Answer & Explanation:A want to answer these questions use the book ( I upload it) and if you wants to answer the questions from out this book please you should put references you can use only one source, also you should use the book and put references.the first question:1) Elaborate what Management Information systems mean? You can go bydefinition, or area of work that is involved or what kind of job opportunitiesare available in field or explain its advancements. This is pretty wide topic,you can chose one direction and answer it. Make sure to include you references.the second question from chapter 1 ( Management Decision Problem) p 641. Snyders of Hanover, which sells about 80 million bags of pretzels, snack chips, and organic snack items each
year, had its financial department use spreadsheets and manual processes for much of its data gathering and
reporting. Hanover’s financial analyst would spend the entire final week of every month collecting
spreadsheets from the heads of more than 50 departments worldwide. She would then consolidate and
re-enter all the data into another spreadsheet, which would serve as the company’s monthly profit-and-loss
statement. If a department needed to update its data after submitting the spreadsheet to the main office, the
analyst had to return the original spreadsheet, then wait for the department to re-submit its data before
finally submitting the updated data in the consolidated document. Assess the impact of this situation on
business performance and management decision making.the third question from chapter 1 ( Management Decision Problem) p 642. Dollar General Corporation operates deep-discount stores offering housewares, cleaning supplies, clothing,
health and beauty aids, and packaged food, with most items selling for $1. Its business model calls for
keeping costs as low as possible. The company has no automated method for keeping track of inventory at
each store. Managers know approximately how many cases of a particular product the store is supposed to
receive when a delivery truck arrives, but the stores lack technology for scanning the cases or verifying the
item count inside the cases. Merchandise losses from theft or other mishaps have been rising and now
represent over 3 percent of total sales. What decisions have to be made before investing in an information
system solution?the fourth question from chapter 3 ( Management Decision Problem) p 1451. Macy’s, Inc., through its subsidiaries, operates approximately 840 department stores in the United
States. Its retail stores sell a range of merchandise, including apparel, home furnishings, and housewares.
Senior management has decided that Macy’s needs to tailor merchandise more to local tastes,
and that the colors, sizes, brands, and styles of clothing and other merchandise should be based on the
sales patterns in each individual Macy’s store. How could information systems help Macy’s management
implement this new strategy? What pieces of data should these systems collect to help management
make merchandising decisions that support this strategy?the fifth question from chapter 3 ( Management Decision Problem) p 1452. Despite aggressive campaigns to attract customers with lower mobile phone prices, T-Mobile has been
losing large numbers of its most lucrative two-year contract subscribers. Management wants to know
why so many customers are leaving T-Mobile and what can be done to entice them back. Are customers
deserting because of poor customer service, uneven network coverage, wireless service charges, or competition
from carriers with Apple iPhone service? How can the company use information systems to
help find the answer? What management decisions could be made using information from these

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Information Systems
Managing the Digital Firm
Kenneth C. Laudon
New York University
Jane P. Laudon
Azimuth Information Systems
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© Pearson Education Limited 2014
The rights of Kenneth C. Laudon and Jane P. Laudon to be identified as authors of this work have been asserted by them in accordance with the
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Authorised adaptation from the United States edition, entitled Management Information Systems: Managing the Digital Firm, 13th Edition,
ISBN: 978-0-13-305069-1 by Kenneth C. Laudon and Jane. P. Laudon, published by Pearson Education © 2014.
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the text.
ISBN 13: 978-0-273-78997-0
ISBN 10: 0-273-78997-X
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A catalogue record for this book is available from the British Library
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Typeset in 10.5/13 ITC Veljovic Std Book by Azimuth Interactive, Inc.
Printed and bound by Courier/Kendallville in The United States of America
The publisher’s policy is to use paper manufactured from sustainable forests.
About the Authors
Kenneth C. Laudon is a Professor of Information Systems at New York University’s Stern
School of Business. He holds a B.A. in Economics from Stanford and a Ph.D. from Columbia
University. He has authored twelve books dealing with electronic commerce, information
systems, organizations, and society. Professor Laudon has also written over forty articles
concerned with the social, organizational, and management impacts of information systems,
privacy, ethics, and multimedia technology.
Professor Laudon’s current research is on the planning and management of large-scale
information systems and multimedia information technology. He has received grants from
the National Science Foundation to study the evolution of national information systems at
the Social Security Administration, the IRS, and the FBI. Ken’s research focuses on enterprise system implementation, computer-related organizational and occupational changes in
large organizations, changes in management ideology, changes in public policy, and understanding productivity change in the knowledge sector.
Ken Laudon has testified as an expert before the United States Congress. He has been a
researcher and consultant to the Office of Technology Assessment (United States Congress),
Department of Homeland Security, and to the Office of the President, several executive
branch agencies, and Congressional Committees. Professor Laudon also acts as an in-house
educator for several consulting firms and as a consultant on systems planning and strategy
to several Fortune 500 firms.
At NYU’s Stern School of Business, Ken Laudon teaches courses on Managing the Digital
Firm, Information Technology and Corporate Strategy, Professional Responsibility (Ethics),
and Electronic Commerce and Digital Markets. Ken Laudon’s hobby is sailing.
Jane Price Laudon is a management consultant in the information systems area and the
author of seven books. Her special interests include systems analysis, data management,
MIS auditing, software evaluation, and teaching business professionals how to design and
use information systems.
Jane received her Ph.D. from Columbia University, her M.A. from Harvard University,
and her B.A. from Barnard College. She has taught at Columbia University and the New
York University Graduate School of Business. She maintains a lifelong interest in Oriental
languages and civilizations.
The Laudons have two daughters, Erica and Elisabeth, to whom this book is dedicated.
Brief Contents
Part One
Organizations, Management, and the Networked
Enterprise 31
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Information Systems in Global Business Today 32
Part Two
Information Technology Infrastructure 191
Chapter 5
Chapter 6
IT Infrastructure and Emerging Technologies 192
Chapter 7
Chapter 8
Telecommunications, the Internet, and Wireless Technology 276
Part Three
Key System Applications for the Digital Age 365
Chapter 9
Achieving Operational Excellence and Customer Intimacy: Enterprise
Applications 366
Chapter 10
Chapter 11
Chapter 12
E-Commerce: Digital Markets, Digital Goods 400
Part Four
Building and Managing Systems 515
Chapter 13
Chapter 14
Chapter 15
Building Information Systems 516
Global E-Business and Collaboration 70
Information Systems, Organizations, and Strategy 108
Ethical and Social Issues in Information Systems 150
Foundations of Business Intelligence: Databases and Information
Management 238
Securing Information Systems 322
Managing Knowledge 446
Enhancing Decision Making 482
Managing Projects 556
Managing Global Systems 590
(available on the Web at
References 591
Glossary 607
Indexes 621
Complete Contents
Part One
Organizations, Management, and the Networked
Enterprise 31
Chapter 1
Information Systems in Global Business Today 32
◆Opening Case: Efficiency in Wood Harvesting with Information Systems 33
The Role of Information Systems in Business Today 35
How Information Systems are Transforming Business 35 • What’s New
in Management Information Systems? 36 • Globalization Challenges and
Opportunities: A Flattened World 38
◆Interactive Session: Management Running the Business from the Palm of Your
Hand 39
The Emerging Digital Firm 41 • Strategic Business Objectives of
Information Systems 42
Perspectives on Information Systems 45
What Is an Information System? 45 • Dimensions of Information
Systems 48 • It Isn’t Just Technology: A Business Perspective on
Information Systems 52
◆Interactive Session: Technology UPS Competes Globally with Information
Technology 53
Complementary Assets: Organizational Capital and the Right Business
Model 56
Contemporary Approaches to Information Systems 58
Technical Approach 58 • Behavioral Approach 58 • Approach of This Text:
Sociotechnical Systems 59
Learning Track Modules: How Much Does IT Matter?, Information Systems and
Your Career, The Mobile Digital Platform 61
Review Summary 62 • Key Terms 63 • Review Questions 63 • Discussion
Questions 64 • Hands-On MIS Projects 64 • Video Cases 65 • Collaboration and
Teamwork Project 65
◆Case Study: Mashaweer 66
Chapter 2
Global E-business and Collaboration 70
◆Opening Case: Telus Embraces Social Learning 71
Business Processes and Information Systems 73
Business Processes 73 • How Information Technology Improves Business
Processes 75
Types of Information Systems 75
Systems for Different Management Groups 76
◆Interactive Session: Technology Schiphol International Hub 78
Systems for Linking the Enterprise 83
◆Interactive Session: Management Piloting Procter & Gamble from Decision
Cockpits 84
E-Business, E-Commerce, and E-Government 87
Systems for Collaboration and Social Business 88
What is Collaboration? 88 • What Is Social Business? 89 • Business
Benefits of Collaboration and Social Business 90 • Building a Collaborative
Culture and Business Processes 91 • Tools and Technologies for
Collaboration and Social Business 92
The Information Systems Function in Business 98
The Information Systems Department 99 • Organizing the Information
Systems Function 100
Learning Track Modules: Systems from a Functional Perspective, IT Enables
Collaboration and Teamwork, Challenges of Using Business Information Systems,
Organizing the Information Systems Function, Occupational and Career Outlook
for Information Systems Majors 2012–2018 100
Review Summary 101 • Key Terms 102 • Review Questions 102 • Discussion
Questions 103 • Hands-On MIS Projects 103 • Video Cases 104 • Collaboration
and Teamwork Project 104
◆Case Study: Modernization of NTUC Income 105
Chapter 3
Information Systems, Organizations, and Strategy 108
◆Opening Case: Will Sears’s Technology Strategy Work This Time? 109
Organizations and Information Systems 111
What Is an Organization? 112 • Features of Organizations 114
How Information Systems Impact Organizations and Business Firms 119
Economic Impacts 119 • Organizational and Behavioral Impacts 120 •
The Internet and Organizations 123 • Implications for the Design and
Understanding of Information Systems 123
Using Information Systems to Achieve Competitive Advantage 123
Porter’s Competitive Forces Model 124 • Information System Strategies
for Dealing with Competitive Forces 125 • The Internet’s Impact on
Competitive Advantage 128
◆Interactive Session: Organizations Technology Helps Starbucks Find New Ways
to Compete 129
The Business Value Chain Model 131
◆Interactive Session: Technology Automakers Become Software Companies 134
Synergies, Core Competencies, and Network-Based Strategies 136
Using Systems for Competitive Advantage: Management Issues 140
Sustaining Competitive Advantage 140 • Aligning IT with Business
Objectives 141 • Managing Strategic Transitions 142
Learning Track Module: The Changing Business Environment for Information
Technology 142
Review Summary 142 •Key Terms 143 • Review Questions 143 • Discussion
Questions 144 • Hands-On MIS Projects 144 • Video Cases 146 • Collaboration
and Teamwork Project 146
◆Case Study: Can This Bookstore Be Saved? 147
Chapter 4
Ethical and Social Issues in Information Systems 150
◆Opening Case: Ethical Issues Facing the Use of Technologies for the Aged
Community 151
Understanding Ethical and Social Issues Related to Systems 153
A Model for Thinking About Ethical, Social, and Political Issues 155 • Five
Moral Dimensions of the Information Age 155 • Key Technology Trends
That Raise Ethical Issues 156
Ethics in an Information Society 159
Basic Concepts: Responsibility, Accountability, and Liability 159 • Ethical
Analysis 160 • Candidate Ethical Principles 161 • Professional Codes of
Conduct 161 • Some Real-World Ethical Dilemmas 162
The Moral Dimensions of Information Systems 162
Information Rights: Privacy and Freedom in the Internet Age 162 •
Property Rights: Intellectual Property 169
◆Interactive Session: Technology Life on the Grid: iPhone Becomes iTrack 170
Accountability, Liability, and Control 174 • System Quality: Data
Quality and System Errors 176 • Quality of Life: Equity, Access, and
Boundaries 176
◆Interactive Session: Organizations Monitoring in the Workplace 179
Learning Track Module: Developing a Corporate Code of Ethics for Information
Systems 183
Review Summary 184 • Key Terms 184 • Review Questions 185 • Discussion
Questions 185 • Hands-On MIS Projects 185 • Video Cases 187 • Collaboration
and Teamwork Project 187
◆Case Study: Facebook: It’s About the Money 188
Part Two
Information Technology Infrastructure 191
Chapter 5
IT Infrastructure and Emerging Technologies 192
◆Opening Case: Reforming the Regulatory System for Construction Permits 193
IT Infrastructure 195
Defining IT Infrastructure 195 • Evolution of IT Infrastructure 197 •
Technology Drivers of Infrastructure Evolution 201
Infrastructure Components 206
Computer Hardware Platforms 207 • Operating System Platforms 207 •
Enterprise Software Applications 208 • Data Management and Storage 208
• Networking/Telecommunications Platforms 208 • Internet Platforms 209
• Consulting and System Integration Services 209
Contemporary Hardware Platform Trends 210
The Mobile Digital Platform 210 • Consumerization of IT and BYOD 210 •
Grid Computing 211 • Virtualization 211
◆Interactive Session: Management Should You Use Your iPhone for Work? 212
Cloud Computing 213 • Green Computing 216 • High-Performance and
Power-Saving Processors 216
◆Interactive Session: Organizations Nordea Goes Green with IT 217
Autonomic Computing 218
Contemporary Software Platform Trends 219
Linux and Open Source Software 219 • Software for the Web: Java, HTML,
and HTML5 219 • Web Services and Service-Oriented Architecture 221 •
Software Outsourcing and Cloud Services 223
Management Issues 225
Dealing with Platform and Infrastructure Change 225 • Management and
Governance 226 • Making Wise Infrastructure Investments 226
Learning Track Modules: How Computer Hardware and Software Work, Service
Level Agreements, The Open Source Software Initiative, Comparing Stages in IT
Infrastructure Evolution, Cloud Computing 229
Review Summary 230 • Key Terms 231 • Review Questions 231 • Discussion
Questions 232 • Hands-On MIS Projects 232 • Video Cases 233 • Collaboration
and Teamwork Project 233
◆Case Study: Should Businesses Move to the Cloud? 234
Chapter 6
Foundations of Business Intelligence: Databases and
Information Management 238
◆Opening Case: BAE Systems 239
Organizing Data in a Traditional File Environment 241
File Organization Terms and Concepts 241 • Problems with the Traditional
File Environment 242
The Database Approach to Data Management 244
Database Management Systems 244 • Capabilities of Database Management
Systems 249 • Designing Databases 251
Using Databases to Improve Business Performance and Decision
Making 254
The Challenge of Big Data 254 • Business Intelligence Infrastructure 254 •
Analytical Tools: Relationships, Patterns, Trends 257
◆Interactive Session: Technology Big Data, Big Rewards 261
Databases and the Web 262
◆ Interactive Session: Organizations Controversy Whirls Around the Consumer
Product Safety Database 264
Managing Data Resources 265
Establishing an Information Policy 265 • Ensuring Data Quality 266
Learning Track Modules: Database Design, Normalization, and EntityRelationship Diagramming, Introduction to SQL, Hierarchical and Network Data
Models 267
Review Summary 268 • Key Terms 269 • Review Questions 269 • Discussion
Questions 270 • Hands-On MIS Projects 270 • Video Cases 272 • Collaboration
and Teamwork Project 272
◆Case Study: Lego: Embracing Change by Combining BI with a Flexible
Information System 273
Chapter 7
Telecommunications, the Internet, and Wireless
Technology 276
◆Opening Case: RFID and Wireless Technology Speed Up Production at
Continental Tires 277
Telecommunications and Networking in Today’s Business World 279
Networking and Communication Trends 279 • What Is a Computer
Network? 280 • Key Digital Networking Technologies 282
Communications Networks 285
Signals: Digital vs. Analog 285 • Types of Networks 286 • Transmission
Media and Transmission Speed 287
The Global Internet 288
What Is the Internet? 288 • Internet Addressing and Architecture 288
◆Interactive Session: Organizations The Battle over Net Neutrality 292
Internet Services and Communication Tools 293
◆Interactive Session: Management Monitoring Employees on Networks:
Unethical or Good Business? 296
The Web 298
The Wireless Revolution 307
Cellular Systems 307 • Wireless Computer Networks and Internet
Access 308 • RFID and Wireless Sensor Networks 310
Learning Track Modules: LAN Topologies, Broadband Network Services and
Technologies, Cellular System Generations, Wireless Applications for Customer
Relationship Management, Supply Chain Management, and Healthcare, Web
2.0 313
Review Summary 314 • Key Terms 315 • Review Questions 315 • Discussion
Questions 316 • Hands-On MIS Projects 316 • Video Cases 317 • Collaboration
and Teamwork Project 317
◆Case Study: Apple, Google, and Microsoft Battle for Your Internet
Experience 318
Chapter 8
Securing Information Systems 322
◆Opening Case: You’re on LinkedIn? Watch Out! 323
System Vulnerability and Abuse 325
Why Systems Are Vulnerable 325 • Malicious Software: Viruses, Worms,
Trojan Horses, and Spyware 328 • Hackers and Computer Crime 330 •
Internal Threats: Employees 335 • Software Vulnerability 335
◆Interactive Session: Organizations Stuxnet and the Changing Face of
Cyberwarfare 336
Business Value of Security and Control 338
Legal and Regulatory Requirements for Electronic Records
Management 338 • Electronic Evidence and Computer Forensics 339
Establishing a Framework for Security and Control 340
Information Systems Controls 340 • Risk Assessment 341 • Security
Policy 342 • Disaster Recovery Planni …
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