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Test Bank for Information Technology for Management, 8th Edition by Efraim Turban
Test Bank for Information Technology for Management, 8th Edition by Efraim Turban
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8 th
Edition
Technology
for Management
Improving Strategic and Operational
Performance
EFRAIM TURBAN
LINDA VOLONINO, Canisius College
contributing authors:
JANICE C. SIPIOR, Villanova University
GREGORY R. WOOD, Canisius College
John Wiley & Sons, Inc.
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ISBN 13 978-0470-91680-3
ISBN 10 0-47091-680-X
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1
,BRIEF CONTENTS
Part I 1 Information Systems in the 2010s 1
Understanding 2 IT Infrastructure and Support Systems 30
Information Systems that
Support Organizational
Performance
Part II 3 Data, Text, and Document Management 56
Data and Network 4 Network Management and Mobility 91
Infrastructure
5 IT Security, Crime, Compliance, and Continuity 120
Part III 6 E-Business and E-Commerce 156
Web, Wireless, and 7 Mobile Computing and Commerce 189
Social Media Strategies
8 Web 2.0 and Social Media 218
Part IV 9 Operational Planning and Control Systems 255
Operational and 10 Enterprise Information Systems 284
Enterprise Systems and
Processes 11 Business Intelligence and Decision Support 322
Part V 12 IT Strategic Planning 359
Managing IT, Business 13 Business Process Management and Systems Development 390
Processes, and
Social/Ecology
14 Global Ecology, Ethics, and Social Responsibility 417
Responsibility
Glossary G-1
Technology Guides Online at www.wiley.com/college/turban
Cases Online at www.wiley.com/college/turban
iii
,CONTENTS
Understanding Information Systems that Business Case: Applebee’s International Learns and Earns
Part I from Its Data 87
Support Organizational Performance
Public Sector Case: British Police Invest in Mobile IT to Improve
1 Information Systems in the 2010s 1 Performance and Cut Costs 88
Chapter 1 Link Library 2 Analysis Using Spreadsheets: Calculating the Cost of Poor
Quick Look at Chapter 1, Information Systems in the 2010s 3 Document Management 89
Interacting with Customers at Optimal Times 3 4 Network Management and Mobility 91
1.1 Positioning IT to Optimize Performance 4 Chapter 4 Link Library 92
1.2 Information Systems and Information Technology: Quick Look at Chapter 4, Network Management and Mobility 92
Core Concepts 8 World’s First 4G WiMAX Rail Network 93
1.3 Business Performance Management and 4.1 Business Networks 94
Measurement 12 4.2 Wireless Broadband Networks 98
1.4 Strategic Planning and Competitive Models 16 4.3 Network Management and Portals 101
1.5 Why IT Is Important to Your Career, and IT 4.4 Collaboration 109
Careers 22
4.5 Legal and Ethical Issues 113
Business Case: CIO of BP Global Helps Transform the
Business Case: Green Mobile Network to Cut Carbon Emissions
Energy Giant 26
42 Percent by 2013 117
Public Sector Case: UK National Offender Management
Nonprofit Case: Kaiser HealthConnect Network Shaping the Future
Information System (NOMIS) Project 27
of Healthcare 117
Analysis Using Spreadsheets: Estimating Expected Improvement in
Analysis Using Spreadsheets: Cost Comparison of Web
Customer Retention 27
Collaboration 118
2 IT Infrastructure and Support Systems 30 5 IT Security, Crime, Compliance, and Continuity 120
Chapter 2 Link Library 31 Chapter 5 Link Library 121
Quick Look at Chapter 2, IT Infrastructure and Support Quick Look at Chapter 5, IT Security, Crime, Compliance, and
Systems 31 Continuity 121
Sprint Nextel’s Subscriber Data Management System 32 Swiss Bank Account Data Stolen from HSBC Private Bank 121
2.1 Data and Software Application Concepts 33 5.1 Protecting Data and Business Operations 123
2.2 Types of Information Systems and Support 35 5.2 IS Vulnerabilities and Threats 132
2.3 Supply Chain and Logistics Support 43 5.3 Fraud, Crimes, and Violations 136
2.4 IT Infrastructures, Cloud Computing, and Services 46 5.4 Information Assurance and Risk Management 139
Business Case: Airbus Improves Productivity with RFID 53
5.5 Network Security 142
Nonprofit Case: Royal Shakespeare Company Leverages Patron
5.6 Internal Control and Compliance 145
Data to Improve Performance 53
5.7 Business Continuity and Auditing 147
Analysis Using Spreadsheets: Managing Gasoline Costs 54
Business Case: NEC’s Weak Internal Controls Contribute to
NASDAQ Delisting 152
Part II Data and Network Infrastructure Public Sector Case: Blue Cross Mistake Releases Data of 12,000
Members 153
3 Data, Text, and Document Management 56 Analysis Using Spreadsheets: Estimating Investments in Antispam
Chapter 3 Link Library 57 Protection 153
Quick Look at Chapter 3, Data, Text, and Document
Management 57 Part III Web, Wireless, and Social Media Strategies
Wendy’s International Relies on Text Mining for Customer
Experience Management 57 6 E-Business and E-Commerce 156
3.1 Data, Text, and Document Management 59 Chapter 6 Link Library 157
3.2 File Management Systems 69 Quick Look at Chapter 6, E-Business and E-Commerce 157
3.3 Databases and Database Management Systems 72 Rail Europe Overhauls Its E-Business Model and Web Site 158
3.4 Data Warehouses, Data Marts, and Data Centers 76 6.1 E-Business Challenges and Strategies 160
3.5 Enterprise Content Management 82 6.2 Business-to-Consumer (B2C) E-Commerce 167
iv
, Contents v
6.3 Business-to-Business (B2) E-Commerce and 9.4 Accounting and Finance Systems 270
E-Procurement 171 9.5 Human Resource Systems 275
6.4 E-Government 173 Business Case: SunWest Foods Blends Data Silos into Real-Time
6.5 E-Commerce Support Services: Payment and Order Business Knowledge 281
Fulfillment 176 Nonprofit Case: Wireless Inventory Management at Dartmouth-
6.6 E-Business Ethics and Legal Issues 183 Hitchcock Medical Center 282
Business Case: Stormhoek Vineyards Excels with Web 2.0 Tools 186 Analysis Using Spreadsheets: Calculation of Labor Savings at
Nonprofit Case: Canadian Food for the Hungry International SunWest Foods 283
Improves Relief Efforts 187
Analysis Using Visualization: Creating Visualizations Using Public 10 Enterprise Information Systems 284
Online Data Sets 188 Chapter 10 Link Library 285
Quick Look at Chapter 10, Enterprise Information Systems 285
7 Mobile Computing and Commerce 189 ERP Gives Under Armour an Edge on Nike 286
Chapter 7 Link Library 190 10.1 Enterprise Systems 287
Quick Look at Chapter 7, Mobile Computing 10.2 Enterprise Resource Planning (ERP) Systems 289
and Commerce 192 10.3 Supply Chain Management (SCM) Systems 297
Using Mobile Technology to Save Lives 192 10.4 Collaborative Planning, Forecasting, and
7.1 Mobile Computing Technology 192 Replenishment (CPFR) Systems 302
7.2 Mobile Financial Services (MFS) 197 10.5 Customer Relationship Management (CRM)
7.3 Mobile Shopping, Entertainment, and Advertising 200 Systems 306
7.4 Location-Based Services and Commerce 205 10.6 Knowledge Management (KM) Systems 312
7.5 Mobile Enterprise Applications 209 Business Case: ERP Helps Productivity at Northern
Business Case: Starbucks Coffee to Go Mobile Commerce 214 Digital Inc. 319
Nonprofit Case: Mobile Charity via Cell Phones 215 Nonprofit Case: Arbor Day Foundation Implements Constituent
Analysis Using Spreadsheets: Estimating the Financial Benefits of Relationship Management System 319
Increased Customer Loyalty 216 Analysis Using Spreadsheets: Assessing the Value of E-CRM 320
8 Web 2.0 and Social Media 218 11 Business Intelligence and Decision Support 322
Chapter 8 Link Library 219 Chapter 11 Link Library 323
Quick Look at Chapter 8, Web 2.0 and Social Media 219 Quick Look at Chapter 11, Business Intelligence and Decision
“United Breaks Guitars”—An Epic Social Media Fail 219 Support 323
8.1 Web 2.0 and Social Media 221 DIRECTV Gets Rave Reviews with Operational BI 324
8.2 Virtual Communities and Social Networking Services 228 11.1 Business Intelligence (BI) for Profits and Nonprofits 325
8.3 Enterprise 2.0 Tools 235 11.2 BI Architecture, Analytics, Reporting, and Data
Visualization 337
8.4 Social Media Objectives and Metrics 239
11.3 Data, Text, and Web Mining 343
8.5 The Future of Social Media 244
Business Case: Crowdsourcing at Starbucks: Embracing 11.4 Decision-Making Processes 347
Customers 250 11.5 Decision Support Systems (DSS) 349
Nonprofit Case: TechSoup Global and NetSquared: Helping Those 11.6 Mobile Intelligence: Convergence of Mobile
Who Help Others 251 Computing and BI 352
Analysis Using Spreadsheets: Estimating the ROI of Social Business Case: BI-Supported Budgeting, Planning, and Control at
Media 252 McNICHOLS 356
Nonprofit Case: EuResist Applies Model-Based DSS to HIV
Research 357
Operational and Enterprise Systems Analysis Using Spreadsheets: Making the Business Case for
Part IV
and Processes BI 358
9 Operational Planning and Control Systems 255 12 IT Strategic Planning 359
Chapter 9 Link Library 256 Chapter 12 Link Library 360
Quick Look at Chapter 9, Operational Planning and Control Quick Look at Chapter 12, IT Strategic Planning 360
Systems 256 AstraZeneca Outsources R&D, Manufacturing, and IT 361
Scandinavian Food Retailer Axfood Integrates Operations 257 12.1 IT Strategies 362
9.1 Management Levels, Functions, and Operational 12.2 Corporate and IT Governance 365
Systems 258 12.3 Aligning IT with Business Strategy 368
9.2 Manufacturing and Production Systems 265 12.4 IT Strategic Planning Process 372
9.3 Sales and Marketing Systems 268 12.5 IT Outsourcing Strategies 379
,vi Contents
Business Case: Kimberly-Clark Maps IT to Its Global Business 14.1 IT’s Role in Reducing the Global Carbon
Plan 386 Footprint 420
Nonprofit Case: Health Information Exchange at UMass 14.2 IT Ethical Issues and Responsibility 427
Memorial 388 14.3 Connectivity Overload and the Culture of
Analysis Using Spreadsheets: Total Cost of Ownership (TCO): Distraction 430
Comparison of Third-Party Offshoring to Company-Owned 14.4 Future of IT in Business 432
Offshoring 388 Business Case: Energy Performance Management by Auto
Manufacturers 435
13 Business Process Management and Public Sector Case: Green Computing at Argonne’s Center for
Systems Development 390 Nanoscale Materials 436
Chapter 13 Link Library 391 Simulation Using Spreadsheets: Global Warming
Quick Look at Chapter 13, Business Process Management and Calculator 437
Systems Development 391
Microsoft International’s HR Team Optimizes Business
Glossary G-1
Processes 392 Organization Index O-1
13.1 Business Process Management (BPM) and
Service-Oriented Architecture (SOA) 394
Name Index N-1
13.2 Software Architecture and IS Design 398 Subject Index S-1
13.3 IT Project Management 404
13.4 Systems Development 406 Online Technology Guides*
Business Case: Pep Boys Accelerates Its Planning TG1 Hardware TG1-1 to TG1-18
Process 413 TG2 Software TG2-1 to TG2-20
Public Sector Case: Financial Industry Regulatory Authority (FINRA) TG3 Data and Databases TG3-1 to TG3-12
SOA Project 414 TG4 Telecommunications TG4-1 to TG4-14
Modeling Using ARIS Express and Blueprint: Modeling TG5 A Technical View of Systems Analysis
a Business Process and Brainstorming a Business and Design TG5-1 to TG5-12
Strategy 415
Online Cases* C-1
14 Global Ecology, Ethics, and Social
Responsibility 417
Chapter 14 Link Library 418
Quick Look at Chapter 14, Global Ecology, Ethics, and Social
Responsibility 418
IT’s Carbon Hot Spots 419
*The Technology Guides and the Cases can be accessed online at www.wiley.com/college/turban.
,PREFACE
Students graduating today face a tough job market—mak- 4. Telecommunications
ing it important that they develop the expertise and crit- 5. A Technical View of System Analysis and Design
ical thinking skills that give them a competitive edge.
Information Technology for Management, 8th edition is
designed to give students an edge when they face the New and Enhanced Features
challenges and opportunities that business careers present.
This textbook covers the content that students need to of this Text
learn and to be able to use for successful and sustainable Our plan was to develop a text that prepares students in all
management careers in any of the functional areas. For business majors to succeed in their careers. In developing the
example, students learn the business value and process of 8th edition of Information Technology for Management, we
actually doing mobile commerce, managing customer and have achieved our goal with the following changes in con-
supplier relationships, using business intelligence and tent, organization, and pedagogical features.
cloud computing applications, and many other IT-centric
business functions. • We streamlined and smoothed the flow throughout the
Each chapter reinforces important business princi- text, reducing the size of most chapters, as well as the
ples: What companies can do depends on what their infor- number of chapters and topics covered.
mation systems can do—and what information systems • Greater depth, simpler presentation. We cover the
can do depends on what managers understand about the most critical operational and strategic IT issues in
latest IT, such as mobile devices, wireless networks, social greater depth, and have eliminated less critical topics.
media, logistic systems, interoperability, collaboration, The 8th edition consists of fourteen chapters—all of
and Internet apps. As information technologies mature which are in the printed book, five online Tech
and become more widespread, they add to the global IT Guides, and 23 online cases.
infrastructure that support next-generation (next-gen) IT- • New emphasis on how to do things and explanation
based business strategies. at both the operational and strategic levels so students
Our goal is to develop a textbook that covers mean- are exposed to both perspectives. We discuss IT in-
ingful foundations and trends in information systems context so students develop a portfolio of IT skills.
and technology in-depth and in-context; and to provide
• New in-depth coverage of cutting edge topics like IT
students with a portfolio of IT skills to give them a com-
governance, connectivity blurring public and private
petitive edge when competing for jobs and job advance-
lives, sustainability, enterprise social media, and viral
ments. We believe that providing content in-context—i.e.,
and social marketing.
within a business context—is essential to the under-
standing and value of traditional and emerging informa- • New chapter on social networks and the Web 2.0
tion systems and technologies. Our emphasis is on both environment.
operational and strategic performance of all types of • We replaced chapter summaries with chapter pre-
organizations—for-profit, nonprofit, healthcare, and views. Each chapter starts with a Quick Look to intro-
government agencies. duce students to the business issues, challenges, and IT
solutions discussed in the chapter. In effect, instead of
a chapter summary, we provide a chapter preview of
Organization of the Book the most valuable and interesting topics, which are
explained in the chapter.
The book is divided into five parts, composed of 14 chap-
• We replaced introductory minicases with forward-
ters. On the book’s Web site (wiley.com/college/turban)
thinking For Class Discussion and Debate, which
are five Technology Guides (Tech Guides), each chapter’s
consist of two sections.The first section, named Scenarios
Link Library with clickable links, and 23 supplemental
for Brainstorming and Discussion, engage students in
cases. The Tech Guides cover:
critical thinking exercises. The second section, Debate,
1. Hardware presents two conflicting scenarios to be debated by
2. Software teams of students. These scenarios get students
3. Data and Databases immersed and engaged in discussions and debates of
vii
, viii Preface
IT issues and their ethical, managerial and/or compet- • For Class Discussion and Debate. Each chapter opens
itive implications. with scenarios for class discussion and team debate.
• After each chapter is a Business Case of a for-profit • “IT at Work” Boxes. The IT at Work boxes spotlight
enterprise and a NEW Public Sector or Nonprofit some real-world innovations and new technologies
Case. We provide all sectors because of the sharp that companies are using to solve organizational
growth of nonprofits and government agencies. dilemmas or create new business opportunities.
• NEW Analysis Using Spreadsheets or Analysis Using • Highlighted Icons. Icons appear throughout the text
Simulation activities in every chapter further engage to relate the topics covered within each chapter to
students in research, critical thinking, analysis, problem some major themes of the book. The icons alert stu-
solving, and decision making. dents to the related functional areas, to IT failures, and
to global and ethical issues.
Hallmark Features of this Text
Ethics-related topic
• Failures and Lessons Learned. We acknowledge the
fact that many systems fail. Many chapters include
discussions or examples of failures, the contributing
factors, and the lessons learned from them. Global enterprises and issues
• Solid Theoretical Backing. Throughout the book, we
present the theoretical foundation necessary for
understanding IT. Lessons to be learned from IT failures
• Up-to-Date Information. Every topic in the book has
been researched to find the most up-to-date informa-
tion and features.
Accounting example
• Economic Justification. IT is mature enough to stand
the difficult test of economic justification. It is our posi-
tion that IT investments must be scrutinized like any
other investment despite the difficulties of measuring
Finance example
technology benefits.
• Ethics and Social Responsibility. We take an expanded
look at global warming, ecology, and managers’
responsibility to individuals, society, and the environ- Government example
ment. For example, we did extensive research to
understand and then clearly explain how IT and users
can reduce carbon emissions and global warming that
Human resources management
harm the planet through green business practices and
example
data center designs that conserve natural resources.
Pedagogical Features Marketing example
We developed a number of pedagogical features to aid
student learning and tie together the themes of the book.
Production/operations management
• Link Libraries. Each chapter starts with a list of URLs example
that will be referenced in the chapter. Link Libraries
with live links to the referenced URLs may be found
on the book companion sites at www.wiley.com/ Service-company example (for example,
college/turban. health services, educational services, and
other non-manufacturing examples)
• Quick Look. The chapter outline provides a quick
indication of the major topics covered in the chapter.
• Learning Objectives. Learning objectives listed at the Material at the book’s Web site: wiley/com/
beginning of each chapter help students focus their college.turban
efforts and alert them to the important concepts that
will be discussed.
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