and Electronic Data did business did management begin searching for
Interchange (EDI) functions. The problem with this an enterprise resource planning (ERP) system to fit
approach is that while dedicated systems often per- those needs. In this way, a companywide transforma-
form better within their specialized niche, without tion was undertaken.
an integrated system, enterprise-wide connectivity is
compromised and maintenance needs exacerbated. When management began to search for a solution
to implement the standardized global processes it

had outlined, SAP Apparel and Footwear was quickly Chapter 15 Managing Global Systems 615
chosen. It is one of a number of SAP Consumer Prod-
ucts solutions that tailor the SAP Enterprise Resource and any unresolved critical issues are ironed out.
Planning (ERP) platform for specific industries. With Phase V is the Go Live & Support stage in which the
its main goal of avoiding customizations uppermost, project moves from a project-oriented, preproduction
Crocs was further persuaded by the three-way size operation to a live production undertaking.
grid function and many other features custom-made
for footwear sellers. Materials master data now store During the Business Blueprint phase, Crocs
all size, color, and style information, reducing the worked with an implementation partner, which
number of SKUs (stock-keeping units) by an aston- helped it with development and data conversion. In
ishing 40 percent. In fact, according to Dennis Shel- total, the Blueprint, Realization, and Final Prepara-
don, Senior Vice President of Global Distribution, tion stages took just 17 months, with Crocs’s Austra-
the grid function in SAP Apparel and Footwear was lia division going live in April 2014.
instrumental in excising the surfeit of SKUs that had
been driving the numerous system customizations at Because Crocs also implemented a full suite of
the regional level, shackling global integration. With other SAP products, including SAP BusinessObjects
shoe size, the key demand variable in the footwear (a Business Intelligence product), SAP BW (Business
industry, driving the grid, data requirements plum- Warehouse), a B2B Internet sales application, SAP
meted, business processes were streamlined, and at solutions for GRC (Governance, Risk, and Compli-
least 24 legacy systems were shed. ance), and SAP Business Planning and Consolida-
tion to interface with the ERP system, it could use
Phase one of the global rollout began in Australia its Australian rollout to discover and implement any
in November 2012. The objectives were to modify the necessary modifications in a complete system before
core product as minimally as possible, validate best it proceeded to the next region, which it did within
practices, and discover areas in need of improve- two months.
ment while problems were confined to a single
region. Phased ERP rollouts are often functional, However, when Crocs took its Japan division (a
rolling out modules for essential business functions six-times-larger business—$120 million as opposed
(daily operations) enterprise-wide and gradually add- to $20 million) live, it ran into language and cultural
ing more modules and functionality. Alternatively, a barriers that even advance training with a change
rollout can be implemented by business unit, start- management consulting firm could not forestall.
ing perhaps in the Human Resources department Change management (CM) focuses on the human
and then moving on to Accounting, Finance, and so side of change—how to guide people through major
on. For Crocs, neither of these approaches was ten- organizational changes, including those brought
able due to the fragmented state of its systems; thus, about by information systems. Nevertheless, despite
a phased global rollout was chosen. having to navigate several unforeseen cultural
hurdles, the Japan rollout saw fewer data migra-
SAP’s general methodology for implementation of tion problems, and in short order, the company
any project follows five steps. Phase I, Project Prepa- announced a target date of January 7, 2015, for its
ration, is the initial planning and preparation stage. full global rollout.
Phase II is the Business Blueprint stage in which a
detailed description of the business processes and To meet this goal, Crocs built regional “readiness”
system requirements is compiled producing the proj- teams of subject matter experts (SMEs) from the dif-
ect structure and documentation that will be used in ferent functional departments by immersing them in
the next two phases. the training, development, and testing of the system.
This eased adoption and bolstered the change man-
A hierarchical structure of business scenarios, agement side of the equation. Often, companies will
business processes, and process steps is created, fly in IT department project managers and/or ven-
and transactions are assigned to each process step. dor project managers to train employees and oversee
Phase III, Realization, is when all business process system implementation. Instead, Crocs made sure
requirements are implemented and the system that known quantities familiar with local culture,
configuration is outlined at two levels: the baseline business practices, and habits guided the process.
(major scope) configuration and the final (remaining These resident teams proved invaluable in trouble-
scope) configuration. Phase IV is the Final Prepara- shooting and crisis management during the Go Live
tion stage in which testing, end-user training, system & Support phase.
management, and cutover activities are performed
With more than 100 of these “readiness” team
leaders and SMEs on the ground and, equally as
importantly, an enterprise-wide buy-in and broad
understanding of the project goals, 1,400 users

616 Part Four Building and Managing Systems perennially suffered slings and arrows for its unat-
tractive form.
successfully finalized the launch across 32 countries,
speaking 15 different languages and using 23 differ- Refocusing on its footwear’s five key attributes—
ent currencies. What’s more, Crocs could not have colorful, relaxed, comfortable, distinctive, and fun—
been more pleased that only 25 customizations were Crocs was able to revive business back up to $9.7
required, and those were to satisfy local legal and million in 2015 (a 3.7 percent increase from the pre-
regulatory stipulations. vious year) after Crocs had become a billion-dollar
company in 2012.
Crocs now administers the automation of pur-
chasing, delivery tracking, inventory segmentation, Though some dissatisfaction with supply chain
chargebacks, and nearly every other aspect of the efficiency that resulted in poor customer service was
design, manufacture, and distribution of its foot- noted by President and Principal Executive Officer
wear in SAP Apparel and Footwear. With business Andrew Rees at the end of the third quarter of 2015,
processes streamlined, sales are now outstanding SAP Footwear and Apparel had only been up and
for fewer days, and the fill, or demand satisfaction running for those three quarters, and full functional-
rate—percent of orders satisfied from inventory on ity of the integrated analytics software had likely not
hand—has significantly improved. Freight costs, yet been reached.
nonproduction selling expenses, and SG&A (selling,
general, and administrative) expenditures, which It is unlikely that without Crocs’s forward-thinking
combine salaries, commissions, and travel expenses commitment to revamping and streamlining its busi-
for executives and salespeople, advertising costs, ness processes, reducing costs, and improving order
and payroll expenses, have all been substantially fulfillment efficiency the downturn of 2014 would
reduced. have been navigated so seamlessly. The company
was able to reduce its SKU count to simplify product
Perhaps even more noteworthy, whereas data development, forecasting, and inventory manage-
were formerly regarded with a dubious eye, manag- ment. Crocs had identified reducing its direct-ship
ers now have confidence in the numbers and can model as crucial. It had always permitted very low
immediately proceed to data analysis. Order loca- minimum order quantities and direct order place-
tion, order status, and inventory availability are read- ment with factories, but this was becoming unwieldy,
ily discernible, making order fulfillment both easier creating needless complexity in the factory order
and faster. management process. With its new systems, the
company could now easily increase the minimum
In the year following implementation, Crocs kept order quantity to industry standards enterprise-wide.
a close eye on its users to make sure that they did
not slip back into old habits, maintaining a strict Crocs also decided to bring its value-added ser-
prohibition on regionally based spreadsheets and vices more in line with industry standards to make
insisting on meticulous conformance with revamped it easier to package orders and move them through
business processes. Analytics solutions working with distribution centers. Once again, without an inte-
SAP Apparel and Footwear are providing greater vis- grated global system, achieving this goal would have
ibility into the business at the enterprise level. Oper- been significantly more problematic. Order location,
ational efficiencies have provided improved control order status, and inventory availability are all now
over Crocs’s global supply chain from raw materials easily obtainable, making global supply chain man-
purchase to product delivery around the world. Its agement easier. Finally, Crocs developed its manage-
numerous design and style variations, seasonal offer- ment team, adding leaders from several key areas to
ings, and customer value–added services such as Jib- ensure that its IT investment was used to its fullest
bitz personalization generate very large quantities of potential. Project Sunlight should continue to reap
data that can now be efficiently managed. benefits in 2016 and beyond.

Though Crocs experienced a company shakeup Sources: www.company.crocs.com, accessed February 3, 2016;
in 2014 that included 70 jobs lost, 100 store clos- Ken Murphy, “Crocs Climbs New Business Heights,” SAP Insider
ings, scaling back some of its newer, fashion-seeking Profiles, July 6, 2015; Natalie Rinn, “Finding My Fun: A Thorough
styles to concentrate on its casual styles, and reduc- Examination of Crocs, the Most-Hated Shoe in America,” racked.
ing investment in some smaller markets to concen- com, May 14, 2015; Jamie Grill-Goodman, “Crocs’ E-commerce
trate on just six countries—the United States, the Business Grows Despite Inventory, Supply Chain Issues,” Con-
United Kingdom, Germany, South Korea, Japan, and sumer Goods Technology, November 6, 2015; and “Crocs Discovers
China—its financial difficulties were not attributed to Multichannel Growth, Rolls Out ERP,” Retail Info Systems News,
its IT investment. Rather, the slowdown was ascribed February 26, 2013.
to changing customer tastes for a brand that has

CASE STUDY QUESTIONS Chapter 15 Managing Global Systems 617

15-12 What management problems typical of global 15-14 How did Crocs’s new systems improve opera-
systems was Crocs experiencing? What man- tions and management decision making?
agement, organization, and technology factors
were responsible for those problems? 15-15 What influence does the global business envi-
ronment have on Crocs, and how does that
15-13 How did Crocs’s new systems and use of SAP affect its choice of systems?
Apparel and Footwear support its business
strategy? How effective was the solution
chosen by the company?

MyLab MIS

Go to the Assignments section of MyLab MIS to complete these writing exercises.

15-16 Identify and describe solutions to the five management challenges of developing global systems.

15-17 Identify and describe five problems of international networks that prevent companies from developing effective
global systems.

618 Part Four Building and Managing Systems

Chapter 15 References

Accenture. “Technology Not Widely Used in Global Companies’ King, William R. and Vikram Sethi. “An Empirical Analysis of the
Emerging Market Supply Chains, Study Says.” (September 16, Organization of Transnational Information Systems.” Journal
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Bisson, Peter, Elizabeth Stephenson, and S. Patrick Viguerie. Kirsch, Laurie J. “Deploying Common Systems Globally: The
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Burtch, Gordon, Anindya Ghose, and Sunil Watta. “Cultural Krishna, S., Sundeep Sahay, and Geoff Walsham. “Managing Cross-
Differences and Geography as Determinants of Online Cultural Issues in Global Software Outsourcing.”
Prosocial Lending.” MIS Quarterly 38, No. 3 (September 2014). Communications of the ACM 47, No. 4 (April 2004).

Davison, Robert. “Cultural Complications of ERP.” Communications Martinsons, Maris G. “ERP In China: One Package Two Profiles,”
of the ACM 45, No. 7 (July 2002). Communications of the ACM 47, No. 7 (July 2004).

Deans, Candace P. and Michael J. Kane. International Dimensions of Meyer, Erin. “When Culture Doesn’t Translate.” Harvard Business
Information Systems and Technology. Boston, MA: PWS-Kent Review (October 2015).
(1992).
McKinsey & Company. “Lions Go Digital: The Internet’s
Dewhurst, Martin, Jonathan Harris, and Suzanne Heywood. “The Transformative Potential in Africa. (November 2013).
Global Company’s Challenge.” McKinsey Quarterly (June
2012). Pew Research Global Attitudes Project. “Emerging Nations
Embrace Internet, Mobile Technology.” (February 13, 2014).
Dou, Eva. “Timeline of China’s Social Media Crackdowns.” Wall
Street Journal (August 8, 2014). Quelch, John A. and Lisa R. Klein. “The Internet and International
Marketing.” Sloan Management Review (Spring 1996).
Ghislanzoni, Giancarlo, Risto Penttinen, and David Turnbull. “The
Multilocal Challenge: Managing Cross-Border Functions.” Roche, Edward M. Managing Information Technology in
McKinsey Quarterly (March 2008). Multinational Corporations. New York: Macmillan (1992).

Ives, Blake and Sirkka Jarvenpaa. “Applications of Global Su, Ning. “Cultural Sensemaking in Offshore Information
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Ives, Blake, S. L. Jarvenpaa, and R. O. Mason. “Global Business Tractinsky, Noam and Sirkka L. Jarvenpaa. “Information Systems
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Strategy.” IBM Systems Journal 32, No. 1 (1993). Quarterly 19, No. 4 (December 1995).

Waxer, Cindy.”Cross-Border Data Blues.” Computerworld Digital
Magazine (May 2016).

Glossary

3-D printing Uses machines to make solid objects, layer by layer, attribute A piece of information describing a particular entity.
from specifications in a digital file. Also known as additive augmented reality (AR) A technology for enhancing
manufacturing.
visualization. Provides a live direct or indirect view of a physical
3G networks Cellular networks based on packet-switched real-world environment whose elements are augmented by
technology with speeds ranging from 144 Kbps for mobile users virtual computer-generated imagery.
to more than 2 Mbps for stationary users, enabling users to authentication The ability of each party in a transaction to
transmit video, graphics, and other rich media in addition to ascertain the identity of the other party.
voice. automation Using the computer to speed up the performance of
existing tasks.
4G networks The next evolution in wireless communication is backward chaining A strategy for searching the rule base in an
entirely packet switched and capable of providing between 1 Mbps expert system that acts like a problem solver by beginning with a
and 1 Gbps speeds; up to 10 times faster than 3G networks. hypothesis and seeking out more information until the
hypothesis is either proved or disproved.
acceptable use policy (AUP) Defines acceptable uses of the balanced scorecard method Framework for operationalizing a
firm’s information resources and computing equipment, firm’s strategic plan by focusing on measurable financial,
including desktop and laptop computers, wireless devices, business process, customer, and learning and growth outcomes of
telephones, and the Internet, and specifies consequences for firm performance.
noncompliance. bandwidth The capacity of a communications channel as measured
by the difference between the highest and lowest frequencies
acceptance testing Provides the final certification that the system that can be transmitted by that channel.
is ready to be used in a production setting. behavioral models Descriptions of management based on
behavioral scientists’ observations of what managers actually do
accountability The mechanisms for assessing responsibility for in their jobs.
decisions made and actions taken. behavioral targeting Tracking the click-streams (history of clicking
behavior) of individuals across multiple websites for the purpose
advertising revenue model Website generating revenue by of understanding their interests and intentions, and exposing
attracting a large audience. them to advertisements which are uniquely suited to their
interests.
affiliate revenue model An e-commerce revenue model in which benchmarking Setting strict standards for products, services, or
websites are paid as “affiliates” for sending their visitors to other activities and measuring organizational performance against
sites in return for a referral fee. those standards.
best practices The most successful solutions or problem-solving
agency theory Economic theory that views the firm as a nexus of methods that have been developed by a specific organization or
contracts among self-interested individuals who must be industry.
supervised and managed. big data Data sets with volumes so huge that they are beyond the
ability of typical relational DBMS to capture, store, and analyze.
agent-based modeling Modeling complex phenomena as systems The data are often unstructured or semi-structured.
of autonomous agents that follow relatively simple rules for biometric authentication Technology for authenticating system
interaction. users that compares a person’s unique characteristics such as
fingerprints, face, or retinal image against a stored set profile of
agile development Rapid delivery of working software by breaking these characteristics.
a large project into a series of small sub-projects that are bit A binary digit representing the smallest unit of data in a
completed in short periods of time using iteration and continuous computer system. It can only have one of two states, representing
feedback. 0 or 1.
blog Popular term for “weblog,” designating an informal yet
analytic platform Preconfigured hardware-software system that is structured website where individuals can publish stories,
specifically designed for high-speed analysis of large datasets. opinions, and links to other websites of interest.
blogosphere Totality of blog-related websites.
analytical CRM Customer relationship management applications Bluetooth Standard for wireless personal area networks that can
dealing with the analysis of customer data to provide information transmit up to 722 Kbps within a 10-meter area.
for improving business performance. botnet A group of computers that have been infected with bot
malware without users’ knowledge, enabling a hacker to use
Android A mobile operating system developed by Android, Inc. the amassed resources of the computers to launch distributed
(purchased by Google) and later the Open Handset Alliance as a denial-of-service attacks, phishing campaigns, or spam.
flexible, upgradeable mobile device platform. broadband High-speed transmission technology. Also designates a
single communications medium that can transmit multiple
antivirus software Software designed to detect, and often channels of data simultaneously.
eliminate, malware from an information system. bugs Software program code defects.

application controls: Specific controls unique to each
computerized application that ensure that only authorized data
are completely and accurately processed by that application.

application server Software that handles all application operations
between browser-based computers and a company’s back-end
business applications or databases.

apps Small pieces of software that run on the Internet, on your
computer, or on your cell phone and are generally delivered over
the Internet.

artificial intelligence (AI) The effort to develop computer-based
systems that can behave like humans, with the ability to learn
languages, accomplish physical tasks, use a perceptual apparatus,
and emulate human expertise and decision making.

619

620 Glossary chief security officer (CSO) Heads a formal security function for
the organization and is responsible for enforcing the firm’s
bullwhip effect Distortion of information about the demand for a security policy.
product as it passes from one entity to the next across the supply
chain. choice Simon’s third stage of decision making, when the individual
selects among the various solution alternatives.
business continuity planning Planning that focuses on how the
company can restore business operations after a disaster strikes. Chrome OS Google’s lightweight computer operating system for
users who do most of their computing on the Internet; runs on
business driver A force in the environment to which businesses computers ranging from netbooks to desktop computers.
must respond and that influences the direction of business.
churn rate Measurement of the number of customers who stop
business ecosystem Loosely coupled but interdependent networks using or purchasing products or services from a company. Used
of suppliers, distributors, outsourcing firms, transportation as an indicator of the growth or decline of a firm’s customer base.
service firms, and technology manufacturers.
classical model of management Traditional description of
business functions Specialized tasks performed in a business management that focused on its formal functions of planning,
organization, including manufacturing and production, sales and organizing, coordinating, deciding, and controlling.
marketing, finance and accounting, and human resources.
click fraud Fraudulently clicking on an online ad in pay per click
business intelligence Applications and technologies to help users advertising to generate an improper charge per click.
make better business decisions.
client The user point-of-entry for the required function in client/
business model An abstraction of what an enterprise is and how server computing. Normally a desktop computer, workstation, or
the enterprise delivers a product or service, showing how the laptop computer.
enterprise creates wealth.
client/server computing A model for computing that splits
business performance management (BPM) Attempts to processing between clients and servers on a network, assigning
systematically translate a firm’s strategies (e.g., differentiation, functions to the machine most able to perform the function.
low-cost producer, market share growth, and scope of operation)
into operational targets. cloud computing Model of computing in which computer processing,
storage, software, and other services are provided as a shared pool of
business process management (BPM) An approach to business virtualized resources over a network, primarily the Internet.
which aims to continuously improve and manage business
processes. collaboration Working with others to achieve shared and explicit
goals.
business process redesign Type of organizational change in
which business processes are analyzed, simplified, and community provider A website business model that creates a
redesigned. digital online environment where people with similar interests
can transact (buy and sell goods); share interests, photos, videos;
business processes The unique ways in which organizations communicate with like-minded people; receive interest-related
coordinate and organize work activities, information, and information; and even play out fantasies by adopting online
knowledge to produce a product or service. personalities called avatars.

business-to-business (B2B) electronic commerce Electronic communities of practice (COPs) Informal social networks of
sales of goods and services among businesses. professionals and employees within and outside the firm who
have similar work-related activities and interests and share their
business-to-consumer (B2C) electronic commerce Electronic knowledge.
retailing of products and services directly to individual
consumers. competitive forces model Model used to describe the interaction
of external influences, specifically threats and opportunities, that
BYOD Stands for “bring your own device,”and refers to employees affect an organization’s strategy and ability to compete.
using their own computing devices in the workplace.
complementary assets Additional assets required to derive value
byte A string of bits, usually eight, used to store one number or from a primary investment.
character in a computer system.
component-based development Building large software systems
cable Internet connections Internet connections that use digital by combining preexisting software components.
cable lines to deliver high-speed Internet access to homes and
businesses. computer abuse The commission of acts involving a computer
that may not be illegal but are considered unethical.
capital budgeting The process of analyzing and selecting various
proposals for capital expenditures. computer crime The commission of illegal acts through the use of
a computer or against a computer system.
carpal tunnel syndrome (CTS) Type of RSI in which pressure on
the median nerve through the wrist’s bony carpal tunnel computer forensics The scientific collection, examination,
structure produces pain. authentication, preservation, and analysis of data held on or
retrieved from computer storage media in such a way that the
case-based reasoning (CBR) Artificial intelligence technology information can be used as evidence in a court of law.
that represents knowledge as a database of cases and solutions.
computer hardware Physical equipment used for input,
change agent In the context of implementation, the individual processing, and output activities in an information system.
acting as the catalyst during the change process to ensure
successful organizational adaptation to a new system or computer literacy Knowledge about information technology,
innovation. focusing on understanding of how computer-based technologies
work.
change management Managing the impact of organizational
change associated with an innovation, such as a new information computer software Detailed, preprogrammed instructions that
system. control and coordinate the work of computer hardware
components in an information system.
chat Live, interactive conversations over a public network.
chatbot Software agent designed to simulate a conversation with computer virus Rogue software program that attaches itself to
other software programs or data files in order to be executed,
one or more human users via textual or auditory methods. often causing hardware and software malfunctions.
chief data officer (CDO) Responsible for enterprise-wide
computer vision syndrome (CVS) Eyestrain condition related to
governance and utilization of information to maximize the value computer display screen use; symptoms include headaches,
the organization can realize from its data. blurred vision, and dry and irritated eyes.
chief information officer (CIO) Senior manager in charge of the
information systems function in the firm. computer-aided design (CAD) Information system that
chief knowledge officer (CKO) Senior executive in charge of the automates the creation and revision of designs using
organization’s knowledge management program. sophisticated graphics software.
chief privacy officer (CPO) Responsible for ensuring the
company complies with existing data privacy laws.

computer-aided software engineering (CASE) Automation of Glossary 621
step-by-step methodologies for software and systems
development to reduce the amounts of repetitive work the information policy, data planning, maintenance of data
developer needs to do. dictionaries, and data quality standards.
data cleansing Activities for detecting and correcting data in a
consumer-to-consumer (C2C) Consumers selling goods and database or file that are incorrect, incomplete, improperly
services electronically to other consumers. formatted, or redundant. Also known as data scrubbing.
data definition DBMS capability that specifies the structure and
consumerization of IT New information technology originating in content of the database.
the consumer market that spreads to business organizations. data dictionary An automated or manual tool for storing and
organizing information about the data maintained in a database.
controls All of the methods, policies, and procedures that data element A field.
ensure protection of the organization’s assets, accuracy data flow diagram (DFD) Primary tool for structured analysis
and reliability of its records, and operational adherence to that graphically illustrates a system’s component process and the
management standards. flow of data between them.
data governance Policies and processes for managing the
conversion The process of changing from the old system to the availability, usability, integrity, and security of the firm’s data.
new system. data inconsistency The presence of different values for same
attribute when the same data are stored in multiple locations.
cookies Tiny file deposited on a computer hard drive when an data management technology Software governing the
individual visits certain websites. Used to identify the visitor and organization of data on physical storage media.
track visits to the website. data manipulation language A language associated with a
database management system that end users and programmers
cooptation Bringing the opposition into the process of designing use to manipulate data in the database.
and implementing a solution without giving up control of the data mart A small data warehouse containing only a portion of
direction and nature of the change. the organization’s data for a specified function or population of
users.
copyright A statutory grant that protects creators of intellectual data mining Analysis of large pools of data to find patterns and
property against copying by others for any purpose for a rules that can be used to guide decision making and predict
minimum of 70 years. future behavior.
data quality audit A survey and/or sample of files to determine
core competency Activity at which a firm excels as a world-class accuracy and completeness of data in an information system.
leader. data redundancy The presence of duplicate data in multiple data
files.
core systems Systems that support functions that are absolutely data visualization Technology for helping users see patterns and
critical to the organization. relationships in large amounts of data by presenting the data in
graphical form.
cost transparency The ability of consumers to discover the actual data warehouse A database, with reporting and query tools, that
costs merchants pay for products. stores current and historical data extracted from various
operational systems and consolidated for management reporting
counterimplementation A deliberate strategy to thwart the and analysis.
implementation of an information system or an innovation in an data workers People such as secretaries or bookkeepers who
organization. process the organization’s paperwork.
database A group of related files.
cross-selling Marketing complementary products to customers. database (rigorous definition) A collection of data organized to
crowdsourcing Using large Internet audiences for advice, market service many applications at the same time by storing and
managing data so that they appear to be in one location.
feedback, new ideas, and solutions to business problems. Related database administration Refers to the more technical and
to the “wisdom of crowds” theory. operational aspects of managing data, including physical database
culture The set of fundamental assumptions about what products design and maintenance.
the organization should produce, how and where it should database management system (DBMS) Special software to
produce them, and for whom they should be produced. create and maintain a database and enable individual business
customer lifetime value (CLTV) Difference between revenues applications to extract the data they need without having to
produced by a specific customer and the expenses for acquiring create separate files or data definitions in their computer
and servicing that customer minus the cost of promotional programs.
marketing over the lifetime of the customer relationship, database server A computer in a client/server environment that is
expressed in today’s dollars. responsible for running a DBMS to process SQL statements and
customer relationship management (CRM) Business and perform database management tasks.
technology discipline that uses information systems to coordinate decisional roles Mintzberg’s classification for managerial roles
all of the business processes surrounding the firm’s interactions where managers initiate activities, handle disturbances, allocate
with its customers in sales, marketing, and service. resources, and negotiate conflicts.
customer relationship management systems Information decision-support systems (DSS) Information systems at the
systems that track all the ways in which a company interacts organization’s management level that combine data and
with its customers and analyze these interactions to optimize sophisticated analytical models or data analysis tools to support
revenue, profitability, customer satisfaction, and customer semi-structured and unstructured decision making.
retention. deep packet inspection (DPI) Technology for managing
customization The modification of a software package to meet an network traffic by examining data packets, sorting out low-
organization’s unique requirements without destroying the priority data from higher priority business-critical data, and
package software’s integrity. sending packets in order of priority.
customization In e-commerce, changing a delivered product or demand planning Determining how much product a business
service based on a user’s preferences or prior behavior. needs to make to satisfy all its customers’ demands.
cybervandalism Intentional disruption, defacement, or destruction
of a website or corporate information system.
cyberwarfare State-sponsored activity designed to cripple and
defeat another state or nation by damaging or disrupting its
computers or networks.
data Streams of raw facts representing events occurring in
organizations or the physical environment before they have been
organized and arranged into a form that people can understand
and use.
data administration A special organizational function for
managing the organization’s data resources, concerned with

622 Glossary dynamic pricing Pricing of items based on real-time interactions
between buyers and sellers that determine what a item is worth
denial-of-service (DoS) attack Flooding a network server or web at any particular moment.
server with false communications or requests for services in
order to crash the network. e-government Use of the Internet and related technologies to
digitally enable government and public sector agencies’
design Simon’s second stage of decision making, when the relationships with citizens, businesses, and other arms of
individual conceives of possible alternative solutions to a government.
problem.
efficient customer response system System that directly links
DevOps Organizational strategy to create a culture and environment consumer behavior back to distribution, production, and supply
to promote rapid and agile development practices by emphasizing chains.
close collaboration between software developers and the IT
operational staff. electronic business (e-business) The use of the Internet and
digital technology to execute all the business processes in the
digital asset management systems Classify, store, and distribute enterprise. Includes e-commerce as well as processes for the
digital objects such as photographs, graphic images, video, and internal management of the firm and for coordination with
audio content. suppliers and other business partners.

digital certificate An attachment to an electronic message to electronic commerce (e-commerce) The process of buying and
verify the identity of the sender and to provide the receiver with selling goods and services electronically involving transactions
the means to encode a reply. using the Internet, networks, and other digital technologies.

digital dashboard Displays all of a firm’s key performance electronic data interchange (EDI) The direct computer-to-
indicators as graphs and charts on a single screen to provide computer exchange between two organizations of standard
one-page overview of all the critical measurements necessary to business transactions, such as orders, shipment instructions, or
make key executive decisions. payments.

digital divide Large disparities in access to computers and the email The computer-to-computer exchange of messages.
Internet among different social groups and different locations. employee relationship management (ERM) Software dealing

digital firm Organization where nearly all significant business with employee issues that are closely related to CRM, such as
processes and relationships with customers, suppliers, and setting objectives, employee performance management,
employees are digitally enabled, and key corporate assets are performance-based compensation, and employee training.
managed through digital means. encryption The coding and scrambling of messages to prevent
their being read or accessed without authorization.
digital goods Goods that can be delivered over a digital network. end-user development The development of information systems
Digital Millennium Copyright Act (DMCA) Adjusts copyright by end users with little or no formal assistance from technical
specialists.
laws to the Internet Age by making it illegal to make, distribute, end-user interface The part of an information system through
or use devices that circumvent technology-based protections of which the end user interacts with the system, such as online
copyrighted materials. screens and commands.
digital subscriber line (DSL) A group of technologies providing end users Representatives of departments outside the information
high-capacity transmission over existing copper telephone lines. systems group for whom applications are developed.
direct cutover strategy A risky conversion approach where the enterprise applications Systems that can coordinate activities,
new system completely replaces the old one on an appointed decisions, and knowledge across many different functions, levels,
day. and business units in a firm. Include enterprise systems, supply
direct goods Goods used in a production process. chain management systems, and knowledge management
disaster recovery planning Planning for the restoration of systems.
computing and communications services after they have been enterprise content management (ECM) Help organizations
disrupted. manage structured and semi-structured knowledge, providing
disintermediation The removal of organizations or business corporate repositories of documents, reports, presentations, and
process layers responsible for certain intermediary steps in a best practices and capabilities for collecting and organizing email
value chain. and graphic objects.
disruptive technologies Technologies with disruptive impact on enterprise software Set of integrated modules for applications
industries and businesses, rendering existing products, services, such as sales and distribution, financial accounting, investment
and business models obsolete. management, materials management, production planning, plant
distributed denial-of-service (DDoS) attack Numerous maintenance, and human resources that allow data to be used by
computers inundating and overwhelming a network from multiple functions and business processes.
numerous launch points. enterprise systems Integrated enterprise-wide information
documentation Descriptions of how an information system works systems that coordinate key internal processes of the firm.
from either a technical or end-user standpoint. enterprise-wide knowledge management systems
domain name English-like name that corresponds to the unique General-purpose, firmwide systems that collect, store, distribute,
32-bit numeric Internet Protocol (IP) address for each computer and apply digital content and knowledge.
connected to the Internet. entity A person, place, thing, or event about which information
Domain Name System (DNS) A hierarchical system of servers must be kept.
maintaining a database enabling the conversion of domain names entity-relationship diagram A methodology for documenting
to their numeric IP addresses. databases illustrating the relationship between various entities in
domestic exporter Form of business organization characterized by the database.
heavy centralization of corporate activities in the home county of ergonomics The interaction of people and machines in the work
origin. environment, including the design of jobs, health issues, and the
downtime Period of time in which an information system is not end-user interface of information systems.
operational. e-tailer Online retail stores from the giant Amazon to tiny local
drill down The ability to move from summary data to lower and stores that have websites where retail goods are sold.
lower levels of detail. ethical no-free-lunch rule Assumption that all tangible and
drive-by download Malware that comes with a downloaded file a intangible objects are owned by someone else, unless there is a
user intentionally or unintentionally requests.
due process A process in which laws are well-known and
understood and there is an ability to appeal to higher authorities
to ensure that laws are applied correctly.

specific declaration otherwise, and that the creator wants Glossary 623
compensation for this work.
ethics Principles of right and wrong that can be used by individuals Gantt chart Visually representats the timing, duration, and
acting as free moral agents to make choices to guide their resource requirements of project tasks.
behavior.
evil twins Wireless networks that pretend to be legitimate to entice general controls Overall control environment governing the
participants to log on and reveal passwords or credit card design, security, and use of computer programs and the security
numbers. of data files in general throughout the organization’s information
exchange Third-party Net marketplace that is primarily transaction technology infrastructure.
oriented and that connects many buyers and suppliers for spot
purchasing. genetic algorithms Problem-solving methods that promote the
executive support systems (ESS) Information systems at the evolution of solutions to specified problems using the model of
organization’s strategic level designed to address unstructured living organisms adapting to their environment.
decision making through advanced graphics and
communications. geoadvertising services Delivering ads to users based on their
expert system Knowledge-intensive computer program that GPS location.
captures the expertise of a human in limited domains of
knowledge. geographic information system (GIS) System with software
explicit knowledge Knowledge that has been documented. that can analyze and display data using digitized maps to enhance
Extensible Markup Language (XML) General-purpose language planning and decision-making.
that describes the structure of a document and can perform
presentation, communication, and storage of data, allowing data geoinformation services Information on local places and things
to be manipulated by the computer. based on the GPS position of the user.
external integration tools Project management technique that
links the work of the implementation team to that of users at all geosocial services Social networking based on the GPS location of
organizational levels. users.
extranet Private intranet that is accessible to authorized outsiders.
Fair Information Practices (FIP) A set of principles originally global culture The development of common expectations, shared
set forth in 1973 that governs the collection and use of artifacts, and social norms among different cultures and peoples.
information about individuals and forms the basis of most U.S.
and European privacy laws. Golden Rule Putting oneself in the place of others as the object of a
fault-tolerant computer systems Systems that contain extra decision.
hardware, software, and power supply components that can back
a system up and keep it running to prevent system failure. Gramm-Leach-Bliley Act Requires financial institutions to ensure
feasibility study As part of the systems analysis process, the way the security and confidentiality of customer data.
to determine whether the solution is achievable, given the
organization’s resources and constraints. green computing (green IT) Refers to practices and technologies
feedback Output that is returned to the appropriate members of the for designing, manufacturing, using, and disposing of computers,
organization to help them evaluate or correct input. servers, and associated devices such as monitors, printers, storage
field A grouping of characters into a word, a group of words, or a devices, and networking and communications systems to
complete number, such as a person’s name or age. minimize impact on the environment.
File Transfer Protocol (FTP) Tool for retrieving and transferring
files from a remote computer. group decision-support system (GDSS) An interactive
file A group of records of the same type. computer-based system to facilitate the solution to unstructured
firewall Hardware and software placed between an organization’s problems by a set of decision makers working together as a
internal network and an external network to prevent outsiders group.
from invading private networks.
foreign key Field in a database table that enables users find related hacker A person who gains unauthorized access to a computer
information in another database table. network for profit, criminal mischief, or personal pleasure.
formal control tools Project management technique that helps
monitor the progress toward completion of a task and fulfillment Hadoop Open source software framework that enables distributed
of goals. parallel processing of huge amounts of data across many
formal planning tools Project management technique that inexpensive computers.
structures and sequences tasks, budgeting time, money, and
technical resources required to complete the tasks. hertz Measure of frequency of electrical impulses per second, with
forward chaining A strategy for searching the rule base in an 1 Hertz equivalent to 1 cycle per second.
expert system that begins with the information entered by the
user and searches the rule base to arrive at a conclusion. HIPAA Law outlining rules for medical security, privacy, and the
franchiser Form of business organization in which a product is management of healthcare records.
created, designed, financed, and initially produced in the home
country, but for product-specific reasons relies heavily on foreign hotspot A specific geographic location in which an access point
personnel for further production, marketing, and human provides public Wi-Fi network service.
resources.
free/fremium revenue model An e-commerce revenue model in HTML5 Next evolution of HTML, which makes it possible to embed
which a firm offers basic services or content for free while images, video, and audio directly into a document without add-on
charging a premium for advanced or high-value features. software.
fuzzy logic Rule-based AI that tolerates imprecision by using
nonspecific terms called membership functions to solve hubs Very simple devices that connect network components,
problems. sending a packet of data to all other connected devices.

hybrid AI systems Integration of multiple AI technologies into a
single application to take advantage of the best features of these
technologies.

hybrid cloud Computing model where firms use both their own IT
infrastructure and also public cloud computing services.

Hypertext Markup Language (HTML) Page description
language for creating web pages.

Hypertext Transfer Protocol (HTTP) The communications
standard used to transfer pages on the web. Defines how
messages are formatted and transmitted.

identity management Business processes and software tools for
identifying the valid users of a system and controlling their
access to system resources.

identity theft Theft of key pieces of personal information, such as
credit card or Social Security numbers, in order to obtain
merchandise and services in the name of the victim or to obtain
false credentials.

Immanuel Kant’s categorical imperative A principle that states
that if an action is not right for everyone to take it is not right for
anyone.

624 Glossary intelligence The first of Simon’s four stages of decision making,
when the individual collects information to identify problems
implementation All the organizational activities surrounding the occurring in the organization.
adoption, management, and routinization of an innovation, such
as a new information system. intelligent agent Software program that uses a built-in or learned
knowledge base to carry out specific, repetitive, and predictable
in-memory computing Technology for very rapid analysis tasks for an individual user, business process, or software
and processing of large quantities of data by storing the data application.
in the computer’s main memory rather than in secondary
storage. intelligent techniques Technologies that aid human decision
makers by capturing individual and collective knowledge,
indirect goods Goods not directly used in the production process, discovering patterns and behaviors in large quantities of data, and
such as office supplies. generating solutions to problems that are too large and complex
for human beings to solve on their own.
inference engine The strategy used to search through the rule
base in an expert system; can be forward or backward chaining. internal integration tools Project management technique that
ensures that the implementation team operates as a cohesive
information Data that have been shaped into a form that is unit.
meaningful and useful to human beings.
international information systems architecture The basic
information asymmetry Situation where the relative bargaining information systems required by organizations to coordinate
power of two parties in a transaction is determined by one party worldwide trade and other activities.
in the transaction possessing more information essential to the
transaction than the other party. Internet Global network of networks using universal standards to
connect millions of different networks.
information density The total amount and quality of information
available to all market participants, consumers, and merchants. Internet of Things Pervasive web in which each object or machine
has a unique identity and is able to use the Internet to link with
information policy Formal rules governing the maintenance, other machines or send data. Also known as the Industrial
distribution, and use of information in an organization. Internet.

information requirements A detailed statement of the Internet Protocol (IP) address Four-part numeric address
information needs that a new system must satisfy; identifies who indicating a unique computer location on the Internet.
needs what information, and when, where, and how the
information is needed. Internet service provider (ISP) A commercial organization with
a permanent connection to the Internet that sells temporary
information rights The rights that individuals and organizations connections to subscribers.
have with respect to information that pertains to themselves.
Internet2 Research network with new protocols and transmission
information system Interrelated components working together to speeds that provides an infrastructure for supporting high-
collect, process, store, and disseminate information to support bandwidth Internet applications.
decision making, coordination, control, analysis, and
visualization in an organization. interorganizational systems Information systems that automate
the flow of information across organizational boundaries and link
information systems audit Identifies all the controls tht govern a company to its customers, distributors, or suppliers.
individual information systems and assesses their effectiveness.
interpersonal roles Mintzberg’s classification for managerial roles
information systems department The formal organizational where managers act as figureheads and leaders for the
unit that is responsible for the information systems function in organization.
the organization.
intranet An internal network based on Internet and World Wide
information systems literacy Broad-based understanding of Web technology and standards.
information systems that includes behavioral knowledge about
organizations and individuals using information systems as well intrusion detection system Tools to monitor the most
as technical knowledge about computers. vulnerable points in a network to detect and deter unauthorized
intruders.
information systems managers Leaders of the various specialists
in the information systems department. iOS Operating system for the Apple iPad, iPhone, and iPod Touch.
IPv6 New IP addressing system using 128-bit IP addresses. Stands for
information systems plan A road map indicating the direction
of systems development: the rationale, the current situation, the Internet Protocol version 6.
management strategy, the implementation plan, and the IT governance Strategy and policies for using information
budget.
technology within an organization, specifying the decision rights
information technology (IT) All the hardware and software and accountabilities to ensure that information technology
technologies a firm needs to achieve its business objectives. supports the organization’s strategies and objectives.
iterative A process of repeating over and over again the steps to
information technology (IT) infrastructure Computer build a system.
hardware, software, data, storage technology, and networks Java Programming language that can deliver only the software
providing a portfolio of shared IT resources for the organization. functionality needed for a particular task, such as a small applet
downloaded from a network; can run on any computer and
informational roles Mintzberg’s classification for managerial roles operating system.
where managers act as the nerve centers of their organizations, joint application design (JAD) Process to accelerate the
receiving and disseminating critical information. generation of information requirements by having end users and
information systems specialists work together in intensive
informed consent Consent given with knowledge of all the facts interactive design sessions.
needed to make a rational decision. just-in-time strategy Scheduling system for minimizing inventory
by having components arrive exactly at the moment they are
input The capture or collection of raw data from within the needed and finished goods shipped as soon as they leave the
organization or from its external environment for processing in assembly line.
an information system. key field A field in a record that uniquely identifies instances of
that record so that it can be retrieved, updated, or sorted.
instant messaging Chat service that allows participants to create key performance indicators Measures proposed by senior
their own private chat channels so that a person can be alerted management for understanding how well the firm is performing
whenever someone on his or her private list is online to initiate along specified dimensions.
a chat session with that particular individual.

intangible benefits Benefits that are not easily quantified; they
include more efficient customer service or enhanced decision
making.

intellectual property Intangible property created by individuals
or corporations that is subject to protections under trade secret,
copyright, and patent law.

keylogger Spyware that records every keystroke made on a Glossary 625
computer to steal personal information or passwords or to launch
Internet attacks. market creator An e-commerce business model in which firms
provide a digital online environment where buyers and sellers
knowledge Concepts, experience, and insight that provide a can meet, search for products, and engage in transactions.
framework for creating, evaluating, and using information.
market entry costs The cost merchants must pay to bring their
knowledge base Model of human knowledge that is used by expert goods to market.
systems.
marketspace A marketplace extended beyond traditional
knowledge discovery Identification of novel and valuable patterns boundaries and removed from a temporal and geographic
in large databases. location.

knowledge management The set of processes developed in an mashups Composite software applications that depend on high-
organization to create, gather, store, maintain, and disseminate speed networks, universal communication standards, and open
the firm’s knowledge. source code.

knowledge management systems Systems that support the mass customization The capacity to offer individually tailored
creation, capture, storage, and dissemination of firm expertise products or services using mass production resources.
and knowledge.
massive open online course (MOOC) Online course made
knowledge workers People such as engineers or architects who available via the web to very large numbers of participants.
design products or services and create knowledge for the
organization. menu costs Merchants’ costs of changing prices.
metropolitan area network (MAN) Network that spans a
knowledge work systems Information systems that aid
knowledge workers in the creation and integration of new metropolitan area, usually a city and its major suburbs. Its
knowledge into the organization. geographic scope falls between a WAN and a LAN.
microblogging Blogging featuring very short posts, such as using
learning management system (LMS) Tools for the Twitter.
management, delivery, tracking, and assessment of various types micropayment systems Payment for a very small sum of money,
of employee learning. often less than $10.
middle management People in the middle of the organizational
legacy system A system that has been in existence for a long time hierarchy who are responsible for carrying out the plans and
and that continues to be used to avoid the high cost of replacing goals of senior management.
or redesigning it. minicomputer Middle-range computer used in systems for
universities, factories, or research laboratories.
legitimacy The extent to which one’s authority is accepted on mobile commerce (m-commerce) The use of wireless devices,
grounds of competence, vision, or other qualities. such as smartphones or tablets to conduct both business-to-
consumer and business-to-business e-commerce transactions over
liability The existence of laws that permit individuals to recover the the Internet.
damages done to them by other actors, systems, or organizations. mobile web app Internet-enabled app with specific functionality
for mobile devices that is accessed through a mobile device’s web
Linux Reliable and compactly designed operating system that is an browser.
offshoot of UNIX and that can run on many different hardware mobile website Version of a regular website that is scaled down in
platforms and is available free or at very low cost. Used as content and navigation for easy access and search on a small
alternative to UNIX. mobile screen.
modem A device for translating a computer’s digital signals into
local area network (LAN) A telecommunications network that analog form for transmission over analog networks or for
requires its own dedicated channels and that encompasses a translating analog signals back into digital form for reception by a
limited distance, usually one building or several buildings in computer.
close proximity. Moore’s Law Assertion that the number of components on a chip
doubles each year.
location-based services GPS map services available on multicore processor Integrated circuit to which two or more
smartphones. processors have been attached for enhanced performance,
reduced power consumption, and more efficient simultaneous
location analytics Ability to gain insights from the location processing of multiple tasks.
(geographic) component of data, including loation data from multinational Form of business organization that concentrates
mobile phones, output from sensors or scanning devices, and financial management, and control out of a central home base
data from maps. while decentralizing production, sales and marketing.
multitiered (N-tier) client/server architecture Client/server
long tail marketing Refers to the ability of firms to profitably network which the work of the entire network is balanced over
market goods to very small online audiences, largely because of several different levels of servers.
the lower costs of reaching very small market segements (people multitouch Interface that features the use of one or more finger
who fall into the long tail ends of a Bell curve). gestures to manipulate lists or objects on a screen without using a
mouse or keyboard.
machine learning Study of how computer programs can improve nanotechnology Technology that builds structures and processes
their performance without explicit programming. based on the manipulation of individual atoms and molecules.
native advertising Placing ads within social network newsfeeds or
mainframe Largest category of computer, used for major business traditional editorial content, such as a newspaper article.
processing. native app Standalone application designed to run on a specific
platform and device and is installed directly on the mobile device
maintenance Changes in hardware, software, documentation, or near field communication (NFC) Short-range wireless
procedures to a production system to correct errors, meet new connectivity standard that uses electromagnetic radio fields to
requirements, or improve processing efficiency. enable two compatible devices to exchange data when brought
within a few centimeters of each other.
malware Malicious software programs such as computer viruses, net marketplace A single digital marketplace based on Internet
worms, and Trojan horses. technology linking many buyers to many sellers.

managed security service provider (MSSP) Company that
provides security management services for subscribing clients.

management information systems (MIS) Specific category of
information system providing reports on organizational
performance to help middle management monitor and control
the business.

management information systems (MIS): The study of
information systems focusing on their use in business and
management.

managerial roles Expectations of the activities that managers
should perform in an organization.

626 Glossary organization (technical definition) A stable, formal, social
structure that takes resources from the environment and
network The linking of two or more computers to share data or processes them to produce outputs.
resources, such as a printer.
organizational and management capital Investments
network economics Model of strategic systems at the industry in organization and management such as new business
level based on the concept of a network where adding another processes, management behavior, organizational culture, or
participant entails zero marginal costs but can create much larger training.
marginal gains.
organizational impact analysis Study of the way a proposed
network operating system (NOS) Special software that routes system will affect organizational structure, attitudes, decision
and manages communications on the network and coordinates making, and operations.
network resources.
organizational learning Creation of new standard operating
networking and telecommunications technology Physical procedures and business processes that reflect organizations’
devices and software that link various computer hardware experience.
components and transfer data from one physical location to
another. output The distribution of processed information to the people who
will use it or to the activities for which it will be used.
neural network Hardware or software that attempts to emulate the
processing patterns of the biological brain. outsourcing The practice of contracting computer center
operations, telecommunications networks, or applications
non-relational database management system Database development to external vendors.
management system for working with large quantities of
structured and unstructured data that would be difficult to packet switching Technology that breaks messages into small,
analyze with a relational model. fixed bundles of data and routes them in the most economical
way through any available communications channel.
nonobvious relationship awareness (NORA) Technology that
can find obscure hidden connections between people or other paradigm shift Radical reconceptualization of the nature of the
entities by analyzing information from many different sources to business and the nature of the organization.
correlate relationships.
parallel strategy A safe and conservative conversion approach
normalization The process of creating small stable data structures where both the old system and its potential replacement are run
from complex groups of data when designing a relational together for a time until everyone is assured that the new one
database. functions correctly.

object Software building block that combines data and the particularism Making judgments and taking action on the basis of
procedures acting on the data. narrow or personal characteristics, in all its forms (religious,
nationalistic, ethnic, regionalism, geopolitical position).
object-oriented development Approach to systems development
that uses the object as the basic unit of systems analysis and partner relationship management (PRM) Automation of
design. The system is modeled as a collection of objects and the the firm’s relationships with its selling partners using customer
relationship between them. data and analytical tools to improve coordination and customer
sales.
offshore outsourcing Outsourcing systems development work or
maintenance of existing systems to external vendors in another password Secret word or string of characters for authenticating
country. users so they can access a resource such as a computer system.

on-demand computing Firms off-loading peak demand for patch Small pieces of software to repair the software flaws without
computing power to remote, large-scale data processing centers, disturbing the proper operation of the software.
investing just enough to handle average processing loads and
paying for only as much additional computing power as the patent A legal document that grants the owner an exclusive
market demands. Also called utility computing. monopoly on the ideas behind an invention for 20 years; designed
to ensure that inventors of new machines or methods are rewarded
online analytical processing (OLAP) Capability for for their labor while making widespread use of their inventions.
manipulating and analyzing large volumes of data from multiple
perspectives. peer-to-peer Network architecture that gives equal power to all
computers on the network; used primarily in small networks.
online transaction processing Transaction processing mode in
which transactions entered online are immediately processed by personal area network (PAN) Computer network used for
the computer. communication among digital devices that are close to one
person.
open source software Software that provides free access to its
program code, allowing users to modify the program code to personalization Ability of merchants to target marketing messages
make improvements or fix errors. to specific individuals by adjusting the message for a person’s
name, interests, and past purchases.
operating system Software that manages the resources and
activities of the computer. PERT chart Network diagram depicting project tasks and their
interrelationships.
operational CRM Customer-facing applications, such as sales force
automation, call center and customer service support, and pharming Phishing technique that redirects users to a bogus web
marketing automation. page, even when an individual enters the correct web page
address.
operational intelligence Business analytics that delivers insight
into data, streaming events and business operations. phased approach Introduces the new system in stages either by
functions or by organizational units.
operational management People who monitor the day-to-day
activities of the organization. phishing Form of spoofing involving setting up fake websites or
sending email messages that resemble those of legitimate
opt-in Model of informed consent permitting prohibiting an businesses that ask users for confidential personal data.
organization from collecting any personal information unless the
individual specifically takes action to approve information pilot study strategy A strategy to introduce the new system to a
collection and use. limited area of the organization until it is proven to be fully
functional; only then can the conversion to the new system
opt-out Model of informed consent permitting the collection of across the entire organization take place.
personal information until the consumer specifically requests
that the data not be collected. pivot table Spreadsheet tool for reorganizing and summarizing two
or more dimensions of data in a tabular format.
organization (behavioral definition) A collection of rights,
privileges, obligations, and responsibilities that are delicately platform Business providing information systems, technologies,
balanced over a period of time through conflict and conflict and services that thousands of other firms in different industries
resolution. use to enhance their own capabilities.

podcasting Publishing audio broadcasts via the Internet so that Glossary 627
subscribing users can download audio files onto their personal
computers or portable music players. protocol A set of rules and procedures that govern transmission
between the components in a network.
portal Web interface for presenting integrated personalized content
from a variety of sources. Also refers to a website service that prototype The preliminary working version of an information
provides an initial point of entry to the web. system for demonstration and evaluation purposes.

portfolio analysis An analysis of the portfolio of potential prototyping The process of building an experimental system
applications within a firm to determine the risks and benefits, quickly and inexpensively for demonstration and evaluation so
and to select among alternatives for information systems. that users can better determine information requirements.

post-implementation audit Formal review process conducted public cloud A cloud maintained by an external service provider,
after a system has been placed in production to determine how accessed through the Internet, and available to the general
well the system has met its original objectives. public.

predictive analytics The use of data mining techniques, historical public key encryption Uses two keys: one shared (or public) and
data, and assumptions about future conditions to predict one private.
outcomes of events, such as the probability a customer will
respond to an offer or purchase a specific product. public key infrastructure (PKI) System for creating public and
private keys using a certificate authority (CA) and digital
predictive search Part of a search alogrithm that predicts what a certificates for authentication.
user query is looking as it is entered based on popular searches.
pull-based model Supply chain driven by actual customer orders
price discrimination Selling the same goods, or nearly the same or purchases so that members of the supply chain produce and
goods, to different targeted groups at different prices. deliver only what customers have ordered.

price transparency The ease with which consumers can find out push-based model Supply chain driven by production master
the variety of prices in a market. schedules based on forecasts or best guesses of demand for
products, and products are “pushed” to customers.
primary activities Activities most directly related to the
production and distribution of a firm’s products or services. quantum computing Use of principles of quantum physics to
represent data and perform operations on the data, with the
primary key Unique identifier for all the information in any row of ability to be in many different states at once and to perform
a database table. many different computations simultaneously.

privacy The claim of individuals to be left alone, free from query language Software tool that provides immediate online
surveillance or interference from other individuals, organizations, answers to requests for information that are not predefined.
or the state.
radio frequency identification (RFID) Technology using tiny
private cloud A proprietary network or a data center that ties tags with embedded microchips containing data about an item
together servers, storage, networks, data, and applications as a and its location to transmit short-distance radio signals to special
set of virtualized services that are shared by users inside a RFID readers that then pass the data on to a computer for
company. processing.

private exchange Another term for a private industrial network. ransomware Malware that extorts money from users by taking
private industrial networks Web-enabled networks linking control of their computers or displaying annoying pop-up
messages.
systems of multiple firms in an industry for the coordination of
trans-organizational business processes. Rapid Application Development (RAD) Process for
process specifications Describe the logic of the processes developing systems in a very short time period by using
occurring within the lowest levels of a data flow diagram. prototyping, state-of-the-art software tools and close teamwork
processing The conversion, manipulation, and analysis of raw among users and systems specialists.
input into a form that is more meaningful to humans.
product differentiation Competitive strategy for creating brand rationalization of procedures The streamlining of standard
loyalty by developing new and unique products and services that operating procedures, eliminating obvious bottlenecks, so that
are not easily duplicated by competitors. automation makes operating procedures more efficient.
production The stage after the new system is installed and the
conversion is complete; during this time the system is reviewed record A group of related fields.
by users and technical specialists to determine how well it has referential integrity Rules to ensure that relationships between
met its original goals.
production or service workers People who actually produce the coupled database tables remain consistent.
products or services of the organization. relational DBMS A type of logical database model that treats data
profiling The use of computers to combine data from multiple
sources and create electronic dossiers of detailed information on as if they were stored in two-dimensional tables. It can relate data
individuals. stored in one table to data in another as long as the two tables
program-data dependence The close relationship between data share a common data element.
stored in files and the software programs that update and Repetitive stress injury (RSI) Occupational disease that occurs
maintain those files. Any change in data organization or format when muscle groups are forced through repetitive actions with
requires a change in all the programs associated with those files. high-impact loads or thousands of repetitions with low-impact
programmers Highly trained technical specialists who write loads.
computer software instructions. Request for proposal (RFP) A detailed list of questions
programming The process of translating the system specifications submitted to vendors of software or other services to determine
prepared during the design stage into program code. how well the vendor’s product can meet the organization’s
project Planned series of related activities for achieving a specific specific requirements.
business objective. responsibility Accepting the potential costs, duties, and obligations
project management Application of knowledge, tools, and for the decisions one makes.
techniques to achieve specific targets within a specified budget responsive web design Ability of a website to automatically
and time period. change screen resolution and image size as a user switches to
project portfolio management Helps organizations evaluate devices of different sizes, such as a laptop, tablet computer, or
and manage portfolios of projects and dependencies among smartphone. Eliminates the need for separate design and
them. development work for each new device.
revenue model A description of how a firm will earn revenue,
generate profits, and produce a return on investment.
richness Measurement of the depth and detail of information that a
business can supply to the customer as well as information the
business collects about the customer.

628 Glossary service-oriented architecture (SOA) Software architecture of a
firm built on a collection of software programs that communicate
risk assessment Determining the potential frequency of the with each other to perform assigned tasks to create a working
occurrence of a problem and the potential damage if the software application
problem were to occur. Used to determine the cost/benefit of a
control. shopping bot Software with varying levels of built-in intelligence to
help electronic commerce shoppers locate and evaluate products
Risk aversion principle Principle that one should take the action or service they might wish to purchase.
that produces the least harm or incurs the least cost.
six sigma A specific measure of quality, representing 3.4 defects
router Specialized communications processor that forwards packets per million opportunities; used to designate a set of
of data from one network to another network. methodologies and techniques for improving quality and
reducing costs.
routines Precise rules, procedures and practices that have been
developed to cope with expected situations. smart card A credit-card-size plastic card that stores digital
information and that can be used for electronic payments in
RSS Technology using aggregator software to pull content from place of cash.
websites and feed it automatically to subscribers’ computers.
smartphone Wireless phone with voice, text, and Internet
safe harbor Private self-regulating policy and enforcement capabilities.
mechanism that meets the objectives of government regulations
but does not involve government regulation or enforcement. sniffer Type of eavesdropping program that monitors information
traveling over a network.
sales revenue model Selling goods, information, or services to
customers as the main source of revenue for a company. social business Use of social networking platforms, including
Facebook, Twitter, and internal corporate social tools, to engage
Sarbanes-Oxley Act Law passed in 2002 that imposes employees, customers, and suppliers.
responsibility on companies and their management to protect
investors by safeguarding the accuracy and integrity of social CRM Tools enabling a business to link customer
financial information that is used internally and released conversatins, data, and relationships from social networking sites
externally. to CRM processes.

scalability The ability of a computer, product, or system to expand social engineering Tricking people into revealing their passwords
to serve a larger number of users without breaking down. by pretending to be legitimate users or members of a company in
need of information.
scope Defines what work is and is not included in a project.
scoring model A quick method for deciding among alternative social graph Map of all significant online social relationships,
comparable to a social network describing offline relationships.
systems based on a system of ratings for selected objectives.
search costs The time and money spent locating a suitable product social networking sites Online community for expanding users’
business or social contacts by making connections through their
and determining the best price for that product. mutual business or personal connections.
search engine A tool for locating specific sites or information on
social search Effort to provide more relevant and trustworthy
the Internet. search results based on a person’s network of social contacts.
search engine marketing Use of search engines to deliver in their
social shopping Use of websites featuring user-created web pages
results sponsored links, for which advertisers have paid. to share knowledge about items of interest to other shoppers.
search engine optimization (SEO) The process of changing a
sociotechnical design Design to produce information systems that
website’s content, layout, and format in order to increase the blend technical efficiency with sensitivity to organizational and
ranking of the site on popular search engines and to generate human needs.
more site visitors.
Secure Hypertext Transfer Protocol (S-HTTP) Protocol used sociotechnical view Seeing systems as composed of both technical
for encrypting data flowing over the Internet; limited to and social elements.
individual messages.
Secure Sockets Layer (SSL) Enables client and server computers Software as a service (SaaS) Services for delivering and
to manage encryption and decryption activities as they providing access to software remotely as a web-based service.
communicate with each other during a secure web session.
security Policies, procedures, and technical measures used to software-defined networking (SDN) Using a central control
prevent unauthorized access, alteration, theft, or physical damage program separate from network devices to manage the flow of
to information systems. data on a network.
security policy Statements ranking information risks, identifying
acceptable security goals, and identifying the mechanisms for software-defined storage (SDS) Software to manage provisioning
achieving these goals. and management of data storage independent of the underlying
semantic search Search technology capable of understanding hardware.
human language and behavior.
semi-structured decisions Decisions in which only part of the software localization Process of converting software to operate in
problem has a clear-cut answer provided by an accepted a second language.
procedure.
senior management People occupying the topmost hierarchy in software package A prewritten, precoded, commercially available
an organization who are responsible for making long-range set of programs that eliminates the need to write software
decisions. programs for certain functions.
sensitivity analysis Models that ask “what-if” questions repeatedly
to determine the impact of changes in one or more factors on the spam Unsolicited commercial email.
outcomes. spoofing Tricking or deceiving computer systems or other
sentiment analysis Mining text comments in an email message,
blog, social media conversation, or survey form to detect computer users by hiding one’s identity or faking the identity of
favorable and unfavorable opinions about specific subjects. another user on the Internet.
server Computer specifically optimized to provide software and spyware Technology that aids in gathering information about a
other resources to other computers over a network. person or organization without their knowledge.
service level agreement (SLA) Formal contract between SQL injection attack Attacks against a website that take
customers and their service providers that defines the specific advantage of vulnerabilities in poorly coded SQL (a standard and
responsibilities of the service provider and the level of service common database software application) applications in order to
expected by the customer. introduce malicious program code into a company’s systems and
networks.
strategic transitions A movement from one level of sociotechnical
system to another. Often required when adopting strategic
systems that demand changes in the social and technical
elements of an organization.

streaming A publishing method for music and video files that flows Glossary 629
a continuous stream of content to a user’s device without being
stored locally on the device. tangible benefits Benefits that can be quantified and assigned a
monetary value; they include lower operational costs and
structure chart System documentation showing each level of increased cash flows.
design, the relationship among the levels, and the overall place in
the design structure; can document one program, one system, or taxonomy Method of classifying things according to a
part of one program. predetermined system.

structured Refers to the fact that techniques are carefully drawn teams Formal groups whose members collaborate to achieve specific
up, step by step, with each step building on a previous one. goals.

structured decisions Decisions that are repetitive and routine and teamware Group collaboration software that is customized for
have a definite procedure for handling them. teamwork.

structured knowledge Knowledge in the form of structured technology standards Specifications that establish the
documents and reports. compatibility of products and the ability to communicate in a
network.
Structured Query Language (SQL) The standard data
manipulation language for relational database management telepresence Telepresence is a technology that allows a person to
systems. give the appearance of being present at a location other than his
or her true physical location.
subscription revenue model Website charging a subscription fee
for access to some or all of its content or services on an ongoing Telnet Network tool that allows someone to log on to one computer
basis. system while doing work on another.

supply chain Network of organizations and business processes for test plan Prepared by the development team in conjunction with
procuring materials, transforming raw materials into the users; it includes all of the preparations for the series of tests
intermediate and finished products, and distributing the finished to be performed on the system.
products to customers.
testing The exhaustive and thorough process that determines
supply chain execution systems Systems to manage the flow of whether the system produces the desired results under known
products through distribution centers and warehouses to ensure conditions.
that products are delivered to the right locations in the most
efficient manner. text mining Discovery of patterns and relationships from large sets
of unstructured data.
supply chain management systems Information systems that
automate the flow of information between a firm and its token Physical device similar to an identification card that is
suppliers in order to optimize the planning, sourcing, designed to prove the identity of a single user.
manufacturing, and delivery of products and services.
total cost of ownership (TCO) Designates the total cost of
supply chain planning systems Systems that enable a firm to owning technology resources, including initial purchase costs,
generate demand forecasts for a product and to develop sourcing the cost of hardware and software upgrades, maintenance,
and manufacturing plans for that product. technical support, and training.

support activities Activities that make the delivery of a firm’s total quality management (TQM) A concept that makes quality
primary activities possible. Consist of the organization’s control a responsibility to be shared by all people in an
infrastructure, human resources, technology, and procurement. organization.

switch Device to connect network components that has more touch point Method of firm interaction with a customer, such as
intelligence than a hub and can filter and forward data to a telephone, email, customer service desk, conventional mail, or
specified destination. point-of-purchase.

switching costs The expense a customer or company incurs in lost trade secret Any intellectual work or product used for a
time and expenditure of resources when changing from one business purpose that can be classified as belonging to that
supplier or system to a competing supplier or system. business, provided it is not based on information in the public
domain.
system testing Tests the functioning of the information system as a
whole in order to determine if discrete modules will function transaction costs Costs incurred when a firm buys on the
together as planned. marketplace what it cannot make itself.

systems analysis The analysis of a problem that the organization transaction cost theory Economic theory stating that firms grow
will try to solve with an information system. larger because they can conduct marketplace transactions
internally more cheaply than they can with external firms in the
systems analysts Specialists who translate business problems and marketplace.
requirements into information requirements and systems, acting
as liaison between the information systems department and the transaction fee revenue model An online e-commerce revenue
rest of the organization. model where the firm receives a fee for enabling or executing
transactions.
systems design Details how a system will meet the information
requirements as determined by the systems analysis. transaction processing systems (TPS) Computerized systems
that perform and record the daily routine transactions necessary
systems development The activities that go into producing an to conduct the business; they serve the organization’s operational
information systems solution to an organizational problem or level.
opportunity.
transborder data flow The movement of information across
systems life cycle A traditional methodology for developing an international boundaries in any form.
information system that partitions the systems development
process into formal stages that must be completed sequentially Transmission Control Protocol/Internet Protocol (TCP/IP)
with a very formal division of labor between end users and Dominant model for achieving connectivity among different
information systems specialists. networks. Provides a universally agreed-on method for
breaking up digital messages into packets, routing them to the
T lines High-speed guaranteed service level data lines leased from proper addresses, and then reassembling them into coherent
communications providers, such as T-1 lines (with a transmission messages.
capacity of 1.544 Mbps).
transnational Truly global form of business organization with no
tablet computer Mobile handheld computer that is larger than a national headquarters; value-added activities are managed from a
mobile phone and operated primarily by touching a flat screen. global perspective without reference to national borders,
optimizing sources of supply and demand and local competitive
tacit knowledge Expertise and experience of organizational advantage.
members that has not been formally documented.
Trojan horse A software program that appears legitimate but
contains a second hidden function that may cause damage.

630 Glossary war driving Technique in which eavesdroppers drive by buildings
or park outside and try to intercept wireless network traffic.
tuple A row or record in a relational database.
two-factor authentication Validating user identity with two Web 2.0 Second-generation, interactive Internet-based services that
enable people to collaborate, share information, and create new
means of identification, one of which is typically a physical services online, including mashups, blogs, RSS, and wikis.
token, and the other of which is typically data.
Unified communications Integrates disparate channels for voice Web 3.0 Future vision of the web where all digital information is
communications, data communications, instant messaging, woven together with intelligent search capabilities.
email, and electronic conferencing into a single experience
where users can seamlessly switch back and forth between web beacons Tiny objects invisibly embedded in email messages
different communication modes. and web pages that are designed to monitor the behavior of the
unified threat management (UTM) Comprehensive security user visiting a website or sending email.
management tool that combines multiple security tools,
including firewalls, virtual private networks, intrusion detection web browser An easy-to-use software tool for accessing the World
systems, and web content filtering and anti-spam software. Wide Web and the Internet.
uniform resource locator (URL) The address of a specific
resource on the Internet. web hosting service Company with large web server computers to
unit testing The process of testing each program separately in the maintain the websites of fee-paying subscribers.
system. Sometimes called program testing.
Unix Operating system for all types of computers, which is machine web mining Discovery and analysis of useful patterns and
independent and supports multiuser processing, multitasking, information from the World Wide Web.
and networking. Used in high-end workstations and servers.
unstructured decisions Nonroutine decisions in which the web server Software that manages requests for web pages on the
decision maker must provide judgment, evaluation, and insights computer where they are stored and that delivers the page to the
into the problem definition; there is no agreed-upon procedure user’s computer.
for making such decisions.
user interface The part of the information system through which web services Set of universal standards using Internet technology
the end user interacts with the system; type of hardware and the for integrating different applications from different sources
series of on-screen commands and responses required for a user without time-consuming custom coding. Used for linking systems
to work with the system. of different organizations or for linking disparate systems within
user-designer communications gap The difference in the same organization.
backgrounds, interests, and priorities that impede
communication and problem solving among end users and website All of the World Wide Web pages maintained by an
information systems specialists. organization or an individual.
utilitarian principle Principle that assumes one can put values in
rank order of utility and understand the consequences of various Wi-Fi Stands for “wireless fidelity” and refers to the 802.11 family of
courses of action. wireless networking standards.
value chain model Model that highlights the primary or support
activities that add a margin of value to a firm’s products or wide area network (WAN) Telecommunications network that
services where information systems can best be applied to spans a large geographical distance. May consist of a variety of
achieve a competitive advantage. cable, satellite, and microwave technologies.
value web Customer-driven network of independent firms who use
information technology to coordinate their value chains to wiki Collaborative website where visitors can add, delete, or modify
collectively produce a product or service for a market. content, including the work of previous authors.
virtual company Organization using networks to link people,
assets, and ideas to create and distribute products and services WiMax Popular term for IEEE Standard 802.16 for wireless
without being limited to traditional organizational boundaries or networking over a range of up to 31 miles with a data transfer
physical location. rate of up to 75 Mbps. Stands for Worldwide Interoperability for
virtual private network (VPN) A secure connection between Microwave Access.
two points across the Internet to transmit corporate data.
Provides a low-cost alternative to a private network. Windows Microsoft family of operating systems for both network
Virtual Reality Modeling Language (VRML) A set of servers and client computers.
specifications for interactive three-dimensional modeling on the
World Wide Web. Windows 10 Most recent Microsoft Windows client operating
virtual reality systems Interactive graphics software and system.
hardware that create computer-generated simulations that
provide sensations that emulate real-world activities. Wintel PC Any computer that uses Intel microprocessors
virtualization Presenting a set of computing resources so that they (or compatible processors) and a Windows operating system.
can all be accessed in ways that are not restricted by physical
configuration or geographic location. wireless sensor networks (WSNs) Networks of interconnected
visual web Refers to web linking visual sites such as Pinterest wireless devices with built-in processing, storage, and radio
where pictures replace text socuents and where users search on frequency sensors and antennas that are embedded into the
pictures and visual characteristics. physical environment to provide measurements of many points
Voice over IP (VoIP) Facilities for managing the delivery of voice over large spaces.
information using the Internet Protocol (IP).
wisdom The collective and individual experience of applying
knowledge to the solution of problems.

wisdom of crowds The belief that large numbers of people can
make better decisions about a wide range of topics or products
than a single person or even a small committee of experts.

World Wide Web A system with universally accepted standards for
storing, retrieving, formatting, and displaying information in a
networked environment.

worms Independent software programs that propagate themselves
to disrupt the operation of computer networks or destroy data
and other programs.

zero-day vulnerabilities Security vulnerabilities in software,
unknown to the creator, that hackers can exploit before the
vendor becomes aware of the problem.

Index L Organizations Index

Name Index Lamonica, Sam, 235 A
Lezon, Joe, 544
A ABB, 69–72, 461
M Accenture, 119, 210, 395
Assante, Michael, 339 Acronis, 342
Mathieson, S. A., 568 Advanced Micro Design (AMD), 39, 207
B McAfee, Andrew P., 179 Airbnb, 135, 400, 404, 415, 430
McConnell, Mike, 340 AirWatch, 354
Bradley, KC, 551 Mehta, Apoorva, 431 Alcoa, 370–371
Brin, Sergey, 300 Metcalfe, Robert, 203 Alex and Ani, 544–545
Bryant, Beverley, 499 Minihan, Colin, 354 Alimentation Couche-Tard, 365
Brynjolfsson, Erik, 179 Mintzberg, Henry, 116, 487–488 Allianze University College of Medical Sciences
Modi, Narendra, 607
C Montgomery, Tom, 120 (AUCMS), 316-318
Moore, Gordon, 201 Allot Communications, 350
Camp, Garrett, 399 Amazon, 300, 331, 411, 413, 414, 429, 433,
Carr, Nicholas, 181 N
Carson, Ryan, 120 439–441, 467, 511, 522, 607
Cortadellas, Xavi, 131 Nadella, Satya, 425 Amazon.com, 73, 123, 201
Cox, Michael, 64 Ng, Andrew Y., 468 American Airlines, 138, 334
Cross, Michael, 569 American Bar Association (ABA), 161
Cryan, John, 145 O American Medical Association (AMA), 161
American National Insurance Company
D Obama, Barack, 340, 581
Olson, Sara, 64 (ANCO), 522
Dean, Jeff, 468 Oxley, Michael, 336 America Online (AOL), 168, 294, 413, 419
Deming, W. Edwards, 518 Angostura, 515–517
Dymond, Duncan, 498 P Ann Taylor, 136
Apache, 209, 220, 299, 389
E Page, Larry, 300 Apache Software Foundation, 258
Pick, Lucinda, 610 Apple Inc., 42, 126, 138, 171, 208, 219, 226, 411,
Ellison, Larry, 101 Porter, Michael, 123
429, 591–592
F Q Armani Exchange, 433
ARM Holdings, Inc., 207
Fayol, Henri, 487 Quy Huy, 121 Association for Computing Machinery (ACM),
Filo, David, 299
Ford, Henry, 86 R 161
Friedman, Thomas, 39 Association of Information Technology Profes-
Rees, Andrew, 616
G Routh, Jim, 354 sionals (AITP), 161
AT&T, 280, 288, 456
Ganenthiran, Nilam, 432 S Audi, 462
Gates, Bill, 86
Goelman, Aitan, 341 Sarbanes, Paul, 336 B
Gauguier, Yves, 590 Schinelli, Bruce, 545
Sidhu, Suresh, 394 BAE Systems, 239-241, 429
H Simon, H. A., 485 Ball State University, 350
Soards, Susan, 544 Bank of America, 134, 433, 456
Hawkins, Dave, 537 Sutherland, Stuart, 92 Bank of New York, 134
Hammonds, Kim, 145 Barclays, 494, 513
Hevesi, Patrick, 354 T Barnes & Noble, 258
Howes, Rick, 278 Bayer Material Sciences, 102–103
Hsieh, Tony, 120 Torvalds, Linus, 221 BCBGMAXAZRIAGROUP, 353
Hunt, Jeremy, 568 Bear Stearns, 489
W Bel Group, 589–591
I Berg biopharmaceutical company, 151
Watson, Michael, 120 Best Buy, 433
Immelt, Jeffrey, 511 Wheeler, Tom, 291 Bite Footwear, 614
BJ’s Wholesale Club, 431
J Y Black & Veatch, 501
Blackburn Rovers Football Club, 178-179
Jobs, Steve, 86 Yang, Jerry, 299 Blockbuster, 115
Juran, Joseph, 518 Yarbrough, Brian, 439 Blogger.com, 304

K Z 631

Kalanick, Travis, 399 Zuckerberg, Mark, 187
Khan, Iftekhar, 235

632 Index Enron, 336 Hulu.com, 411
Epinions, 417 Hunch.com, 494
BlueNile.com, 414 ePolicy Institute, 296 Hyundai, 425
BMW, 425, 462 E*Trade, 417
Boeing Corp., 429 Exostar, 429 I
BP plc, 510 Expedia, 403, 414
British Medical Association (BMA), 568 i2 Technologies, 388, 470
F IBM, 31-33, 90, 201, 209, 215, 221, 370, 451, 455,
C
Facebook, 34–35, 101, 103, 167, 186–189, 212, 468, 476 511, 522, 605
Cable News Network (CNN), 594 219, 264, 299, 302, 389, 403, 405, 413, 415, IBM Global Business Services, 210
Cablevision, 280, 295 416, 422–424, 430, 470, 492 IDS Scheer, 516
Caesars Entertainment, 262 IKEA, 425
California Pizza Kitchen, 501 Famous Footwear, 253 Infogix, 267
Canadian Tire, 474 Farmobile LLC, 64 Infor Global Solutions, 370
Carlo’s Bake Shop, 103 Federal Aviation Administration Information Builders, 535
Cass Information Systems, 235 Infosys, 210
Caterpillar Corp., 425, 597 (FAA), 181 InnovationNet, 135
Celcom Axiata Berhad, 394–396 Federal Communications Commission (FCC), Instacart, 400, 431–432
Cenoric Projects, 353 Instagram, 405, 415
CenterPoint Properties, 295 291–292 Institute of Electrical and Electronics
Champion Technologies, 342 Federal Trade Commission, 419
Charles Schwab, 262 FedEx, 138, 493 Engineers (IEEE), 309
Chef Boyardee, 550 Fiat Chrysler, 127, 445–447 Intel Corp., 90, 207, 433, 597
Chelsea Hotel, 235 Fidelity Financial Services, 414 International Data Center, 255
Chicago Police Department, 151 Fidelity National Information Services, 494 International Data Corp., 171, 201, 207
Chrysler Corp., 117, 127, 445, 597 Flextronics, 117 Internet Architecture Board (IAB), 290, 313
Chubbies, 120 Food Network, 431 Internet Corporation for Assigned Names and
Cisco Systems, 90, 117, 505 Ford Motor Company, 117, 425, 519
Citibank, 43, 138 Foursquare, 430, 432 Numbers (ICANN), 290
Citigroup, 154 Foxconn, 592 Intrawest, 78
Coca-Cola, 370, 456 Frito Lay, 594 Intuit, 555–556
Colgate-Palmolive Co., 456 Fujitsu Network Communications, 537–538 itCampus consultants, 516
Comcast, 280
ComScore, 422 G J
ConAgra Foods Inc., 107, 550–552
Consumer Reports, 416 Games.com, 413 Javelin Strategy & Research, 331
Con Way Transportation, 464 Gap.com, 416 JCB Laboratories, 461
Countrywide Financial Corp., 134 Gartner Inc., 265 JDA Software, 378-468, 395
Crocs, Inc., 614–616 Gatorade, 129–131 J.D. Power, 562
CVM Solutions, 456 GE Capital Financial services, 508 Jibbitz, 614
Genealogy.com, 416 JPMorgan Chase, 134, 433
D General Electric (GE), 90, 129, 469, 496, 508–511 Junglee.com, 607
General Motors Corp. (GM), 117, 210, 420, Juniper Networks, 209, 348
Dassault Systemes, 240, 278 Jurong Health Services, 51-52
Deere & Co., 63–64, 129 424–425, 540, 597
Dell Inc., 117, 221 GettyImages.com, 413 K
Deloitte Consulting LLP, 152 Glasscubes, 91-92
Delta Airlines, 456 GlaxoSmithKline, 154 Kaboodle, 423
Deutsche Bank, 144-146, 343 Glory Global Solutions, 216-217 Kaspersky Labs, 339
Digital Equipment Corporation GMI Insurance Services, 296–297 Kazaa, 171
Go2Paper, 429 Kennametal, 388
(DEC), 197 Goddard Space Flight Center, 102 KFC, 597
Digitec, 456 Google, 90, 126, 138, 167, 201, 208, 219, 226, Kickstarter.com, 415, 425
Dieguez Fridman, 458 Kiehl Stores, 433
Dollar General Corp., 61 299–300, 303, 411, 430, 433, 467–468, 489, Kmart, 388
Dollar Rent A Car, 223 511 Knight Capital, 490
Dow Chemical Co., 64 Google +, 302, 422 Kodak, 118
DP World, 385–386 Granular Inc., 64
Dropbox, 38, 92, 212, 218, 236, 353 Grokster, 171 L
Drugstore.com, 414 Grower Information Services, 64
Dundee Precious Metals, 277-279 GUESS, 136 Lego Group, 272-274
DuPont, 63, 459 Lehman Brothers, 489
H Levi Strauss, 136
E LexisNexis Risk Solutions, 158
Handy, 400 LG Electronics, 378–379
EarthLink, 288 Harrah’s Entertainment, 262 Li & Fung, 136
Eastman Chemical Company, 118 Heinz, 90 Lilly Pulitzer, 433
EasyJet, 193–195 Hewlett Packard (HP), 145, 208, 210, LinkedIn, 389, 415, 422
eBay, 126, 138, 331, 414, 607 LLBean.com, 416
eHarmony, 416 221, 605 Lloyds Banking Group, 459
Electronic Privacy Information Center Hilti AG, 575-576 Lockheed Martin, 429
Hilton Hotels, 127, 433 Lowe’s, 424
(EPIC), 188 Hitachi, 471 Lyft, 400, 430
Elemica, 412–413 Home Depot, 433
EMC Corp. (Documentum), 455 Homejoy, 400 M
Honda, 118
Hon Hai Group, 592

Index 633

Macy’s, 310–311, 433 Pepsico, 90, 231, 425, 433 Sun Microsystems, 221
Maersk, 594 Photobucket.com, 413 Super Fresh, 431
Mandarin Oriental, 42 Pinterest, 405, 422–423 Sybase, 209
MasterCard, 158, 342 Piper Jaffray Cos., 64
Match.com, 416 The Pirate Bay, 171 T
Matsushita, 471 Pixar Animation Studios, 305
McAfee, 327 Plan International, 80–81 Taco Bell, 501
McDonalds, 597 Plex Systems, 389 TAL Apparel Ltd., 43
McKinsey & Company, 87, 583 Ponemon Institute, 330–331, 353 Target, 173, 388, 394–396
Megaupload, 171 Priceline.com, 414 Tasty Baking Company, 369
Mercedes-Benz, 461–462 PricewaterhouseCoopers (PwC), 551 Tata Consultancy Services, 475–477
Metal Office Furniture Company, 609 Privi Organics, Ltd., 45 Tate & Lyle, 107-109
MetLife, 254 Procter & Gamble (P&G), 135, 373, 433, 456, TCS, 216
Michelin North America, 235 Tenaris, 456
Microsoft Corp., 137, 193–194, 201, 209, 299, 470–471 Texas Instruments (TI), 115
Progressive Insurance, 502–503 ThomasNet.com, 264
370, 456, 508, 511 Proofpoint, 297 TIBCO, 522
Mitsubishi, 471 Tidal Trade, 614
Mitsubishi Heavy Industries, 466 Q Time Warner, 288, 295
MobileIron, 235–236 T-Mobile, 138, 143, 306
Mobiquity, 544 Qualcomm, 456 Tower Records, 115
Monsanto, 63–64 Quantcast, 167 Toyota, 117, 123
Morpheus, 171 Trader Joe’s, 431
Mosaic, 415 R Travelocity, 129
Motorola, 138 Treehouse Island Inc., 120–121
Mozilla Foundation, 168 Raytheon, 429 Trend Micro, 352
Mrs. Fields Cookies, 597 Red Hat, 221 TTX, 545
MSN, 413, 433 Reebok, 136 Tumblr, 415, 422
MyPoints, 417 Renault, 461 Twitter, 304, 389, 415, 422
Ricoh, 471 TypePad.com, 304
N Roche, 481–482
Rolls-Royce PLC, 429 U
Napster, 171 Rosendin Electric, 235–236
NASA, 102 Rugby Football Union (RFU), 31–33 Uber, 135, 399–401, 415, 430
National Cyber Security Center Under Armour, 129–131
S United Parcel Service (UPS), 49–50, 497
(NCSC), 305 United States International Trade Commission,
National Health Service (NHS), 498–499, 568 Sabre Holdings, 254
Nestlé, 375 SAC Capital, 154 171
Netflix, 40, 174, 291, 411, 416, 467 Safeway, 431 United States Patent and Trademark Office, 170
Network Advertising Initiative, 164, 168 SalesForce.com, 201, 211, 215, 218, 225, 381, United States Telecom Association, 292
NetZero, 288 Universal Robots, 461
New York City, 255–257, 431, 459 389, 415, 590 UPS Supply Chain Solutions, 375
New York Times, 416 Samsung Electronics, 138, 171, 207, 429 U.S. Cyber Command (CYBERCOM), 333
New Zealand Department of Commerce, Sanyo, 471 U.S. Department of Commerce, 165
SAP, 108, 273, 366, 370, 381, 388–389, 394, 482, U.S. Department of Defense, 284, 288, 331, 333
454–455 U.S. Department of Defense Advanced
NextBio, 258 508, 516, 609–610
Nike, 126, 129–130, 371–372 Schneider National, 375, 519 Research Projects Agency (DARPA), 284
Nissan, 433 7-Eleven, 440 U.S. Department of Homeland Security, 305
Nordstrom, 354 Shopkick, 433 U.S. Federal Highway Administration, 451
Novell, 200, 281, 286 Six Flags, 84 U.S. Forest Service, 497
SKF, 37 U.S. Internal Revenue Service, 75
O Skype, 90, 295, 505 U.S. National Institute of Standards and
Snapchat, 418, 424
Ocean Minded, 614 SNCF (French rail service), 494 Technology (NIST), 214
1-800-Flowers, 433 Snyders of Hanover, 61 U.S. Patent and Trademark Office, 170
Open Handset Alliance, 208 Societe Generale, 267-268 U.S. Postal Service (USPS), 255
OpenSignal, 234 The Software Alliance, 171 U.S. Securities and Exchange Commission, 301
OpenSource.org, 220 Sonic Automotive, 37 U.S. Social Security Administration, 75
Open Text Corp., 455 Sony, 332
Oracle Corp., 101, 201, 208, 209, 216, 221, 366, Southern Co., 211 V
Southern Valve & Fitting USA (SVF), 93
381, 388, 394, 445–446, 455, 508, 522, 582, Southwest Airlines, 223 Vail Resorts, 78
605 Sports Authority, 433 Valiant Entertainment, 353
Orville Redenbacher, 550 Sportsvite, 415 Verizon, 280
Overstock.com, 388 Spotify, 172, 292, 417 Vestas Wind Systems, 494
Sprint, 138, 306 VEVO, 411
P Stanford University, 203, 299, 468 Virgin Entertainment Group, 295
Staples, 414 Visa, 158, 468
Panda Security, 328 Starbucks, 127, 425, 492, 497 Vita Coco, 353
Pandora, 172, 416 Starhub, 321–322 VmAirWatch, 354
Panorama Consulting Solutions, 387 Statoil Fuel and Retail, 365-367 Volkswagen, 154, 427, 462
PayPal, 126, 331 Steelcase Designs, 609–610 Volkswagen Group, 177
Penguin, 303 SunGard Availability Services, 342
PeopleSoft, 224

634 Index alert system, 256 bandwidth, 287, 291, 505
algorithms, 303 Bangle Bartenders, 544
W beacon programs, 418–419
genetic, 469–470, 469f, 472 behavioral approach, 57–58
Wall Street Journal, 408, 416 Hummingbird search, 300–301 behavioral models, 487
Walmart Inc., 42, 123, 125–126, 138, 310, 331, Altair 8800, 115 behavioral targeting, 418–422
Amazon Alexa, 440 behavioral view, of organization, 111f
376, 394, 414, 433, 439–441 Amazon Prime, 439 benchmarking, 132
Walt Disney World Resort, 211 Amazon Relational Database Service, 254 best-of-breed software, 499
Washio, 400 Amazon Web Service (AWS), 215f, 218 best practices, 132
Waze, 430 ambient data, 337 BI. See business intelligence
WebEx, 90 analog signal, 285 bias, 181
Webvan, 431 analog versus digital, 285 big data
Whole Foods, 431 analytical CRM, 383–386, 384f
Wipro Technologies, 210 analytic platforms, 259–260 analysis of, 31-33, 493–494, 494t
World Bank, 451 analytic software, 33 challenge of, 254–255
WorldCom, 336 Ancestry.com, 416 Internet source of, 262–263
World Wide Web Consortium (W3C), 290 Android operating system, 208, 226, 234, 353 management and, 153
WSJ.com, 413 Angkasa Library Management system, 316-318 for operational intelligence, 496–497
antivirus software, 347, 355 privacy and, 151–153, 183–184
X AOL Instant Messenger, 294 revolution in, 256
Apache, 299 Bing, 299
Xanga.com, 304 Apache Open for Business (OFBiz), 389 biometric authentication, 345
App Internet, 306 bit, 242
Y Apple Apps, 226 bits per second (bps), 287
Apple iOS, 470 blast-and-scatter advertising, 421
Yahoo!, 299–300, 416 Apple iPad, 37, 38f, 171, 226, 470, 492, 516 BLE. See Bluetooth Low Energy
Yellow Pages (YP), 535 Apple iPhone, 37, 38f, 138, 171, 226, 470, 492, blogosphere, 304
Yelp, 417 591f blogroll, 304
YouTube, 389 Apple iPod, 126, 171, 226 blogs, 304
Yumprint, 440 Apple iTunes, 42, 73, 123, 126, 172, 411 bluetooth, 307–308, 307f, 325
Apple Safari, 221 bookstore processes, 520–522, 520f, 521f
Z Apple Watch, 211 botnet, 329–330, 358
application controls, 337 bot networks, 177
Zappos.com, 120, 130 application layer, 284 BPM. See business performance management
ZEAL Network SE, 493 application proxy filtering, 347 BPR. See business process reengineering
Zillow.com, 226 applications bps. See bits per second
ZipRealty, 226 international information systems devel- break-even point, 501
oping, 603 bring your own device (BYOD), 212–213,
Subject Index knowledge, 451 234–236, 353–354
location-based service, 430–433 broadband connections, 280, 288
A of MIS, 501t broadcast model, 408
of social business, 87t Brown Bag Software v. Symantec Corp, 170
acceptable use policy (AUP), 296, 341 software, 225–226, 536–538 BSS. See business support system
acceptance testing, 526 application server, 199 bugs, 334
access points, 325 apps, 225–226 bullwhip effect, 373, 374f
access rules, 342f AR. See augmented reality business. See also industry; organizations
accountability, 156, 159, 184 architecture and governance, 290–292, 290f collaboration in, 85–86
accounting practices, 596 artificial intelligence (AI), 302, 460, 471 common user requirements of, 603
addressing and architecture, 288 as-is process, 520, 520f customers retained by, 125
ad hoc query, 493 asset management systems, 456 global system strategies of, 597–599, 597t,
Ad Network, 419 associations, 261 598f
Adobe Acrobat Reader, 38 ATMs. See automated teller machines information policy established by, 264–265
Adobe Connect, 90 attribute, 243 information value chain of, 53, 54f
Adobe Creative Suite, 210 auditing, 343, 344f Internet as tool for, 296
Adobe Flash Player, 327 augmented reality (AR), 459 IS perspective of, 52–54, 59
Adobe Illustrator, 225 AUP. See acceptable use policy IS role in, 95–101, 577
advertising, 187, 303. See also marketing authentication, 344–345 IS transforming, 33–35, 59
automated teller machines (ATMs), 43 IT infrastructure impacting, 196f
blast-and-scatter, 421 automation, 517 process changes of, 603
display, 403 avatars, 90, 415 reorganizing, 599
Google’s revenues from, 35 AWS. See Amazon Web Service restructuring of, 489
on mobile devices, 433 Azure cloud service, 193–196 risk assessments in, 338–341, 341t
native, 421 security policies of, 341–342
networks, 421f B software spending of, 224f
online, 419 supply chain of, 371–372
online marketing and, 418t B2B. See Business-to-business using social networking, 34–35, 101–102
pivot table used for, 502f B2C. See Business-to-consumer value chain model in, 129–133, 132f
revenue model, 415–416 BA. See business analytics business analytics (BA), 490, 497–499, 505–506
affiliate revenue model, 417 backward chaining, 462–464 Business ByDesign, 389
agency theory, 118 balanced scorecard method, 503–504, 503f
agent-based modeling, 470
agile development, 541, 546
AI. See artificial intelligence
air travel, 181

business challenges, 595–596 cash-on-delivery (COD), 607 Index 635
business continuity planning, 343 CAT. See consolidated audit trail
business drivers, 592–594 CBR. See case-based reasoning hybrid, 219
business ecosystems, 136–138, 137f CDMA. See Code Division Multiple Access on Internet, 200–201
business functions, 47, 48t CDO. See chief data officer models compared in, 219t
business intelligence (BI), 76, 78–79, 255, cell phone standards, 306 platforms, 214f
cellular systems, 306–307 private and public, 218
259–260, 259f centralization, 390 SaaS used in, 214–215
BA and, 505–506 centralized systems, 599 security in, 351
from data, 491 central systems group, 600 service, 174, 454
data mining in, 490 CGI. See Common Gateway Interface service types in, 215
decision making analytics and, 491f change. See also organizational change software, 225, 536
DSS delivering, 77, 501 Cloud Security Alliance (CSA), 351
elements of, 491–492 agent, 567 cloud software service, 536
in enterprise applications, 390 business processes, 603 cloud streaming, 291, 411
information streams for, 490 business process redesign, 519 CLTV. See customer lifetime value
management strategies for, 497–499 digital market, 411t clustering, 261
production reports in, 492t in IT infrastructure, 226–227 COD. See cash-on-delivery
users of, 500f management, 567, 615 Code Division Multiple Access (CDMA), 306,
business models, 42, 412–415 MIS technology, 35–39, 36t 313
business objectives organizations resistance to, 121–122 codes of conduct, 161
competitive advantage as, 42 record, 526f coercive goals, 116
of IS, 41–44 chatbots, 470 cognitive failures, 181
with IT, 139 chat systems, 294 cognitive functioning, 182–183
Business One (SAP), 389 Chatter, 103 collaboration, 447
business performance management (BPM), 504 checkout counters, 44, 45f benefits of, 87, 88t
business processes, 47–48, 71–73 chief data officer (CDO), 96 in business, 85–86, 91-92
change, 603 chief information officer (CIO), 96, 599 in business processes, 87–89
collaboration in, 87–89 chief knowledge officer (CKO), 96 cloud services for, 90
core, 40 chief operating officer (COO), 79 management selecting tools for, 93–95
enterprise applications and, 387 chief privacy officer (CPO), 96 mobile employees and, 505
enterprise systems and, 369t chief security officer (CSO), 96 requirements in, 88f
functional, 72 Children’s Online Privacy Protection Act in software development, 541–542
in IT, 73 (COPPA), 163 software investment steps for, 95
order fulfillment in, 72–73, 73f China software products for, 90–93
routines in, 112, 113f globalization in, 39 technologies used for, 89–90
business process management (BPM), 519, 522, Internet use in, 608 time/space matrix of, 94f
601–602 product differentiation in, 126 using e-mail, 89, 93, 98, 102
business process redesign supply chain of, 371 websites for, 304–305
existing processes analysis in, 519–520 choice, 485 command and control, 87–89
new processes design in, 520–522, 521f Choose and Book system, 498–499 Common Gateway Interface (CGI), 264
in organizational change, 518 Chrome operating system, 208 common user requirements, 603
processes to be changed in, 519 Chrome web browser, 220–221 communications. See also telecommunications
business process reengineering (BPR), 571 chromosomes, 469 technologies
business solutions, 71f churn rate, 387 analog versus digital signals in, 285
business support system (BSS), 394 CIO. See chief information officer encrypted, 297–298
Business-to-business (B2B), 412, 426, 427–429, circuit-switched networks, 283 gap, 570, 570t
436 CISC. See complex instruction set computing Internet costs of, 204, 205f
Business-to-consumer (B2C), 412 Cisco Networks, 209 near field, 311
business value Citrix Podio, 577 network trends in, 279–280
of decision making, 483, 484t CKO. See chief knowledge officer unified, 295–297
of enterprise systems, 370–371 Clarizen, 577 communities of practice (COPs), 451
of SCM, 376–377 class, 530–531, 531f community providers, 415
BYOD. See bring your own device classical model of management, 487 competition
byte, 242 classifications, 261 time-based, 175
Clean Air Act, U.S., 177 traditional, 124
C click fraud, 332 competitive advantage, 32, 139, 431, 596
click-throughs, 303, 389 competitive forces model for, 123
C2C. See Consumer-to-consumer client computers, 199 core competencies and, 135
cable Internet connections, 288 client/server computing, 282–283 decision making and, 43
cable modems, 285 client/server era, 199–200 in globalization, 138
cable networks, 103, 173, 280 cloud-based software, 389, 538 Internet impacted by, 128–129, 128t
CAD. See computer-aided design cloud collaboration services, 90 Internet technology as, 50
CAN-SPAM Act, U.S., 177 cloud computing, 38, 193–196, 227, 306 IT products providing, 127
capital budgeting, 565–566 characteristics of, 214–215 knowledge and, 449
capital investments, 34f, 117, 195, 565 CRM and, 218 outsourcing and, 539
carpal tunnel syndrome (CTS), 180 databases in, 253–254 as strategic business objective, 42
CASE. See computer-aided software data management and, 216-217, 254, 351 sustaining, 138
enterprise systems, 389 transnational strategy and, 598
engineering era of, 200–201 competitive forces model, 123, 124f, 140–141,
case-based reasoning (CBR), 464–465, 465f 229–230, 229f
cash flow, 566

636 Index

cloud computing (continued) in-memory, 258–259 CPO. See chief privacy officer
competitive strategies, 129–133 malicious software in, 326–328, 327t CPQ. See configure, price and quote
Compiere, 389 mobile, 200–201, 210, 227, 234, 236 credit cards, 134, 520
complacency, from computing, 181–182 on-demand, 218
complementary assets, 54–56 personal, 197 data from, 127, 157–158
complex instruction set computing (CISC), 207 quantum, 213 digital certificate system for, 350
component-based development, 542 service-oriented, 542 ethical issues of, 156–158
CompStat, 256 social, 297 hackers obtaining, 173
computer abuse, 176–177 standards in, 205t hotspots and, 309
computer-aided design (CAD), 452, 458, 472 system performance in, 174 identity theft from, 331
computer-aided software engineering terms and concepts in, 242–243 Internet adoption of, 607–608
wearable devices for, 210–212 mobile devices managing, 433
(CASE), 532 Conficker (malware), 359 neural networks for, 467–469
computer crimes, 176–177, 330t. See also configure, price and quote (CPQ), 537–538 personal information from, 157
connectivity, 605–608 predictive analytics for, 493
malware; security consumerization, of IT, 212–213 security systems for, 341
botnets, 329–330 Consumer Reports, 416 weblining and, 188
click fraud, 332 consumers crime fighting, 256
cyber, 330–331 B2C, 412 Crime Strategies Unit (CSU), 256
cybervandalism, 329 disintermediation benefiting, 409–410, CRM. See customer relationship management
cyberwarfare, 333, 339–340 409f crop yields, 63
data breaches, 332t technologies relationships with, 130 cross-channel capabilities, 394
DDoS attack, 329 Consumer-to-consumer (C2C), 412 cross-functional systems, 611
DoS attack, 329 content providers, 414 cross-selling, 382
e-mails for fighting, 256 ContentWorx, 454–455 crowdsource funding, 415, 425
evil twins, 331 continuous measurement, 521 CryptoLocker, 328
hackers, 329 continuous quality improvement, 518 Crystal Reports, 250
identity theft, 331–332 controls, 323 CSA. See Cloud Security Alliance
keyloggers, 328 control weaknesses, 344f CSO. See chief security officer
legislation, 331–332 conversational commerce, 403–405 CSU. See Crime Strategies Unit
pharming, 331 conversations, 86 CT. See computerized tomography
phishing, 331 conversion, in systems development, 527 CTS. See carpal tunnel syndrome
spoofing and sniffing, 329 conversion rates, 394 culture, 48, 86
computer forensics, 336 COO. See chief operating officer global, 593
Computer Fraud and Abuse Act, 331 cookies, 166–167, 166f, 184 information laws and, 595
computer hardware cooptation, 604 of organizations, 112–113
microprocessing power in, 220 COPPA. See Children’s Online Privacy currency fluctuations, 596
platforms, 207–208 Protection Act customer intimacy, 390
telecommunications, 49, 59 COPs. See communities of practice customer lifetime value (CLTV), 386
trends in, 230 copyright law, 170, 184 customer relationship management
computerized hiring, 152 core business processes, 40 (CRM), 83, 127, 380f, 589–591
computerized tomography (CT), 459 core competency, 135, 140–141 analytical, 383–386, 384f
computer literacy, 46 core systems, 601–602, 601f, 608–611 capabilities of, 383f
computer networks, 280–282, 280f, 312 corporate assets, 40 cloud computing and, 218
computers corporations customer intimacy from, 390
client, 199 enterprise applications of, 81–83 customer service with, 381–382
enterprise, 200 firewalls for, 346–347, 346f defining, 377–380
fault-tolerant, 350 network infrastructure of, 282f direct-marketing campaigns
hardware platforms for, 207–208 networks in large, 281–282 and, 382, 382f
health risks, 180–183 patchwork international systems of, 596 enterprise applications and, 387–388
Internet abuses by, 176–177 strategies of, 41–42 operational, 383–386
mainframe, 197 costs sales force automation in, 381
networks and networking, 280–282, 280f, of cybercrime, 330–331 social networking using, 389
312 Internet communications, 204, 205f software capabilities of, 383f
personal, 197, 199, 206, 329–330 of IS, 564–565, 565t software for, 381
server, 199, 263–264, 281 leadership’s low, 126 customers, 126
software, 49 of magnetic storage device, 204f businesses retaining, 125
tablet, 210 menu, 409 loyalty map, 384f
viruses, 326 of microprocessor chips, 201, 202f social networking with, 424–425
Wintel PC, 199, 206 negative social, 174–175 supplier’s relationship with, 42–43, 127
Computer Software Copyright Act, 170 of offshore outsourcing, 540f customer service, 49, 381–382
computer-to-computer exchange, 426 operating, 144 customization
computer vision syndrome (CVS), 182 of ownership, 228, 228t, in e-commerce, 407–408
computing. See also cloud computing; 231, 565 mass, 126
operating systems project management considering, 559 in software packages, 538
client/server, 282–283 switching, 127 CVS. See computer vision syndrome
complacency from, 181–182 transaction, 117, 405 cyberbullying, 175
data hierarchy in, 242f cost transparency, 407 cybercrime, 330–331
decentralized client-server in, 175 counterimplementation, 574 cybervandalism, 329
green, 219 cyberwarfare, 333, 339–340
health risks of, 180–183

Index 637

cycles per second, 287 Data Protection Directive, 595 digital subscriber line (DSL), 288, 312
data quality, 265–266 digital versus analog, 285
D data transfer rate, 286 direct cutover strategy, 527
data visualization, 492 direct goods, 427–428
DARPA. See Department of Defense Advanced data warehouse, 499 Directive on Data Protection, 164
Research Projects Agency data workers, 47 direct-marketing campaigns, 382, 382f, 384
DBMS. See database management system disaster recovery planning, 342–343
data, 44, 509 DDoS. See distributed denial-of-service disintermediation, 409–410, 409f
ambient, 337 debugging, 352 display ads, 403
business intelligence from, 491 decentralized client-server, 175 disruptive technologies, 114–116, 115t
from checkout counters, 45f decentralized systems, 599 distributed denial-of-service (DDoS), 321–323,
cleansing or scrubbing, 266 decisional role, 487–488
from credit cards, 127, 157–158 decision making 329
database quality of, 265–266 distribution center, 394
definition, 248 automated high-speed, 489–490 distribution model, 410–411
dictionary, 248 BI analytics for, 491f DMCA. See Digital Millennium Copyright Act
Europe’s protection of, 164–165 business value of, 483, 484t DNS. See Domain Name System
hierarchy, 242f competitive advantage and, 43 documentation, 526–527
inconsistency, 244 digital dashboard for, 79f Dodd-Frank Wall Street Reform and Consumer
knowledge from, 448–449 DSS and, 98, 506
managing resources of, 241–245 enterprise systems improving, 370–371 Protection Act, 44
mart, 257–258, 269 fairness in, 160 domain name, 288
mining, 261–262 improving, 43 Domain Name System (DNS), 288–289, 289f,
MIS TPS, 76f information required in, 484f
multidimensional model of, 260f IT influencing, 118–121, 119f 313
personal information collection of, 165 managements role in, 486–487 domestic exporter, 597
program dependence on, 244 MIS role in, 500–501 Do Not Track system, 164, 169, 421
redundancy, 244 pivot tables used for, 502 DoS. See denial-of-service attack
relational DBMS grouping of, 251 process of, 485–486 DoubleClick, 158, 166–168, 419, 421f
from RFID tags, 46 real world, 488 downstream, supply chain, 372
sales, 77f, 125f rent-versus-buy, 227 DPI. See deep packet inspection
sharing of, 54–245 stages of, 486f drill down, 493, 504
warehouse, 255–258, 269 technologies and, 496 drive-by downloads, 327
types of, 483–485, 505 driving habits, 151
data administration, 265 value-added activities in, 54 Dropbox, 92, 212, 218, 353
data analysis, 157 decision-support systems (DSS), 78f DSL. See digital subscriber line
database management system (DBMS) BI delivered by, 77, 501 DSL modems, 285
decision making and, 98, 506 DSS. See decision-support systems
capabilities of, 248–250 group, 504–506 due process, 159
designing, 250–251 deep packet inspection (DPI), 350 duplicated systems, 599
Microsoft Access in, 250f Delivery Information Acquisition Device dynamic pricing, 409
multiple views of, 246f (DIAD), 53f
non-relational, 253–254 delivery platform, 492 E
relational, 246–248, 247f, 249f, 251, 254, demand planning, 374
268 denial-of-service (DoS) attack, 329, 354 Earthlink, 288
software, 245 Department of Defense, 288 easy-to-handle pieces, 556
traditional environment of, 245–246 Department of Defense Advanced Research e-business, 84
databases, 245 Projects Agency (DARPA), 284 EC2. See Elastic Compute Cloud
administration, 265 deregulation, 164 ECM. See enterprise content management
as alert system, 256 design considerations, 122–123, 485 e-commerce, 35, 41, 607–608. See also digital
in cloud computing, 253–254 developing countries, 606
information accessed in, 269 DevOps, 541–542, 546 markets; Internet
Internet and, 263–264, 263f DFD. See data flow diagram behavioral targeting in, 418–422
NoSQL, 253 DIAD. See Delivery Information Acquisition big data analysis in, 493–494
quality of data in, 265–266 Device business models for, 412–415
querying of, 248–250, 250f digital asset management systems, 456 commitment to, 440
server for, 263–264 digital certificates, 349f, 350 conversational, 403–405
software for, 209 digital dashboard, 79, 79f, 493 customization in, 407–408
data breaches, 332t digital divide, 180 goods and service purchased in, 401–402
data brokers, 152, 418–419 digital firm, 40, 137f growth of, 402–404, 402f
data flow, transborder, 595 digital goods, 410–411, 435 information density in, 407
data flow diagram (DFD), 528, 529f digital information, 157 interactivity in, 407
data governance, 265, 267 digital markets, 435 key concepts in, 408–410
data management, 268–269, 495 flexibility and efficiency of, 408–409 management challenges of, 433
cloud-based, 254 Internet changing, 411t marketing transformed by, 417–426, 435
cloud computing and, 254, 351 traditional markets and, 410t mobile, 412, 430f
data quality in, 265–266 Digital Millennium Copyright Act (DMCA), 172 through mobile devices, 405
IS and, 59–60 digital networks, 171 personalization in, 407–408
IT infrastructure and, 195–196, 206–207 digital signal, 285 presence map, 434, 434f, 435t
storage and, 209 digital strategies, 107–108, 110 revenue models, 415–417, 435
technology, 49, 144–145, 152 revenues, 403
data manipulation language, 248 richness in, 407
data mining, 261–262, 269, 417, 452, 460, 490 social, 422–423, 423t
technology and power of, 405–408

638 Index

technology features of, 406t interface, 492, 535 E*Trade, 417
types of, 412 IS interface for, 558 EU. See European Union
universal standards in, 406–407 overcoming resistance of, 572–574 Europe, 595–596
economic impacts, of IS, 117–118 role of, 524–525
economic value, 135 Energetic Bear (malware), 340 data protection in, 164–165
economies of scale, 204–206 enterprise applications, 81–83, 571 Facebook users in, 188
ecosystem strategic model, 137f architecture of, 82f Internet use in, 606f
EDI. See Electronic Data Interchange BI in, 390 spam regulations in, 177
efficiency, 408–409 business processes and, 387 European Commission, 164, 329, 359
efficient customer response system, 126 challenges facing, 387–388 European Union (EU), 164, 177, 447, 595
e-government, 84 CRM and, 387–388 evil twins, 331
eHarmony, 416 next-generation, 388–390 evolutionary approach, 602
802.11 wireless standards, 308–309 social networking tools as, 93, 94t exchanges, 429
EIM. See enterprise information management software packages in, 208–209, 224, executive support systems (ESS), 78, 503–504,
Elastic Compute Cloud (EC2), 215 369–370, 390 506
electronic business. See e-business enterprise computers, 200 expert systems, 460–464, 463f
electronic commerce. See e-commerce enterprise content management (ECM), explicit knowledge, 448
Electronic Data Interchange (EDI), 426, 427f, 453–456, 453f exports, 39, 597
611, 614 enterprise resource planning (ERP) systems, extensible markup language (XML), 222, 222t,
electronic document retention policy, 82, 365-367, 394–395, 515–516, 614–615 542
336–337 SAP, 516, 609 external integration tools, 572
Electronic Privacy Information Center (EPIC), scoring model for, 563, 564t extranets, 50, 84
188 XML and, 222
electronic records management, 335–337 enterprise software, 208–209, 224, 272-274, F
electronic surveillance, 296 369–370, 390
e-mail, 122, 434 enterprise solutions, 388 Facebook, 34–35, 101, 103, 167, 186–189, 212,
cellular systems and, 306–307 enterprise suites, 388 219, 264, 299, 302, 389, 403, 405, 413, 415,
collaboration using, 89, 93, 98, 102 enterprise systems, 79–83, 365–367, 368f 416, 422–424, 430, 470, 492
computer abuse through, 176–177 business processes and, 369t
crime fighting using, 256 business value of, 370–371 Facebook Chat, 294
digital strategies and, 107–108, 110 centralization from, 390 facial recognition software, 187, 302, 345
employee monitoring and, 178-179, 296 cloud-based, 389 factors of production, 594
federal law and, 35 decision making improved by, 370–371 Fair Information Practices (FIP), 162, 163t
free web-based, 167 defining, 368–369 farm equipment, 63–64
incompatibility of, 600 software for, 208–209, 224, 369–370, 390 fault-tolerant computer systems, 350
as Internet service, 293 stand alone, 388 feasibility study, 523–524
malicious software and, 326–327 enterprise-wide knowledge management federal laws, 35, 163t
mobile digital platforms with, 210 systems, 452 Federal Trade Commission (FTC), 163–164,
organization retention of, 44 entity, 243
phishing, 331 entity-relationship diagram, 252–253, 253f 163t, 188
privacy and, 169 Environmental Protection Agency feedback, 45f, 46
sentiment analysis from, 262 (EPA), 178 Festi, 177
spoofing, 329 environmental scanning, 114 field, 242
as unified communications, 295 EPA. See Environmental Protection Agency FieldScripts, 63–64
vulnerabilities of, 324–325 EPIC. See Electronic Privacy Information Center file organization, 242–243
wearable computing with, 211 ergonomics, 576 files, 242, 243f
web-based, 167 ERM. See employee relationship management file-sharing services, 171, 325
employee relationship management (ERM), ERP. See enterprise resource planning systems File Transfer Protocol (FTP), 293
381 ESS. See executive support systems filtering software, 177
employment e-tailers, 413–414 financial models, 566
e-mail monitoring in, 178-179, 296 ethanol, 124 financial services, 195
global, 80, 609 ethernet, 286
internal threats in, 333–334 ethical analysis, 160 deregulation of, 164
IS and IT, 97 ethical and moral issues electronic records management for, 336
IS influencing, 161–162 computer health risks and, 180–183 laws protecting, 164
in MIS, 97 of credit cards, 156–158 multinational strategies in, 597
mobile, 505 of intellectual property, 169–172 predictive analysis in, 493
payroll processing in, 75f IS and, 153–155, 154t, 155f, 159–162, 183 system availability in, 350
reengineering work in, 179–180 management facing, 153–155 transaction brokers for, 414
technologies influencing, 179–180 of networks and networking, 156–158 Financial Services Modernization Act, 336
in U.S., 39–40 of privacy, 165–169 fingerprint identification devices, 345
encrypted communications, 297–298 of technologies, 156–158, 157t FIP. See Fair Information Practices
encryption, 348–349, 349f, 355 ethical dilemma, 153, 161–162 Firefox web browser, 220–221
encyclopedia industry, 128 ethical no-free-lunch rule, 161 firewalls, 346–347, 346f, 355
Endomondo, 130 ethics Flash, 221
end-users, 97, 569 concepts of, 159–160 flash cookies, 167
communication gap with, 570, 570t defining, 154–155 flexibility, 244, 408–409
development, 535–536, 546 no-free-lunch rule in, 161 FlipSide video, 424
graphical interface, 610 principles of, 160–161 forecasting, 261, 493
foreign key, 247
foreign trade, 39
formal control tools, 572
formal planning tools, 572
forward chaining, 462

Index 639

4G networks, 306 group decision-support systems (GDSS), incremental approach, 602
Foursquare service, 430, 432 504–506 independent software developers, 138
FPX software, 537 Independent Software Vendor (ISV), 537
franchisers, 597–598, 599 GSM. See Global System for Mobile indirect goods, 428–429
free/freemium revenue model, 416–417 Communications Industrial Internet, 509
FTC. See Federal Trade Commission industrial revolution, 39
FTP. See File Transfer Protocol H industry
fuzzy logic systems, 465–466, 466f, 472
Hackers, 321, 325, 329, 354, 358–360 encyclopedia, 128
G smartphones attacked by, 327 healthcare, 335
movie, 411
Galaxy 5, 171 Hadoop, 209, 259, 269 oil and gas, 509
Gantt chart, 572, 573f, 577 Hadoop Distributed File System recording, 172, 410–411
GDP. See gross domestic product travel agency, 128
GDSS. See group decision-support systems (HDFS), 258 inference engine, 462, 463f
Genealogy.com, 416 hard disk drives, 115, 203 information, 44
general controls, 337, 338t HCM. See human capital management asymmetry, 408
general practitioner, 568 HD. See high-definition TV business intelligence streams of, 490
genetic algorithms, 469–470, 469f, 472 HDFS. See Hadoop Distributed File System culture and laws on, 595
geoadvertising services, 430 Healthbox, 131 data mining for, 261–262
geographical information system (GIS), 497 healthcare industry, 51-52, 335, 481-483 decision making and required, 484f
geoinformation services, 430 Health Insurance Portability and Accountabil- pivot tables used for, 502
geosocial services, 430 policy established for, 264–265
GIS. See geographical information system ity Act (HIPAA), 164, 335 quality of, 488, 489t
The Glass Cage: Automation and Us (Carr), 181 health risks, 180–183 requirements, 524, 562
global culture, 593 heartbleed bug, 334 rights, 156, 162–164
global information systems. See international hertz, 287 society, 155f
HFTs. See high-frequency traders value chain, 53, 54f
information systems high-performance processors, 220 information age, 156
globalization high-speed Internet, 309 informational role, 487
HIPAA. See Health Insurance Portability and information density, in e-commerce, 407
challenges and opportunities of, 39–40 information resources, 341, 355
in China, 39 Accountability Act information systems (IS), 33f. See also inter-
competitive advantages in, 138 host country system units, 599 national information systems; systems
local services and, 594 hotspots, 309 development
MIS and, 40 HR. See human resources alternative methods in, 546
particularism influencing, 39 HTML. See hypertext markup language audit, 343
supply chain in, 375, 591f HTML5, 221 behavioral study of, 57–58
global markets, 594 HTTP. See hypertext transfer protocol benefits of, 32–33
global networks, 288 hubs, 281 business and role of, 95–101, 577
Global Positioning System (GPS), 63, 430 Huddle, 577 business objectives of, 41–44
global supply chain, 375 human interface design, 608–610 business perspective on, 52–54, 59
Global System for Mobile Communications human resources (HR), 80–81, 243–244, 246f, business solutions and, 71f
(GSM), 306, 313 business transformed by, 33–35, 59
global systems, 603 550, 556 capital budgeting for, 565–566
global telecommunications, 598–599 Hummingbird search algorithm, 300–301 communications gap on, 570, 570t
global threats, 333 hybrid AI systems, 471 competitive strategies using, 129–133
global workforce, 80, 609 hybrid cloud computing, 219 controls in, 337–338
Golden Rule, 160 HyperPlant, 459 cost and benefits of, 564–565, 565t
goods and service, 401–402 hypertext markup language (HTML), 221–222, counterimplementation in, 574
Google, 35, 167, 299 data management and, 59–60
Google +, 90, 302, 415, 422 263, 298, 313 defining, 44–46
Google AdSense, 167 hypertext transfer protocol (HTTP), 298 department of, 96–97
Google Apps, 90, 212, 215 dependence on, 176
Google Chrome, 208 I design considerations of, 122–123
Google Docs, 90, 92 dimensions of, 46–47, 47f
Google Drive, 90, 92, 218, 353 IaaS. See infrastructure as a service economic impacts of, 117–118
Google Gmail, 167, 212 IAC. See Intuit Analytics Cloud employment in, 97
Google Hangouts, 90, 92, 294 IBM Connections, 93, 102 employment influenced by, 161–162
Google Maps, 126, 516 IBM Notes, 93 end users relationship in, 569–570
Google Play, 226, 353–354 IBM PureData System, 259 ethical and moral issues and, 153–155,
Google Search, 167, 301f, 467, 489 IBM TryTracker, 31-33 154t, 155f, 159–162, 183
Google Sites, 90, 92 IBM WebSphere, 223 financial services availability of, 350
governance, 97, 265, 267, 290–292, 290f IDC. See International Data Center functions of, 45f
GPS. See Global Positioning System identity management, 341, 344–345 implementation of, 531–532
Gramm-Leach-Bliley Act, 164, 336 identity theft, 331–332 liability problems from, 173
grand design approach, 602 IF-THEN-ELSE rules, 465–466 literacy, 46
graphical user interface, 610 IIS. See Internet Information Services management decisions from, 505
green computing, 219 IM. See instant messaging management structures for, 559–560
green IT, 219 IMB. See Intelligent Mail bar code system; managerial roles in, 488t
grocery delivery, 432
gross domestic product (GDP), 447 Internet Movie Database
implementation, 485–486

counter, 574
international information systems, 603–604
of IS, 531–532
in project management, 567–569
imports, 39
In-a-Snap Snapchat, 424

640 Index

managers, 96 copyright laws on, 170 connectivity, 605–608
occupations in, 97 patents on, 170–171 countries use of, 606f
organizational resistance and, 122f privacy and, 169–172 credit card adoption on, 607–608
organization interdependence and, 41f trade secrets in, 169 cyberwarfare on, 333
in organizations, 47–49 intelligence, 485 databases and, 263–264, 263f
organizations planning of, 577t intelligent agent software, 302, 470–472, 471f developing countries infrastructure for, 606
organizing functions of, 97–98 intelligent techniques digital markets changed by, 411t
outsourcing in, 539–540 AI in, 302, 460, 471 DNS of, 288–289, 289f
plan, 560–562, 561t CBR in, 464–465, 465f Double-Click on, 158
SCM and, 372–373 data mining in, 261–262, 269, 417, 452, 460 e-mail service on, 293
study of, 57f expert systems in, 460–464, 463f encrypted communications on, 297–298
systems integration of, 605 fuzzy logic in, 465–466, 466f, 472 Europe’s use of, 606f
systems life cycle in, 533 genetic algorithms, 469–470, 469f, 472 as global network, 288
technical study of, 56–57 knowledge management with, 452, 452f global supply chain influenced by, 375
user interface of, 558 neural networks in, 467–469, 468f, 472 high-speed, 309
vulnerability of, 323–324 organizational benefits from, 460 industrial, 509
information systems project interactivity, in e-commerce, 407 information asymmetry on, 408
change management in, 567 interfaces, 264, 325 Internet 30 and, 293
end users resistance to, 572–574 for core systems, 608–611 IPV6 for, 292–293
management commitment to, 570 end-user, 492, 535 long tail marketing on, 417
risk factors in, 571, 576–577 graphical user, 610 marketing on, 594
technical complexity of, 571–572 human designed, 608–610 media distribution by, 410–411
information technology (IT), 44 IS user, 558 mobile device users on, 429–430
business objectives with, 139 multitouch, 208 organizations and, 122
business processes in, 73 network layer, 285 platforms, 209–210
capital investments in, 34f internal integration tool, 571–572 podcasting on, 414
competitive advantage from, 127 internal rate of return (IRR), 566 privacy challenges of, 165–169
components of, 49–52 internal supply chain processes, 372 satellite connections to, 288
consumerization of, 212–213 International Data Center (IDC), 255 self-regulation of, 168
decision making influenced by, 118–121, international information systems S-HTTP over, 348
119f alternative strategies in, 611 smartphones accessing, 306, 403
employment in, 97 application development for, 603 supply chain driven by, 377f
in farm equipment, 63–64 approach benefits stated for, 602–603 TCP/IP reference model for, 284f
global telecommunications and, 598–599 architecture of, 592–593, 592f TCP/IP used for, 200
governance of, 97 business challenges in, 595–596 user content generation on, 408
green, 219 business drivers in, 593–594 U.S. use of, 606f
hierarchies flattened by, 118–121, 119f business process changes for, 603 value web on, 133, 134f
investments in, 55f, 56f business reorganization for, 599 VoIP over, 294–295
negative social costs of, 174–175 challenges to, 595t, 606t VPN on, 298f
organizations interaction with, 109–110, connectivity in, 605–608 vulnerabilities of, 325
109f, 140 core systems in, 601, 601f Web 2.0, 304–305
socially responsible use of, 159–160 developmental approach of, 602 Web 3.0, 305–306
information technology (IT) infrastructure, global strategies for, 597–599, 597t, 598f Internet 2, 293
50, 196f identifying core systems in, 601–602 Internet-based marketing, 594
changes in, 226–227 implementation management of, 603–604 Internet Explorer, 221
competitive forces model for, 229–230, local user support for, 604 Internet Information Services (IIS), 299
229f management challenges of, 592, 600–601, Internet layer, 284
components of, 206–210, 230 600t Internet of People (IoP), 305
data management and, 195–196, 206–207 quality architectures for, 596 Internet of Things (IoT), 35, 129, 305, 311, 322,
ecosystem of, 206f systems integration of, 605 327–328, 481, 511
evolution of, 197–201, 230 technical alternatives to, 611–612 Internet Protocol (IP), 284, 288
investments in, 227–230 Internet, 49. See also networks and networking; Internet Protocol version 34 (IPv6), 292–293
management of, 227 web browsers; websites Internet service providers (ISPs), 172, 288, 291
scalability of, 227 addressing and architecture of, 288 Internet services, 293–294, 293t
stages of, 198f App, 306 interorganizational system, 83
informed consent, 165 architecture and governance of, 290–292, interpersonal role, 487
infrastructure as a service (IaaS), 215 290f intranets, 50, 69, 84
inheritance, 530–531, 531f big data source of, 262–263 intrusion detection systems, 347
in-memory computing, 258–259 broadband connections of, 280 Intuit Analytics Cloud (IAC), 555–556
input, 45 as business tool, 296 investments
input controls, 337 cable connections to, 288 capital, 34f, 117, 195, 565
Inside+, 69–71 China’s use of, 608 in IT, 55f, 56f
Instagram, 101, 415 client/server architecture on, 294f in IT infrastructure, 227–230
instant messaging (IM), 89, 294, 325 cloud computing on, 200–201 return on, 566
in-store experience, 440 communications costs with, 204, 205f social, 55
insurance rates, 151 competitive advantage from, 50 steps in software, 95
intangible benefits, 564 competitive advantage impacting, in technology, 64
intellectual property rights, 414 128–129, 128t IoP. See Internet of People
challenges to, 171–172 computer abuses on, 176–177 iOS (Apple), 208

Index 641

IoT. See Internet of Things information, 595 employee relationship, 381
IP. See Internet Protocol on information, 595 enterprise content, 453–456, 453f
IPv6. See Internet Protocol version 34 leadership, low-cost, 126 ethical issues facing, 153–155
IRR. See internal rate of return lean production systems, 596 filters, 488–489
IS. See information systems learning management system (LMS), 456, 550 groups, 74–79
ISPs. See Internet service providers legacy systems, 210, 571 identity, 341, 344–345
ISV. See Independent Software Vendor legal liability, 335 information systems project commitment
IT. See information technology legislation, 336 of, 570
item number, 266 computer crime, 331–332 international information systems chal-
iterative process, 534 Do Not Track and, 165 lenges for, 592, 600–601, 600t
IVM. See Information Value Management personal information protected by, 164 international information systems imple-
privacy, 163–164 mentation by, 603–604
J safe harbor and, 165 IS and roles of, 488t
self-regulation and, 168 IS for decisions from, 505
JAD. See joint application design legitimacy, 603 of IT infrastructure, 227
Java, 221 leisure time, 175 operational, 47, 485
jobs. See employment liability, 159, 173 partner relationship, 381
joint application design (JAD), 541, 546 LinkedIn, 415, 422 patch, 334
Junglee.com, 607 link farms, 303 senior, 47, 89, 154t, 485, 504
Juniper Networks, 209 Linux, 208, 220–221 strategic systems analysis by, 139
just-in-time, 175, 373 liquified natural gas (LNG), 509 structures, 559–560
LMS. See learning management system total quality, 518, 545
K LNG. See liquified natural gas unified threat, 348
local area networks (LAN), 286, 308–309, 312, Management Information Systems (MIS)
Kaboodle, 423 325 applications of, 501t
Kant’s categorical imperative, 160 local services, 594 decision making and, 500–501
key field, 247 local systems, 601f employment in, 97
keyloggers, 328 local user support, 604 field of, 46
key performance indicators (KPIs), 102, location analytics, 497 globalization and, 40
location-based services, 430–433 study of, 58
503–504, 562 logical view, 245 technology changes and, 35–39, 36t
keywords, 167, 221, 299–300, 303, 416, 456 long tail marketing, 417 TPS data in, 76f
Kindle reader, 73, 522, 543 Long Term Evolution (LTE), 307 transaction processing systems and, 76
KMS. See knowledge management systems LTE. See Long Term Evolution managerial roles, 487
knowledge manual labor, 461
M manufacturing, 461–462
acquisition, 450 MapMyFitness, 130
application, 451 MacBooks, 171 MapReduce, 258
base, 462, 594 machine learning, 467 market creator, 414–415
competitive advantage and, 449 MAEs. See metropolitan area exchanges marketing
from data, 448–449 magnetic resonance imaging (MRI), 459 campaigns of direct, 382, 382f, 384
data mining discovering, 460 magnetic storage device, 203, 204f CRM campaigns of, 382, 382f
dimensions of, 448t mainframe computers, 197, 207 e-commerce transforming, 417–426, 435
discovery, 460 main memory (RAM), 258 Internet-based, 594
dissemination, 451 maintenance, in systems development, 527 long tail, 417
expert systems capturing, 464 MakeMyTrip.com, 607 online, 418t
explicit, 448 malicious software, 326–328, 327t personal information used in, 158
storage, 450–451 malware, 334 search engine, 303–304
structured, 453 in social networking, 422–426
tacit, 448 computer viruses and, 326 wisdom of crowds in, 423
workers, 47, 457 drive-by downloads, 327 marketing campaigns, 158, 382–383, 383f
knowledge management systems (KMS), 83, keyloggers, 328 market niche, 126–127, 137
475–477 ransomware, 328 marketplace, 124, 594
enterprise-wide, 239-241, 452 spyware, 167, 328, 347 market space, 405
with intelligent techniques, 452, 452f SQL injection attacks, 328 mashups, 225–226
organizational learning and, 449 Trojan horse, 328, 347 mass customization, 126
role of, 447, 472 worms, 326, 347 massive open online courses (MOOCs), 456
types of, 452, 452f, 472 MAN. See metropolitan area network Match.com, 416
in value chain, 449, 450f managed security service providers (MSSPs), 351 m-commerce, 429–430, 433, 436
knowledge work systems (KWS), management, 49 MDM. See master data management
452, 457–459 BA and BI strategies of, 497–499 measurement, continuous, 521
KPIs. See key performance indicators big data and, 153 media, transmission, 287
KWS. See knowledge work systems capital, 55 media distribution, 410–411
change, 567, 615 menu costs, 409
L classical model of, 487 Metcalfe’s Law, 203
collaboration tools selected by, 93–95 metropolitan area exchanges (MAEs), 290
LAN. See local area networks customer loyalty map for, 384f metropolitan area network (MAN), 286, 312
language, data manipulation, 248 data resource, 241–245 microblogging, 304
Law of Mass Digital Storage, 203 decision making’s role of, 486–487 microeconomics, 110f
laws, 201–203 e-commerce challenges of, 433
electronic records, 335–337
copyright, 170, 184
federal, 35, 163t
financial services protected by, 164

642 Index

micromarketing, 594 structured methodologies in, 528–530 computer, 280–282, 280f, 312
micropayment systems, 416 subscription revenue, 416 corporation infrastructure of, 282f
microprocessing power, 201–203, 202f, 220 system design and, 546 digital, 171
microprocessor chips, 201, 202f transaction fee revenue, 417 economies of scale and, 204–206
Microsoft Access, 246, 250f value chain, 129–133, 132f, 140 ethical issues of, 156–158
Microsoft Cortana, 470 walled garden, 353 global, 288
Microsoft Excel, 502 modems, 285 international challenges of, 606t
Microsoft. NET platform, 223 functions of, 285f in large corporations, 281–282
Microsoft Office, 470, 536 types of, 286f local area, 286
Microsoft OneDrive, 92 MOOCs. See massive open online courses modems in, 285, 285f, 286f
Microsoft Project, 577 Moore’s Law, 201–203, 202f operating systems, 209
Microsoft SharePoint, 70, 92–93 moral dimensions, 156 packet switching of, 283, 283f
Microsoft SQL, 309 moral issues. See ethical and moral issues peer-to-peer, 286, 295, 325
Microsoft Xbox Live, 416 MOST, 37 private industrial, 427, 428f
middle management, 47, 89, 485 movie industry, 411 routers for, 281
millions of instructions per second (MIPS), 201 MRI. See magnetic resonance imaging software-defined, 281
MIMO. See multiple input multiple output MSN, 413 switches in, 127, 281
minicomputers, 197 MSSPs. See managed security service providers TCP/IP in, 284–285
minority groups, 180 multicore processors, 220 TCP/IP reference model for, 284f
MIPS. See millions of instructions per second multidimensional data model, 260f telephone, 279
Mirai (malware), 321–322, multinational company, 600 3G and 4G, 306
MIS. See Management Information Systems multinational strategy, 597 transmission media used in, 287
MLB. See Major League Baseball multiple input multiple output (MIMO), 309 types of, 285–287, 312
MLS. See multiple listing service multiple listing service (MLS), 226 unified communications in, 295–297
mobile apps, developing, 543–545 multitiered client/server architecture, 199, VPNs in, 297–298, 298f, 313, 348, 505
mobile computing, 210, 227, 234 200f, 293, 294f, 324 WANs, 286, 454
multitouch interface, 208 Wi-Fi, 308–309, 313
era of, 200–201 MyFitnessPal, 130 WSNs, 311, 313
security of, 236 MyPoints, 417 NetZero, 288
mobile device management (MDM), 235 My Recipe, 550–551 neural networks, 467–469, 468f, 472
mobile devices, 35–38, 324 MySQL, 246 neurofuzzy systems, 471
advertising on, 433 New York Times, 416
BYOD, 212–213, 234–236, 353–354 N NFC. See near field communication
credit cards managed through, 433 NIC. See network interface controller
e-commerce through, 405 NAI. See Network Advertising Initiative NikeFuel, 130
Internet users on, 429–430 nanotechnology, 203 NIST. See National Institute of Standards and
malware on, 327 nanotubes, 203 Technology
privacy issues of, 158 NAPs. See network access points nitrogen oxide (NOx), 178
security for, 325, 352, 354 NAT. See Network Address Translation NLP. See Neighborhood Liaison Program
mobile digital platforms, 35–36, 38–39, 210 National Information Infrastructure Protection nonobvious relationships awareness (NORA),
mobile e-commerce, 412, 430f 158, 159f
mobile employees, 505 Act, 331 non-relational DBMS, 253–254
MobileIron, 236 National Institute of Standards and Technology NORA. See nonobvious relationships awareness
Mobile Sales App, 516–517 normalization, 251, 251f, 252f
mobile search, 300 (NIST), 214 normative goals, 116
mobile web app, 543 native advertising, 421 NOS. See network operating system
mobile website, 543 native app, 543 NoSQL databases, 253
models. See also standards near field communication (NFC), 311 Novell Netware, 200
advertising revenue, 415–416 negative social costs, 174–175 NOx. See nitrogen oxide
affiliate revenue, 417 Netflix, 411, 416 N-tier. See multitiered client/server architecture
agent-based, 470 net marketplaces, 427–428, 428f
behavioral, 487 net neutrality, 291–292 O
broadcast, 408 Netscape.com, 402
business, 42, 412–415 network access points (NAPs), 290 objective techniques, 563
classical management, 487 Network Address Translation (NAT), 347 object-oriented development, 530–532
cloud computing compared in, 219t Network Advertising Initiative (NAI), 168 object-oriented programming language, 222
competitive forces, 123, 124f, 140–141, network-based strategies, 135–138 observations, passive, 182
229–230, 229f network economics, 135–136, 203 OFBiz. See Apache Open for Business
distribution, 410–411 networked systems, 599 Office 393, 70
ecosystem strategic, 137f network interface controller (NIC), 325 offline media, 434
ERP scoring, 564t Network interface layer, 285 offshore outsourcing, 539, 540f
financial, 566 network operating system (NOS), 281 oil and gas industry, 509
free/freemium revenue, 416–417 networks and networking, 49. See also telecom- OLAP. See online analytical processing
multidimensional data, 260f OMS. See Order Management System
object-oriented development in, 530–532 munications technologies on-demand computing, 218
opt-in and opt-out, 168 advertising, 421f on-demand economy, 400–401, 415
pull-based and push-based, 376, 376f, 439 bandwidth in, 287, 291, 505 online advertising, 419
revenue, 415–417, 435 bluetooth, 307–308, 307f, 325 online analytical processing (OLAP), 260–261,
sales revenue, 416 bot, 177
scoring, 563, 564t cable, 103, 173, 280 384, 490
circuit-switched, 283 online dating sites, 416
client/server computing in, 282–283
communication trends and, 279–280

Index 643

online marketing, 418t software, 225 Internet, 209–210
Online Privacy Alliance, 168 Microsoft. NET, 223
online retail stores, 413–414 P mobile digital, 35–36, 38–39, 210
online transaction processing, 350 Oracle Cloud, 536
OnQ system, 127 P2LU. See Pick to the Last Unit real-time bidding, 420
ooVoo, 90 PaaS. See platform as a service service, 197
Open Handset Alliance, 208 package tracking system, 50, 138 software trends of, 231
open source software, 220–221, 389 packet filtering, 347 podcasting, 414
operating costs, 144 packet switching, 283, 283f point-of-sale terminals, 126, 395
operating systems Pandora, 172 Point-to-Point Tunneling Protocol (PPTP), 298
PANs. See personal area networks political issues, 155f, 183
Android, 208, 226, 234, 353 paperless system, 569 politics, of organizations, 489
Apple’s, 208 paradigm shift, 519 pollution-control technology, 178
Chrome, 208 parallel strategy, 527 portal, 78, 412–413
Linux, 220–221 parameterized reports, 492 Porter, Michael, 124f
network, 209 particularism, 595 Porter’s competitive forces model, 123
Windows, 200, 206, 208 partner relationship management (PRM), 381 portfolio analysis, 562–563
Windows 38, 208, 226, 544 passive observation, 182 POS. See point-of-sale terminals
operational CRM, 383–386 passwords, 344 post-implementation audit, 527
operational intelligence, 494–497 patches, 334 postindustrial organizations, 119–122
operational management, 47, 485 patch management, 334 PPTP. See Point-to-Point Tunneling Protocol
Operation Green Rights, 329 patents, 170–171 precision agriculture, 63–64
OPM. See Office of Personnel Management patient records, 568 predictive analysis, 493
opt-in model, 168 Patriot Act, 175 predictive policing, 151, 152
opt-out model, 168 pattern recognition, 468 predictive search, 301
Oracle Cloud platform, 536 pay-per-click, 332 Predix, 509
Oracle Database, 246, 454 payroll processing, 75f, 527, 530f prescriptive planting, 63–64
Oracle WebCenter Content, 454 PCs. See personal computers presence map, 434, 434f, 435t
order fulfillment, 72–73, 73f peer-to-peer networks, 286, 295, 325 price discrimination, 407
order processing, 341t Penguin, 303 PriceGrabber, 302
organizational capital, 55 performance indicators, 79f price transparency, 407
organizational change, 545 personal area networks (PANs), 307, 307f pricing, dynamic, 409
business process redesign in, 518 personal computers (PCs), 197, 199, 206, pricing methods, 291
risks and rewards in, 518f primary activities, 131
systems development and, 517–519 329–330 primary key, 247
types of, 517 personal identification number (PIN), 345 printing, 3-D, 458–459
organizational impact analysis, 576 personal information, 595 print publishers, 173
organizational intelligence, 464–465 privacy. See also ethical and moral issues;
organizational learning, 449 behavioral targeting of, 418 personal information
organizations from credit cards, 157 big data and, 151–153, 183–184
behavioral view of, 111f data collection and, 165 e-mail and, 169
change resistance of, 121–122 Facebook and, 186–189 ethical and moral issues of, 165–169
characteristics of, 112–117 Google and, 167 Europe’s protection of, 164–165
culture of, 112–113 identity theft and, 331–332 Facebook and, 186–189
defining, 110–111 malicious software and, 328 federal laws on, 163t
e-mail retention by, 44 marketing campaigns using, 158 information rights and, 162–164
environment of, 113–114 opt-in and opt-out models involving, 168 intellectual property rights and, 169–172
hierarchies in, 48f privacy legislation protecting, 164 Internet challenges to, 165–169
inertia and politics of, 489 websites and, 166 legislation, 163–164
intelligent techniques benefiting, 460 personalization, 407–408, 420 mobile devices issues of, 158
Internet and, 122 personnel system, 342f personal information legislation
IS and interdependence of, 41f PERT charts, 572, 574f, 577 protecting, 164
IS and resistance of, 122f pharming, 331 technical solutions to, 169
IS in, 47–49 phased approach strategy, 527 in U.S., 168
IS planning of, 576t phishing, 331 website’s policies of, 168
IT flattening, 118–121, 119f physical transmission media, 287t Privacy Act of 1974, 162
IT interaction with, 109–110, 109f, 140 physical view, 245 Privacy Shield, 595
microeconomic definition of, 110f Pick to the Last Unit (P2LU), 311 private cloud, 218
politics of, 112 pilot study strategy, 527 private exchange, 427
postindustrial, 119–122 PIN. See personal identification number private industrial networks, 427, 428f
reciprocal relationships in, 114f Pinterest, 302, 422–423 PRM. See partner relationship management
structure of, 116, 116t pipeline-management software, 510 problem solving activities, 523
output, 46 pivot table, 502, 502f processing, 45
output controls, 337 Pixar wiki, 305 processing controls, 337
outsourcing, 546 PKI. See public key infrastructure process specifications, 530
competitive advantage and, 539 platform as a service (PaaS), 215, 218 product differentiation, 125, 126
costs of offshore, 540f platforms, 50, 69 production, in systems development, 527
in IS, 539–540 analytic, 259–260 production reports, 492, 492t
offshore, 539 business ecosystems and, 136–138 production workers, 47
of security, 351 cloud computing, 214f
computer hardware, 207–208
delivery, 492

644 Index

product number, 266 Really Simply Syndication (RSS), 304, 313 SAP NetWeaver, 516
products, substitute, 124 real-time bidding platforms (RTB), 420 Sarbanes-Oxley Act, 44, 336
professional work, 85 reciprocal relationships, 114f satellite Internet connections, 288
profiling, 158 record, 242 scalability, 227
program-data dependence, 244 record change, 526f SCM. See supply chain management
Program Evaluation and Review Technique. See recording industry, 172, 410–411 scope, 559
records management, 335–337 scoring models, 563, 564t
PERT charts reduced instruction set computing (RISC), 207 SDN. See software-defined networking
programmatic ad buying, 420 reengineering work, 179–180, 571 SDS. See software-defined storage
programmers, 96, 539 referential integrity, 252 search engine marketing, 303–304
programming, 215, 525 referral fees, 417 search engine optimization (SEO), 303
Refining Dashboard, 79 search engines, 299–300, 301f
HTML and HTML5, 221–222 regional distribution, 502f Second Life, 90
Java in, 221 regional systems, 599, 601f Secure Hypertext Transfer Protocol (S-HTTP),
open source, 220–221 registration system, 529f
XML, 222–223 regulations, 335–336 348
project, 558 relational DBMS, 246, 247f, 249f, 254, 268 Secure Sockets Layer (SSL), 348
project management, 558f security, 323, 348, 355. See also computer
cost considerations in, 559 data grouping in, 251
implementation in, 567–569 operations of, 247–248 crimes; malicious software; malware
objectives of, 558–559, 577 rent-versus-buy decisions, 227 breaches, 321, 353
risk dimensions in, 566–567 repetitive stress injury (RSI), 180–182, 183f in cloud computing, 351
scoring models and, 563 request for proposal (RFP), 537, 538 credit card systems for, 341
software tools for, 576–577 research and development (R&D), 135 in electronic records management,
systems control in, 560f responsibility, 159 336–337
of technical complexity, 571–572 responsive web design, 543 IoT challenges of, 327–328
of technologies, 567 Retail Link system, 42 lack of, 244
Project Management Institute, 570 return on investment (ROI), 566 legal liability and, 335
project portfolio management software, 577 revenue of mobile computing, 236
project structure, 567 e-commerce, 403 for mobile devices, 325, 352, 354
property rights, 156, 169–172 Google’s advertising, 35 outsourcing of, 351
protocol, 284 mobile e-commerce, 430f policy, 341–342
prototyping, 546 models for, 415–417, 435 of smartphones, 324
pros and cons of, 535 RFID. See radio frequency identification tags threats, 333–334, 358–360
steps in, 534–535, 534f RFP. See request for proposal vulnerabilities of, 324f
in systems development, 534–535 richness, in e-commerce, 407 wireless networks challenges of, 325
public cloud, 218 ride-sharing service, 399–400 self-regulation, 168
public key encryption, 348–349, 349f RightMedia, 419 sellers, third-party, 440
public key infrastructure (PKI), 350 RISC. See reduced instruction set computing semantic search, 300–301
pull-based model, 376, 376f, 439 risk, 559 semi-structured decisions, 493, 501–503
push-based model, 376, 376f, 439 assessment, 338–341, 341t senior management, 47, 89, 154t, 485, 504
Pushdo, 330 aversion principle, 161 sensitivity analysis, 501f
Python, 222 health, 180–183 sensor-generated data, 509
information systems project, 571, 576–577 sentiment analysis, 262
Q in organizational change, 518f SEO. See also search engine optimization
project management dimensions of, sequences, 261
quality, 559 566–567 server computers, 199, 263–264, 281
architectures, 596 robots, 461–462 service level agreements (SLA), 225, 351
data, 265–266 ROI. See return on investment service-oriented architecture (SOA), 222–223,
of information, 488 routers, 281 388
of life, 174 routines, 112, 113f service-oriented computing, 542
of software, 352 RSI. See repetitive stress injury service platform, 197
system, 156, 174 RSS. See Really Simply Syndication services, substitute, 124
TQM for, 518, 545 RTB. See real-time bidding platforms service set identifiers (SSIDs), 325
Ruby, 222 service workers, 47
quantum computing, 213 runaway projects, 557–558 SFA. See sales force automation
querying, of database, 248–250, 250f Shaft Align, 37
query language, 535 S sharing economy, 415
shopping bots, 302
R S3. See Simple Storage Service S-HTTP. See Secure Hypertext Transfer Protocol
SaaS. See software as a service Shutterstock, 255
racial divides, 180 safe harbor, 165 SIG. See Special Interest Group
racial profiling, 151 safety stock, 373 SIIA. See Software and Information Industry
RAD. See rapid application development sales data, 77f, 125f Association
radio frequency identification (RFID) tags, 46, sales force automation (SFA), 381 Silverlight, 221
Salesforce Chatter, 93, 103 SimpleDB, 253
211–212, 277, 313, 316-318, 385–386 Salesforce.com, 225 Simple Storage Service (S3), 215
functioning of, 310f sales revenue model, 416 SIMs. See subscriber identity modules
through supply chain, 309–311 sandboxing, 353 SIMS. See Sonic Inventory Management System
wireless networks with, 278–279 SAP ERP, 108, 516, 609 simulation, 452
RAM. See main memory SAP HANA, 108, 482 Siri. See Speech Interpretation and Recognition
ransomware, 328
rapid application development (RAD), 541, 546
rationalization of procedures, 518
R&D. See research and development

Index 645

Interface collaboration in development of, 541–542 cell phone, 306
six sigma, 518 collaboration products, 90–93 in computing, 205t
SKF Data Collection, 37 computer, 49 e-commerce universal, 406–407
SKUs. See stock-keeping units coordinating release of, 604 802.11 wireless, 308–309
Skype, 90, 295, 505 for CRM, 381 technology, 204–206
SLA. See service level agreements customization of, 538 stateful inspection, 347
slippery slope rule, 161 database, 209 stock-keeping units (SKUs), 615
smart-cap bottle, 131 data cleansing, 266 storage
smart cards, 345 DBMS, 245 data management and, 209
smart companies, 130–131 debugging, 352 knowledge, 450–451
smartphones, 35–38, 175, 210, 223, 292. See also enterprise, 208–209, 224, 369–370, 390 magnetic, 203, 204f
facial recognition, 187, 302, 345 software-defined, 213
mobile devices; wireless networks filtering, 177 strategic business objective, 42
apps for, 226 FPX, 537 strategic systems analysis, 139, 141
biometric authentication on, 345 human interface design of, 608–610 strategic transitions, 140
BYOD for, 234–236, 353–354 independent developers of, 138 streaming, 291, 372, 411, 414, 490
cellular systems for, 306–307 integration, 210 structure chart, 530, 530f
growth of, 403–405 intelligent agent, 302, 470–472, 471f structured decisions, 484
hackers attacking, 327 localization of, 608–611 structured knowledge, 453
Internet accessible on, 306, 403 malicious, 326–328, 327t structured methodologies, 528–530
Java for, 221 mashups, 225–226 Structured Query Language (SQL), 248
Linux for, 220–221 networks and networking, 281 Stuxnet (malware), 339–340,
location-based services used by, 430–433 open source, 220–221, 389 subject matter experts (SMEs), 615
security of, 324 outsourcing, 225 subscriber identity modules (SIMs), 394
websites on screens of, 543 package, 224 subscription revenue model, 416
smart products, 129, 130–131 pipeline-management, 510 substitute products and services, 124
SMEs. See subject matter experts piracy, 171 SuccessFactors system, 80–81, 551, 610
Snapchat, 418 platform trends of, 231 super cookies, 167
sniffer programs, 325, 326f, 329 products, 90–93, 173 suppliers, 42–43, 125, 127
SOA. See service-oriented architecture programmers, 96, 539 supply and demand, 134f
social business, 86 project management tools of, 576–577 supply chain
applications of, 87t project portfolio management, 577 of businesses, 371–372
benefits of, 87, 88t quality of, 352 of China, 371
software products for, 90–93, 173 runaway projects, 557–558 demand-driven, 375–376
technologies used for, 89–90 for SCM, 373–375 downstream, 372
time/space matrix of, 94f sentiment analysis, 262 global, 375
social computing, 297 for social business, 90–93, 173 in globalization, 375, 591f
social CRM, 389 Trojan horse, 328 intelligent agent software in, 471f
social e-commerce, 422–423, 423t virtualization, 213 internal processes of, 372
social engineering, 333 voice recognition, 161 Internet-driven, 377f
social graph, 422 vulnerabilities of, 334–335 planning systems, 373
social investments, 55 Software and Information Industry Association push and pull-based models of, 376f
socially responsibility, 159–160 (SIIA), 172 RFID systems in, 309–311
social media, 434 software as a service (SaaS), 59, 254, 306, 415, upstream, 372
social networking, 305, 408, 415, 432 539 supply chain execution systems, 374
businesses using, 34–35, 101–102 cloud computing using, 214–215 supply chain management (SCM), 83, 371,
COPs in, 451 cloud software, 536 378–379, 390
CRM used for, 389 Salesforce.com as, 225 business value of, 376–377
with customers, 424–425 software-defined networking (SDN), 281 IS and, 372–373
malware and, 327 software-defined storage (SDS), 213 software for, 373–375
marketing in, 422–426 Sonic Inventory Management System (SIMS), support activities, 131
social business using, 86–87 37 surveillance, electronic, 296
technology for, 102 space shifting, 40 switches, 281
tools, 93, 94t spam, 176–177 switching costs, 127
social search, 301–302 Special Interest Group (SIG), 379 symmetric key encryption, 348
social shopping, 423 Spector 360, 178 synergies, 134, 140
sociotechnical design, 576 SpeedForm Gemini 30 Record Equipped, 131 system design, 524, 525t, 546, 570t
sociotechnical systems, 58, 140 spoofing, 329 system integration services, 210
software, 207. See also applications; computer SportWatch GPS, 130 system portfolio, 563f
hardware; computing Spotify, 172 system quality, 156, 174
agile development of, 541 spyware, 167, 328, 347 systems analysts, 96, 523–524
analytic, 33 SQL. See Structured Query Language systems control, 560f
antivirus, 347, 355 SQL commands, 250, 250f systems development. See also project
applications, 225–226, 536–538 SQL injection attacks, 328 management
best-of-breed, 499 SSIDs. See service set identifiers CASE in, 532
business’s spending on, 224f SSL. See Secure Sockets Layer communications gap and, 570
capabilities of CRM, 383f stand alone enterprise systems, 388 conversion in, 527
cloud-based, 389, 538 standard operating procedures, 112 core activities of, 528t
cloud computing, 225, 536 standards end-user development in, 535–536, 546
collaboration and investment in, 95

646 Index

software, (continued) telephone networks, 279 Clean Air Act in, 177, 178
end users in, 524–525 telephone systems, 173 employment in, 39–40
information requirements in, 524 telepresence, 90 federal privacy laws in, 163t
maintenance in, 527 Telnet, 293 imports and exports of, 39
object-oriented development, 530–532 temperature controls, 466f Internet use in, 606f
organizational change and, 517–519 terminals, point-of-sale, 126, 395 privacy in, 168
problem solving activities in, 523 testing, in systems development, 525–526 unit testing, 526
process of, 523f, 545–546 test plan, 526, 526f universal standards, in e-commerce,
production in, 527 text mining, 262–263, 269 406–407
programming in, 525 third-party sellers, 440 Unix, 208
prototyping in, 534–535 Third World, 594 unstructured decisions, 484
sociotechnical design in, 576 3-D printing, 458–459 upstream, supply chain, 372
structured methodologies in, 528–530 3G networks, 306 URL. See uniform resource locator
systems analysts in, 523–524 three-dimensional (3D) systems, 457 U.S. See United States
testing in, 525–526 three-dimensional (3D) Web, 305 user attention, of websites, 416
time-based competition, 175 user content generation, 408
systems integration, 605 time shifting, 40 user-designer communications gap, 570
systems life cycle, 533 time/space matrix, 94f utilitarian principle, 161
system testing, 526 TLS. See Transport Layer Security UTM. See unified threat management
TMT. See Thirty Meter Telescope
T token, 344 V
total cost of ownership (TCO), 228, 228t, 231,
T1 lines, 288 value-added activities, 54
tablet computers, 210 565 value chain, 449, 450f
tacit knowledge, 448 total quality management (TQM), 518, 545 value chain model, 129–133, 132f, 140
tag suggest, 302 touch point, 380, 384, 434 value web, 133, 134f, 137
tangible benefits, 564 Toxic Substances Control Act, 43 vehicle identification number (VIN), 37
tap-and-go services, 311 TPS. See transaction processing systems Veriato Investigator, 296
taxi service, 399–401 TQM. See total quality management VEVO website, 411
taxonomy, 455 trackbacks, 304 video streaming, 291, 411
TCO. See total cost of ownership tracking files, 167 VIN. See vehicle identification number
TCP. See Transmission Control Protocol tractors, 63 virtual company, 136
TCP/IP. See Transmission Control Protocol/ trade secrets, 169 virtualization, 213, 219
traditional markets, 410t Virtual Lot, 37
Internet Protocol transaction brokers, 414 virtual meeting systems, 90
teams, 85 transaction cost theory, 117, 405 virtual private network (VPN), 297–298, 298f,
Teamwork Projects, 577 transaction fee revenue model, 417
technical approach, 56–57 transaction processing systems (TPS), 74–76, 313, 348, 505
technical complexity, 571–572 virtual reality (VR), 452, 459
technical solutions, to privacy, 169 75f, 76f, 267-268 Virtual Reality Modeling Language (VRML),
technology, 203 transborder data flow, 595
Transmission Control Protocol (TCP), 284 459
cognitive functioning and, 182–183 Transmission Control Protocol/Internet virtual worlds, 90
collaboration using, 89–90 visitor tracking, 419f, 421
competitive advantage from, 50 Protocol (TCP/IP), 200, 282, 284–285, 284f visual search, 302
consumer relationships with, 130 transmission media, 287 visual web, 302
data management, 49, 144–145, 152 transnational strategy, 598 VMware, 213
decision making and, 496 transnational systems, 599, 602 voice over IP (VoIP), 294–295, 325
disruptive, 114–116, 115t transport layer, 284 voice recognition software, 161
e-commerce features of, 406t Transport Layer Security (TLS), 348 VoIP. See voice over IP
e-commerce’s power from, 405–408 travel agency industry, 128 voyage-estimating systems, 77–78, 78f
employment influenced by, 179–180 Trojan horse, 328, 347 VPN. See virtual private network
ethical issues of, 156–158, 157t TRUSTe, 168 VR. See virtual reality
information resources protected by, 341, Tumblr, 415, 422 VRML. See Virtual Reality Modeling
355 tunneling, 298
investing in, 64 tuples, 247 Language
MIS and changes in, 35–39, 36t Twitter, 101, 103, 212, 304, 415, 422, 424, 425,
pollution-control, 178 W
project management of, 567 492
social business using, 89–90 two-factor authentication, 345 walkthrough, 352
for social networks, 102 two-tiered client/server architecture, 199 walled garden model, 353
standards, 204–206 Wall Street Journal, 416, 432, 439
TCO, 228, 228t, 231 U WANs. See wide area networks
telecommunications, 49, 59, 209, 280, war driving, 325
294–295, 325 Ubimax, 211 Warehouse Management System (WMS),
telecommunications technologies, 209, 280. See ubiquity, 405
also international inerformation systems; unified communications, 295–297 374–375
networks and networking; radio frequency unified threat management (UTM), 348 warehouses, 441
identification tags uniform resource locator (URL), 299 waterfall approach, 533
computer hardware in, 49, 59 United Kingdom, 193 Waze service, 430
global, 598–599 United States (U.S.) wearable computing devices, 210–212
VoIP, 294–295, 325 Web 2.0, 304–305
CAN-SPAM Act in, 177 Web 3.0, 305–306
cell phone standards in, 306 web-based e-mail, 167

Index 647

web beacons, 167, 168 WSNs. See wireless sensor networks
web browsers, 169 W3C. See World Wide Web Consortium

Firefox and Chrome, 220–221 X
search engines of, 299–300
URL’s used by, 298–299 XML. See extensible markup language
web bugs, 167
web design, 543 Y
WebFOCUS, 535
web hosting service, 209 Yahoo!, 299, 413
weblining, 188 Yahoo! Messenger, 294
web mining, 262–263, 269 Yammer, 69–70, 93
web search tools, 413 Yatra.com, 607
web server, 199, 299 Yet Another Hierarchical Officious
web services, 215f, 222–223, 223f, 542, 546
websites, 34–35, 434 Oracle. See Yahoo!
collaborative, 304–305 YouTube, 389
cookies and, 166f YP analytics, 535
HTML basis of, 221–222, 298
liability of, 173 Z
m-commerce, 433
mobile, 543 zero-day vulnerabilities, 334
personal information and, 166 zero defects, 334
personalization of, 420 zero-rating practices, 292
privacy policies of, 168 Zeus Trojan, 328
searches tracked by, 166 Zoho Projects, 577
SEO for, 303 zombie PCs, 329–330
on smartphone screen, 543 Zoom, 90
social search, 301–302
user attention of, 416
using beacon programs, 418–419
VEVO, 411
visitor tracking of, 419f, 421
wikis, 89–90
WEP. See Wired Equivalent Privacy
what-if analysis, 501, 510
WHP. See Wildfire Hazard Potential
wide area networks (WANs), 286, 454
Wi-Fi networks, 308–309, 313
wikis, 89–90, 304
Wildfire Hazard Potential (WHP), 497
WiMax, 309
Windows 10, 208, 226, 544
Windows operating system, 200, 206, 208
Wintel PC computers, 199, 206
Wired Equivalent Privacy (WEP), 348
wireless modems, 285
wireless networks, 33, 108. See also mobile
devices
bluetooth for, 307–308, 307f, 325
cellular systems and, 306–307
hotspots in, 309
PKI on, 350
with RFID tags, 278–279
security challenges of, 325
sniffer programs on, 325, 326f, 329
WEP for, 348
Wi-Fi, 308–309, 313
WiMax, 309
wireless sensor networks (WSNs), 311, 313
wisdom, 448
wisdom of crowds, 423
WMS. See Warehouse Management System
WordPress, 304
World Intellectual Property Organization
Treaty, 172
World Wide Web, 50
World Wide Web Consortium (W3C), 222
worms, 326, 347