Could you increase your knowledge—and raise your grade—i.docx

Could you increase your knowledge—
and raise your grade—if you…
…used an online tutorial that assisted you with Access
and Excel skills mapped to this book?
…learned to use Microsoft’s SharePoint, the number one
organizational tool for file sharing and collaboration?
…had flashcards and student PowerPoints
to prepare for lectures?
Visit , a valuable tool
for your student success and your
business career.
www.myMISlab.com
www.myMISlab.com
INTEGRATING BUSINESS WITH TECHNOLOGY
By completing the projects in this text, students will be able to
demonstrate business knowledge, application
software proficiency, and Internet skills.These projects can be
used by instructors as learning assessment tools
and by students as demonstrations of business, software, and
problem-solving skills to future employers. Here

are some of the skills and competencies students using this text
will be able to demonstrate:
Business Application skills: Use of both business and software
skills in real-world business applications.
Demonstrates both business knowledge and proficiency in
spreadsheet, database, and Web page/blog creation
tools.
Internet skills: Ability to use Internet tools to access
information, conduct research, or perform online
calculations and analysis.
Analytical, writing and presentation skills: Ability to research a
specific topic, analyze a problem, think
creatively, suggest a solution, and prepare a clear written or
oral presentation of the solution, working either
individually or with others in a group.
Business Application Skills
BUSINESS SKILLS
Finance and Accounting
Financial statement analysis
Pricing hardware anrj software
Technology rent vs. buy decision
Total Cost of Ownership (TCO) analysis
Analyzing telecommunications services anrj costs
Risk assessment

Retirement planning
Capital budgeting
Human Resources
Employee training and skills tracking
Job posting database and Web page
Manufacturing and Production
Analyzing supplier performance and pricing
Inventory management
Bill of materials cost sensitivity analysis
Sales and Marketing
Sales trend analysis
SOFTWARE SKILLS
Spreadsheet charts
Spreadsheet formulas
Spreadsheet downloading and formatting

Spreadsheet charts and formulas
Spreadsheet formulas and logical functions
Database design
Database querying and reporting
Database design
Web page design and creation
Spreadsheet date functions
Database functions
Data filtering
Importing data into a database
Spreadsheet data tables
CHAPTER
Chapter 2*
Chapter 10
Chapter 5
Chapter 5*
Chapter 7

Chapter 8
Chapter 11
Chapter 14
Chapter 14*
Chapter 13*
Chapter 15
Chapter 2
Chapter 6
Chapter 12*
Chapter 1
Customer reservation system
Improving marketing decisions
Customer profiling
Customer service analysis
Sales lead and customer analysis
Blog creation and design

Spreadsheet pivot tables
Database design
Database design
Database design
Blog creation tool
Chapter 3
Chapter 12
Chapter 6*
Chapter 9
Chapter 13
Chapter 4
1IIICI MCI <3IVMI»
Using online software tools to calculate shipping costs
Using online interactive mapping software to plan efficient
transportation routes
Researching product information and evaluating Web sites for
auto sales
Using Internet newsgroups for marketing

Researching travel costs using online travel sites
Searching online databases for products and services
Using Web search engines for business research
Researching and evaluating business outsourcing services
Researching and evaluating supply chain management services
Evaluating e-commerce hosting services
Using shopping bots to compare product price, features, and
availability
Using online software tools for retirement planning
Redesigning business processes for Web procurement
Researching real estate prices
Researching international markets and pricing
A n?tlvtif*5il A/ pit inn a riH Pcocontatinn Qlf i 1
Ic"^MMcnyniiCH, w riniiy cti lu rrociiidiiuii OIM o
BUSINESS PROBLEM
Management analysis of a business
Value chain and competitive forces analysis
Business strategy formulation
Formulating a corporate privacy policy

Employee productivity analysis
Disaster recovery planning
Locating and evaluating suppliers
Developing an e-commerce strategy
Identifying knowledge management opportunities
Identifying international markets
*Dirt Bikes Running Case on MyMISLab
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Chapter 11

Chapter 12
Chapter 13
Chapter 14
Chapter 15
CHAPTER
Chapter 1
Chapter 3
Chapter 4
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Chapter 11
Chapter 15
!"#$%&'()%#*+)*+#,*'--.%-)/+%0-'*1%
Management
Information

Systems
MANAGING THE DIGITAL FIRM
TWELFTH EDITION
Kenneth C. Laudon
New York University
Jane P. Laudon
Azimuth Information Systems
Prentice Hall
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Credits and acknowledgments borrowed from other sources and
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page P1).
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Copyright © 2012, 2010, 2007, 2006 by Pearson Education,
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Pearson Prentice Hall™ is a trademark of Pearson Education,
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10 9 8 7 6 5 4 3 2 1
ISBN-13: 978-0-13-214285-4
ISBN-10: 0-13-214285-6
A b o u t t h e A u t h o r s
iii
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 enter-
prise system implementation, computer-related organizational
and occupational changes in
large organizations, changes in management ideology, changes
in public policy, and under-
standing 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 lan-
guages and civilizations.
The Laudons have two daughters, Erica and Elisabeth, to whom
this book is dedicated.
B r i e f C o n t e n t s
Part One Organizations, Management, and the Networked
Enterprise 1
Chapter 1 Information Systems in Global Business Today 2
Chapter 2 Global E-Business and Collaboration 40
Chapter 3 Information Systems, Organizations, and Strategy 78
Chapter 4 Ethical and Social Issues in Information Systems 120
Part Two Information Technology Infrastructure 161
Chapter 5 IT Infrastructure and Emerging Technologies 162
Chapter 6 Foundations of Business Intelligence: Databases and
Information

Management 206
Chapter 7 Telecommunications, the Internet, and Wireless
Technology 244
Chapter 8 Securing Information Systems 290
Part Three Key System Applications for the Digital Age 333
Chapter 9 Achieving Operational Excellence and Customer
Intimacy: Enterprise
Applications 334
Chapter 10 E-Commerce: Digital Markets, Digital Goods 370
Chapter 11 Managing Knowledge 414
Chapter 12 Enhancing Decision Making 452
Part Four Building and Managing Systems 485
Chapter 13 Building Information Systems 486
Chapter 14 Managing Projects 526
Chapter 15 Managing Global Systems 558
(available on the Web at www.pearsonhighered.com/laudon)
References R 1
Glossary G 1
Photo and Screen Shot Credits P 1
Indexes I 1
iv
www.pearsonhighered.com/laudon
v
C o m p l e t e C o n t e n t s

Part One Organizations, Management, and the Networked
Enterprise 1
Chapter 1 Information Systems in Global Business Today 2
!Opening Case: The New Yankee Stadium Looks to the Future 3
1.1 The Role of Information Systems in Business Today 5
How Information Systems Are Transforming Business 5 •
What’s New In
Management Information Systems? 6 • Globalization
Challenges and
Opportunities: A Flattened World 8
!Interactive Session: Management MIS in Your Pocket 10
The Emerging Digital Firm 11 • Strategic Business Objectives
of
Information Systems 12
1.2 Perspectives on Information Systems 15
What is an Information System? 15 • Dimensions of
Information
Systems 17
!Interactive Session: Technology UPS Competes Globally with
Information
Technology 22
It Isn’t Just Technology: A Business Perspective on Information
Systems 24 •
Complementary Assets: Organizational Capital and the Right
Business
Model 26
1.3 Contemporary Approaches to Information Systems 28
Technical Approach 29 • Behavioral Approach 29 • Approach
of This Text:

Sociotechnical Systems 29
1.4 Hands-on MIS Projects 31
Management Decision Problems 31 • Improving Decision
Making: Using
Databases to Analyze Sales Trends 31 • Improving Decision
Making: Using
the Internet to Locate Jobs Requiring Information Systems
Knowledge 32
Learning Track Modules: How Much Does IT Matter?;
Information Systems and
Your Career, The Emerging Mobile Digital Platform 32
Review Summary 33 • Key Terms 34 • Review Questions 34 •
Discussion
Questions 35 • Video Cases 35 • Collaboration and Teamwork:
Creating a Web Site
for Team Collaboration 35
!Case Study: What’s the Buzz on Smart Grids? 36
Chapter 2 Global E-Business and Collaboration 40
!Opening Case: America’s Cup 2010: USA Wins with
Information Technology 41
2.1 Business Processes and Information Systems 43
Business Processes 43 • How Information Technology
Enhances Business
Processes 44
2.2 Types of Business Information Systems 45
Systems for Different Management Groups 45 • Systems for
Linking the
Enterprise 51

!Interactive Session: Organizations Domino’s Sizzles with Pizza
Tracker 52
E-business, E-commerce, and E-government 55
2.3 Systems for Collaboration and Teamwork 55
What is Collaboration? 56 • Business Benefits of Collaboration
and
Teamwork 57 • Building a Collaborative Culture and Business
Processes 58
• Tools and Technologies for Collaboration and Teamwork 59
!Interactive Session: Management Virtual Meetings: Smart
Management 62
2.4 The Information Systems Function in Business 68
The Information Systems Department 68 • Organizing the
Information
Systems Function 69
Making: Using a
Spreadsheet to Select Suppliers 70 • Achieving Operational
Excellence:
Using Internet Software to Plan Efficient Transportation Routes
71
Learning Track Modules: Systems from a Functional
Perspective; IT Enables
Collaboration and Teamwork; Challenges of Using Business
Information Systems;
Organizing the Information Systems Function 72
Review Summary 72 • Key Terms 73 • Review Questions 73 •
Discussion
Questions 74 • Video Cases 74 • Collaboration and Teamwork:
Describing

Management Decisions and Systems 74
!Case Study: Collaboration and Innovation at Procter & Gamble
75
Chapter 3 Information Systems, Organizations, and Strategy 78
!Opening Case: Verizon or AT&T—Which Company Has the
Best Digital
Strategy? 79
3.1 Organizations and Information Systems 81
What Is an Organization? 82 • Features of Organizations 84
3.2 How Information Systems Impact Organizations and
Business Firms 89
Economic Impacts 89 • Organizational and Behavioral Impacts
91 • The
Internet and Organizations 93 • Implications for the Design and
Understanding of Information Systems 94
3.3 Using Information Systems to Achieve Competitive
Advantage 94
Porter’s Competitive Forces Model 95
Information System Strategies for Dealing with Competitive
Forces 96 •
The Internet’s Impact on Competitive Advantage 99
!Interactive Session: Organizations How Much Do Credit Card
Companies Know
About You? 100
The Business Value Chain Model 102
!Interactive Session: Management Is the iPad a Disruptive
Technology? 103
Synergies, Core Competencies, and Network-Based Strategies

106
vi Contents
3.4 Using Systems for Competitive Advantage: Management
Issues 111
Sustaining Competitive Advantage 111 • Aligning IT with
Business
Objectives 111 • Managing Strategic Transitions 112
Making: Using a
Database to Clarify Business Strategy 113 • Improving
Decision Making:
Using Web Tools to Configure and Price an Automobile 114
Learning Track Module: The Changing Business Environment
for Information
Technology 115
Review Summary 115 • Key Terms 116 • Review Questions
116 • Discussion
Questions 117 • Video Cases 117 • Collaboration and
Teamwork: Identifying
Opportunities for Strategic Information Systems 117
!Case Study: Will TV Succumb to the Internet? 118
Chapter 4 Ethical and Social Issues in Information Systems 120
!Opening Case: Behavioral Targeting And Your Privacy: You’re
the Target 121
4.1 Understanding Ethical and Social Issues Related to Systems
123
A Model for Thinking About Ethical, Social, and Political

Issues 124 • Five
Moral Dimensions of the Information Age 125 • Key
Technology Trends
That Raise Ethical Issues 126
4.2 Ethics in an Information Society 129
Basic Concepts: Responsibility, Accountability, and Liability
129 • Ethical
Analysis 129 • Candidate Ethical Principles 130 • Professional
Codes of
Conduct 131 • Some Real-World Ethical Dilemmas 131
4.3 The Moral Dimensions of Information Systems 131
Information Rights: Privacy and Freedom in the Internet Age
131 •
Property Rights: Intellectual Property 138 • Accountability,
Liability, and
Control 141 • System Quality: Data Quality and System Errors
143 •
Quality of Life: Equity, Access, and Boundaries 143
!Interactive Session: Organizations The Perils of Texting 147
!Interactive Session: Technology Too Much Technology 151
Management Decision Problems 153 • Achieving Operational
Excellence:
Creating a Simple Blog 154 • Improving Decision Making:
Using Internet
Newsgroups for Online Market Research 154
Learning Track Modules: Developing a Corporate Code of
Ethics for Information
Systems 155
Review Summary 155 • Key Terms 155• Review Questions
156 • Discussion

Teamwork: Developing a
Corporate Ethics Code 156
!Case Study: When Radiation Therapy Kills 157
Contents vii
Part Two Information Technology Infrastructure 161
Chapter 5 IT Infrastructure and Emerging Technologies 162
!Opening Case: BART Speeds Up with a New IT Infrastructure
163
5.1 IT Infrastructure 165
Defining IT Infrastructure 165 • Evolution of IT Infrastructure
166 •
Technology Drivers of Infrastructure Evolution 170
5.2 Infrastructure Components 175
Computer Hardware Platforms 175 • Operating System
Platforms 177 •
Enterprise Software Applications 177
!Interactive Session: Technology New to the Touch 178
Data Management and Storage 179 •
Networking/Telecommunications
Platforms 180 • Internet Platforms 180 • Consulting and
System
Integration Services 181
5.3 Contemporary Hardware Platform Trends 181
The Emerging Mobile Digital Platform 181 • Grid Computing
182 •
Virtualization 182 • Cloud Computing 183 • Green Computing

184 •
Autonomic Computing 185 • High-performance and Power-
saving
Processors 185
!Interactive Session: Organizations Is Green Computing Good
for Business? 186
5.4 Contemporary Software Platform Trends 187
Linux and Open Source Software 187 • Software for the Web:
Java and Ajax
188 • Web Services and Service-Oriented Architecture 189 •
Software
Outsourcing and Cloud Services 191
5.5 Management Issues 194
Dealing with Platform and Infrastructure Change 194 •
Management and
Governance 194 • Making Wise Infrastructure Investments 195
Making: Using a
Spreadsheet to Evaluate Hardware and Software Options 198 •
Improving
Decision Making: Using Web Research to Budget for a Sales
Conference 199
Learning Track Modules: How Computer Hardware and
Software Work; Service
Level Agreements; The Open Source Software Initiative;
Comparing Stages in IT
Infrastructure Evolution 200
202 • Discussion

Teamwork: Evaluating Server
Operating Systems 202
!Case Study: Salesforce.com: Cloud Services Go Mainstream
203
Chapter 6 Foundations of Business Intelligence: Databases and
Information Management 206
!Opening Case: RR Donnelley Tries to Master Its Data 207
6.1 Organizing Data in a Traditional File Environment 209
File Organization Concepts 209 • Problems with the Traditional
File
Environment 210
viii Contents
6.2 The Database Approach to Data Management 212
Database Management Systems 212 • Capabilities of Database
Management
Systems 217 • Designing Databases 219
6.3 Using Databases to Improve Business Performance and
Decision
Making 221 • Data Warehouses 222 • Tools for Business
Intelligence:
Multidimensional Data Analysis and Data Mining 224
!Interactive Session: Technology What Can Businesses Learn
from Text
Mining? 227
Databases and the Web 228
6.4 Managing Data Resources 230

Establishing an Information Policy 230 • Ensuring Data Quality
230
!Interactive Session: Organizations Credit Bureau Errors—Big
People
Problems 232
Excellence:
Building a Relational Database for Inventory Management 235
• Improving
Decision Making: Searching Online Databases for Overseas
Business
Resources 236
Learning Track Modules: Database Design, Normalization, and
Entity-
Relationship Diagramming; Introduction to SQL; Hierarchical
and Network Data
Models 236
239 • Discussion
Entities and Attributes in an Online Database 239
!Case Study: The Terror Watch List Database’s Troubles
Continue 240
Chapter 7 Telecommunications, the Internet, and Wireless
Technology 244
!Opening Case: Hyundai Heavy Industries Creates a Wireless
Shipyard 245
7.1 Telecommunications and Networking in Today’s Business
World 247

Networking and Communication Trends 247 • What Is a
Computer
Network? 247 • Key Digital Networking Technologies 250
7.2 Communications Networks 252
Signals: Digital vs. Analog 252 • Types of Networks 253 •
Physical
Transmission Media 255
7.3 The Global Internet 257
What Is the Internet? 257 • Internet Addressing and
Architecture 258 •
Internet Services and Communication Tools 261
!Interactive Session: Organizations The Battle Over Net
Neutrality 262
!Interactive Session: Management Monitoring Employees on
Networks:
Unethical or Good Business? 266
The Web 268
7.4 The Wireless Revolution 275
Cellular Systems 276 • Wireless Computer Networks and
Internet
Access 276 • RFID and Wireless Sensor Networks 279
Contents ix
Making: Using
Spreadsheet Software to Evaluate Wireless Services 282 •
Achieving

Operational Excellence: Using Web Search Engines for
Business
Research 282
Learning Track Modules: Computing and Communications
Services Provided by
Commercial Communications Vendors; Broadband Network
Services and
Technologies; Cellular System Generations; Wireless
Applications for CRM, SCM,
and Healthcare; Web 2.0 283
286 • Discussion
Teamwork: Evaluating
Smartphones 286
!Case Study: Google, Apple, and Microsoft Struggle for Your
Internet
Experience 287
Chapter 8 Securing Information Systems 290
!Opening Case: You’re On Facebook? Watch Out! 291
8.1 System Vulnerability and Abuse 293
Why Systems Are Vulnerable 293 • Malicious Software:
Viruses, Worms,
Trojan Horses, and Spyware 296 • Hackers and Computer
Crime 298 •
Internal Threats: Employees 302 • Software Vulnerability 303
!Interactive Session: Management When Antivirus Software
Cripples Your
Computers 304
8.2 Business Value of Security and Control 305

Legal and Regulatory Requirements for Electronic Records
Management 306 • Electronic Evidence and Computer
Forensics 307
8.3 Establishing a Framework for Security and Control 308
Information Systems Controls 308 • Risk Assessment 309 •
Security Policy
310 • Disaster Recovery Planning and Business Continuity
Planning 310 •
The Role of Auditing 312
8.4 Technologies and Tools for Protecting Information
Resources 312
Identity Management and Authentication 312 • Firewalls,
Intrusion
Detection Systems, and Antivirus Software 314 • Securing
Wireless
Networks 316 • Encryption and Public Key Infrastructure 317
• Ensuring
System Availability 318 • Security Issues for Cloud Computing
and the
Mobile Digital Platform 320 • Ensuring Software Quality 320
!Interactive Session: Technology How Secure Is the Cloud?
321
Making: Using
Spreadsheet Software to Perform a Security Risk Assessment
324 •
Improving Decision Making: Evaluating Security Outsourcing
Services 325
Learning Track Modules: The Booming Job Market in IT
Security; The Sarbanes-

Oxley Act; Computer Forensics; General and Application
Controls for Information
Systems; Management Challenges of Security and Control 325
327 • Discussion
Teamwork: Evaluating
Security Software Tools 328
!Case Study: Are We Ready for Cyberwarfare? 329
x Contents
Part Three Key System Applications for the Digital Age 333
Chapter 9 Achieving Operational Excellence and Customer
Intimacy:
Enterprise Applications 334
!Opening Case: Cannondale Learns to Manage a Global Supply
Chain 335
9.1 Enterprise Systems 337
What Are Enterprise Systems? 337 • Enterprise Software 338 •
Business
Value of Enterprise Systems 339
9.2 Supply Chain Management Systems 340
The Supply Chain 340 • Information and Supply Chain
Management 342 •
Supply Chain Management Software 344
!Interactive Session: Organizations Southwest Airlines Takes
Off with Better
Supply Chain Management 345

Global Supply Chains and the Internet 346 • Business Value of
Supply
Chain Management Systems 348
9.3 Customer Relationship Management Systems 349
What Is Customer Relationship Management? 349 • Customer
Relationship
Management Software 351 • Operational and Analytical CRM
354 •
Business Value of Customer Relationship Management Systems
355
9.4 Enterprise Applications: New Opportunities and Challenges
355
Enterprise Application Challenges 355 • Next Generation
Enterprise
Applications 356
!Interactive Session: Technology Enterprise Applications Move
to the Cloud 358
Making: Using
Database Software to Manage Customer Service Requests 361 •
Achieving
Operational Excellence: Evaluating Supply Chain Management
Services 362
Learning Track Modules: SAP Business Process Map; Business
Processes in
Supply Chain Management and Supply Chain Metrics; Best
Practice Business
Processes in CRM Software 363
364 • Discussion

Teamwork: Analyzing
Enterprise Application Vendors 365
!Case Study: Border States Industries Fuels Rapid Growth with
ERP 366
Chapter 10 E-Commerce: Digital Markets, Digital Goods 370
!Opening Case: 4Food: Burgers Go Social 371
10.1 E-commerce and the Internet 373
E-Commerce Today 373 • Why E-Commerce Is Different 374 •
Key
Concepts in E-Commerce: Digital Markets and Digital Goods in
a Global
Marketplace 378
10.2 E-commerce: Business and Technology 381
Types of E-commerce 381 • E-commerce Business Models 382
Contents xi
!Interactive Session: Organizations Twitter Searches for a
Business Model 385
E-commerce Revenue Models 387 • Web 2.0: Social
Networking and the
Wisdom of Crowds 389
!Interactive Session: Management Facebook: Managing Your
Privacy for Their
Profit 390
E-commerce Marketing 392 • B2B E-Commerce: New
Efficiencies and
Relationships 395

10.3 The Mobile Digital Platform and Mobile E-commerce 399
M-Commerce Services and Applications 399
10.4 Building an E-commerce Web Site 401
Pieces of the Site-building Puzzle 401 • Business Objectives,
System
Functionality, and Information Requirements 402 • Building
the Web Site:
In-house Versus Outsourcing 402
10.5 Hands-on MIS 405
Making: Using
Spreadsheet Software to Analyze a Dot-Com Business 406 •
Achieving
Operational Excellence: Evaluating E-Commerce Hosting
Services 406
Learning Track Modules: Building a Web Page; E-Commerce
Challenges: The
Story of Online Groceries; Build an E-commerce Business Plan;
Hot New Careers in
E-commerce 407
408 • Discussion
Teamwork: Performing a
Competitive Analysis of E-Commerce Sites 409
!Case Study: Amazon vs. Walmart: Which Giant Will Dominate
E-commerce? 410
Chapter 11 Managing Knowledge 414
!Opening Case: Canadian Tire Keeps the Wheels Rolling With
Knowledge

Management Systems 415
11.1 The Knowledge Management Landscape 417
Important Dimensions of Knowledge 417 • The Knowledge
Management
Value Chain 419 • Types of Knowledge Management Systems
421
11.2 Enterprise-Wide Knowledge Management Systems 422
Enterprise Content Management Systems 422 • Knowledge
Network
Systems 424 • Collaboration Tools and Learning Management
Systems 424
11.3 Knowledge Work Systems 426
Knowledge Workers and Knowledge Work 426 • Requirements
of
Knowledge Work Systems 426 • Examples of Knowledge Work
Systems 427
!Interactive Session: Technology Augmented Reality: Reality
Gets Better 429
11.4 Intelligent Techniques 431
Capturing Knowledge: Expert Systems 432 • Organizational
Intelligence:
Case-Based Reasoning 434 • Fuzzy Logic Systems 434 •
Neural
Networks 436 • Genetic Algorithms 438
!Interactive Session: Organizations The Flash Crash: Machines
Gone Wild? 439
Hybrid AI Systems 441 • Intelligent Agents 441

xii Contents
Making:
Building a Simple Expert System for Retirement Planning 443 •
Improving
Decision Making: Using Intelligent Agents for Comparison
Shopping 444
Learning Track Module: Challenges of Knowledge Management
Systems 444
446 • Discussion
Teamwork: Rating Enterprise
Content Management Systems 447
!Case Study: San Francisco Public Utilities Commission
Preserves Expertise with
Better Knowledge Management 448
Chapter 12 Enhancing Decision Making 452
!Opening Case: What to Sell? What Price to Charge? Ask the
Data 453
12.1 Decision Making and Information Systems 455
Business Value of Improved Decision Making 455 • Types of
Decisions 455 •
The Decision-Making Process 457 • Managers and Decision
Making in the
Real World 458 • High-Velocity Automated Decision Making
461
12.2 Business Intelligence in the Enterprise 461

What Is Business Intelligence? 462 • The Business Intelligence
Environment 463 • Business Intelligence and Analytics
Capabilities 464 •
Management Strategies for Developing BI and BA Capabilities
468
!Interactive Session: Organizations Data-Driven Schools 469
12.3 Business Intelligence Constituencies 471
Decision Support for Operational and Middle Management 471
• Decision
Support for Senior Management: Balanced Scorecard and
Enterprise
Performance Management Methods 473 • Group Decision-
Support Systems
(GDSS) 475
!Interactive Session: Management Piloting Valero with Real-
time
Management 476
Making: Using
PivotTables to Analyze Sales Data 478 • Improving Decision
Making: Using
a Web-Based DSS for Retirement Planning 479
Learning Track Module: Building and Using Pivot Tables 479
481 • Discussion
Teamwork: Designing a
University GDSS 481
!Case Study: Does CompStat Reduce Crime? 482

Contents xiii
Part Four Building and Managing Systems 475
Chapter 13 Building Information Systems 486
!Opening Case: CIMB Group Redesigns Its Account Opening
Process 487
13.1 Systems as Planned Organizational Change 489
Systems Development and Organizational Change 489 •
Business Process
Redesign 491
13.2 Overview of Systems Development 494
!Interactive Session: Organizations Can Business Process
Management Make a
Difference? 495
Systems Analysis 496 • Systems Design 498 • Completing the
Systems
Development Process 499 • Modeling and Designing Systems:
Structured
and Object-Oriented Methodologies 502
13.3 Alternative Systems-Building Approaches 506
Traditional Systems Life Cycle 506 • Prototyping 507 • End-
User
Development 508 • Application Software Packages and
Outsourcing 510
!Interactive Session: Technology Zimbra Zooms Ahead with
OneView 512
13.4 Application Development for the Digital Firm 513

Rapid Application Development (RAD) 514 • Component-
Based
Development and Web Services 515
Making: Using
Database Software to Design a Customer System for Auto Sales
517 •
Achieving Operational Excellence: Redesigning Business
Processes for Web
Procurement 518
Learning Track Modules: Unified Modeling Language (UML);
A Primer on
Business Process Design and Documentation 518
520 • Discussion
Teamwork: Preparing Web
Site Design Specifications 521
!Case Study: Are Electronic Medical Records a Cure for Health
Care? 522
Chapter 14 Managing Projects 526
!Opening Case: Coca-Cola: “Opening Happiness” with a New
Project Management
System 527
14.1 The Importance of Project Management 529
Runaway Projects and System Failure 529 • Project
Management
Objectives 530
14.2 Selecting Projects 531

Management Structure for Information Systems Projects 531 •
Linking
Systems Projects to the Business Plan 532 • Critical Success
Factors 532 •
Portfolio Analysis 534 • Scoring Models 535
14.3 Establishing the Business Value of Information Systems
536
Information System Cost and Benefits 537 • Real Options
Pricing Models
538 • Limitations of Financial Models 539
xiv Contents
14.4 Managing Project Risk 539
Dimensions of Project Risk 539 • Change Management and the
Concept of
Implementation 540 • Controlling Risk Factors 542 •
Designing for the
Organization 546
!Interactive Session: Organizations DTS Systems Scores with
Scrum and
Application Lifecycle Management 547
Project Management Software Tools 548
!Interactive Session: Management Motorola Turns to Project
Portfolio
Management 550
Making: Using

Spreadsheet Software for Capital Budgeting for a New CAD
System 552 •
Improving Decision Making: Using Web Tools for Buying and
Financing a
Home 553
Learning Track Modules: Capital Budgeting Methods for
Information System
Investments; Information Technology Investments and
Productivity; Enterprise
Analysis (Business Systems Planning) 553
555 • Discussion
Implementation Problems 555
!Case Study: JetBlue and WestJet: A Tale of Two IS Projects
556
Chapter 15 Managing Global Systems 558
(available on the Web at www.pearsonhighered.com/laudon)
!Opening Case: 3M: Sticky Film and Scratchy Things That Sell
Around the
World 559
15.1 The Growth of International Information Systems 561
Developing an International Information Systems Architecture
562 • The
Global Environment: Business Drivers and Challenges 563 •
State of the
Art 566
15.2 Organizing International Information Systems 567
Global Strategies and Business Organization 567 • Global
Systems to Fit the

Strategy 568 • Reorganizing the Business 569
15.3 Managing Global Systems 570
A Typical Scenario: Disorganization on a Global Scale 570 •
Global Systems
Strategy 571 • The Management
Solution
: Implementation 573
!Interactive Session: Management Fonterra: Managing the
World’s Milk
Trade 575
15.4 Technology Issues and Opportunities for Global Value
Chains 576
Computing Platforms and Systems Integration 577 •
Connectivity 577 •
Software Localization 579
!Interactive Session: Organizations How Cell Phones Support
Economic
Development 580
15.5 Hands-on MIS 582

Excellence:
Building a Job Database and Web Page for an International
Consulting
Contents xv
Firm 583 • Improving Decision Making: Conducting
International
Marketing and Pricing Research 583
585 • Discussion
Technologies for Global Business Strategies 585
!Case Study: WR Grace Consolidates Its General Ledger System
586
References R 1
Glossary G 1
Photo and Screen Shot Credits P 1

Indexes I 1
xvi Contents
!"#$%&'()%#*+)*+#,*'--.%-)/+%0-'*1%
BUSINESS CASES AND INTERACTIVE SESSIONS
Here are some of the business firms you will find described in
the cases and Interactive Sessions of this book:
Chapter 1: Information Systems in Global Business Today
The New Yankee Stadium Looks to the Future
MIS in Your Pocket
UPS Competes Globally with Information Technology
What’s the Buzz on Smart Grids?
Chapter 2: Global E-Business and Collaboration
America’s Cup 2010: USA Wins with Information Technology
Domino’s Sizzles with Pizza Tracker
Virtual Meetings: Smart Management
Collaboration and Innovation at Procter & Gamble

Chapter 3: Information Systems, Organizations, and Strategy
Verizon or AT&T—Which Company Has the Best Digital
Strategy?
How Much Do Credit Card Companies Know About You?
Is the iPad a Disruptive Technology?
Will TV Succumb to the Internet?
Chapter 4: Ethical and Social Issues in Information Systems
Behavioral Targeting And Your Privacy: You’re the Target
The Perils of Texting
Too Much Technology
When Radiation Therapy Kills
Chapter 5: IT Infrastructure and Emerging Technologies
BART Speeds Up with a New IT Infrastructure
New to the Touch
Is Green Computing Good for Business?
Salesforce.com: Cloud Services Go Mainstream
Chapter 6: Foundations of Business Intelligence: Databases and
Information Management
RR Donnelley Tries to Master Its Data
What Can Businesses Learn from Text Mining?
Credit Bureau Errors—Big People Problems

The Terror Watch List Database’s Troubles Continue
Chapter 7: Telecommunications, the Internet and Wireless
Technology
Hyundai Heavy Industries Creates a Wireless Shipyard
The Battle Over Net Neutrality
Monitoring Employees on Networks: Unethical or Good
Business?
Google, Apple, and Microsoft Struggle for Your Internet
Experience
Chapter 8: Securing Information Systems
You’re On Facebook? Watch Out!
When Antivirus Software Cripples Your Computers
How Secure Is the Cloud?
Are We Ready for Cyberwarfare?
Chapter 9: Achieving Operational Excellence and Customer
Intimacy: Enterprise Applications
Cannondale Learns to Manage a Global Supply Chain
Southwest Airlines Takes Off with Better Supply Chain
Management
Enterprise Applications Move to the Cloud

Border States Industries Fuels Rapid Growth with ERP
Chapter 10: E-Commerce: Digital Markets, Digital Goods
4Food: Burgers Go Social
Twitter Searches for a Business Model
Facebook: Managing Your Privacy for Their Profit
Amazon vs. Walmart: Which Giant Will Dominate E-commerce?
Chapter 11: Managing Knowledge
Canadian Tire Keeps the Wheels Rolling With Knowledge
Management Systems
Augmented Reality: Reality Gets Better
The Flash Crash: Machines Gone Wild?
San Francisco Public Utilities Commission Preserves Expertise
with Better Knowledge Management
Chapter 12: Enhancing Decision Making
What to Sell? What Price to Charge? Ask the Data
Data-Driven Schools
Piloting Valero with Real-time Management
Does CompStat Reduce Crime?
Chapter 13: Building Information Systems
CIMB Group Redesigns Its Account Opening Process
Can Business Process Management Make a Difference?

Zimbra Zooms Ahead with OneView
Are Electronic Medical Records a Cure for Health Care?
Chapter 14: Managing Projects
Coca-Cola: “Opening Happiness” with a New Project
Management System
DTS Systems Scores with Scrum and Application Lifecycle
Management
Motorola Turns to Project Portfolio Management
JetBlue and WestJet: A Tale of Two IS Projects
Chapter 15: Managing Global Systems
3M: Sticky Film and Scratchy Things That Sell Around the
World
Fonterra: Managing the World’s Milk Trade
How Cell Phones Support Economic Development
WR Grace Consolidates Its General Ledger System
!"#$%&'()%#*+)*+#,*'--.%-)/+%0-'*1%
Preface

We wrote this book for business school students who want an
in-depth look at
how today's business firms use information technologies and
systems to
achieve corporate objectives. Information systems are one of the
major tools
available to business managers for achieving operational
excellence, developing
new products and services, improving decision making, and
achieving compet-
itive advantage. Students will find here the most up-to-date and
comprehensive
overview of information systems used by business firms today.
When interviewing potential employees, business firms often
look for new
hires who know how to use information systems and
technologies for achieving
bottom-line business results. Regardless of whether a student is
an accounting,
finance, management, operations management, marketing, or
information sys-
tems major, the knowledge and information found in this book
will be valuable

throughout a business career.
xxi
WHAT’S NEW IN THIS EDITION
CURRENCY
The 12th edition features all new opening, closing, and
Interactive Session
cases. The text, figures, tables, and cases have been updated
through November
2010 with the latest sources from industry and MIS research.
NEW FEATURES
• Thirty video case studies (2 per chapter) and 15 instructional
videos are
available online.
• Additional discussion questions are provided in each chapter.
• Management checklists are found throughout the book; they
are designed to
help future managers make better decisions.
NEW TOPICS

• Expanded coverage of business intelligence and business
analytics
• Collaboration systems and tools
• Cloud computing
• Cloud-based software services and tools
• Windows 7 and mobile operating systems
• Emerging mobile digital platform
• Office 2010 and Google Apps
• Green computing
• 4G networks
• Network neutrality
• Identity management
xxii Preface
WHAT’S NEW IN MIS
Plenty. A continuing stream of information technology
innovations is trans-
forming the traditional business world. What makes the MIS
field the most
exciting area of study in schools of business is this continuous
change in tech-

nology, management, and business processes. (Chapter 1
describes these
changes in more detail.)
Examples of transforming technologies include the emergence
of cloud com-
puting, the growth of a mobile digital business platform based
on smartphones,
netbook computers, and, not least, the use of social networks by
managers to
achieve business objectives. Most of these changes have
occurred in the last
few years. These innovations enable entrepreneurs and
innovative traditional
firms to create new products and services, develop new business
models, and
transform the day-to-day conduct of business. In the process,
some old busi-
nesses, even entire industries, are being destroyed while new
businesses are
springing up.
For instance, the emergence of online music stores—driven by
millions of
consumers who prefer iPods and MP3 players—has forever

changed the older
business model of distributing music on physical devices, such
as records and
CDs, and then selling them in retail stores. Say goodbye to your
local music
store! Streaming Hollywood movies from Netflix is
transforming the old model
of distributing films through theaters and then through DVD
rentals at physical
stores. Say goodbye to Blockbuster! The growth of cloud
computing, and huge
data centers, along with high-speed broadband connections to
the home sup-
port these business model changes.
E-commerce is back, generating over $255 billion in revenue in
2010 and esti-
mated to grow to over $354 billion by 2014. Amazon's revenue
grew 39 percent
in the 12-month period ending June 30, 2010, despite the
recession, while
offline retail grew by 5 percent. E-commerce is changing how
firms design, pro-
duce, and deliver their products and services. E-commerce has
reinvented itself

again, disrupting the traditional marketing and advertising
industry and putting
major media and content firms in jeopardy. Facebook and other
social net-
working sites such as YouTube, Twitter, and Second Life
exemplify the new face
of e-commerce in the twenty-first century. They sell services.
When we think of
e-commerce, we tend to think of selling physical products.
While this iconic
vision of e-commerce is still very powerful and the fastest
growing form of
retail in the U.S., cropping up alongside is a whole new value
stream based on
selling services, not goods. Information systems and
technologies are the foun-
dation of this new services-based e-commerce.
Likewise, the management of business firms has changed: With
new mobile
smartphones, high-speed Wi-Fi networks, and wireless laptop
computers,
• Augmented reality
• Search engine optimization (SEO)

• Freemium pricing models in e-commerce
• Crowdsourcing and the wisdom of crowds
• E-commerce revenue models
• Building an e-commerce Web site
• Business process management
• Security issues for cloud and mobile platforms
Preface xxiii
remote salespeople on the road are only seconds away from
their managers'
questions and oversight. Managers on the move are in direct,
continuous con-
tact with their employees. The growth of enterprise-wide
information systems
with extraordinarily rich data means that managers no longer
operate in a fog of
confusion, but instead have online, nearly instant access to the
important infor-
mation they need for accurate and timely decisions. In addition
to their public
uses on the Web, wikis and blogs are becoming important
corporate tools for

communication, collaboration, and information sharing.
THE 12TH EDITION: THE COMPREHENSIVE SOLUTION
FOR THE MIS CURRICULUM
Since its inception, this text has helped to define the MIS
course around the
globe. This edition continues to be authoritative, but is also
more customizable,
flexible, and geared to meeting the needs of different colleges,
universities, and
individual instructors. This book is now part of a complete
learning package
that includes the core text and an extensive offering of
supplemental materials
on the Web.
The core text consists of 15 chapters with hands-on projects
covering essen-
tial topics in MIS. An important part of the core text is the
Video Case Study and
Instructional Video package: 30 video case studies (2 video
cases per chapter)
plus 15 instructional videos that illustrate business uses of
information systems,

explain new technologies, and explore concepts. Video cases are
keyed to the
topics of each chapter.
In addition, for students and instructors who want to go deeper
into selected
topics, there are over 40 online Learning Tracks that cover a
variety of MIS top-
ics in greater depth.
myMISlab provides more in-depth coverage of chapter topics,
career
resources, additional case studies, supplementary chapter
material, and data
files for hands-on projects.
THE CORE TEXT
The core text provides an overview of fundamental MIS
concepts using an
integrated framework for describing and analyzing information
systems. This
framework shows information systems composed of
management, organiza-
tion, and technology elements and is reinforced in student

projects and case
studies.
A diagram accompanying each
chapter-opening case graphically
illustrates how management, organi-
zation, and technology elements
work together to create an informa-
tion system solution to the business
challenges discussed in the case.
xxiv Preface
Chapter Organ izat ion
Each chapter contains the following elements:
• A chapter-opening case describing a real-world organization
to establish the
theme and importance of the chapter
• A diagram analyzing the opening case in terms of the
management, organi-
zation, and technology model used throughout the text

• A series of learning objectives
• Two Interactive Sessions with case study questions and MIS in
Action
projects
• A Hands-on MIS Projects section featuring two management
decision prob-
lems, a hands-on application software project, and a project to
develop
Internet skills
• A Learning Tracks section identifying supplementary material
on myMISlab
• A Review Summary section keyed to the learning objectives
• A list of key terms that students can use to review concepts
• Review questions for students to test their comprehension of
chapter
material
• Discussion questions raised by the broader themes of the
chapter
• A pointer to downloadable video cases
• A Collaboration and Teamwork project to develop teamwork
and presenta-

tion skills, with options for using open source collaboration
tools
• A chapter-ending case study for students to apply chapter
concepts
KEY FEATURES
We have enhanced the text to make it more interactive, leading-
edge, and
appealing to both students and instructors. The features and
learning tools are
described in the following sections.
Bus iness -Dr iven wi th Bus iness Cases and Examples
The text helps students see the direct connection between
information systems
and business performance. It describes the main business
objectives driving the
use of information systems and technologies in corporations all
over the world:
operational excellence, new products and services, customer and
supplier inti-
macy, improved decision making, competitive advantage, and
survival. In-text
examples and case studies show students how specific

companies use informa-
tion systems to achieve these objectives.
We use only current (2010) examples from business and public
organizations
throughout the text to illustrate the important concepts in each
chapter. All the
case studies describe companies or organizations that are
familiar to students,
such as Google, Facebook, the New York Yankees, Procter &
Gamble, and
Walmart.
Interact iv i ty
There's no better way to learn about MIS than by doing MIS.
We provide differ-
ent kinds of hands-on projects where students can work with
real-world busi-
ness scenarios and data, and learn first hand what MIS is all
about. These pro-
jects heighten student involvement in this exciting subject.
• New Online Video Case Package. Students' can watch short
videos online,
either in-class or at home or work, and then apply the concepts

of the book
to the analysis of the video. Every chapter contains at least two
business
video cases (30 videos in all) that explain how business firms
and managers
are using information systems, describe new management
practices, and
Preface xxv
explore concepts discussed in the chapter. Each video case
consists of a video
about a real-world company, a background text case, and case
study ques-
tions. These video cases enhance students' understanding of
MIS topics and
the relevance of MIS to the business world. In addition, there
are 15 instruc-
tional videos that describe developments and concepts in MIS
keyed to
respective chapters.
• Management Decision Problems. Each chapter contains two

management
decision problems that teach students how to apply chapter
concepts to real-
world business scenarios requiring analysis and decision
making.
• Collaboration and Teamwork Projects. Each chapter features a
collabora-
tive project that encourages students working in teams to use
Google sites,
Google Docs, and other open-source collaboration tools. The
first team pro-
ject in Chapter 1 asks students to build a collaborative Google
site.
• Hands-on MIS Projects. Every chapter concludes with a
Hands-on MIS
Projects section containing three types of projects: two
management decision
problems; a hands-on application software exercise using
Microsoft Excel
Access, or Web page and blog-creation tools; and a project that
develops
Internet business skills. A Dirt Bikes USA running case in
myMISlab provides

additional hands-on projects for each chapter.
Two real-world business sce-
narios per chapter provide
opportunities for students to
apply chapter concepts and
practice management decision
making.
Students practice using soft-
ware in real-world settings for
achieving operational excel-
lence and enhancing decision
making.
xxvi Preface
Each chapter contains two
Interactive Sessions focused
on management, organiza-
tions, or technology using real-
world companies to illustrate
chapter concepts and issues.

Each chapter features a pro-
ject to develop Internet skills
for accessing information,
conducting research, and per-
forming online calculations
and analysis.
• Interactive Sessions. Two short cases in each chapter have
been redesigned
as Interactive Sessions to be used in the classroom (or on
Internet discussion
boards) to stimulate student interest and active learning. Each
case con-
cludes with two types of activities: case study questions and
MIS in Action.
The case study questions provide topics for class discussion,
Internet discus-
sion, or written assignments. MIS in Action features hands-on
Web activities
for exploring issues discussed in the case more deeply.
Preface xxvii

Assessment and A ACSB Assessment Gu ide l ines
The Association to Advance Collegiate Schools of Business
(AACSB) is a not-for-
profit corporation of educational institutions, corporations, and
other organiza-
tions that seeks to improve business education primarily by
accrediting univer-
sity business programs. As a part of its accreditation activities,
the AACSB has
developed an Assurance of Learning program designed to ensure
that schools
teach students what the schools promise. Schools are required to
state a clear
mission, develop a coherent business program, identify student
learning objec-
tives, and then prove that students achieve the objectives.
We have attempted in this book to support AACSB efforts to
encourage
assessment-based education. The front end papers of this edition
identify stu-
dent learning objectives and anticipated outcomes for our
Hands-on MIS pro-
jects. In the Instructor Resource Center and myMISlab is a more

inclusive and
detailed assessment matrix that identifies the learning
objectives of each chap-
ter and points to all the available assessment tools that ensure
students achieve
the learning objectives. Because each school is different and
may have different
missions and learning objectives, no single document can
satisfy all situations.
Therefore, the authors will provide custom advice to instructors
on how to use
this text in their respective colleges. Instructors should e-mail
the authors or
contact their local Pearson Prentice Hall representative for
contact information.
For more information on the AACSB Assurance of Learning
program and
how this text supports assessment-based learning, visit the
Instructor Resource
Center and myMISlab.
Customizat ion and F lex ib i l i ty : New Learn ing Track
Modules
Our Learning Tracks feature gives instructors the flexibility to

provide in-depth
coverage of the topics they choose. There are over 40 Learning
Tracks available
to instructors and students. A Learning Tracks section at the end
of each chap-
ter directs students to short essays or additional chapters in
myMISlab. This
supplementary content takes students deeper into MIS topics,
concepts, and
debates; reviews basic technology concepts in hardware,
software, database
design, telecommunications, and other areas; and provides
additional hands-on
software instruction. The 12th edition includes new Learning
Tracks on cloud
computing, managing knowledge and collaboration, creating a
pivot table with
Microsoft Excel PowerPivot, the mobile digital platform, and
business process
management.
Case study questions and MIS
in Action projects encourage
students to learn more about
the companies and issues dis-

cussed in the case studies.
xxviii Preface
AUTHOR-CERTIFIED TEST BANK AND SUPPLEMENTS
• Author-Certified Test Bank. The authors have worked closely
with skilled
test item writers to ensure that higher level cognitive skills are
tested. The
test bank includes multiple-choice questions on content, but
also includes
many questions that require analysis, synthesis, and evaluation
skills.
• New Annotated Interactive PowerPoint Lecture Slides. The
authors have
prepared a comprehensive collection of 500 PowerPoint slides
to be used in
lectures. Ken Laudon uses many of these slides in his MIS
classes and execu-
tive education presentations. Each of the slides is annotated
with teaching

suggestions for asking students questions, developing in-class
lists that illus-
trate key concepts, and recommending other firms as examples
in addition to
those provided in the text. The annotations are like an
instructor's manual
built into the slides and make it easier to teach the course
effectively.
STUDENT LEARNING-FOCUSED
Student learning objectives are organized around a set of study
questions to
focus student attention. Each chapter concludes with a review
summary and
review questions organized around these study questions.
MYMISLAB
MyMISlab is a Web-based assessment and tutorial tool that
provides practice
and testing while personalizing course content and providing
student and class
assessment and reporting. Your course is not the same as the
course taught
down the hall. Now, all the resources that instructors and
students need for

course success are in one place—flexible and easily organized
and adapted for
an individual course experience. Visit www.mymislab.com to
see how you can
teach, learn, and experience MIS.
CAREER RESOURCES
MyMISlab also provides extensive career resources, including
job-hunting
guides and instructions on how to build a digital portfolio
demonstrating the
business knowledge, application software proficiency, and
Internet skills
acquired from using the text. Students can use the portfolio in a
resume or job
application; instructors can use it as a learning assessment tool.
INSTRUCTIONAL SUPPORT MATERIALS
Inst ructor Resource Center
Most of the support materials described in the following
sections are conve-
niently available for adopters on the online Instructor Resource
Center (IRC).
The IRC includes the Image Library (a very helpful lecture

tool), Instructor's
Manual, Lecture Notes, Test Item File and TestGen, and
PowerPoint slides.
Image L ibrar y
The Image Library is an impressive resource to help instructors
create vibrant
lecture presentations. Almost every figure and photo in the text
is provided and
www.mymislab.com
Preface xxix
organized by chapter for convenience. These images and lecture
notes can be
imported easily into PowerPoint to create new presentations or
to add to exist-
ing ones.
Inst ructor ’ s Manua l
The Instructor's Manual features not only answers to review,
discussion, case
study, and group project questions, but also in-depth lecture

outlines, teaching
objectives, key terms, teaching suggestions, and Internet
resources.
Test I tem F i le
The Test Item File is a comprehensive collection of true-false,
multiple-choice,
fill-in-the-blank, and essay questions. The questions are rated
by difficulty level
and the answers are referenced by section. The Test Item File
also contains
questions tagged to the AACSB learning standards. An
electronic version of the
Test Item File is available in TestGen, and TestGen conversions
are available for
BlackBoard or WebCT course management systems. All
TestGen files are avail-
able for download at the IRC.
Annotated PowerPo int S l ides
Electronic color slides created by the authors are available in
PowerPoint. The
slides illuminate and build on key concepts in the text.
Video Cases and Inst ruct iona l V ideos

Instructors can download step-by-step instructions for accessing
the video cases
from the Instructor Resources page at
www.pearsonhighered.com/laudon. The
following page contains a list of video cases and instructional
videos.
xxx Preface
V ideo Cases and Inst ruct iona l V ideos
Chapter Video
Chapter 1: Information Systems Case 1: UPS Global Operations
with the DIAD IV
In Global Business Today Case 2: IBM, Cisco, Google: Global
Warming by Computer
Chapter 2: Global E-business Case 1: How FedEx Works:
Enterprise Systems
and Collaboration Case 2: Oracle's Austin Data Center
Instructional Video 1: FedEx Improves Customer Experience

with Integrated Mapping, Location Data
Chapter 3: Information Systems, Case 1: National Basketball
Association: Competing on Global Delivery with Akamai OS
Streaming
Organizations, and Strategy Case 2: Customer Relationship
Management for San Francisco's City Government
Chapter 4: Ethical and Social Issues Case 1: Net Neutrality:
Neutral Networks Work
in Information Systems Case 2: Data Mining for Terrorists and
Innocents
Instructional Video 1: Big Brother Is Copying Everything on the
Internet
Instructional Video 2: Delete: The Virtue of Forgetting in a
Digital Age
Chapter 5: IT Infrastructure: Case 1: Hudson's Bay Company
and IBM: Virtual Blade Platform
and Emerging Technologies Case 2: Salesforce.com: SFA on the
iPhone and iPod Touch
Instructional Video 1: Google and IBM Produce Cloud
Computing

Instructional Video 2: IBM Blue Cloud Is Ready-to-Use
Computing
Instructional Video 3: What the Hell Is Cloud Computing?
Instructional Video 4: What Is Ajax and How Does It Work?
Instructional Video 5: Yahoo's FireEagle Geolocation Service
Chapter 6: Foundations of Business Case 1: Maruti Suzuki
Business Intelligence and Enterprise Databases
Intelligence: Databases and Case 2: Data Warehousing at REI:
Understanding the Customer
Information Management
Chapter 7: Telecommunications, Case 1: Cisco Telepresence:
Meeting Without Traveling
the Internet, and Wireless Technology Case 2: Unified
Communications Systems with Virtual Collaboration: IBM and
Forterra
Instructional Video 1: AT&T Launches Managed Cisco
Telepresence

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