MANAGEMENT INFORMATION SYSTEMS - TEST BANK...

INSTRUCTOR MANUAL TO ACCOMPANY

MANAGEMENT INFORMATION SYSTEMS

Sixth Edition

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Effy Oz The Pennsylvania State University

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Full file at http://testbank360.eu/solution-manual-management-information-systems-6th-edition-effy-oz

The Instructor’s Manual to accompany Management Information Systems, Sixth Edition is published by Course Technology. Associate Product Manager Nancy Morrissey Hall Manufacturing Justin Palmeiro © 2009 Course Technology All rights reserved. This publication is protected by federal copyright law. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, or be used to make any derivative work (such as translation or adaptation), without prior permission in writing from Course Technology. Trademarks Course Technology is a trademark of Course Technology. Some of the product names used in this book have been used for identification purposes only and may be trademarks or registered trademarks of their respective manufacturers and sellers. Disclaimer Course Technology reserves the right to revise this publication and make changes from time to time in its content without notice. ISBN: 1-4239-0178-9 ISBN 13: 978-1-4239-0178-5 IR ISBN: 1423901916 IR ISBN 13: 978-1-4239-0191-4 Printed in the United States of America. 10 9 8 7 6 5 4 3 2 1

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Contents

How this manual can help you .....................................................................................................................5

Sample Syllabus.............................................................................................................................................6

Preparing Your Syllabus ............................................................................................................................12

Proposed Term Projects .............................................................................................................................16

Quizzes, Help Sheets, and Video Tapes .....................................................................................................18

Use of the Web .............................................................................................................................................19

Part 1: The Information Age .......................................................................................................................20

Chapter 1: Business Information Systems: An Overview .......................................................................21

Chapter 2: Strategic Uses of Information Systems ..................................................................................27

Chapter 3: Business Functions and Supply Chains..................................................................................33

Part 2: Information Technology ..................................................................................................................41

Chapter 4: Business Hardware ..................................................................................................................42

Chapter 5: Business Software ...................................................................................................................47

Chapter 6: Business Networks and Telecommunications........................................................................54

Chapter 7: Database Management Systems .............................................................................................59

Part 3: Web-Enabled Commerce .................................................................................................................65

Chapter 8: The Web-Enabled Enterprise .................................................................................................66

Chapter 9: Challenges to Global Information Systems ...........................................................................73

Part 4: Decision Support and Business Intelligence...................................................................................77

Chapter 10: Decision Support and Expert Systems .................................................................................78

Chapter 11: Business Intelligence and Knowledge Management ...........................................................84

Part 5: Planning, Acquisition, and Controls ..............................................................................................90

Chapter 12: Systems Planning and Development.....................................................................................91

Chapter 13: Choices in Systems Acquisitions ...........................................................................................96

Chapter 14: Risks, Security, and Disaster Recovery..............................................................................101

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HOW THIS MANUAL CAN HELP YOU A 1989 meta-analysis by K. Feldman1 found that the four most important factors cited by students as contributing to their success in the final examination were, in descending order: (1) Teacher’s course organization, (2) Teacher’s presentation clarity, (3) Relevance of subject, and (4) Teacher’s stimulation of interest. The findings were valid for a wide variety of subjects. Thus, to be an effective instructor, it is important that you organize well both your course and individual lectures. This manual proposes a syllabus for organization of the course and plenty of tips to use in individual lectures. However, it is ultimately your duty to organize your course and lectures in a manner that will work best for you and your students. The book is accompanied with materials that can help you make clear presentations. Again, teaching tips may enliven the material for the students, especially when discussing the technical topics. For example, do not just discuss microprocessors and RAM chips; bring a few old and unused chips to class and impress the students with how tiny these chips are despite the fact that they contain millions of circuits, each representing a bit. Each chapter of the textbook has a feature called “Why you should…” which tells the student why the chapter’s topics are important for the student’s career. You should try to enhance this relevance with your own examples. One of the best methods to stimulate interest is to use a “hook” at the beginning of each class. One type of hook is this: present a problem with which the students may be somewhat familiar. Let the students give their solution, and then show them that there is a better way to solve the problem. For example, when you start teaching about databases, ask the students to use a spreadsheet to create a client and salespeople table for recording all transactions of a retail business. Then ask them to create one table showing all the sales made by each salesperson, and another table showing all the purchases made by each customer. Although this is possible with spreadsheets, it would be much easier with a relational database management system. Now you have their interest. The purpose of this Instructor’s Manual is to help instructors of the MIS course prepare their course outline, class meetings, and student assignments. In addition to helping you prepare a course outline, you may want to read the part case for each chapter scheduled for teaching. You may find ideas for discussion topics, in-class assignments, and homework assignments. The other purpose of this Manual is to provide you with activities or problems that you may want to ask or assign your students. It is recommended that you supplement these activities with examples from your experience and from your own reading. Many students may be familiar with technologies such as IM and RSS. Challenge them to come up with ideas of how the technologies can support business. We have provided answers to all Review Questions and to some Discussion Questions, as well as to all of the questions following end-of-chapter case studies. Note that the answers to some Discussion Questions and assignments are so open ended that it is impossible to give a single answer. For these questions, instead of an answer we either use an asterisk (*) or an example of what you should expect as an answer, or both.

1 Feldman, K. “The Association between Student Ratings of Specific Instructional Dimensions and Student Achievement,” Research in Higher Education, 30(6) 1989, pp. 583-645.

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Sample Syllabus This is a syllabus for an introductory MIS course, followed by suggestions on how to modify its different components so you can build a syllabus that will best fit your course.

SMARTER STATE UNIVERSITY MIS XXX Section YYY

MANAGEMENT INFORMATION SYSTEMS Fall I 200x

Instructor: Dr. Gene Yess Advising Hours: Monday 4:55-5:55, Wednesday 4:55-5:55 Phone: 719-555-3234 E-mail: [email protected] Web site: www.personal.ssu/geneyess Management Academic Division Office Phones: (719) 555-3336 and 555-3321 Management Academic Division Fax: (719) 555-5224 REQUIRED TEXTBOOK AND MATERIALS 1. Oz, E., Management Information Systems, Course Technology Inc., 2009, 6th edition,

ISBN: 1-4239-0178-9 2. MS Office COURSE DESCRIPTION This course is designed to make the students knowledgeable of the fundamentals underlying the design, implementation, control, evaluation, and strategic use of modern, computer-based information systems for business data processing, office automation, information reporting, decision making, and electronic commerce. While some of the effort will be devoted to hands-on work with business software, the major emphasis will be on the managerial and strategic aspects of information technology. LEARNING OBJECTIVES 1. Terminology. The student will be able to explain the meaning of terms used to

describe common techniques and concepts in business information systems. 2. Skill. The student will successfully use a microcomputer database management

system and a Web page editor. 3. Advanced Information Systems Concepts. The student will be able to describe the

ways in which computers are and will be used in business and management. These concepts include telecommunications, electronic commerce, data

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warehousing and mining, artificial intelligence, and future directions of computer-based information systems.

4. Systems Development. The student will be involved in a small-scale Web site

development project and experience team working. 5. Behavioral and Organizational Issues. The student will be able to identify and

suggest appropriate responses to managerial and organizational issues stemming from development, implementation, and use of computer-based information systems.

6. International Issues. The student will recognize the reality of implementing

international information systems, including economic and cultural differences. 7. Social and Ethical Issues. The student will understand the major social and ethical

issues involved in the development and use of information technology. The student will be able to argue against or in favor of controversial uses of information technologies.

HOW YOUR LEARNING WILL BE MEASURED Your understanding and ability to explain terminology, advanced information systems concepts, behavioral and organizational issues, international issues, and social and ethical issues will be measured in the quantity and quality of your answers to the professor’s questions in class and in the quantity and quality of your participation in class discussion. Your skill of building and manipulating a database will be measured in the quality of your database assignment work that you will submit. Your overall comprehension of information technology and its uses in business will be measured in a multiple choice exam. GRADING Your grade will be determined as follows: Midterm Exam 30% Final Exam 30% Database Assignment 15% Web site Development Assignment 15% Participation in Class Discussions 10% Letter grades: 96-100: A; 90-95: A-; 87-89: B+; 84-86: B; 80-83: B-; 77-79: C+; 70-76: C; 60-69: D; <60: F

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There is no extra credit assignment. Please do not approach the instructor with a request for one. REQUIREMENTS Class Meetings You are required to attend all class meetings. If you miss a meeting, it is your responsibility to obtain notes from a fellow student. Office hours are not meant for individual tutoring. Class Participation The University requires regular attendance by students. Class attendance is useful to the student as a means of acquiring knowledge and clarification, and it is a prerequisite for class participation. Class participation is the active engagement in questions and answers, partaking in analysis of business situations, and contribution of comments in class sessions. WEB SITES Whenever you have to read a case, you must also log on to the site of the organization that is the subject of the case, and update your knowledge about the organization’s activities as part of preparing for class discussion. It is your responsibility to look the site up on the Web. You may log on to my Web site (see address above) for syllabi and other course materials. OUTSIDE CLASS COMMUNICATION You are encouraged to exercise your right to own a user ID and use it for electronic mail. (Note that students are also entitled to maintain their own Web site, up to 50GB in size.) Please feel free to communicate with me by phone, e-mail, fax, homing pigeons, hilltop bonfires, and my mailbox on campus. Use my office hours whenever you feel you need to. If you wish to meet with me outside my office hours, contact me and I will make every effort to work out a time to fit your schedule. CONDUCT Food: It is fully recognized that most of the students come to class after work and have not had dinner. You may bring your food to the classroom and enjoy it quietly. However, you are kindly requested to avoid packaged snacks that make noise and irritate your fellow students. Please be considerate.

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Cell Phones and PDAs: Cellular phones and PDAs must be turned off before entering the classroom. If your phone emits any sound during class session, you will be invited to leave the classroom and not return. Academic Integrity Academic integrity is the pursuit of scholarly activity free from fraud and deception and is an educational objective of this institution. Academic dishonesty includes, but is not limited to, cheating, plagiarizing, fabricating information or citations, facilitating acts of academic dishonesty by others, having unauthorized possession of examinations, submitting work of another person or work previously used without informing the instructor, or tampering with the academic work of other students. At the beginning of each course, it is the responsibility of the instructor to provide a statement clarifying the application of the academic integrity to that course. Emergency Closing Listen to KYW 1060 AM radio for SSU snow code 2581, or call the SSU Emergency Closing Hotline (610) 555-3399 for a message regarding campus closings. We will not have class if the campus/building is closed. In the case of closings, class is usually rescheduled for later in the term. Disability Statement Smarter State University encourages qualified persons with disabilities to participate in its programs and activities. If you anticipate needing any type of accommodation or have questions about the physical access provided, please contact Ms. Kathy Oliveoil at (719) 555-3315 in advance of your participation or visit. Keep your graded work until the end of the course; recording errors may occur.

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Sample outline: Semester calendar, 16 weekly meetings

COURSE OUTLINE MEETING TOPIC READING ASSIGNMENT 1 Introduction to the Course Ch. 1 Business Information Systems: An Overview 2 Strategic Uses of Information Systems Ch. 2 3 Business Functions and Supply Chains Ch. 3 4 Business Hardware Ch. 4 5 Business Software Ch. 5 6 Business Networks and Telecommunications Ch. 6 7 Database Management Ch. 7 8 Midterm Exam 9 The Web-Enabled Enterprise Ch. 8 10 Challenges in Global Information Systems Ch. 9 11 Decision Support and Expert Systems Ch. 10 12 Business Intelligence and Knowledge Management Ch. 11 13 Systems Planning and Development Ch. 12 14 Choices in Systems Acquisition Ch. 13 15 Risks, Security, and Disaster Recovery Ch. 14 16 Final Exam Note: This schedule is subject to change.

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Sample outline: Quarter calendar, 10 weekly meetings.

COURSE OUTLINE MEETING TOPIC READING ASSIGNMENT 1 Introduction to the course Ch. 1 Business Information Systems: An Overview Ch. 2 Strategic Uses of Information Systems 2 Business Functions and Supply Chains Ch. 3 3 Business Hardware Ch. 4 Business Software Ch. 5 4 Business Networks and Telecommunications Ch. 6 Database Management Systems Ch. 7 5 The Web-Enabled Enterprise Ch. 8 Challenges in Global Information Systems Ch. 9 6 Decision Support and Expert Systems Ch. 10 Business Intelligence and Knowledge Management Ch. 11 8 Systems Planning and Development Ch. 12 Choices in Systems Acquisition Ch. 13 9 Risks, Security, and Disaster Recovery Ch. 14 10 Exam Note: This schedule is subject to change.

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PREPARING YOUR SYLLABUS

Professors should regard a syllabus as a contract with their students. Prepare the syllabus for the first meeting with your class, and make sure the students understand it. It may be a good idea to post your syllabus on your Web site or another online site that the school puts at your discretion, such as Angel. For the students’ convenience, you may also want to e-mail the syllabus at least a week before the first class, especially if you want the students to read anything for this class. Posting the syllabus online is especially effective when you provide links to articles and other resources directly from your syllabus. Don’t hesitate to read and explain the components that, from your experience, may be misinterpreted. Be sure to include “defenses” such as “This course outline is subject to change.” Once you have handed out the syllabi, it is recommended you do not change “sensitive” components such as the number of exams or the grading scheme, unless the change can work to the benefit of all the students. In addition to your name, office address, and telephone number, include your e-mail address and the URL of your Web site, if you maintain one. Encourage the students to communicate with you via e-mail. Post handouts on your Web site. It will save you time. E-mail also makes you more accessible to the students. 1. Required Textbook and Materials

It is a good idea to ensure with the bookstore that there are an adequate number of copies of the textbook. If you use the publisher’s online resources, provide in the syllabus ample information on how to access them.

2. Course Description It should not be assumed that the students know what the course is about, especially if this is the

first introductory course on the subject. Tell them what the course is about. Tell them the topics that you intend to emphasize more than others. For example, you may want to tell them that much of the technical material they will have to learn on their own, and that class discussion will focus mainly on strategy and business use of IT.

3. Learning Objectives Highlight the major learning objectives. Ideally, the objectives should be formulated so that the

results can be measured. Use action phrases such as “The students will be able to…” Some action words that you can use, from the lowest cognitive ability to the highest cognitive ability, are: list, state, itemize, identify, apply, use, solve, compute, explain, illustrate, interpret, link, compare and contrast, distinguish, differentiate, choose, evaluate, organize, integrate, analyze, combine, propose, and design. Do not include objectives that you do not intend to accomplish.

4. Academic Integrity Although we all believe we know what plagiarism is, there are many gray areas. When a student

helps another student use a computer application to do an assignment, it’s commendable; when the student accepts another student’s offer to copy work, both students commit an unethical act. If your school has a written policy, it is recommended that you include it in the syllabus or provide the link to it. If not, create your own policy and state it clearly. It is also a good idea to give the students some examples of allowed and forbidden behavior. As IT professors, we should be doubly cautious, because we deal with authorized and unauthorized access to information resources.

5. Grading How you will grade assignments and exams is extremely important to the students. They are

entitled to know how they can maximize their chances of receiving a perfect score. Vague grading clauses in syllabi often lead to friction, bitterness, and formal appeal processes. Here are some suggestions that may lead to a more pleasant professor–student relationship:

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5.1 List all the work that the students will be required to do and on which they will (or will not) receive credit, i.e., written assignments, programming assignments, quizzes, projects, and exams. If you think you may change the number of homework assignments or quizzes, say that this may happen. Explain to the students that the average grade on that component (total grades divided by number of assignments) will be weighted by the proportion assigned to this component toward the course grade.

If you give pop quizzes, tell the students what material they will be on, and that they may expect a quiz every time the class meets. The students should know that if they miss a class, they could miss a quiz.

5.2 In the first class meeting, explain very clearly the components of the course grade and the

proportion that each component carries toward the course grade.

5.3 It is recommended that you use percentages in the manner you find in the sample syllabus. The students will find it easy to find out partial, or complete, grades on a 100-point scale.

5.4 If not, tabulate the numeric ranges and their corresponding letter grades.

5.5 If you do not intend to assign additional work for extra credit, say so in the first meeting.

5.6 If you give more than one exam, tell the students whether subsequent exams will be

cumulative.

5.7 Tell the students what they should and should not expect to see on exams. “All the material covered in the assigned chapters and that we discussed in class” is a perfectly decent guideline. Students appreciate seeing a sample of questions so they have a good idea of what type of questions to expect.

5.8 If you give credit for class participation, explain in the first meeting that credit is given

for active participation, not just for showing up to meetings. Students often ask, “How do you grade participation?” Do not hesitate to say that you grade on your subjective judgment of the student’s frequency and quality of contribution to class discussions.

5.9 Don’t promise any curving. If you may curve, tell the students you will curve only the

overall grade, not grades of individual items (exams, assignments, projects), so that the entire class can enjoy the curving.

6. Requirements

This is a general section where you can include your policy on tardiness, missed classes, class participation, and any other topic. Many instructors title this section “Policy.”

7. Course Outline

The course outline in the sample syllabus is for 16- and 10-week terms. Some schools have 14- or 15-week terms. There are several ways to combine topics into class meetings to fit terms of different lengths and also the need to include a different number of exams. See the “Alternative Course Outline” section later. If it can be done, notify the students about the reading for the first meeting. In some schools, the students are required to pick up the syllabus (or at least to call the secretary or go to a certain Web site) before the first meeting. If there is any reading or assignment for the first meeting, they should be prepared. This can alleviate the “short first meeting” problem: The students have not read anything and are not prepared to discuss the topic.

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8. Prohibition on Software CopyingDo not assume that the students know which software they are not allowed to copy. Schools often maintain software that should not be copied by students. Schools may also maintain software for which they have licenses allowing the students to make copies. Include a proper policy statement. You may wish to combine this section with the section headed “Academic Integrity.”

9. Computer Lab Policies

Include opening hours and any important information that the students may need for their work in the computer lab.

10. Materials Posted on the WebYou may want to add a section in the syllabus that tells the students which materials you are going to post on the Web and where the materials will be posted (the URL). You may want to post the syllabus, PowerPoint presentations, class notes, and take-home quizzes and exams.

11. E-mailing Student Assignments

If you allow the students to e-mail their assignments to you as attachments, you may want to include this information in the syllabus. Note that there are several end-of-chapter assignments in the book that specifically require the students to e-mail you their work.

Alternative Course Organization 1. If this is a secondary course in information systems, and if the students are already familiar with

the principles of hardware and software, Chapters 4 (“Business Hardware”) and 5 (“Business Software”) can either be combined into a single meeting devoted to a review of hardware and software, or they can be skipped altogether. If they are collapsed into a single meeting, the extra meeting can be devoted to an exam. Thus, there will be a midterm and a final exam, or you can devote the meeting fully to a guest speaker or another activity.

It is not recommended, however, to skip Chapter 6 (“Business Networks and Telecommunications”) as this chapter is an important foundation for networked business, and the technologies discussed advance rapidly. For the same reason, it is not recommended to skip Chapter 8 (“The Web-Enabled Enterprise”) unless you are confident that the students are up-to-date on the technical foundation.

Chapter 13 (“Choices in Systems Acquisition”) is probably the most appropriate for self-study, and it can be assigned as such. The fifteenth or sixteenth meeting can then be devoted to the final exam.

2. If the class meets twice per week, you can simply split each proposed topic into two discussions. If

the course is designed for one lecture per week and one lab session per week, then the proposed outline can be kept.

3. Possible combination of chapters: Depending on the previous knowledge of your students and on

your own preferences, you may want to create combinations of readings and discussions. The following are some suggestions for such combinations.

Part II chapters deal predominantly with the technical aspect of information technology. If you put a clearly nontechnical emphasis on the course, you may want to assign these four chapters for reading only, without discussing them in class, or you may combine any of them into one or two discussions.

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Since Chapter 6 provides the technical background for any discussion on telecommunications, including the Internet, you may want to combine the reading and discussion of Chapter 6 with Chapter 8.

Chapter 13 (“Choices in Systems Acquisition”) addresses all the current alternatives to in-house development of ISs. Since it is a relatively short chapter, you may want to combine it with Chapter 12 (“System Planning and Development”).

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PROPOSED TERM PROJECTS

1. Analysis of an IS. The students are required to work in groups of three–five, approach an

organization, ask for permission to see a working IS, and interview the employees who were involved in the initiation and development of the system. They should interview managers, developers, and daily users. Interview questions should include: What was the problem/opportunity that prompted the development of the system? Who was involved in the development (top management, middle managers, user, IS

professionals), and what roles did each group of people play? What development approach was used (traditional SDLC, extreme programming [XP], other)? What do the different groups think about the system? Has it met expectations? What would the students improve in the system? Does the system meet any strategic goals?

The students should be encouraged to analyze a system that failed, if they can find one.

Deliverables: A presentation in class and a typed report 2. Analysis of an IS implementation. This project is similar to the above, but deals with a

purchased/licensed application. Therefore, the students should skip analysis of development and focus on the process of selecting the application among all potential applications that serve the same purpose. Who initiated the exploration of implementing the new system? What ROI analysis was performed? What was the selection process? How was the decision made to implement this particular system? What has been the experience with this system so far?

3. Design of a commercial Web site. Teams of three to five students should teach themselves how to

use an HTML editor of their choosing and develop several pages of a commercial Web site. They may choose any type of business, explain what products or services the organization is trying to sell through its site, and put together (on a disk) all the pages. The quality of the work should be judged by the attractiveness of the text, graphics, sound, and animation of the site; and by the ease of use by unsophisticated surfers. (You should clarify that you do not require the students to involve the linking of databases and Web pages; focus on the Web pages, levels, and linking, rather than on implementation of CGIs and other advanced features.)

Deliverable: A presentation in class and an electronic folder (possibly on a CD) with all the Web pages

4. Literature and Interview Research. Assign a topic, or let the students select a topic from a list. The

list should include contemporary topics as listed next. The students should research the literature and/or interview people who are involved in projects at their workplace, and they should prepare a report on their findings. Suggested topics: Advertising on the Web: options and trends Search engine strategies Security issues in organizational ISs: problems and solutions Medical networked information systems: legal and technical challenges Security risks on the Web: problems and solutions ISs for facilitation of collaborative work Virtual reality in business Case study: a successful strategic information system Case study: a failed IS development project How CIOs deal with customer privacy issues The Chief Security Officer: challenges and solutions Data mining in the __________ industry RFID: trends and challenges

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Deliverables: A presentation in class and a printed report

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QUIZZES, HELP SHEETS, AND DVDS 1. Quizzes. Some instructors have found that giving the students pop quizzes “keeps them on their

toes.” If you announce in the first meeting that the students should expect a short quiz at the beginning of every meeting, there is a good chance they will read the assigned material. It is recommended that quiz questions be on the material assigned for reading for that meeting in which they are given. Ideally, a quiz will consist of 10 multiple-choice questions. The questions can be selected from the ExamView Testbank. To be fair, include only questions that will allow you to assess if the students read the material. They should not test their understanding of complex concepts, because the concepts are yet to be explained by you in class. Some instructors give credit for these quizzes; some don’t, but require them for graduation from the course.

2. Help sheets. Some instructors allow students to use help sheets when taking exams. The purpose

of these help sheets is twofold: (1) They give the students a sense of confidence and reduce nervousness, and (2) they help the students focus on the most important concepts and issues when studying for the exam. To accomplish the latter purpose, it is recommended that you limit the size of the help sheet. For example, you may specify: “You are allowed to bring to the exam a single 11"× 8.5" sheet of paper with written, typed, or photocopied material on both sides.” You may want to limit the font of the typed material to no less than 4 points—and half-jokingly add that no microscope spectacles are allowed!

3. DVDs. Several companies offer good DVDs on IS topics. The DVDs may support the reading of

the text and add an important pedagogical element to class meetings: The students can see IT in actual use. It is recommended that you use three to five 45–60 minute movies. Discuss the content with the students immediately after they watch the DVDs.

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USE OF THE WEB You will help your students gain better understanding if you instruct them to explore the Web. Whenever they read a case, either one in the textbook or an article you asked them to read, ask them to look for the sites of the organizations mentioned in the case, log on to the sites, and learn firsthand about the organizations. This is especially important because strategies and product lines change often. You may be able to ask questions such as: What has changed in the way this company does business? Also, the students can use this rich resource easily to find additional information about almost any topic mentioned in the book and in your class meetings.

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Part 1: The Information Age

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CHAPTER 1 Business Information Systems: An Overview Why Is This Chapter Important for the Students? As professionals, the students are bound to be at least users of IT, if not developers of ISs. The more they know about the technology and its use, the more successful they will be throughout their careers. This point must be stressed in the first meeting. Emphasize that the purpose of this course is not necessarily to make them IS professionals, but to make them prudent consumers of information and IT services, and to give them tools that will enable them to wisely evaluate technological developments and their potential in business. This is an overview of ISs and description of the major IT careers. The students may have some questions about topics that are covered in other chapters. It would be wise to give them a brief answer and say that the topic will be discussed in more detail later in the course. Lecture Notes 1. Data vs. information. Show the students that there is a difference between data and information.

This is not just a semantic difference; this is the difference between facts that can do nothing to assist managers in their work and information that makes their work more efficient and more effective. All retailers have been able to collect huge amounts of data from customers, but Wal-Mart knew how to glean useful information from the data while the others lagged behind.

2. Systems and subsystems. The students should understand that any array of parts that work together

make up a system. It may be a living organism, e.g., one cell or an animal; it may be a machine; or it may be a group of people (an organization). It may also be a combination of machines, people, and procedures. An information system is an example of such a combination.

3. Information and managers. Ask the students to describe what managers do, preferably in a place

where they have worked. Make them realize that managers never perform physical work or operate machines. Almost their entire workday is devoted to planning and monitoring. They must have useful information for planning; they pass information (orders, instructions, and directions) to their subordinates, and they receive information that helps them monitor what is happening under their supervision. In other words, information is involved in almost everything they do.

4. Transaction processing systems. These systems are usually used merely for recording data. Ask

the students what happens to the data that are entered into a point-of-sale machine when they check out in a supermarket. What happens to the data recorded in a bank when they use an ATM? Ask them to give you examples of other TPSs. Ensure they understand that some TPSs are linked to Web pages, and some are activated by devices such as EZ-Pass and “pay-at-the-pump” transceivers.

5. Management information systems. Emphasize the difference between mere recording of data by a

TPS and the processing of the data into information by management information systems. Explain that different ISs in the organization may use the same data to produce different information. For example, managers of product lines may want to know how specific products sell that are manufactured by their units. They manipulate the sales data to produce totals by product. Regional sales managers use the same raw data to produce reports that show total sales of all products in specific regions.

6. Knowledge workers. Explain that a growing number of the working force is made up of

knowledge workers. Knowledge workers are people who are often called “professionals.” Anyone

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whose work involves the production and use of information is a knowledge worker. All of your students will be knowledge workers when they graduate and get a job. These people are increasingly dependent on IT for their work.

7. Information systems careers. If it is important to you to encourage students to consider an IT

career, this is the first opportunity to do so. It is important to emphasize that IT professionals should first of all understand business and management. In addition, they should be well versed in IT. A balanced knowledge in these areas is a prerequisite for a successful career.

Teaching Tips 1. To demonstrate the difference between data and information, do a simple exercise. Tell the

students that you need to know the average age of the students in the class. Ask them what you should do. You must first receive the age of each student and how many students there are in the group. This is data collection. You then add the ages, total the number of students, and divide the first number by the second number. This is processing. The result is a single number, the average age, which is information. This is also an example of the principle of input, processing, and output. Now ask the students to give you an example, from a business setting, of producing information from data.

2. The mentioning of synergy is a good opportunity to mention that people work in teams to create

synergy. Give an example: If either of two men had to lift a 200-pound rock, they wouldn’t be able to do it. However, both men can lift several such rocks, one rock at a time, when they work together. This is a good opportunity to demonstrate to the students why teamwork is so important, why it is emphasized in your school, and why you will assign a team project (if you intend to assign one).

URLs www.isworld.org is the site of the Association for Information Systems. The site provides links to a wealth of information on IS topics, including pedagogy. www.itaa.org is the site of Information Technology Association of America, a not-for-profit organization representing some of the largest corporations in the hardware and software industries. Among other information, it provides statistics and forecasts of careers in IT. Answers to Review Questions

1. Processing means any action that produces information from data, such as finding totals, averages, ratios, and trends.

2. Names, addresses, and educational experience of employment candidates, consumers, and

members of professional organizations are some examples. They are data, but are also used as information, because they are often needed as is, without processing.

3. Two examples of data that are used as information: (1) The entire record (dossier) of an employee

who is considered for a promotion to a high position; the record was data when first entered when the employee was hired, and then periodically updated; all of it is used as information now. (2) Management invited all employees to select a Christmas present from a list of four options; the entire list will later be used to deliver the items to the employees. Three examples of data that must be processed: (1) The second example above: To purchase the items, the quantities of each

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of the four items must be calculated so that they can be ordered. (2) When purchasing raw materials for the production of an item, the purchasing manager must receive data on forecast sales from the marketing manager so that she can know quantities required. The information is the result of manipulating data collected in a market research survey of a large sample of the targeted population. (3) An investor who invests in stock according to its past performance must have information in the form of trends. This information is the result of processing thousands of daily price changes of many stocks.

4. (1) Government agencies (all working to enhance the welfare of the countries citizens); (2) The

steering wheel, transmission box, and fuel-injection mechanism of a car (all working together to ensure a smooth and safe ride); (3) A soccer team (training and playing to score as many goals as possible)

5. A TPS merely records transactions and channels them into files and databases. It does not analyze

the data nor create any information. A DSS contains software (models and formulas) that help make decisions. It provides useful information gleaned and manipulated from raw data.

6. A problem is any undesired situation, such as a trend of decreasing sales. By providing trends of

sales of different products, an IS can pinpoint the product or products that contribute to the sales decline more than other products. Management can then decide to stop making these products, thereby improving overall sales. Another example: Sales steadily increase in all regions except one. Apparently there is a problem in that region. An information system can analyze the demographic characteristics of the population in each region. Managers may find out that the population in that particular region is significantly younger than in the other regions, and therefore the company’s products are not suitable for these consumers. Management may decide to redirect resources from that region to other regions. This way, it will avoid the losses in that region and increase revenue in the others.

7. Synergy (“working together”) occurs when the output of two elements that work together is

greater than the sums of the outputs of these elements when working separately. Teams of people working together often produce more than what the individuals would produce when working separately. This is why we often encourage teamwork. When a person uses a computer, the person can produce more output, and the output is often more accurate. Synergy increases productivity. The same number of workers can produce more when using computers.

8. Because an IS consists of more components: telecommunications (often), people, and procedures. 9. Whenever there may be more than one good solution to a problem. 10. A DSS is capable of processing large amounts of data and culling out the best solution from a

multitude of possible solutions. It can accomplish this task much faster than a person can. 11. Because we should not allow any computer-based systems, including DSSs, to have the last say in

decision making. We should often scrutinize the decisions they offer. 12. Knowledge workers are people who use information and produce information in their respective

fields. They usually posses higher education and training. They include scientists, managers, and other workers who are often also referred to as “professionals.” The work of knowledge workers revolves around information: They use information for their work and produce information as the output of their work. Information systems can help them in both parts of their jobs.

13. TPSs (transaction processing systems) are the most prevalent ISs, because they are needed to

record the many transactions of organizations: sales, purchases, hiring of new employees, payments, deposits, money withdrawals, etc.

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14. A boundary is the place where an organization executes transactions with external entities such as other organizations, customers, suppliers, and government agencies. Examples: a. a cash register at a supermarket, b. a purchase order entry system, c. a human resource management system used to record the details of a new hire.

15. Many organizations need to network their units and their organizational systems to the Internet. In

addition, networking technologies change rapidly. Networking analysts are needed to determine the needs (hardware, software, security, and methods), and administrators need to manage these resources. Hence the growing demand for experts in this field.

16. Educating the public about the risk and its characteristics can make people more careful when

responding to fraudulent e-mail and providing their personal information on the Internet. The problem of identity theft over the Internet is usually not a technical one. Without the victim’s cooperation, this crime is usually preventable.

Answers to Discussion Questions

17. Even if one needs help with simple activities such as word processing or recording and calculation with spreadsheets, one can be more efficient and effective with information systems.

18. No. People will always need to communicate among themselves, for which they need human

language. Written language will most probably be necessary in the foreseeable future because people often prefer visual text rather than listening to messages and reports. Often it is easier to quickly skim a typed document rather than listen to its oral equivalent, because it is easier to move the eyes back and forth when looking for certain details than run an oral message back and forth.

19. Examples: a. Will a merger of our company with XYZ, Inc. increase the total market share of the

companies? b. How much of the crop we are planting now will be ruined by hurricanes and other disasters? c. How long will the recently hired Engineering Division Head stay with the company? These problems are so unstructured that no IS can help answer these questions.

20. Because it is impractical to process all the data they must process manually rather than with the

help of information systems. 21. *(Opinions may vary.) Students will likely conclude that computer literacy is important and will

become even more important in the future. 22. *(Many examples available.) Students will likely list companies such as Amazon or eBay. The

Web is a natural medium for selling information or providing customers with access to catalogs. Students may also wish to consider the use of the Web by traditional catalog retailers such as L.L. Bean.

23. Almost every business uses the Internet or other networks for at least some of its transactions. We

do not call business by phone “p-Business” and business by fax “f-Business” and soon will stop calling electronic business e-Business.

24. They use that term because businesses use ISs, in which computers are only one component.

Other components are software, telecommunications, procedures, and people. The expertise required may not be only in the hardware (computers) but in software, telecommunications, determining procedures, and managing IS personnel.

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25. Traditional commerce is conducted from physical structures (“brick and mortar”) such as stores. E-commerce does not require physical access of the buyer to the location of the seller. The shopping, purchase, and payment are done electronically via telecommunications networks.

26. The industrial revolution turned many farmers into laborers. People moved from villages to cities.

The information revolution has not changed what people are doing to make a living as much as it has changed how they work. *

27. Information technology can create relationships (work, social) between people thanks to

telecommunication, but the same technology may isolate people: now they can work from any location in the world (as long as they can communicate and perform their jobs online) without ever seeing their “coworkers.” This way, social interaction deteriorates.

28. Examples: (1) Software piracy was not a problem before the advent of the personal computer (in

1981) and started to be a concern only when the machines became popular tools in offices and at home in the late 1980s. (2) For the same reason, computer viruses were not a concern. In fact, the first computer virus that caused significant damage appeared in 1988. Early computer viruses spread through the importation of software on a disk from one computer to another. The concern is greater now, because of the wide use of the Internet, which is an excellent (for lack of another word) vehicle for spreading viruses. (3) The opening of the Internet for public use, and especially the popularity of the World Wide Web, bring up the important concern of free speech and censorship, because it is technically difficult to control the content of information on the Web. However, there are strict rules for other information vehicles: the postal service, radio, television, and motion pictures.

29. Possible responses include luring me to sites I didn’t originally intend to visit; asking for my

personal details whenever I want to receive certain information or services; waiting so long for pages to download. *

30. Possible responses include lack of mathematical skills in children due to reliance on calculators

and computers; physical ailments due to spending too much time with computers for work and entertainment (obesity, poor eyesight). *

31. *

Answers to Thinking About the Case Questions THE PERSONAL TOUCH 1. CRM includes all the activities involved in serving customers and gleaning useful information about

them. CRM applications are software programs that enable and support these activities. Examples: An application that brings up contextual help information when customers call in with request for help with a product or service; an application that deduces what online customers’ preferences are in terms of products and presentation, and suggests the products/services in a customized presentation; an application that collects purchasing information and enables sales managers to sort and summarize the information by demographics, seasons, regions, and other factors, so that they can optimize advertising and stocking.

2. Clarify helps serve a caller fast. It provides information that is focused on the customer rather than on the service, so that if the same customer has used different services (e.g., ground shipping and next-day air shipping), the rep can quickly move from a window showing information of one service to another, and the rep does not have to reenter the customer’s details. Clarify also enables call center reps to quickly bring up a map to ensure correct address for delivery. The CRM application saves costs

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because it enables reps to serve more customers per time unit, and it makes customers more satisfied, which helps retain customers and gain new ones.

3. Metrics: Customers served per hour; average time to complete a call; repeating calls from same

customer; cost per customer-call. 4. * 5. * Suggestions: knowledge management technologies (using artificial intelligence) for online self-help;

Instant messaging for help (for customers who prefer to use nonverbal communication, or because they only have access to the Internet at the moment but not to a phone); an application that tracks calls by type of help needed (so more training can be given to reps on those issues).

LESS PAPER, BETTER REFORESTATION 1. Information had to be retrieved manually, perceived visually, and calculated manually. This caused

many errors. When other staff members must count on a human to know where each record can be found, once the human retires or dies, they remain clueless and the learning process must start over by at least one other staff member.

2. RIMS allows data entry once, from the field, which minimizes errors. The data are stored in a database that is easily accessible to all staff members. Calculations of totals and other statistics are fast and easy. Much labor is saved. More planted trees survive, reducing the need to replant.

3. Analyzing employee performance can indicate which employee is more productive. The nursery’s

manager can then prompt less productive employees or provide training and reward highly productive employees. Any monitoring helps managing, including monitoring employees’ productivity.

4. The type of systems the nursery and Department of Natural Resources could use is a geographic

information systems (GIS). They could track reforested areas of the state by species, age of the tree, and other characteristics on a map. Aerial photos could be integrated into the systems for visual monitoring of areas needing reforesting and growth of reforested areas.

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