, Princ ipl e s of ralph
BUSINESS
Stair
INFORMATION
George
Reynolds
SYSTEMS Chesney
Thomas
fourth edition
Australia • Brazil • Canada • Mexico • Singapore • United Kingdom • United States
Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
74605_fm_ptg01_i-xxiv.indd 1 9/15/20 7:46 PM
, This is an electronic version of the print textbook. Due to electronic rights restrictions,
some third party content may be suppressed. Editorial review has deemed that any suppressed
content does not materially affect the overall learning experience. The publisher reserves the right
to remove content from this title at any time if subsequent rights restrictions require it. For
valuable information on pricing, previous editions, changes to current editions, and alternate
formats, please visit www.cengage.com/highered to search by ISBN#, author, title, or keyword for
materials in your areas of interest.
Important Notice: Media content referenced within the product description or the product
text may not be available in the eBook version.
Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
, Principles of Business Information © 2021, Cengage Learning EMEA
Systems 4th Edition
Adapted from Principles of Information Systems, 13th Edition,
US authors: Ralph M. Stair and
by Ralph M. Stair and George W. Reynolds. Copyright © Cengage Learning,
George W. Reynolds
Inc., 2018. All Rights Reserved.
Adapter: Thomas Chesney
WCN: 02-300
ALL RIGHTS RESERVED. No part of this work may be reproduced,
Publisher: Annabel Ainscow transmitted, stored, distributed or used in any form or by any means,
electronic, mechanical, photocopying, recording or otherwise, without the
List Manager: Abigail Coppin
prior written permission of Cengage Learning or under license in the U.K.
Editorial Assistant: Yasmin Goosey from the Copyright Licensing Agency Ltd.
Marketing Manager: Anna Reading The Author(s) and the Adapter(s) have asserted the right under the
Copyright Designs and Patents Act 1988 to be identified as Author(s) and
Content Project Manager: Melissa Beavis
Adapter(s) of this Work.
Manufacturing Manager: Elaine Bevan
Typesetter: Lumina Datamatics, Inc.
For product information and technology assistance, contact us at
Text Design: Lumina Datamatics, Inc. emea.info@cengage.com
Cover Design: Jonathan Bargus For permission to use material from this text or product and for permission
queries, email emea.permissions@cengage.com
Cover Image(s): ©Yaroslav Kushta/Getty Images
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library.
ISBN: 978-1-4737-7460-5
Cengage Learning, EMEA
Cheriton House, North Way
Andover, Hampshire, SP10 5BE
United Kingdom
Cengage Learning is a leading provider of customized learning solutions
with employees residing in nearly 40 different countries and sales in more
than 125 countries around the world. Find your local representative at:
www.cengage.co.uk.
To learn more about Cengage platforms and services, register or access
your online learning solution, or purchase materials for your course,
visit www.cengage.co.uk
Printed in China by RR Donnelley
Print Number: 01 Print Year: 2020
Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
74605_fm_ptg01_i-xxiv.indd 2 9/22/20 3:36 PM
, Brief Contents
1 Overview 1
1 An Introduction to Information Systems 3
2 Information Systems in Organizations 35
2 Information Technology Concepts 65
3 Hardware: Input, Processing, Output and Storage Devices 67
4 Software: Systems and Application Software 113
5 Organizing and Storing Data 155
6 Computer Networks 185
3 Business Information Systems 231
7 Operational Systems 233
8 Management Information and Decision Support Systems 265
9 Knowledge Management and Specialized Information Systems 305
10 Pervasive Computing 335
4 Systems Development 365
11 Systems Analysis 367
12 Systems Design and Implementation 411
5 Information Systems in Business and Society 449
13 Security, Privacy and Ethical Issues in Information Systems 451
iii
Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
74605_fm_ptg01_i-xxiv.indd 3 9/15/20 7:47 PM
, Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
74605_fm_ptg01_i-xxiv.indd 4 9/15/20 7:47 PM
, Contents
Preface xiii Systems Design, Implementation, and
Approach of the Text xiii Maintenance and Review 20
Goals of this Text xiv Information Systems in Society, Business and
Changes to the Fourth Edition xvii Industry 21
Structure of the Text xix Ethical and Societal Issues: Ethical
About the Authors xxi Robots 21
Acknowledgements xxi Security, Privacy and Ethical Issues in
Digital Resources Page xxii Information Systems and the Internet 22
Computer and Information Systems
Literacy 23
Information Systems in the Functional Areas
of Business 24
1 Overview 1 Information Systems in Industry 24
Global Challenges in Information Systems 24
Infographic 1: Increasing size of data 25
Summary 27
Self-Assessment Test 29
1 An Introduction to Information Review Questions 29
Systems 3 Discussion Questions 29
Principles 3 Web Exercises 29
Learning Objectives 3 Case One: Boaty McBoatface: The Online
Why Learn About Information Systems? 4 Survey That Went Viral 30
Case Two: Health Information Systems in South
What is an Information System? 4
Africa 31
What is a System? 4
Case Three: Australian Drones Join The Postal
What is Information? 6
Service 32
What is an Information System? 6
Notes 33
The Characteristics of Valuable Information 7
Manual and Computerized Information
Systems 8
Business Information Systems 12
2 Information Systems
Information Systems @ Work: Translating in Organizations 35
Shakespeare into Xhosa 12 Principles 35
Enterprise Systems: Transaction Processing Learning Objectives 35
Systems and Enterprise Resource Why Learn About Information Systems
Planning 13 in Organizations? 36
MIS and DSS 16 An Introduction to Organizations 36
Knowledge Management, Artificial Intelligence, Organizational Structures 38
Expert Systems and Virtual Reality 17 Organizational Change 41
Systems Development 19 Ethical and Societal Issues: Customers Out
Systems Investigation and Analysis 20 of Pocket After Direct Transfer Error 43
v
Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
74605_fm_ptg01_i-xxiv.indd 5 9/15/20 7:47 PM
, vi
Contents
Reengineering and Continuous Improvement 45 Hardware Components in Action 70
User Satisfaction and Technology Acceptance 46 Processing and Memory Devices: Power,
Information Systems @ Work: Neto Helps Speed and Capacity 71
Australian Small Businesses Get Online 47 Processing Characteristics and Functions 71
The Applications Portfolio 48 Memory Characteristics and Functions 72
Success Factors 49 Multiprocessing 74
Competitive Advantage 50 Parallel Computing 74
Factors That Lead Firms to Seek Competitive Secondary Storage 75
Advantage 50 Access Methods 76
Evaluating IS 51 Secondary Storage Devices 76
Productivity 51 Enterprise Storage Options 78
Return on Investment and the Value Input and Output Devices: The Gateway
of Information Systems 52 to Computer Systems 81
Careers in Information Systems 53 Characteristics and Functionality 82
Operations 53 Input Devices 83
Systems Development 53 Output Devices 87
Support 55 Computer System Types 91
Information Service Units 55 Portable Computers 93
Typical IS Titles and Functions 55 Nonportable Single-User Computers 95
Summary 57 Multiple-User Computer Systems 96
Self-Assessment Test 58 Information Systems @ Work: 3D Printers
Review Questions 58 Arrive in the Operating Theatre 97
Discussion Questions 58
Green Computing 100
Web Exercises 58
Ethical and Societal Issues: Mobile
Case One: Nailed it! Instagram and Cloud
Technology Fighting Human Trafficking 102
Computing Ensure Success 59
Summary 103
Case Two: Crosswords and Cybersecurity 60
Self-Assessment Test 105
Case Three: Raining Wine from the Cloud 61
Review Questions 105
Notes 62
Discussion Questions 105
World Views Case: ABAZONG Training and
Web Exercises 105
Consulting (Pty) Ltd Helps Organizations and
Case One: Moore’s Law About to be
Users With Information Security Consultation
Overturned 106
and Training Awareness 63
Case Two: Sen.Se is Helping to Create the
Internet of Things 107
Case Three: The €30 computer 108
Notes 109
Information
2 Technology
4 Software: Systems and Application
Concepts 65 Software 113
Principles 113
Learning Objectives 113
3 Hardware: Input, Processing, Output Why Learn About Systems and Application
and Storage Devices 67 Software? 114
Principles 67 An Overview of Software 114
Learning Objectives 67 Systems Software 114
Why Learn About Hardware? 68 Application Software 115
Computer Systems: Integrating the Power Supporting Individual, Group and
of Technology 68 Organizational Goals 115
Hardware Components 69 Systems Software 116
Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
74605_fm_ptg01_i-xxiv.indd 6 9/18/20 4:54 PM
, vii
Contents
Operating Systems 116 Manipulating Data and Generating Reports 165
Current Operating Systems 120 Database Administration 166
Information Systems @ Work: Privacy for Selecting a Database Management System 167
Everyone, Everywhere 122 Using Databases with Other Software 167
Workgroup Operating Systems 123 Database Applications 168
Enterprise Operating Systems 124 Linking Databases to the Internet 168
Embedded Operating Systems 124 Big Data Applications 168
Utility Programs 125 Data Warehouses 169
Middleware 127 Ethical and Societal Issues: Three Words and
Application Software 127 a Few Symbols Cost a Business €40m 170
Overview of Application Software 127 Data Mining 171
Personal Application Software 129 Business Intelligence 172
Mobile Application Software 133 Information Systems @ Work: The IBM
Workgroup Application Software 134 Quantum Experience 173
Enterprise Application Software 135 Distributed Databases 175
Application Software for Information, Decision Online Analytical Processing (OLAP) 176
Support and Competitive Advantage 136 Visual, Audio and Other Database Systems 177
Programming Languages 136 Summary 178
Ethical and Societal Issues: Adblockers: Self-Assessment Test 179
Salvation for Web Users Or a High-Tech Review Questions 180
Protection Racket? 137 Discussion Questions 180
The Evolution of Programming Languages 138 Web Exercises 180
Visual, Object-Oriented and Artificial Case One: Click Here to Reset Your Password 180
Intelligence Languages 138 Case Two: Machine Learning: How Many Books
Have You Read? 182
Software Issues and Trends 140
Case Three: Protect Your Data: Life is Valuable 183
Software Bugs 140
Notes 184
Copyrights and Licences 141
Freeware and Open-Source Software 141
Software Upgrades 143 6 Computer Networks 185
Global Software Support 144
Principles 185
Summary 144 Learning Objectives 185
Self-Assessment Test 146 Why Learn About Computer Networks? 186
Review Questions 147
Telecommunications 186
Discussion Questions 147
Channel Bandwidth 187
Web Exercises 147
Guided Transmission Media Types 187
Case One: Software Cuts Legal Costs 147
Wireless Transmission Media Types 189
Case Two: Ready. Steady. Go! 149
Telecommunications Hardware 193
Case Three: Software Error Dooms Spacecraft 150
Notes 151 Networks and Distributed Processing 195
Network Types 195
Ethical and Societal Issues: The Great British
5 Organizing and Storing Data 155 Data Grab 197
Principles 155 Distributed Processing 200
Learning Objectives 155 Client/Server Systems 200
Why Learn About Organizing Data? 156 Communications Software 201
Data Management and Data Modelling 156 Software-Defined Networking 203
Relationships Between Tables 158 Securing Data Transmission 203
Designing Relational Databases 159 Virtual Private Network (VPN) 205
Database Management Systems 163 The Internet 205
Creating and Modifying the Database 163 How the Internet Works 206
Storing and Retrieving Data 164 Internet Applications 208
Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
74605_fm_ptg01_i-xxiv.indd 7 9/15/20 7:47 PM
, viii
Contents
The World Wide Web 208 Traditional Transaction Processing
Information Systems @ Work: Tech Firms Applications 245
Plan the Highest Capacity Atlantic Data Order Processing Systems 245
Link 211 Purchasing Systems 247
Email 215 Accounting Systems 248
Telnet and FTP 215 Electronic and Mobile Commerce 249
Cloud Computing 215 Electronic Commerce 249
Intranets and Extranets 218 Mobile Commerce 250
The Internet of Things 219 Ethical and Societal Issues: Controlling
Summary 221 Transactions with Biometrics 251
Self-Assessment Test 223 Production and Supply Chain
Review Questions 223 Management 252
Discussion Questions 224
Customer Relationship Management and
Web Exercises 224
Sales Ordering 254
Case One: Instant Messaging is Easier to Secure
Than Email 224 Financial and Managerial Accounting 255
Case Two: Anatomy of a Hack 225 Hosted Software Model for Enterprise
Case Three: Digital Cartography Gets It Wrong 226 Software 256
Notes 227 International Issues Associated with
World Views Case: IT Purchase Decisions: Operational Systems 256
What Should You Buy? 229 Different Languages and Cultures 257
Disparities in Information System
Infrastructure 257
Varying Laws and Customs Rules 257
Multiple Currencies 257
Business Summary 258
3 Information
Self-Assessment Test 259
Review Questions 259
Systems 231 Discussion Questions 260
Web Exercises 260
Case One: Non-Linear Presentations 260
Case Two: When Stock Becomes a Liability 262
7 Operational Systems 233
Case Three: Netflix Analytics Creates Content
Principles 233 That We’ll Watch 263
Learning Objectives 233 Notes 264
Why Learn About
Operational Systems? 234 8 Management Information and
Introduction 234 Decision Support Systems 265
Enterprise Resource Planning 235 Principles 265
Advantages of ERP Systems 235 Learning Objectives 265
Disadvantages of ERP Systems 236 Why Learn About Management
ERP for Small- and Medium-Sized Information Systems and Decision Support
Enterprises (SMEs) 238 Systems? 266
Transaction Processing Systems 238 Decision Making and Problem Solving 266
Traditional Transaction Processing Methods Programmed versus Non-Programmed
and Objectives 239 Decisions 267
Transaction Processing Activities 241 Optimization, Satisficing and Heuristic
Information Systems @ Work: Fast Food Approaches 268
Chain Yonghe King Upgrades Their Sense and Respond 268
POS 244 Big Data 269
Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
74605_fm_ptg01_i-xxiv.indd 8 9/15/20 7:47 PM