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Fourteenth Edition
Principles of Information
Systems
Ralph M. Stair Mark Frydenberg
Professor Emeritus, Florida State University Bentley University
George W. Reynolds Hollis Greenberg

Instructor, Strayer University Wentworth Institute of Technology
Joey Bryant George Schell

Forsyth Technical Community College University of North Carolina Wilmington
Australia • Brazil • Mexico • Singapore • United Kingdom • United States
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For Lila and Leslie
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To my grandchildren: Michael, Jacob, Jared, Fievel,

Aubrey, Elijah, Abrielle, Sofia, Elliot, Serena, and Kendall
—GWR
Brief Contents
PART 1 Information Systems in Business and Society 1

Information Systems: People, Technology, Processes,
Chapter 1
and Structure 2
Chapter 2 Secure Information Systems 28
Corporate and Individual Accountability: Ethical,

Chapter 3
Legal, and Social Issues 66
PART 2 Technology Infrastructure 109

Chapter 4 Hardware and Software 110
Chapter 5 Database Systems and Data Management 170
Business Intelligence: Big Data

Chapter 6
and Analytics 206
Chapter 7 Networks: An Interconnected World 244
Chapter 8 Cloud Computing and the Internet of Things 290
PART 3 Business Information Systems 311

Chapter 9 E-Commerce 312
Chapter 10 Enterprise Systems 364
Chapter 11 Artificial Intelligence (AI) and Automation 402
vi Brief contents
PART 4
Planning, Implementing, and Managing Information
Systems 447
Chapter 12 Strategic Planning and Project Management 448
Chapter 13 System Acquisition and Development 500
Glossary 560
Subject Index 571
Contents
Preface xiv
PART 1 Information Systems in Business and Society 1
Information Systems: People, Technology, Processes,

1
and Structure 2
What is an Information System 4
Information Systems—A Means to Achieve Competitive Advantage 5
Types of Information Systems 8
Value Chain 10
Strategic Planning 11
Information System Strategic Planning 12
Information Systems Careers 15
Typical Information System Roles 16
Shadow IT 19
Continuous Education 19
2 Secure Information Systems 28

The Threat Landscape 30
Why Computer Incidents Are So Prevalent 31
Perpetrators Most Likely to Initiate a Cyberattack 32
Types of Attack Vectors 33
Cyberattacks That Pose Serious Threats 33
Consequences of a Successful Cyberattack 38
Federal Laws for Prosecuting Computer Attacks 39
The CIA Security Triad 41
Implementing CIA at the Organizational Level 41
Implementing CIA at the Network Level 47
Implementing CIA at the Application Level 51
Implementing CIA at the End-User Level 51
Detection of a Cyberattack 53
Response 54
Using a Managed Security Service Provider (MSSP) 56
Computer Forensics 57
vii
viii contents
Corporate and Individual Accountability: Ethical, Legal,

3
and Social Issues 66
What Is Ethics? 68
Ethical Versus Legal 69
Fostering Corporate Social Responsibility and Good Business
Ethics 69
Including Ethical Considerations in Decision Making 72
Professional Code of Ethics 74
Information Systems and Privacy 76
Measures Protecting Personal Data 77
Web Site Privacy Policy 80
Individual Efforts to Protect Privacy 81
Information Systems and Government Surveillance 82
Federal Statutes That Protect Citizens from Government
Surveillance 84
Information Systems and Freedom of Expression 86
Measures Protecting Freedom of Speech 86
Internet Censorship 88
Ethical Issues in Developing Quality Software 97
Safety-Critical Systems 97
PART 2 Technology Infrastructure 109
4 Hardware and Software 110

Anatomy of a Computer 112
Processor 114
Main Memory 116
RAM and Cache 116
Secondary Storage 117
Input/Output Devices 120
Output Devices 123
Computer System Classes 126
Portable Computers 127
Nonportable, Single-User Computers 129
Servers, Mainframes, and Supercomputers 130
Quantum Computers 132
Server Farm, Data Centers, and Green Computing 133
Server Farms 133
Data Center 134
Green Computing 135
System Software 138
Operating Systems 138
Current Operating Systems 140
Application Software 148
Overview of Application Software 149
Software as a Service (SaaS) 150
Personal Application Software 151
contents ix
Software Suites and Integrated Software Packages 152

Other Personal Application Software 152
Mobile Application Software 153
Workgroup Application Software 154
Enterprise Application Software 155
Programming Languages 155
Software Licenses 157
Open-Source Software 157
Software Upgrades 159
5 Database Systems and Data Management 170

Database Fundamentals 173
Data, Information, and Knowledge 174
The Value of Information 175
Benefits Gained Through Use of High-Quality Data 175
The Data Hierarchy 177
The Database Approach 179
Database Activities 180
Data Cleansing 185
Database Design 185
Relational Databases 188
Manipulating Data in a Relational Database 189
SQL Databases 191
Popular Relational Database Management Systems 192
Data Management 194
6 Business Intelligence: Big Data and Analytics 206

Big Data 209
Sources of Big Data 210
Big Data Uses 211
Challenges of Big Data 212
Technologies Used to Manage and Process Big Data 214
Data Warehouses, Data Marts, and Data Lakes 214
NoSQL Databases 217
Hadoop 218
In-Memory Databases 219
Analytics and Business Intelligence 220
Benefits Achieved from BI and Analytics 221
The Role of a Data Scientist 222
Components Required for Effective BI and Analytics 223
Business Intelligence and Analytics Tools 224
Descriptive Analysis 224
Predictive Analytics 227
Optimization 229
Simulation 230
Text and Video Analysis 231
Popular BI/Analytics Software 232
Self-Service Analytics 232
x contents
7 Networks: An Interconnected World 244

Network Fundamentals 247
Network Topology 247
Network Types 249
Channel Bandwidth 250
Network Latency 250
Communications Media 251
Communications Software 258
The Internet and World Wide Web 260
How the Internet Works 261
Accessing the Internet 263
How The World Wide Web Works 263
Client/Server Architecture 263
Developing Web Content and Applications 268
Internet and Web Applications 269
Intranets and Extranets 279
8 Cloud Computing and the Internet of Things 290

Cloud Computing 293
Public Cloud Computing 293
Private Cloud Computing 296
Hybrid Cloud Computing 297
Autonomic Computing 298
The Internet of Things (IoT) 299
Examples of IoT 300
Enabling Connectivity with 5G 301
Business Benefits of IoT 302
Types of IoT Applications 302
Potential Issues with IoT Applications 303
PART 3 Business Information Systems 311
9 E-Commerce 312
An Introduction to E-Commerce 314
Categories of E-Commerce 315
Business-to-Business (B2B) E-Commerce 315
Business-to-Consumer (B2C) E-Commerce 317
Consumer-to-Consumer (C2C) E-Commerce 319
E-Government 320
Introduction to M-Commerce 321
M-Commerce in Perspective 322
M-Commerce Sites 322
Advantages of E-Commerce 322
Reach New Customers 323
Reduce Costs 323
Speed the Flow of Goods and Information 323
Increase Accuracy 324
Improve Customer Service 324
contents xi
Multistage Model for E-Commerce 324

Search and Identification 325
Select and Negotiate 326
Purchase Products and Services Electronically 326
Deliver Products and Services 326
After-Sales Service 327
E-Commerce Challenges 327
Dealing with Consumer Privacy Concerns 328
Overcoming Consumers’ Lack of Trust 329
Overcoming Global Issues 330
E-Commerce and M-Commerce Applications 332
Wholesale E-Commerce 332
Manufacturing 332
Marketing 334
Advertising 335
Bartering 336
Investment and Finance 338
Banking 339
Online Personalized Shopping 339
Strategies for Successful E-Commerce and M-Commerce 341
Defining an Effective E-Commerce Model and Strategy 341
Defining the Functions of a Web Site 342
Establishing a Web Site 342
Building Traffic to Your Web Site 343
Maintaining and Improving Your Web Site 344
Technology Infrastructure Required to Support E-Commerce
and M-Commerce 346
Hardware 347
Web Server Software 348
E-Commerce Software 348
M-Commerce Hardware and Software 349
Electronic Payment Systems 349
10 Enterprise Systems 364

Transaction Processing Systems 366
Traditional Transaction Processing Methods and Objectives 367
Transaction Processing Systems for Entrepreneurs and Small-
and Medium-Sized Enterprises 371
Transaction Processing Activities 372
Enterprise Systems 376
Enterprise Resource Planning 376
Advantages of ERP 377
Leading ERP Systems 380
Supply Chain Management (SCM) 381
Customer Relationship Management 383
Product Lifecycle Management (PLM) 385
Software Product Planning and Development 389
Overcoming Challenges in Implementing Enterprise Systems 389
Hosted Software Model for Enterprise Software 391
xii contents
11 Artificial Intelligence (AI) and Automation 402

Overview of Artificial Intelligence 404
Artificial Intelligence in Perspective 407
Nature of Intelligence 407
Expert Systems 409
Vision Systems 415
Other AI Applications 416
Artificial Neural Networks 416
AI and Employment 417
Machine and Natural Language 420
Machine Learning Training 420
Machine Learning Across Industries 422
Natural Language Processing 428
Brain Computer Interface 429
Robotics 432
Industrial Robots 433
Industry Applications 434
What’s Next? 435
PART 4
Planning, Implementing, and Managing Information
Systems 447
12 Strategic Planning and Project Management 448

Strategic Planning 450
Analyze Situation 451
Set Direction 453
Define Strategies 456
Deploy Plan 457
Setting the Information System Organizational Strategy 459
Identifying IS Projects and Initiatives 460
Prioritizing IS Projects and Initiatives 461
Innovation & Change in the Organization 463
Innovation 463
Reengineering and Continuous Improvement 464
Organizational Culture and Change 466
User Satisfaction and Technology Acceptance 467
Diffusion of Innovation Theory 468
Project Management 468
Project Variables 469
What Is Project Management? 473
Project Management Knowledge Areas 473
13 System Acquisition and Development 500

Subscribe vs. Buy vs. Build 502
Software as a Service (SaaS) 505
Advantages of SaaS 505
Disadvantages of SaaS 506
contents xiii
Buying Off-The-Shelf-Software 508

Package Evaluation Phase 509
Finalize Contract 511
Integration and Testing 511
Implementation 512
Waterfall System Development Process 513
System Investigation 514
System Analysis 522
System Design 529
Construction 535
Integration and Testing 537
Implementation 539
System Operation and Maintenance 543
Agile Development 547
Glossary 560
Subject Index 571
Preface
As organizations and entrepreneurs continue to operate in an increasingly

competitive and global marketplace, workers in all business areas includ-
ing accounting, customer service, distribution, finance, human resources,
information systems, logistics, marketing, manufacturing, research and
development, and sales must be well prepared to make the significant con-
tributions required for success. Regardless of your future role, even if you
are an entrepreneur, you need to understand what information systems
can and cannot do and be able to use them to help you achieve personal
and organizational goals. You will be expected to discover opportunities
to use information systems and to participate in the design and implemen-
tation of solutions to business problems employing information systems.
To be successful, you must be able to view information systems from the
perspective of business and organizational needs. For your solutions to
be accepted, you must recognize and address their impact on coworkers,
customers, suppliers, and other key business partners. For these reasons,
a course in information systems is essential for students in today’s high-
tech world.
Principles of Information Systems, Fourteenth Edition, continues the
tradition and approach of previous editions. Our primary objective is to
provide the best information systems text and accompanying materials for the
first information systems course required for all business students. We want
you to learn to use information systems to ensure your personal success in
your current or future role and to improve the success of your organization.
Through surveys, questionnaires, focus groups, and feedback that we have
received from current and past adopters, as well as others who teach in the
field, we have been able to develop the highest-quality set of teaching materi-
als available to help you achieve these goals.
Principles of Information Systems, Fourteenth Edition, stands proudly at
the beginning of the IS curriculum and remains unchallenged in its position
as the only IS principles text offering basic IS concepts that every business
student must learn to be successful. Instructors of the introductory course
faced a dilemma. On one hand, experience in business organizations allows
students to grasp the complexities underlying important IS concepts. For this
reason, many schools delayed presenting these concepts until students com-
pleted a large portion of their core business requirements. On the other hand,
delaying the presentation of IS concepts until students have matured within
the business curriculum often forces the one or two required introductory
IS courses to focus only on personal computing software tools and, at best,
merely to introduce computer concepts.
This text has been written specifically for the introductory course in
the IS curriculum. Principles of Information Systems, Fourteenth Edition,
addresses the appropriate computer and IS concepts while also provid-
ing a strong managerial emphasis on meeting business and organizational
needs.
xiv
Preface xv
Approach of This Text

Principles of Information Systems, Fourteenth Edition, offers the traditional
coverage of computer concepts, but places the material within the context
of meeting business and organizational needs. Placing information systems
concepts within this context and taking a management perspective has
always set this text apart from other computer texts, thus making it appeal-
ing not only to MIS majors but also to students from other fields of study.
The text is not overly technical, but rather deals with the role that informa-
tion systems play in an organization and the key principles a manager or
technology specialist needs to grasp to be successful. The principles of IS
are brought together and presented in a way that is understandable, rele-
vant, and interesting. In addition, the text offers an overview of the entire
IS discipline, while giving students a solid foundation for further study
in more advanced IS courses such as programming, systems analysis and
design, project management, database management, data communications,
Web site design and development, information system security, big data
and analytics, e-commerce, and informatics. As such, it serves the needs
of both general business managers and those who aspire to become IS
professionals.
While the fundamental vision of this market-leading text remains
unchanged, in the Fourteenth Edition the structure and topic coverage have
been reexamined and realigned to more clearly highlight established prin-
ciples and draw on new ones that have emerged as a result of business,
organizational, technological, and societal changes.
IS Principles First, Where They Belong

Exposing students to basic IS principles is an advantage even for those
students who take no IS courses beyond the introductory IS course. Since
most functional areas of the business rely on information systems, an
understanding of IS principles helps students in their other course work. In
addition, introducing students to the principles of information systems helps
future business managers and entrepreneurs employ information systems
successfully and avoid mishaps that often result in unfortunate consequences.
Furthermore, presenting IS concepts at the introductory level creates interest
among students who may later choose information systems as their field of
concentration.
Goals of This Text

Because Principles of Information Systems, Fourteenth Edition, is written for
business majors, we believe that it is important not only to present a realis-
tic perspective on IS in business but also to provide students with the skills
they can use to be effective business leaders in their organizations. To that
end, Principles of Information Systems, Fourteenth Edition, has three main
goals:
1. To provide a set of core IS principles that prepare students to function
more efficiently and effectively as workers, managers, decision makers,
and organizational leaders
xvi Preface
2. To provide insights into the challenging and changing role of the IS

professional so that students can better appreciate the role of this key
individual
3. To show the value of the IS discipline as an attractive field of specializa-
tion so that students can evaluate this as a potential career path
IS Principles
Principles of Information Systems, Fourteenth Edition, although comprehen-
sive, cannot cover every aspect of the rapidly changing IS discipline. The
authors, having recognized this, provide students with an essential core of
guiding IS principles to use as they strive to use IS systems in their academic
and work environment. Think of principles as basic truths or rules that r emain
constant regardless of the situation. As such, they provide strong guidance for
tough decision making. A set of IS principles is highlighted at the beginning
of each chapter. The use of these principles to solve real-world problems
is driven home from the opening examples of cutting edge applications to
the dozens of real-world examples of organizations applying these princi-
ples interspersed throughout each chapter to the interesting and diverse end-
of-chapter material. The ultimate goal of Principles of Information Systems,
Fourteenth Edition, is to develop effective, thinking, action-oriented students
by instilling them with principles to help guide their decision making and
actions.
Survey of the IS Discipline

Principles of Information Systems, Fourteenth Edition, not only offers the tra-
ditional coverage of computer concepts but also provides a broad framework
to impart students with a solid grounding in the business uses of technology,
the challenges of successful implementation, the necessity for gaining broad
adoption of information systems, and the potential ethical and societal issues
that may arise. In addition to serving general business students, this book
offers an overview of the entire IS discipline and solidly prepares future IS
professionals for advanced IS courses and careers in the rapidly changing IS
discipline.
Changing Role of the IS Professional

As business and the IS discipline have changed, so too has the role of the IS
professional. Once considered a technical specialist, today the IS professional
operates as an internal consultant to all functional areas of the organization,
being knowledgeable about their needs and competent in bringing the power
of information systems to bear throughout the entire organization. The IS
professional must view issues through a global perspective that encompasses
the entire enterprise and the broader industry and business environment in
which it operates.
The scope of responsibilities of an IS professional today is not confined to
just his or her organization but encompasses the entire ecosystem of employ-
ees, contractors, suppliers, customers, competitors, regulatory agencies, and
other entities, no matter where they are located. This broad scope of respon-
sibilities creates a new challenge: how to help an organization survive in our
highly interconnected, highly competitive global environment. In accepting
that challenge, the IS professional plays a pivotal role in shaping the business
itself and ensuring its success. To survive, businesses must strive for the high-
est level of customer satisfaction and loyalty through innovative products and
services, competitive prices, and ever-improving product and service quality.
The IS professional assumes a critical role in determining the organizations
approach to both overall cost and quality performance and therefore plays an
Preface xvii
important role in the ongoing growth of the organization. This new duality in
the role of the IS worker a professional who exercises a specialist’s skills with
a generalist’s perspective is reflected throughout Principles of Information
Systems, Fourteenth Edition.
IS as a Field of Study
Computer science and business were ranked #1 and #4, respectively, in the
2019 Princeton Review list of top 10 college majors based on research cover-
ing job prospects, alumni salaries, and popularity. A 2019 U.S. News & World
Report study placed, software developer, operations research analyst, and Web
developer as three of the top 25 best jobs for 2019 based on hiring d emand,
median salary, employment rate, future job prospects, stress level, and work
life balance. The U.S. Bureau of Labor Statistics identified information security
analysts, operation research analysts, and software and applications develop-
ers as among the fastest growing occupations for the period 2018 and 2028.
Clearly, the long-term job prospects for skilled and business-savvy informa-
tion systems professionals is good. Employment of such workers is expected
to grow faster than the average for all occupations through the year 2028.
Upon graduation, IS graduates at many schools are among the highest paid of
all business graduates.
A career in IS can be exciting, challenging, and rewarding! Today, per-
haps more than ever before, the IS professional must be able to align IS and
organizational goals and to ensure that IS investments are justified from a
business perspective. The need to draw bright and interested students into
the IS discipline is part of our ongoing responsibility. Throughout this text,
the many challenges and opportunities available to IS professionals are high-
lighted and emphasized.
Changes to the Fourteenth Edition

A number of exciting changes have been made to the text based on user feed-
back on how to align the text even more closely with changing IS needs and
capabilities of organizations. Here is a summary of those changes:
• Reorganized structure. The structure and subject coverage was
reexamined to ensure related content has been better aligned, and
that there is a clear, logical flow of topics throughout the text. Several
chapters have been reordered from the previous edition, some chapters
have been combined, some topics have been separated into new chapters,
and there are new chapters that focus on emerging and growing areas.
• New chapters covering the latest IS development. New chapters
include Information Systems: People, Technology, Processes, and
Structure; Networks: An Interconnected World; Cloud Computing
and the Internet of Things; and Artificial Intelligence and Automation.
• Extensive changes and updates in each chapter. The remaining
chapters in the text have all been extensively updated to provide the
latest information available on a wide range of IS-related topics including
hundreds of new and current examples of organizations and individuals
illustrating the principles presented in the text.
• New opening case: IS in Action. Each chapter begins with an opening
vignette to illustrate the concepts that will be covered in the chapter in
the context of a real-world, business-focused example.
• New alignment to AACSB standards. The opening case studies, critical
thinking exercises, and end-of-chapter case studies have been aligned to
the latest standards from the Association to Advance Collegiate Schools
xviii Preface
of Business International (AACSB). Standards are indicated by a red

arrow feature that appears before each activity.
• Updated Critical Thinking Exercises. Each exercise features a scenario
followed by review and critical thinking questions. Placed at the end
of each major section of each chapter, these exercises test the students’
grasp of the material just read. Students must analyze a real-life scenario
and synthesize the information provided to develop a recommendation
of what needs to be done. The exercises can also be used to stimulate
class discussion or as additional mini cases that may be assigned as
individual or team exercises.
• Updated summary linked to objectives. Each chapter includes a
detailed summary, with each section of the summary updated as needed
and tied to an associated information system principle.
• Updated end-of-the chapter questions and exercises. The majority
of the end-of-chapter exercises have been updated and the exercises
have been realigned into the following assessment types: Review and
Discussion Questions, Business-Driven Decision-Making Exercises,
Teamwork and Collaboration Activities, Career Exercises, Case Study.
• Updated case studies. One end-of-chapter case studies for each chapter
provides a wealth of practical information for students and instructors.
Each case explores a chapter concept or problem that a real-world
organization has faced. The cases can be assigned as individual or
team homework exercises or serve as the basis for class discussion.
An additional online-only case study will be available within the online
instructor resource materials.
MindTap for Principles of Information Systems, Fourteenth Edition

MindTap for Principles of Information Systems, Fourteenth Edition, is a per-
sonalized, fully online, digital learning platform of content, assignments, and
services that engages students and encourages them to think critically, while
allowing instructors to easily set their course through simple customization
options.
MindTap is designed to help students master the skills they need in
today’s workforce. Research shows employers need critical thinkers, trou-
bleshooters, and creative problem-solvers to stay relevant in our fast paced,
technology-driven world. MindTap helps students achieve this with assign-
ments and activities that provide hands-on practice and real-life relevance.
They are guided through assignments that help them master basic knowledge
and understanding before moving on to more challenging problems.
Students can access eBook content in the MindTap Reader, which offers
highlighting, note-taking, search and audio, and mobile access. Multimedia
activities and assessments for this text include:
• updated Concept Clip videos
• updated lecture slides and flashcards
• new Career Connection videos
• new You Make the Decision branching exercises
• new Use It business-scenario based questions
• new IS for Life activities that focus on the latest industry trends
• an additional, online-only Case Study not featured in the text
• new SQL: Essentials for the Real World tutorial and coding lab
assignments
• access to the SAM MindTap app, which includes simulated computing
activities in Microsoft Office 2019
Preface xix
MindTap allows instructors to measure skills and outcomes with ease.

Personalized teaching becomes yours through a Learning Path built with key
student objectives and the ability to control what students see and when they
see it. Analytics and reports provide a snapshot of class progress, time in
course, engagement, and completion rates.
Student Resources
Accessible through cengage.com, the student companion Web site contains
the following study tools (and more!) to enhance one’s learning experience:
• PowerPoint Lectures that cover the key points of each chapter
Instructor Resources
Instructor Companion Site

As always, we are committed to providing the best teaching resource pack-
ages available in this market. All instructor materials can be found on the
password-protected Web site at http://login.cengage.com. Here you will find
the following resources:
• Instructors Manual. The comprehensive manual provides valuable
chapter overviews; highlights key principles and critical concepts;
learning objectives, and discussion topics; and features possible essay
topics, further readings, cases, and solutions to the end-of-chapter
questions and problems, as well as suggestions for conducting the team
activities.
• PowerPoint Lectures. A set of impressive Microsoft PowerPoint slides
is available for each chapter. These slides are included to serve as a
teaching aid for classroom presentation, to make available to students
on the network for chapter review, or to be printed for classroom
distribution. The goal of the presentations is to help students focus
on the main topics of each chapter, take better notes, and prepare for
examinations. Instructors can add their own slides for additional topics
they introduce to the class.
• Additional Case Studies. Additional, online-only case studies explore
chapter concepts or problems that a real-world organization has faced.
• Figure Files. Figure files allow instructors to create their own
presentations using figures taken directly from the text.
• Test Bank files. Test bank files (from Cognero) are provided for easy
LMS integration.
Test Bank and Cengage Testing Powered by Cognero

Cognero is a full-featured, online-assessment system that allows instructors to
manage test bank content, quickly create multiple test versions, deliver tests
in several forms including from an LMS, and create test banks anywhere with
Internet access! To access Cognero, log into your Cengage—SSO a ccount at
http://login.cengage.com. Technical questions, guides, and tutorials are hosted
on Cengage Learning Technical Support Web site http://support.cengage.com.
xx Preface
Acknowledgments
George Reynolds was a skilled teacher, IS enthusiast, dedicated author, and
family man. Over more than 20 years, Cengage has had the privilege of work-
ing with George and witnessing his commitment to writing the best infor-
mation systems textbooks. In addition to Principles of Information Systems,
George worked with Cengage as the author of Fundamentals of Information
Systems, Ethics in Information Technology, and Information Technology for
Managers. His dedication to his work never wavered and was rooted in his
desire to help students excel in their current and future business careers.
In addition to his work, he was deeply devoted to his family, and often
shared stories of barbeques, trips, and other adventures with his wife, chil-
dren, 11 grandchildren, and his dog, Zeus. George was personable and kind,
which made working with him a pleasure. We are deeply saddened by the
loss of our author and friend, but take comfort in knowing that his work will
continue to help students for years to come.
Thank you to all the new contributors—Joey Bryant, Mark Frydenberg,
Hollis Greenberg, George Schell, Ellen Monk, and Joseph Brady who came
together to make this edition possible. Thank you to Mary Pat Shaffer for your
continued support of this title and sharp eye in reviewing. George always
spoke highly of you, and valued your collaboration through the development
process. Thank you to all Cengage team members who supported this e dition,
especially Michele Stulga, Jaymie Falconi, Emily Pope, Amy Savino, Maria
Garguilo, Anna Goulart, Jim Vaughey, and Cassie Cloutier.
part 1 Information Systems
in Business and
Society
Chapter 1
Information Systems: P eople,
Technology, Processes, and
Structure
Chapter 2
Secure Information Systems
Chapter 3
Corporate and Individual
A ccountability: Ethical, Legal,
and Social Issues
Andrey_Popov/Shutterstock.com
Chapter
Information Systems: People,
1 Technology, Processes, and Structure
Principles Learning Objectives

Managers have an essential • Identify two key management responsibilities in implementing successful
role to play in the successful information systems.
implementation and use of • State three reasons why organizations employ the Leavitt’s Diamond
information systems—that role model to introduce new systems into the workplace.
changes depending on which
type of information system is • Describe four fundamental information system types based on their
being implemented. sphere of influence.
• Discuss the traditional and contemporary view of the role that information
systems play in an organization’s value chains.
The strategic planning process • Identify four benefits of creating a strategic plan.
for the IS organization and the
• Identify four drivers that help set the information system organizational
factors that influence it depend
strategy.
on how the organization is
perceived by the rest of the • Identify three ways the IS organization can be perceived by the rest of
organization. the organization, and how each can influence the IS strategy.
everything possible/Shutterstock.com
The information system worker • Identify six non-technical skills needed to be an effective information
operates at the intersection of system worker.
business and technology and
• Identify two benefits of obtaining a certification in an IS subject area.
designs, builds, and imple-
ments solutions that allow
organizations to effectively
leverage information systems.
IS in Action
mPharma Improves Prescription Availability
and Affordability
Global, Diversity
The people of Africa are struggling to overcome severe healthcare challenges. Africa has
15 physicians per 100,000 inhabitants, less than one-tenth of most countries. Sixty-two
percent of its 1.2 billion people live in rural areas where access to medical facilities is
extremely difficult. The drug manufacturers and the pharmacies have limited data on
which to develop an accurate forecast of the demand for specific drugs. This limited data
leads to frequent out-of-stock situations of essential medicines. After seeing patients,
doctors may need to make several calls to find pharmacies that can fill the necessary
prescriptions. It is not uncommon for a patient to travel miles to a specific pharmacy
only to find out that the needed prescription cannot be filled because it is no longer
in stock.
An information system is a set of interrelated components that work together to col-
lect, process, store, and disseminate information to support fundamental business oper-
ations, data reporting and visualization, data analysis, decision making, communications,
and coordination within an organization. mPharma is a start-up company that builds
information systems that connect patients, hospitals, pharmacies, and drug manufacturers
via networks, software, and mobile phones. With this technology, mPharma manages the
prescription drug inventory for pharmacies and pharmaceutical suppliers in four African
countries. The information systems also enable mPharma to track which drugs are avail-
able at any given time and where. Knowing this information gives patients reliable access
to medicines.
Once patients register in the mPharma system, their health data and prescription
history can be accessed by their doctor. After registration, doctors can prescribe medication
and send a prescription code to the pharmacy and the patient’s mobile phone. In addition,
doctors can see stock information for any of the mPharma partner pharmacies to avoid
sending patients to pharmacies where drugs are unavailable. Doctors and pharmacies
can also communicate directly through mPharma’s messaging system. By taking over the
inventory management for member pharmacies, forecasting demand of prescription drugs,
and bargaining with suppliers, mPharma has been able to lower prescription costs by as
much as 30 percent.
mPharma found that some participants in the program were reluctant to come
on-board. For instance, hospitals were not willing to share patient/doctor data,
pharmacies were not willing to allow mPharma access to their inventory data, and
patients had concerns about the privacy of their data. To prove the system would work,
mPharma launched a pilot program in Zambia that involved several doctors and 1,000
patients who received their prescriptions through the mPharma system. The success
of this pilot helped ease many of these concerns. In addition, mPharma was able to
extract an enormous amount of data to track drug usage and develop a real-time d isease
surveillance system.
mPharma founders had a clear goal: Make prescription drugs in emerging markets
easily accessible and readily affordable. They formed partnerships with venture capitalists,
major pharmaceutical manufacturers, insurance companies, financial institutions, and
governments to build a new technology infrastructure. They then developed information
systems on top of this infrastructure to change how prescriptions are filled and inventory
is managed. These new processes changed who is responsible for forecasting the demand
of prescription drugs. In addition, mPharma used key supporting system complements
including physician, pharmacy, and patient education to ensure successful implementation
and adoption of the system by doctors, patients, and pharmacists.
4 part 1 • Information S ystems in Business and Society
As you read about information systems, consider the following:

• How are organizations using information systems to accomplish their objectives
and meet ever-changing business needs?
• What role might you have in identifying the need for, acquisition of, or use of such
systems?
Why Learn About Information Systems?

We live in an information economy, and information systems are embedded in and control many of the
products we use on a daily basis—our phone, the auto we drive, our coffee maker, the cable box that
controls our TV, and so on. Information has real value. To stay competitive, organizations require a steady
flow of information about their business partners, competitors, customers, employees, markets, and sup-
pliers. When this information is in place, individuals can communicate instantaneously with one another,
and consumers make purchases online using mobile devices. In addition, project members dispersed
globally and across multiple organizations can collaborate effectively, and financial institutions can man-
age billions of dollars in assets around the world. Further, manufacturers can partner with suppliers and
customers to track inventory, order supplies, and distribute goods faster than ever before.
Starbucks implemented what it calls its “digital flywheel,” which includes everything from its
rewards program to its mobile order-ahead feature to eliminate congestion at stores. Target built a
myCheckout app that its team members can use on their mobile devices to search Target.com for
desired products, and then take guests’ payment on the spot with a credit card reader that’s attached
to the handheld device. Guests walk away knowing their items are enroute to their doorstep—with free
shipping, by the way! Walmart built an app that allows customers to refill and manage their p rescriptions
from their mobile devices and skip the line when they reach the pharmacy counter. It also recently
entered the credit card processing field with its own mobile payment processing solution called Walmart
Pay. Kroger is piloting a new Scan, Bag, Go handheld scanner that enables shoppers to pick items, scan
them, and drop them in a grocery tote. When done shopping, consumers head to the self-checkout
stand for one last scan that totals their bill and allows them to pay. They drop off the handheld scanner
and head out the door.
Information systems will continue to change businesses and the way we live. Indeed, many corpo-
rate leaders are using technology to rework their products and services. To prepare to participate in and
lead these innovations, you must be familiar with fundamental information system concepts. Regardless
of your college major or chosen career, the ability to recognize and capitalize on information system
opportunities will make you a valuable member of your organization and will advance your career. And,
as you will learn in this chapter, as a manager you have an essential role in ensuring the successful
implementation and adoption of your organization’s information systems.
What is an Information System

information system: A set of An information system is a set of interrelated components that work together
interrelated components that work to collect, process, store, and disseminate information. This information sup-
together to support fundamental ports fundamental business operations, data reporting and visualization, data
business operations, data reporting
and visualization, data analysis, analysis, decision making, communications, and coordination within an orga-
decision making, communications, and nization. A well-designed information system includes some form of feedback
coordination within an organization. mechanism to monitor and control its operation. This feedback ensures that the
system continues to operate in an effective and efficient manner.
Individuals and organizations use computer-based information systems
every day to accomplish a wide range of both work-related tasks and every-
day living activities. This includes processing the fundamental transactions
required to run a business (e.g. capturing customer orders and payments)
and communicating with fellow employees, customers, business partners, and
other resources. Information systems are also used to analyze large amounts of
Chapter 1 • Information Systems: People, Technology, Processes, and Structure 5
data to detect underlying trends to enable accurate forecasts; track costs and
schedule progress on projects, prepare presentations including slides, graphs,
and tables; and monitor results and recommend appropriate actions.
Information Systems—A Means to Achieve

Competitive Advantage
A competitive advantage enables an organization to generate more sales or
achieve superior profit margins compared to its rivals. The advantage can be
gained in one of three ways: (1) by providing the same value as competitors but
at a lower price (cost leadership), (2) by charging higher prices for providing
products that are perceived by the customer as being better (differentiation),
or (3) by understanding and servicing a target market better than anyone else
(focus). Organizations must recognize that considerable effort may be required
to sustain a competitive advantage. Organizations and their products and ser-
vices must continually evolve to account for changes in customer needs, market
conditions, industry conditions, and competitor actions.
Managers have a key responsibility to identify and use information systems
to gain a competitive advantage. Here are a few examples of using information
systems in this manner:
• mPharma, as discussed in the opening vignette, used its custom infor-
mation systems to become the dominant organization in managing the
prescription inventory for pharmacies and their pharmaceutical suppliers
in four African countries.
• Boeing employs sophisticated information systems that enable the digital
design of various aircraft-related systems. These systems allow early
detection and removal of design defects and reduce development cost
and time.1
• Walmart employs a vendor-managed inventory system to streamline
product flow and better manage its store inventories. This system
reduces the administrative costs of managing inventory, lowers inventory
holding costs, and increases sales through reductions of out-of-stock
situations in its stores.
• Skanska USA, a construction firm, employs an information system to
track and analyze the movement and tasks of subcontractors on the
job. With this system, Skanska can relocate tools and materials to more
optimal locations and rearrange workflows to speed up the building
process and to reduce labor costs.2
• La-Z-Boy differentiates itself from competitors by implementing a system
to consolidate shipping and exception data from dozens of carriers so
that consumers know when their purchase is shipping from the retailer
and when they can expect to see it at their door step.
Managers’ Role in Implementing Successful Information Systems

An organization’s information system operates within a context of people, technol-
ogy infrastructure, structure, and processes, as shown in Figure 1.1. This model is
Leavitt’s Diamond: A model that known as Leavitt’s Diamond, and it was defined by American psychologist and
states an organization’s information organizational scientist Harold Leavitt. Organizations use this model to introduce
systems operate within a context of
new systems into the workplace in a manner that lowers stress, encourages team-
people, technology infrastructure,
processes, and structure. work, and increases the probability of a successful implementation.
Leavitt’s Diamond highlights the need for an overall implementation approach
that considers all four key components. Unfortunately, company leaders often focus
too narrowly on just the technology infrastructure component. When they do so,
they fail to consider the people, processes, and human structure components. This
failure can create a rough system start-up, frustrated employees, and missed orga-
nizational expectations that can lead to system failure or the need to redo much
of the implementation effort. Managers of the business functions most affected by
the new information system have a key responsibility to ensure that the people,
processes, and human structure components are fully addressed.
People
• Motivation
• Training
• Support
Technology Infrastructure
Processes • Hardware
• Procedures • Software
• Standards • Databases
• Measures • Networks
• Tools • Facilities
• Services
Structure
• Roles
• Responsibilities
• Authority
Figure 1.1
Leavitt’s Diamond
Leavitt’s Diamond proposes that every organizational system operates within a context composed
of people, technology infrastructure, processes, and human structure.
The various components of Leavitt’s Diamond will now be discussed.
People People make the difference between success and failure in all
rganizations. Jim Collins, in his book Good to Great, said, “Those who build great
o
companies understand that the ultimate throttle on growth for any great company
is not markets, or technology, or competition, or products. It is one thing above
all others: the ability to get and keep enough of the right people.”5 Thus, it
comes as no surprise that people are the most important element of information
systems. Indeed, people are involved in information systems in many ways:
people envision information systems and the benefits they can deliver, people
design and build information systems, people support and maintain information
systems, and people use information systems to achieve worthwhile results.
Good information systems can enable people to produce extraordinary
results. They can also boost job satisfaction and worker productivity.6 Infor-
mation systems personnel include all the people who manage, run, program,
and maintain the system, including the chief information officer (CIO), who
leads the IS organization. End users are people who work directly with infor-
mation systems to get results. They can include anyone in the organization—
receptionists, financial managers, product development personnel, salespeople,
human resource managers, marketing representatives, warehouse workers,
executives, and manufacturing line operators.
Employees must be well trained and understand the need for the infor-
mation system, what their role is in using or operating the system, and how
to get the results they need from the system. They must be motivated to use
the information system and have access to system support people as needed.
technology infrastructure: All Technology infrastructure An organization’s technology infrastructure includes

the hardware, software, databases, all of its hardware, software, databases, networks, facilities (such as data c enters
networks, facilities, and services
and server rooms) and services provided by third parties (such as outside
used to develop, test, deliver,
control, or support the information consultants, rented hardware, third-party software, and outside storage). An
technology applications and services organization uses these resources to develop, test, deliver, control, or support
an organization requires to meet the the information technology applications and services an organization requires
needs of its customers, suppliers, to meet the needs of its customers, suppliers, key business partners, regulatory
key business partners, regulatory
agencies, and employees. The technology infrastructure forms the foundation
agencies, and employees.
of every computer-based information system. Worldwide information technol-
ogy spending is expected to reach nearly $3.8 trillion in 20197 as shown in
Table 1.1. This is an amount rivaling the $4.4 trillion dollar proposed U.S.
federal budget for fiscal year 2019.
Ta b l e 1.1 Global IT projected spending 2017–2019

Spending in Billions
Infrastructure Component 2017 2018 2019
Data center systems $178 $179 $179
Enterprise software $355 $389 $421
Devices $667 $704 $710
IT services $933 $985 $1,030
Communications services $1,393 $1,427 $1,443
Total Spending $3,526 $3,684 $3,783
process: A structured set of related Processes A process is a structured set of related activities that takes input,
activities that takes input, adds value, adds value, and creates an output for the customer of that process. The input
and creates an output for the customer
can be something tangible such as raw materials, data, chemical ingredients,
of that process.
documents, or data. The output can be finished product, information gleaned
from processing the data, a completed form, or a report. The customer of the
process may be an actual business customer or a worker in another organiza-
tional unit of the firm who needs the output of the process to perform his/her
job or to make a decision. A salesperson taking a customer order is an example
of a business process. The items in the order are pulled from inventory and
shipped to the customer. The order then goes through billing, collections, and
is eventually converted into cash.
procedure: A set of steps that need A procedure defines the steps to follow to achieve a specific end result,
to be followed to achieve a specific end such as how to enter a customer order, how to pay a supplier invoice, or how to
result, such as entering a customer
request a current inventory report. Good procedures describe how to achieve
order, paying a supplier invoice, or
requesting a current inventory report. the desired end result, who does what and when, and what to do in the event
something goes wrong. When people are well trained and follow effective pro-
cedures, they can get work done faster, cut costs, make better use of resources,
and more easily adapt to change. When procedures are well documented, they
can greatly reduce training costs and shorten the learning curve.
Using an information system involves setting up and following many pro-
cedures, including those for the operation, maintenance, and security of the
computer. For example, some procedures describe how to gain access to the
system through the use of a log-on procedure and a password. Others describe
who can access facts in the database or what to do if a disaster, such as a fire,
earthquake, or hurricane, makes the information system unusable. Good pro-
cedures can help companies take advantage of new opportunities and avoid
lengthy business disruptions in the event of natural disasters. Poorly developed
and inadequately implemented procedures, however, can cause people to waste
their time on useless rules or can result in inadequate responses to disasters.
structure: A definition of the Structure An organization’s structure defines relationships among members
relationships among the members of of the organization. In addition, it defines the roles, responsibilities, and lines
an organization including their roles,
responsibilities, and lines of authority
of authority that are necessary to complete various activities. Employees must
necessary to complete various understand and accept their roles and responsibilities, and these roles and
activities. responsibilities often change with the introduction of a new information system.
Types of Information Systems

Organizations employ numerous information systems. When considering the
role of people using information systems, it is useful to divide information sys-
tems into four types based on their sphere of influence: personal information
system, workgroup information system, enterprise information system, and
interorganizational information system.
personal information Personal information system includes information systems that improve
system: An information system that the productivity of individual users in performing stand-alone tasks. Examples
improves the productivity of individual of personal IS include word-processing, presentation, time management, and
users in performing stand-alone tasks.
spreadsheet software.
Kroger is the largest retail grocer in the world with $115 billion in 2016
sales from 2,792 supermarkets and multi-department stores in 35 states and
the District of Columbia. Its ClickList system is an example of a personal infor-
mation system that improves the efficiency of its customers. Customers use
ClickList to shop for their groceries online and then pick them up at the store
at a prearranged time. Once logged on, the customer can type the names of
products into the search bar, browse items by department, or choose one of
three other options: My Favorites, My Recent Purchases, and Sale Items for You.
The price is clearly displayed under each image; the customer can either click
the box beneath the image to add the item directly to the cart or the customer
can click on the image itself and see alternate views of the packaging and nutri-
tion information. After the customer order is placed, Kroger Associates choose
the items, bag them, and place them in a refrigerated space in the store. Then,
customers can just drive to the store at their reserved pickup time, and Kroger
loads the order into their car.
In today’s global work environment, success depends on our ability to
communicate and collaborate with others, including colleagues, clients, and
workgroup information customers. A workgroup information system supports teamwork and enables
system: Systems that support people to work together effectively, whether team members are in the same
teamwork and enable people to work location or dispersed around the world. These systems are also known as
together effectively, whether team
members are in the same location or
collaboration systems. Examples of workgroup information systems include
dispersed around the world. instant messaging software, electronic conferencing software, and collaboration
software used to move groups through the steps of a process toward their goals.
The Monterey Bay Aquarium in California strives to raise awareness of
ocean conservation and educate and inspire the next generation of ocean stew-
ards. Its education programs attract some 110,000 students and teachers each
year. The aquarium recently set a goal to double the number of its programs
and is building a new education center to meet this growth. Achieving this goal
means the staff must complete many tasks while working on different teams
and different projects. The team uses a group collaboration tool to help them
communicate, organize, plan, schedule, track, and delegate jobs. The tool pro-
vides visibility and easy access to all ongoing projects and gives team members
the opportunity to jump in and help each other out.3
enterprise information An enterprise information system is used to meet organization-wide
system: An information system business needs and typically shares data with other enterprise applications
that an organization uses to define
structured interactions among its
used within the organization. Enterprise applications support p rocesses
own employees and/or with external in logistics, manufacturing, human resources, marketing and sales, order
customers, suppliers, government processing, accounting, inventory control, customer relationship management,
agencies, and other business partners. and other essential business functions. These processes require cross-
functional collaboration with employees from multiple organizational units.
Enterprise applications are required to comply with an organization’s security

guidelines and may also be required to comply with standards defined by
government agencies or industry groups to which the organization belongs.
For example, all organizations that store, process, and transmit cardholder
data strive to meet the Payment Card Industry Data Security Standard. This
standard provides a framework of specifications, tools, measurements, and
support resources to help organizations ensure the safe handling of card-
holder information. Successful implementation of these systems often requires
the radical redesign of fundamental work processes, the automation of new
processes, and re-training of personnel. Target processes may include purely
internal activities within the organization (such as payroll) or those that sup-
port activities with external customers and suppliers (order processing and
purchasing).
Allan Bros., Inc. is a fruit growing, packing, and shipping company located
in Naches, WA. It has orchards located throughout Eastern Washington. The
firm developed an enterprise information system that informs workers when
and how they should prune the vines and predicts the quality and volume of
upcoming crops of grapes. The system can even estimate how many tons will
grow per acre—key information for production planning and determining how
many wineries the vineyard can serve from one harvest.4
interorganizational IS: An An interorganizational IS enables the sharing of information across orga-
information system that enables nizational boundaries. Information sharing supports collaboration between two
sharing of information and conducting or more organizations and provides benefits such as lower costs, reduced
business electronically across
organizational boundaries. manual effort, and decreased time to conduct business. To achieve these
benefits, the information shared between organizations must be accurate,
complete, and current. Otherwise, companies using the IOS will experience
inefficiencies resulting from the time spent to reconcile errors.
Many different types of IOS exist, and they vary in purpose and scope. Elec-
tronic data interchange (EDI) is an interorganizational information system that
expedites purchasing, invoicing, and payment by sending orders, invoices, and
payments in standardized electronic message formats from one organization’s
computer to another organization’s computer. All companies that use EDI send
their data according to rigidly defined industry standards. A number of EDI
standards bodies exist in the United States and Europe, and within the United
Nations. These organizations develop EDI standards for specific industries such
as the automotive, grocery, and retail industries. The standard EDI messages
are received and verified, and the transactions are completed with little or no
human effort required. Becoming EDI capable is a relatively straight forward
task as many of the purchasing and inventory management software packages
available include additional software modules that enable EDI. EDI replaced
the much slower and error-prone processes based on humans handling trans-
actions over the phone and with paper documents.
Walmart employs an interorganizational information system it calls
vendor-managed inventory (VMI) to streamline product flow and better m anage
its store inventories. Walmart suppliers who participate in the VMI program
are responsible for managing the inventory of their products in Walmart’s
warehouses. Suppliers are authorized to access a Walmart database that
contains item-level sales and inventory data for just their products and not
competitors’ products. The supplier can then use this data to develop product
demand projections. Each supplier is aware of any unit shortfalls of any of their
products and is empowered to immediately and proactively ship additional
units without a Walmart-generated purchase order. Because of this system,
Walmart has reduced administrative costs to manage inventory, lower inventory
holding costs, and increased sales through reduction of out-of-stock situations
in its stores. Supplier benefits include lower manufacturing and distribution
costs and improved production scheduling. This scheduling better matches
Walmart customers’ demand and reduces out-of-stock situations.
Value Chain
value chain: A series (or chain) of The value chain is a series (or chain) of activities that an organization performs
activities that an organization performs to transform inputs into outputs in such a way that the value of the input is
to transform inputs into outputs in such increased. An organization may have many value chains, and different organiza-
a way that the value of the input is
increased. tions in different industries will have different value chains. As an example of a
simple value chain, consider the gift-wrapping department of an upscale retail
store. It takes packages from customers, covers the packages with decorative
wrapping paper, and gives the packages back to the customers, thus increasing
the perceived value of the gift.
supply chain: A key value chain In a manufacturing organization, the supply chain is a key value chain
whose primary processes include whose primary processes include inbound logistics, operations, outbound
inbound logistics, operations, logistics, marketing and sales, and service as shown in Figure 1.2. An orga-
outbound logistics, marketing and
sales, and service. nization’s supply chain encompasses the processes required to get the right
product or service into the right consumer’s hands in the right quantity at the
right time and at the right cost. These primary processes are directly concerned
with the creation and/or delivery of the product or service. The supply chain
also includes four main support processes, including technology infrastructure,
human resource management, accounting and finance, and procurement.
Figure 1.2 Suppliers Receiving Storage Advertising Customer service

Supply chain and primary and Raw material Storage Shipping Promoting
Transportation Manufacturing Selling
support processes Storage
The primary and support activities
of the manufacturing supply chain
are concerned with creating or
delivering a product or service. Inbound Outbound Marketing
Operations Services
logistics logistics and sales
Technology infrastructure, including information systems
Human resource management
Accounting and finance
Procurement
The concept of value chain is also meaningful to companies that don’t

anufacture products. These companies include tax preparers, restaurants,
m
book publishers, legal firms, and other service providers. By adding a significant
amount of value to their products and services, companies ensure their success.
Organizations are constantly fine-tuning and adjusting their supply chain.
For example, Amazon has transformed from a small, non-profitable online
bookseller to the largest Internet-based retailer in the world, as defined by total
sales and market capitalization. Amazon is continually evolving its approach
to supply chain management to ensure that it can deliver millions of items to
customers at the right price and faster than any other retailer. Amazon offers
customers Amazon Prime, an annual membership that guarantees free two-day
shipping on hundreds of thousands of items. When other online retailers moved
to match Amazon Prime, Amazon began offering free two-day shipping. Its next
move was one-hour delivery with Amazon Prime Now. Amazon customers who
live within 10 miles of an Amazon fulfillment center will soon be able to receive
their eligible packages (under 5 pounds) via drones inside of 30 minutes.
Amazon even introduced Dash buttons, little wireless communications devices
that allow users to simply press a button to order a household staple such as
bottled water, coffee, detergent, and paper products.
What role do information systems play in supply chain management activi-
ties and other organizational activities? A traditional view of information systems
holds that organizations use information systems to control and monitor pro-
cesses and to ensure effectiveness and efficiency. In this view, information sys-
tems are external to the supply chain management process and serve to monitor
or control it. A more contemporary view, however, holds that information sys-
tems are often so intimately involved that they are part of the process itself. From
this perspective, the information system plays an integral role in the process,
whether providing input, aiding product transformation, or producing output.
Critical Zara Supply Chain System

Thinking Systems and Processes
Exercise
Zara is a Spanish clothing and accessories retailer with headquarters in Arteixo, Spain.
It has 2,000 stores spread across 88 countries.8 Its founder, Amancio Ortega, had
humble origins, but today is the third richest man in the world. Consumer clothing
trends are constantly changing, creating a highly competitive environment in which
companies compete not only on price but also on their ability to deliver products that
are new and stimulating to their customers. To meet this challenge, Zara has devel-
oped an extremely responsive supply chain that enables it to go from design stage to
sales floor in a maximum of three weeks rather than the six-month industry average.
Zara can deliver new products twice a week to its stores around the world.
Mobile computers and point-of-sales systems are used to capture and review data
from stores on an hourly basis to spot new trends as early as possible. This data
includes sales and inventory data and anecdotal information gleaned by sales
assistants as they chat with customers and as the sales assistants gather unsold
items that customers tried on but left in fitting rooms. All this data is sent to Zara’s
headquarters where it is carefully analyzed by design teams who decide what new
designs will be prototyped and produced in small quantities to see what sells. In
addition, inventory optimization models help the company determine the quantities
and sizes of existing items that should be delivered to each store. Zara’s outstand-
ing supply chain (which includes information systems as an integral component)
has led to improved customer satisfaction, decreased risks of overstocking the
wrong items, reduced total costs, and increased sales.9
Review Questions
1. In what sphere of influence does the Zara supply chain information system
operate?
2. How has the Zara supply chain provided the firm with a competitive advantage?
Critical Thinking Questions

1. How can you ensure that sales assistants at each retail location will use the
information system as intended? (Hint: Refer back to Figure 1.2.)
2. What issues might you encounter in using the information system at Zara? How
might these issues be overcome? Whose responsibility is it to address these issues?
Strategic Planning
strategic planning: A process that Strategic planning is a process that helps managers identify initiatives and
helps managers identify initiatives and projects that will achieve organizational objectives. The strategic plan must
projects that will achieve organizational
take into account that the organization and everything around it is in a state
objectives.
of flux. This includes consumers’ likes and dislikes, changes in competitors,
and suppliers leaving and entering the marketplace. In addition, the costs and
availability of raw materials and labor fluctuate, the fundamental economic
environment (interest rates, growth in gross domestic product, inflation rates)
changes; and the degree of industry and government regulation varies.
Strategic planning provides the following benefits:
• A framework and a clearly defined direction to guide decision making at
all levels and across all organizational units
• The most effective use of the organization’s resources by focusing those
resources on agreed-on key priorities
• The ability of the organization to be proactive and to take advantage of
opportunities and trends, rather than passively reacting to them
• Improved communication among management, employees, the board of
directors, shareholders, and other interested parties
An organization develops an overall strategic plan, which sets the direction
for all the other business units of the organization. Common themes in s etting
strategies include “increase revenue,” “attract and retain new customers,”
“increase customer loyalty,” and “reduce the time required to deliver new
products to market.” In choosing from alternative strategies, managers should
consider the long-term impact of each strategy on revenue and profit, the degree
of risk involved, the amount and types of resources that will be required, and
the potential competitive reaction. Managers of the various business units also
develop a strategic plan that is consistent with the overall organizational plan.
Amazon has made a strategic decision to explore the possible use of deliv-
ery drones to gain a real competitive advantage over competitors who rely on
less efficient ground transportation. Because a large percentage of Amazon
packages weigh less than 5 pounds, drones could become the ideal rapid-
delivery vehicles. Amazon has detailed plans for this service; however, the
company cannot announce if or when the program will start until regulators
set out the rules regarding the commercial use of drones. Such a strategy has
the potential to attract new customers and increase revenue.10
Information System Strategic Planning

The strategic plan of an information system (IS) must identify those technologies,
vendors, competencies, people, systems, and projects in which an organization
will invest to support the corporate and business unit strategies. This plan is
strongly influenced by new technology innovations. These innovations include
increasingly more powerful mobile devices and advanced software that can
analyze large amounts of structured and unstructured data. Innovative thinkers
inside and outside the organization also influence the plan (see Figure 1.3).
The strategic planning process for the IS organization is also strongly influ-
enced by how the IS organization is perceived by the rest of the organization.
An IS organization can be viewed as a cost center/service provider, as a busi-
ness partner/business peer, or as a game changer (see Table 1.2).
In a survey of more than 700 CIOs, 38 percent said that their IS organi-
zation is viewed as a cost center/service provider that is expected to reduce
IS costs and improve IS services.11 The strategic planning process for such an
organization is typically directed inward and focused on determining how to
do what it is currently doing but doing it cheaper, faster, and better.
The IS organization of the state of Delaware is viewed as a cost center/
service provider. One of the organization’s primary strategic initiatives is to
consolidate IS resources and to eliminate redundant functions and resources
within the various state agencies. The goal is to deliver significant improve-
ments in customer service and to reduce costs.12
The majority of CIOs surveyed, about 52 percent, said that their IS organi-
zation is viewed as a business partner/business peer that is expected to control
Figure 1.3
Corporate
Drivers that set IS strategy
organizational strategy and
determine information system
investments
Planners must consider many
factors in setting IS organizational Business
strategy. unit
strategies
IT
Innovative Technology
organizational
thinking innovations
strategies
IT investments:
• Technologies
• Vendors
• Competencies
• People
• Systems
• Projects
Ta b l e 1.2 The IS strategic planning spectrum

Cost Center/Service Business Partner/
Provider Business Peer Game Changer
Strategic planning focus Inward looking Business focused Outward looking
IS goals Control/reduce IS costs; Improve IS/business Drive business innovation;
improve IS operations and partnership deliver new products and
services Control IS costs; expand services
IS services
Strategy React to strategic plans of Execute IS projects to Use IS to achieve
business units support plans of business competitive advantage
Typical projects Eliminate redundant or Implement new Provide new ways for
ineffective IS services systems and technology customers to interact with
infrastructure; redesign organization
business processes
IS costs and to expand IS services in support of business initiatives.13 The stra-

tegic planning process of these organizations is based on understanding the
collective business plans for the next year and determining what those mean
for the IS organization in terms of new technologies, vendors, competencies,
people, systems, and projects.
The IS organization for the city of Seattle operates under the constraint of
a decreasing budget but is continually striving to expand its services and cap-
italize on the latest technology developments. It employs newer technologies,
such as mobile computing, to improve the interaction of city government with
its constituents and to support city services on the move. The organization also
seeks opportunities to access shared computer resources through cloud-based
applications to gain advantages and efficiencies where it makes sense.14
Only 10 percent of surveyed CIOs stated that their IS organization is viewed

by fellow employees as a game-changing organization that is asked to lead
product innovation efforts and open new markets.15 Their strategic planning
process is outwardly focused and involves meeting with customers, suppliers,
and leading IS consultants and vendors to answer questions like “What do we
want to be?” and “How can we create competitive advantage?”16 In such organi-
zations, IS is not only a means for implementing business-defined objectives but
also a catalyst for achieving new business objectives unreachable without IS.
GAF is a $3 billion privately held manufacturer of commercial and residen-
tial roofing. GAF’s IS employees regularly collaborate with external customers
to learn from them and to help educate potential customers about why they
should do business with GAF. Using these collaboration sessions to gain a bet-
ter understanding of its customers’ needs, GAF developed a mobile app that
allows a contractor to take a photo of a prospect’s house and then use that
photo to allow the prospect to preview different GAF shingle styles and colors
on an actual image of their home. The app was a game changer for the orga-
nization as it helps GAF contractors demonstrate the beauty of GAF shingles
and eliminates one of the biggest barriers to closing the sale—answering the
question, “How will it look on my house?”17
No matter how an IS organization is perceived, the odds of achieving
good alignment between the IS strategic plan and the rest of the business are
vastly increased if IS workers have experience in the business and can talk to
business managers in business terms rather than technology terms. IS workers
must be able to recognize and understand business needs and develop effective
solutions. The CIO especially must be able to communicate well and should
be accessible to other corporate executives. However, the entire burden of
achieving alignment between the business and the IS organization cannot be
placed solely on the IS organization.
Critical Business Liaison Role

Thinking Reflective Thinking, SYSTEMS AND PROCESSES
Exercise
You have been employed as a systems analyst in the information systems organi-
zation of a medium-sized consumer goods manufacturer for three years. You are
quite surprised when your manager offers you a one-year special assignment as a
warehouse manager supervising workers and operations in the large distribution
center used to store your company’s finished products and prepare them for ship-
ment to retail stores around the country. Your manager explains that the company
wishes to groom you to become the business liaison with the supply chain organi-
zation and wants you to become familiar with the entire order-fulfillment process.
Based on its recent growth, the company is planning to open at least two new
distribution centers in different regions of the country over the next two to three
years. Management has chosen you to be a key player in developing a strategic
plan that is consistent with corporate strategies and meets the needs of the supply
chain organization.
Review Questions
1. What organizational benefits can be gained from the creation of this role and
improved strategic planning?
2. What key drivers should govern the IS strategic plan?

1. How would you like the IS organization to be perceived by the rest of the
company? Why?
2. For you, personally, what are the pros and cons of accepting this position?
Would you take this assignment? Why or why not?
Information Systems Careers

Today, most organizations cannot function or compete effectively without
computer-based information systems. Indeed, organizations often attribute their
productivity improvement, superior customer service, or competitive advantage
in the marketplace to their information systems. The information system worker
functions at the intersection of business and technology and designs and builds the
solutions that allow organizations to effectively leverage information technology.
Successful information system workers must enjoy working in a fast-paced,
dynamic environment where the underlying technology changes all the time.
They must be comfortable with meeting deadlines and solving unexpected
challenges. They need good communication skills and often serve as translators
between business needs and technology-based solutions. Successful information
systems w orkers must have solid analytical and decision-making skills and be
able to translate ill-defined business problems and opportunities into effective
technology-based solutions. They must develop effective team and leadership
skills and be adept at implementing organizational change. Last, but not least, they
need to be prepared to engage in lifelong learning in a rapidly changing field.
Specific technical skills are important for IS workers to possess. These
skills—all of which are discussed in various chapters throughout this book—
include the following:
• Capability to analyze large amounts of structured and unstructured data
• Ability to design and build applications for mobile devices
• Traditional programming and application development skills
• Technical support expertise
• Project management skills
• Knowledge of networking and cloud computing
• Ability to audit systems and implement necessary security measures
• Web design and development skills
• Knowledge of data center operations
Technology is one of the fastest-growing areas of the U.S. economy, and
information systems professionals are in high demand. The U.S. Bureau of
Labor Statistics (BLS) pegged the number of people employed in the United
States in computer-related occupations in 2016 at 4.6 million. The BLS fore-
casts an increase of 591,000 new computing job openings in the time period
2016 to 2026 or an average of about 60,000 new jobs per year.18 Figure 1.4
shows that the annual number of computer and information science degrees
awarded in the United States has met or exceeded 100,000 since 2010.19 Many
140,000
120,000
100,000
PhD
80,000 Masters
Bachelors
60,000
Associates
Figure 1.4
40,000
Computer and information
science degrees awarded 20,000
U.S. computer and informa-
tion science degrees awarded 0
has exceeded 100,000 since
7
6
–0
–0
–0
–1
–1
–1
1
2–
3–
4–
5–
2010–11.
06
07
08
09
10
11
1
20
20
20
20
20
20
20
20
20
20
computer and information science graduates take employment in related fields

such as business management. They also work as mathematicians or operations
research specialists; computer or electronic salespeople; or business, math, or
computer science educators.
Typical Information System Roles

IS offers many exciting and rewarding careers. Professionals with careers in
information systems can work in an IS department or outside a traditional IS
department as Web developers, computer programmers, systems analysts, com-
puter operators, and in many other positions. Opportunities for IS professionals
also exist in the public sector. In addition to technical skills, IS professionals
need skills in written and verbal communication, an understanding of organi-
zations and the way they operate, and the ability to work with people and in
groups. The following sections provide a brief description of these roles. At the
end of each chapter in this book, you will find career exercises that will help
you explore careers in IS and career areas that interest you.
Chief Information Officer

The role of the chief information officer (CIO) is to employ an IS depart-
ment’s equipment and personnel in a manner to best achieve the goals of
the organization. CIOs must understand finance, accounting, and return on
investment and be able to make wise choices on which of many projects to
fund and staff. They can help companies avoid damaging ethical challenges
by monitoring how their firms are complying with a large number of laws and
regulations. A good CIO is typically a visionary who provides leadership and
direction to the IS department to help an organization achieve its goals. CIOs
need strong technical, business, and inter-personal skills. Those interested in
this career path would do well to explore college-level coursework in business
management, computer science, and information technology. Employers prefer
applicants with at least five years of information technology experience in a
management capacity.
Software Developer
Software developers are the creative minds behind computer programs.
Some develop the applications that allow people to do specific tasks on a
smart phone, video game, laptop, or other computing device. Others develop
the underlying operating systems that run the devices or that control net-
works. Software developers test and debug the software as well as maintain
and upgrade software after it is released for initial use. Software developers
frequently collaborate with management, clients, and others to build a software
product from scratch, according to a customer’s specifications, or to modify
existing software to meet new business needs. Software developers usually
have a bachelor’s degree in computer science and strong computer program-
ming skills.
Information Systems Security Analyst

IS security analysts are responsible for planning, designing, implementing,
and maintaining the security and integrity of their organizations’ systems and
data. They analyze the security measures of the organization and identify and
implement changes to make improvements. Security analysts are responsible
for developing and delivering training on proper security measures. They also
are responsible for creating action plans in the event of a security breach. Most
information security analysts work for computer companies, consulting firms,
or business and financial companies. Most information security analyst posi-
tions require a bachelor’s degree in a computer-related field. Employers prefer
to hire analysts with experience in a related occupation.
Systems Analyst
Systems analysts frequently consult with management and users to define the
scope of and requirements for new information systems. They convey system
requirements to software developers and network architects for implementation.
They bring business and information systems together by understanding the needs
and limitations of both. They also assist in choosing and configuring hardware and
software, matching technology to users’ needs, monitoring and testing the system
in operation, and troubleshooting problems after implementation. A bachelor’s
degree in a computer or information science field is common, although not always
a requirement. Some firms hire analysts with business or liberal arts degrees who
have skills in information technology or computer programming.
Programmer
Programmers convert a program design developed by a systems analyst or
software developer into a working program written in one of many computer
languages. To do this, they must write, debug, and test the program to ensure
that it will operate in a way that it will meet the users’ needs. P
rogrammers
usually work in offices, most commonly in the computer systems design and
related services industry. Most computer programmers have a bachelor’s
degree; however, some employers hire workers with an associate’s degree.
Most programmers specialize in more than one programming language.
Web Developer
These professionals design and maintain Web sites, including site layout and
function, to meet the client’s requirements. The creative side of the job includes
creating a user-friendly design, ensuring easy navigation, organizing content,
and integrating graphics and audio (Figure 1.5). The more technical responsi-
bilities include monitoring Web site performance and capacity.
REDPIXEL.PL/Shutterstock.com
Figure 1.5
Web Developers
Web developers create and
maintain company Web sites.
Business Analyst
Business analysts are responsible for improving a company’s competitiveness
and performance across a broad spectrum of criteria. Evaluating and solving
business challenges is the strong suit of these professionals. They must collect,
review, and analyze information that enables them to make sound recommen-
dations. They often specialize in a particular functional area, such as supply
chain management, marketing, finance, or product development—or in an

industry like healthcare, consumer products, or transportation, among others.
Business analysts may oversee teams or work independently to solve problems
and address challenges. Business analysts must possess a broad set of business
knowledge and skills, which can be obtained through a bachelor’s degree in
business administration with a specialization in management.
Table 1.3 shows the median annual salary and forecasted number of new
job openings for the IS positions just discussed.
Ta b l e 1.3 Median annual salary for different information system positions

2018 Median Annual Number of New Job
Job Title Salary Number of Jobs, 2016 Openings, 2016–2026
CIO $202,500 N/A N/A
Software Developer $115,000 1,256,300 302,400
Information Systems $115,250 100,000 28,500
Security Analyst
Systems Analyst $89,500 600,500 54,400
Programmer $65,000 294,900 −21,300
Web Developer $66,100 162,900 24,400
Business Analyst $92,000 N/A N/A
SOURCES: Robert Half 2018 Salary Guide for Technical Professionals and the Bureau of Labor Statistics Employment Projections, 2016–2026
Other IS Careers
In addition to working for an IS department in an organization, IS personnel can
work for large consulting firms, such as Accenture, IBM, and H ewlett-Packard.
Some consulting jobs entail frequent travel because consultants are assigned
to work on various projects at the client location. Such jobs require excellent
project management and people skills in addition to IS technical skills. Related
career opportunities include computer training, computer and computer-
equipment sales, and computer equipment repair and maintenance.
Other IS career opportunities include being employed by technology com-
panies, such as Oracle, IBM, HP, Microsoft, Google, and Dell. Such a career
enables an individual to work on the cutting edge of technology, which can be
challenging and exciting.
As some computer companies cut their services to customers, new compa-
nies are being formed to fill the need. With names such as Speak with a Geek
and Geek Squad, these companies are helping people and organizations with
computer-related problems that traditional computer vendors are no longer solving.
Some people decide to start their own IS businesses rather than continue
to work for someone else. Such small business owners often prefer to be their
own boss, with the freedom to think innovatively and take on new challenges.
Other people become IS entrepreneurs or freelancers. They write programs,
work on IS projects with larger businesses, or develop new applications for
the iPhone or similar devices. Some Internet sites, such as www.freelancer.com,
post projects online and offer information and advice for people working on
their own. Many freelancers work for small- to medium-sized enterprises in
the U.S. market. People doing freelance or consulting work must be creative in
pursuing new business, while also protecting themselves financially. Freelancers
and consultants must aggressively market their talents. To ensure that they are
paid, they should insist that some or all of their fees for a given project are
put into an escrow account. This will help ensure that they are paid for their
efforts even if the client is not satisfied with the end result.
Shadow IT
In addition to IS workers placed within the IS organization, some companies
have people who take on IS-related roles outside the IS organization. For
example, data scientists can be found in the marketing, sales, and supply chain
management departments of large organizations. Data scientists are responsible
for understanding the business analytics technology as well as the business.
They use their understanding to deliver improvements in decision making.
shadow IT: The information systems Shadow IT is a term used to describe the information systems and solu-
and solutions built and deployed by tions built and deployed by departments other than the information systems
departments other than the information department. In many cases, the information systems department may not even
systems department.
be aware of these efforts. Gartner studies have found that shadow IT is over
30 percent of total IT expenditures in large organizations. This statistic means
that non-IT business units are responsible for 30 percent of the total informa-
tion technology costs within an organization.20
At one time, shadow IT was limited to employee or departmental purchases
of nonstandard computing devices and off-the-shelf software from office sup-
ply stores. However, the scope of shadow IT spending has greatly expanded,
largely due to cloud computing and the availability of enterprise software,
file-sharing apps, and collaboration tools as a service. For instance, cloud ser-
vice providers can deliver increasing amounts of computing, network, and
storage capacity on demand and without requiring any capital investment
on the part of the cloud users. These cloud service providers typically offer a
monthly or annual subscription service model; they may also provide training,
support, and data integration services. All of this makes it easier for department
managers to skirt formal procedures associated with the purchase of large cap-
ital expense items—including scrutiny by the information system department.
Shadow IT enables business managers to quickly create highly innova-
tive solutions to real business problems and to test out these solutions. Such
systems may serve as prototypes that evolve into future approved IT solu-
tions. However, shadow IT solutions frequently employ nonapproved vendors,
software, or hardware and may not meet the IS department standards for
control, documentation, security, support, and reliability. This raises security
risks and issues regarding compliance with essential government and industry
standards, such as Basel III (international standards for the banking industry),
FISMA (Federal Information Security Management Act of 2002), GAAP (Gener-
ally Accepted Accounting Principles), HIPAA (Health Insurance Portability and
Accountability Act), IFRS (International Financial Reporting Standards), and
Sarbanes-Oxley Act (accounting regulations for publicly traded companies).
Issues often arise when a shadow IT solution “breaks” and questions are
raised about who is responsible for fixing it and supporting the end users. The
IS department may not have developed the solution, or even been aware of it,
but business users expect their help in “fixing” it. Table 1.4 presents a summary
of the pros and cons associated with shadow IT.
The information systems department may become more comfortable with
shadow IT if it sees the IS department’s role as maximizing the effective use
of technology in the company rather than controlling the use of technology.
Also, shadow IT provides a source of funds outside the IS department budget
to tackle high-priority projects.
Continuous Education
Often, the people filling IS roles have completed some form of certification.
certification: A process for testing Certification is a process for testing skills and knowledge; successful comple-
skills and knowledge. tion of a certification exam results in an endorsement by the certifying authority
that an individual is capable of performing particular tasks or jobs. Certification
frequently involves specific, vendor-provided, or vendor-endorsed coursework.
Getting certified from a software, database, or network company may open
the door to new career possibilities or result in an increase in pay. According

to one survey, 65 percent of employers use IT certifications to differentiate
between equally qualified candidates, while 72 percent of employers require
some form of IT certification for certain job roles. Table 1.5 presents some of
the more in demand certifications.21
Ta b l e 1.4 Pros and cons of shadow IT efforts

Pros Cons
Enables the business to test quick solutions The systems and processes developed may lack necessary levels of
to business needs without delays brought on security required to meet compliance standards
by involvement of information systems
Can create an innovative, synergistic part- Can create tension between the CIO who has responsibility for
nership between the information systems technology within the organization and business managers who want
department and other business units more of a role in the information system decisions
Provides the opportunity to evaluate and test Individual departments may buy services, software, and hardware that
many more information system initiatives the company could get a better deal through central purchasing
May be wasteful and duplicate work already being done by the IS
organization
Issues can arise over responsibility to fix “non-approved” solutions
Ta b l e 1.5 Certifications in high demand

Area of Certification Topic
Application and Web AJAX (Asynchronous JavaScript and XML) development (a set of Web development
Development techniques using many Web technologies on the client side to build Web applications)
C# development (general-purpose, object-oriented programming language)
Java development (general-purpose, object-oriented programming language whose com-
piled code can run on all platforms that support Java without the need to recompile)
.NET development (a programming framework created by Microsoft that developers can use
to create applications more easily)
PHP development (a widely-used open source general-purpose scripting language that is
especially suited for Web development and can be embedded into HTML)
Sharepoint (enables groups to set up a centralized, password-protected space for document
sharing)
Database Administration Microsoft SQL Server database
Oracle database
Business Analytics SAP Business Objects (platform that enables business users to discover data, perform
analysis to derive insights, and create reports that visualize the insights.
Hadoop (an open source distributed processing framework that manages data processing
and storage for big data applications)
Python (a general-purpose programming language that can be used for Web development,
data analysis, artificial intelligence, and scientific computing)
Ruby on Rails (Ruby is a general-purpose programming language frequently used to
develop Web applications, and Rails is a development tool that is used by Web developers)
Networking/Security Cisco network administration
LINUX/UNIX administration
Certified Information Systems Security Professional (CISSP)
Check Point Firewall administration
Project Management Project Management Institute’s project manager professional certification attests to your
competence to fill the role of project manager leading and directing projects and teams.
Critical Virtual Team Onboarding

Thinking Teamwork
Exercise
You are a recent hire in the 100-person information systems organization of a large
consumer products company with four manufacturing locations, two distribution
centers, and a product research and development facility. These workplaces are
spread around the United States. A virtual team consisting of three new hires
and six experienced information system managers and technicians from the firm’s
various locations has been formed to improve the process of onboarding new
information system hires and getting them up to speed as soon as possible.
Review Questions
1. What skills, knowledge, and experience might the new hires be lacking that
could hinder them in their initial assignments?
2. How might this knowledge gap be filled? Would you consider special training
courses? What about assignments tailored to capture the missing skills and
knowledge?

1. Identify some of the advantages of forming a multi-organizational, virtual team
to improve the process. Do you think that the team should consider adding any
non-IS members? Why or why not?
2. What are some of the logistical complications and team dynamic problems that
the team can expect when working on this process?
Summary
Principle:
Managers have an essential role to play in the successful implementation
and use of information systems—that role changes depending on which
type of information system is being implemented.
An information system (IS) is a set of interrelated components that work
together to collect, process, store, and disseminate information to support fun-
damental business operations, data reporting and visualization, data analysis,
decision making, communications, and coordination within an organization.
A well-designed information system provides a feedback mechanism to monitor
and control its operation to make sure it continues to meet its goals and objectives.
A competitive advantage enables an organization to generate more sales or
achieve superior profit margins compared to its rivals. It can be gained in one
of three ways: (1) by providing the same value as its competitors but at a lower
price (cost leadership), (2) by charging higher prices for providing products
which are perceived by the customer as being better (differentiation), or (3) by
understanding and servicing their target market better than anyone else (focus).
Managers have a key responsibility to identify and capitalize on opportu-
nities to employ information systems as a tool to gain competitive advantage.
An organization’s information systems operate within a context of people,
technology infrastructure, processes, and structure. This framework is Leavitt’s
Diamond. This model is used to introduce new systems into the workplace in a
manner that lowers stress, encourages teamwork, and increases the probability
of a successful implementation.
Managers of the business functions most affected by the new information
system have a key responsibility to ensure that the people, processes, and
human structure components are fully addressed.
People make the difference between success and failure in all organiza-
tions. Good systems enable people to produce extraordinary results.
An organization’s technology infrastructure includes all the hardware, soft-

ware, networks, facilities, and services used to develop, test, deliver, control, or
support the information technology applications and services an organization
requires to meet the needs of its customers, suppliers, key business partners,
regulatory agencies, and employees.
A process is a set of related activities that takes input, adds value, and
creates an output for the customer of that process.
Structure has to do with the defined relationships among members of the
organization and their various activities. It also includes processes that assign
roles, responsibilities, and authority to complete the various activities.
When considering the role of business managers in working with
information systems, it is useful to divide information systems into four types
based on their sphere of influence: personal information systems, workgroup
information systems, enterprise information systems, and interorganizational
information systems.
Personal IS includes information systems that improve the productivity of
individual users in performing stand-alone tasks.
Workgroup IS are systems designed to support teamwork and enable
people to work together effectively, whether team members are in the same
location or dispersed around the world.
An enterprise application IS is used to meet organization-wide business
needs and typically shares data with other enterprise applications used within
the organization.
An interorganizational information system (IOS) is a system that enables
sharing of information and conducting business electronically across
organizational boundaries.
The value chain is a series of activities that an organization performs to trans-
form inputs into outputs in such a way that the value of the input is increased.
The supply chain is a key value chain whose primary processes include
inbound logistics, operations, outbound logistics, marketing and sales, and
service. Supply chain management encompasses all the processes required to
get the right product into the right consumer’s hands in the right quantity at
the right time and at the right cost.
Information systems have transformed the nature of work and the shape
of organizations themselves. A traditional view of information systems holds
that organizations use them to control and monitor effectiveness and efficiency.
A more contemporary view holds that information systems are often so inti-
mately involved in the activities of the value chain that they are a part of the
process itself.
Principle:
The strategic planning process for the IS organization and the factors that
influence it depend on how the organization is perceived by the rest of
the organization.
Strategic planning is a process that helps managers identify desired out-
comes and formulate feasible plans to achieve their objectives using available
resources and capabilities.
Strategic planning provides a framework to guide decision making, ensures
effective use of resources, enables an organization to be proactive and take
advantage of opportunities and trends, and it improves communication.
An IS organization can be viewed as a cost center/service provider, a
business partner/business peer, or a game changer.
IS strategic planning is influenced by the corporate and business unit
strategic plans as well as technology innovations and innovative thinking.
The IS strategy identifies the technologies, vendors, competencies, p
eople,
systems, and projects in which the organization will invest to support the
corporate and business unit strategies.
Principle:
The information system worker functions at the intersection of business
and technology and designs, builds, and implements solutions that allow
organizations to effectively leverage information technology systems.
Successful information system workers need to have a variety of personal
characteristics and skills, including the ability to work well under pressure
and in a fast-paced environment constantly undergoing change, good commu-
nication skills, solid analytical and decision-making skills, effective team and
leadership skills, and adeptness at implementing organizational change.
Typical information system roles include CIO, software developer, infor-
mation systems security analyst, systems analyst, programmer, Web developer,
and business analyst.
Technology is one of the fastest-growing areas of the U.S. economy, which
has a strong demand for information system workers.
Only about 60 percent of all information technology outlays are controlled
by the information systems department. Shadow IT is a term used to describe
the information systems and solutions built and deployed by departments
other than the information systems department. In many cases, the information
systems department may not even be aware of these efforts.
Besides working for an IS department in an organization, IS personnel
can work for a large consulting firm or a hardware or software manufacturer.
Developing or selling products for a hardware or software vendor is another
IS career opportunity.
Certification is a process for testing skills and knowledge; successful com-
pletion of a certification exam results in an endorsement by the certifying
authority that an individual is capable of performing particular tasks or jobs.
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heard nothing of him for ages, and everybody knows that if you lose sight
of your husband or your wife for seven years, you can marry again."
Melville considered. Evidently Mrs. Sinclair was an ignorant sort of

woman, and, as a rule, it is only ignorant people who can be influenced by
fear. At any rate, he could try to frighten her into telling him the facts, and it
would be his own fault only if he could not turn them to his own advantage.
His part as accessory after the fact could be explained easily enough if the
occasion should ever arise.
"I know there are people who labour under that delusion," he said, "but
it is a delusion. Marriage once contracted is binding until it is dissolved by
death or decree, and while Sir Geoffrey could, doubtless, get a decree now
in the Divorce Court, it could only be after your conviction at the Old
Bailey."
He spoke icily and deliberately, and his words had the desired effect.
Mrs. Sinclair's eyes dilated, and, although she retained her self-command,
her bosom rose and fell quickly, betraying the emotion within her, and the
emotion was fear. Melville was satisfied. He turned to her with a pleasant,
sympathetic smile which might have inspired confidence in the heart of the
most suspicious.
"Tell me all about it, Lavender," he said gently. "Naked truth is always a
little bit shocking. I suppose that is why you only get it in savage countries.
But it is the naked truth that you have committed bigamy, and it looks to me
uncommonly as if you contemplated doing it again. Tell me all about it. I
don't suppose you have one disinterested adviser among all the people you
know, and this is certainly a case where two heads are better than one. I
won't give you away. What are the facts?"
His frankness completely took her in, as completely as his definition of

her offence had satisfied her. She sat down in a chair, nervously beating a
tattoo upon its arms with her plump fingers, and every now and then
stealing a glance at Melville from underneath her lashes.
"I can't believe you are right," she said, "but perhaps I may as well tell
you what did happen. I know I can trust you if—if I was wrong."
"Implicitly," Melville murmured.
"Well," she said hesitatingly, punctuating her story with little pauses as
if in doubt how much detail to fill in. "I was very young and—and pretty,
and desperately poor when I met your uncle, and he was—rather old, and
well-to-do and very kind. And I married him. I thought everything would be
comfortable, don't you know. But I couldn't stand it. He wanted to have me
educated, and I wanted to go about and see life. It was like trying to boil a
tea-kettle over a volcano. We had most frightful quarrels, and very soon I
made up my mind to leave him. And one day I just walked out of the house
and never went back."
The way she summarised what must have been a tragedy was pathetic,
and Melville was able to imagine what that home must have been like when
it was the theatre of such a conflict between passionate youth and
determined middle age.
"Where did you go to?" he asked.
"A girl I knew had lately married, and I went to her. Her husband was
manager of an old-fashioned hotel on the South Coast, and they gave me a
home. I was useful to them, so there was no obligation on either side. I
stayed there a long time, and it was there that I met Mr. Sinclair."
"Did you never hear of Sir Geoffrey?"
"Never. After I marched out of his house that morning I was frightened,
and at least two years went by before I dared to ask anything about him. He
had left the house we lived in and disappeared too. He may have tried to
trace me, but a child is very easily lost, and I was only a child. Anyhow, he
never found me. And when a long time afterwards Mr. Sinclair asked me to
marry him, I thought that I was free, and finally I consented. I knew I had
no claim upon Sir Geoffrey, and I honestly believed he had none on me. Are
you sure I was not free?"
"Quite sure," Melville answered. "Tell me the rest."

"We were married, and got along all right, and he died," she replied. "It
was just like hundreds of other marriages, I suppose. I don't know that I
loved him particularly, but I was a pretty good wife, and he left me
comfortably provided for, and—and that is the end of the story."
She gave vent to a defiant little laugh, and looked at Melville.
"Those are the facts," she said. "Now, if you are right and I was wrong,
tell me the position."
"Honestly, it's a very unpleasant one," Melville answered. "You see, Sir
Geoffrey being alive at the time, your marriage with Mr. Sinclair was quite
invalid. Sir Geoffrey could divorce you on the facts and you would have no
claim on him for alimony; and, on the other hand, you would forfeit all the
income you derive from Mr. Sinclair's estate as his widow, which legally, of
course, you are not."
There was an interval, during which the minds of both worked quickly.
"What am I to do about Sir Ross?" Mrs. Sinclair asked presently. "I

suppose I shall have to say that, for reasons that have just come to my
knowledge, I can't marry him, or something of the sort. But he is dreadfully
inquisitive; and, besides, any man would want something more definite than
that."
"What more definite reason can you give?" Melville enquired.
"I shall have to tell him about Sir Geoffrey," she answered.
Melville immediately foresaw the objection to this. Sir Ross Buchanan

would almost certainly do his best to get to the bottom of the whole thing;
he would go to Fairbridge, with the result that Sir Geoffrey would learn
where his wife was living and in what comfort; the funds he had been
giving to Melville for her assistance would be withdrawn, and Melville
would thus be thrown upon his own resources once again.
"That will not do at all," he said decisively; "it would be most

dangerous. Sir Ross must remain in ignorance of the whole affair. Why, just
think! If this reached Sir Geoffrey's ears he would prosecute you for bigamy
at once and obtain a divorce; you would lose the whole of your present
income, and Sir Ross would certainly never make you his wife. No; this
must remain a secret between you and me."
"I don't want to tell him," Lavender admitted. "He knew Mr. Sinclair
personally, but even if Sir Geoffrey were dead I should not care for him to
know that I'd been married twice already. That is why I've never explained
how you are related to me, not because I thought there was any harm in
what I'd done. Can we really keep it to ourselves, Melville?"
"Certainly," he answered. "You've proved that you can keep a secret,

which is more than most women can do, and you may rely upon me. I am as
safe as the bank."
"Sir Ross is so jealous of you," Mrs. Sinclair said. "He told me to-day
that I must choose between you, and went off in a huff because I would not
order you out of the house."
"I daresay it's just as well," Melville said indifferently; "you may be
glad of a day or two to think things over in. There's no blinking the fact that
this is serious. When Sir Ross turns up again let me know, and don't do
anything without consulting me."
"I think you are right," Mrs. Sinclair said. "For the present I will say
nothing to him about it, and if any difficulty arises—I mean, if he presses
me to marry him at once, or anything of that sort—I will come to you for
advice."
"We will leave it like that," Melville assented. "For the present things
can go on as they are. Above all, don't get frightened and lose your head."
"I'm very grateful to you, Melville," Mrs. Sinclair murmured; her words
were at once an expression of gratitude and an appeal, for, in sober truth,
she was very frightened already. It was as if the solid ground had suddenly
opened, and as if a bottomless pit were yawning before her feet.
Melville took her hands in his.

"That's all right," he said, smiling kindly at her. "Show your gratitude by
playing the game like a sportsman. If there is any way out of the mess I'll
find it for you. Keep a stout heart. Good-bye."
He walked away from the house apparently absorbed in thought, but

when he was out of sight he fairly rubbed his hands.
"It's like a bally game of chess," he said with glee, "and the chess-
board's like Tom Tiddler's ground; there's gold and silver for me on every
bally square simply waiting to be picked up. Just now it's Sir Geoffrey
sending me to the assistance of the queen, who's in a tight place: starving, if
you please, on about a thousand a year; and if for any reason that source of
revenue dries up, the queen can be driven into the arms of Sir Ross. More
bigamy, unless Sir Geoffrey is translated to another sphere, and if he is it
won't matter very much to me. If my polygamous aunt marries Sir Ross
Buchanan at all I shall be able to draw a very respectable percentage of her
annual income. Oh, these knights and ladies!"
But indoors, Lavender Sinclair, with a very white face, sat thinking,
thinking, thinking, and the only thought which was really clear before her
mind was how fortunate it was that she had met Melville Ashley when she
did. In him, at any rate, she possessed one loyal friend on whom she could
rely.
CHAPTER X.
LIGHT COME, LIGHT GO.
Lucille's forebodings were justified by the event. Days passed by and

Sir Ross Buchanan neither wrote nor called; but while the maid was filled
with real concern at this interruption in a love story of which she had been
so sympathetic an eye-witness, her mistress regarded it with indifference. At
first she even hailed it as a relief, for it did away with all possibility of her
being called upon to give explanations for what she saw must be the
definite postponement of her marriage with him. She lost no time in
verifying Melville's statement about the invalidity of her marriage with Mr.
Sinclair, and the more she considered her position the uneasier she grew.
She was afraid to take a legal opinion upon it, and to her fear of losing the
income she derived from a charge upon Mr. Sinclair's estate was added
terror of the pains and penalties to which, in her ignorance of all legal
matters, she thought her bigamous marriage had rendered her liable. That
she had acted in good faith at the time afforded her but little consolation.
She had done something punishable by law, and she was in terror of anyone
else finding it out.
In Melville's discretion she had perfect confidence; it never occurred to

her that the danger might lie upon his side. Why she should feel such
security in the case of the only man who had any knowledge of her offence
she would have been at a loss to explain. Anything like self-analysis was
quite foreign to her temperament; probably she recognised in Melville
Ashley some fellowship of nature and of habit, none the less real because
undefinable. And yet in spite of this fellowship there was this vast
difference between them, that he was a bad man, entirely unprincipled and
utterly selfish, while she was not a bad woman. Her terribly ill-assorted
marriage as a child with Sir Geoffrey Holt had been too great a tax upon her
uncurbed nature, and she had put an end to it in the summary, reckless way
that any savage child would do; yet had it been possible for that strange
couple to bear and forbear with each other, a little time might have worked
what then seemed a miracle, and the story of their lives might have been
very different.
While, however, Lavender Sinclair regarded Sir Ross's temporary

defection with equanimity, being indeed convinced that it was only
temporary, and that when she chose she could whistle him back to her side,
she felt that Melville Ashley's attendance was daily growing more
necessary to her. To women of the type to which she belonged, the
companionship of men is indispensable. But Melville, too, absented himself
from The Vale. As a matter of fact, he was playing for big stakes, and had
no intention of losing the game from any failure to give it due
consideration.
His return from Monte Carlo and the few days of absolute
impecuniosity, culminating in his so nearly executed idea of suicide, had
marked a period in his career. Up to that moment he had drifted along in a
happy-go-lucky fashion, enjoying himself when in funds, existing somehow
when he was hard up, but always contriving in an irresponsible way to have
what he called a pretty good time. But that night when he looked death
squarely in the face had altered him. He vowed that such necessity should
not arise again, and his evil genius had come to his assistance by placing
him in possession of Sir Geoffrey Holt's old secret. In concocting the story
of Mrs. Sinclair's destitution, Melville had not aimed solely at getting a
single sum of money from his uncle. He determined to secure an annual
subsidy to be paid to him on her behalf, and the negotiations were beset
with difficulty.
At first Sir Geoffrey was in favour of the straightforward, common-

sensible policy of a point-blank refusal to part with a shilling except to
Lady Holt herself. He utterly distrusted Melville, and scouted the idea of
appointing him his almoner. But the old man's pride was a factor in the
problem which the young one had not under-estimated. He could not bring
himself to face what he regarded as a scandal, although in all essential
particulars it was only he who had been wronged. Thus Melville had only to
reiterate his intention of observing his promise to Mrs. Sinclair not to betray
her whereabouts, and take precautions against being shadowed by any
emissaries from his uncle, and he could afford to wait until Sir Geoffrey
should decide. As a matter of fact he had decided to submit to what was
nothing less than blackmail, and was endeavouring to make arrangements
for the payment to his wife of an income of four hundred pounds a year, to
be given quarterly to Melville until it could be given direct to Lady Holt,
and to take such precautions as the circumstances allowed against the whole
of the subsidy being misappropriated by Melville for his own purposes.
But until the matter had been completed and put upon such a basis as to
seem tolerably secure, Melville felt that his constant attendance upon his
uncle was at least expedient. So his visits to Fairbridge became more
frequent than they had been for several years past, and their effect upon the
two establishments at the Manor House and The Grange was very marked.
No hawk can take up his quarters in a dove-cote without causing a
commotion in the farmyard, and this was what happened now.
Ralph was moody and suspicious; he avoided his brother as much as he

could, and recognised his existence only so much as was inevitable if he
would not be actually rude to his uncle's guest. Sir Geoffrey was always
studiously polite to Melville, but on most occasions shut himself up in his
library to commune with his own thoughts, and denied access to everyone,
not excepting Gwendolen. She, indeed, was in the most invidious position
of all, for her mother liked Melville, and made much of him, thinking that
he was a rather misunderstood young man whose latent merits it only
required a little sympathy and affection to evoke. And his music was
superb. He kept his Amati at The Grange, and whenever opportunity
offered would play to the accompaniment of Gwendolen, herself a musician
of no mean order. The girl was divided between two emotions. Her love for
Ralph would have kept her ever by his side to the sacrifice of everything
and everybody else, but, since Melville's reappearance, Ralph was
preoccupied and taciturn, avoiding The Grange when, as so often happened,
his brother was there. On those many occasions Gwendolen was obliged to
remain at home, and her devotion to her duty was always rewarded by
hearing Melville play. His bow was a magician's wand, drawing music from
the violin that stole into Gwendolen's heart and held her very soul spell-
bound.
"No man can be bad who plays as divinely as he does," she often
thought, and Melville, noting the rapt expression on her face and the
moisture in her glorious eyes, would play as he had never played before,
until the silence that followed the dying away of the last note was broken by
an involuntary sigh from all who had the privilege of listening.
Thus it was that Melville forsook The Vale in favour of The Grange.
But at last his business came to a satisfactory conclusion, and, provided
with what he hoped and believed would be the first of a series of cheques,
he returned in jubilant mood to town.
Invitations in plenty poured upon him, and he devoted himself to
enjoyment. But with the possession of money returned the old insatiable
desire for excitement that had always been his bane. All his good
resolutions proved to be straws in the wind. Races and suppers and cards
once more became the order of his days and nights, and among the set that
lives—and dies—by its wits Melville resumed his place as leader. Like all
confirmed gamblers, his faith in his star revived, and he could not believe
that fortune would ever desert him finally. When things were at their
blackest the goddess had given the kaleidoscope a turn and dazzled his eyes
by the blaze of colours in the glass before him.
Thus it was with particular pleasure that he accepted an invitation to

make one of a party at a great race meeting, and spick and span in new
apparel, with glasses slung across his shoulder, he joined the coach at
Hatchett's, and, sanguine as ever, mounted to his seat. His information was
exclusive, the banknotes in his pocket book were new and crisp, and would
be multiplied tenfold when he got back to town. A light rain in the early
morning had laid the dust, and the roads were in perfect condition; high
overhead thin wisps of clouds were blown swiftly across a grey-blue sky,
betokening a breeze that would temper the heat of the summer day. With a
jest upon every lip, and a plenitude of coppers for all the children shouting
by the roadside, the party drove away.
But when the sun was setting behind them, and the team of bays was
swinging into London, the smile upon Melville's face, in common with the
others, was replaced by a look of utter dejection. The horses which,
according to his information, were to do such wonderful things had, without
exception, failed to fulfil his expectations; in every single race his fancy had
gone down, not even succeeding in getting into a place; conversation was
monosyllabic upon the coach; the guard proclaimed its coming by
melancholy toots upon his horn instead of by selections adapted from "The
Washington Post" and "The Flowers that bloom in the Spring"; there were
no pennies for the children, no Japanese lanterns swinging from the seats.
The whole party was sick and sorry. Melville finished the day, according to
the programme, with dinner at his host's flat and a modest game of cards,
yet even at that nobody seemed to win. And when, after a final flutter at
petit-paquet and a tumbler of champagne, Melville let himself into his own
chambers in the small hours of the morning, very little was left of the
considerable sum with which he had left Fairbridge such a short time
before.
CHAPTER XI.
MRS. SINCLAIR PAYS A VISIT.
Melville's absence from The Vale occurring thus simultaneously with

Sir Ross Buchanan's defection made the time hang heavy on Mrs. Sinclair's
hands, and, her other visitors being few, she suddenly found herself
deprived of all companionship. It was not long before this solitude became
intolerable to her, and as her repeated little notes to Melville remained
without an answer she determined to go to call on him in person. He, of
course, had duly received these several communications, but as none of
them contained the news which he desired—that Sir Ross had resumed his
visits—he did not think that any good purpose would be served by
prosecuting his attentions to his aunt.
As a consequence of his disaster at the races he was obliged to

economise again. For breakfast, followed by luncheon at his club or some
good restaurant, he substituted a meal which would in France be termed
déjeûner, but which he significantly labelled "brunch," as being neither the
one thing nor the other, although compact of both. Then in the afternoon he
lounged by the Achilles Statue, and played billiards if chance threw in his
way any acquaintance with kindred tastes but less skill than his own. And in
the evening he would dine alone at some one of the many cheap restaurants
in Soho, or have a chop in solitude at home. The life was all right in a way,
but aimless and not to his taste. Yet even he could not bring himself to make
fresh demands upon his uncle until a more reasonable period had elapsed.
It was after one of these purposeless saunters in the Park that he went
back to his rooms. The day had been very hot, and, after letting down the
sun-blinds, Melville threw himself upon the sofa and idly blew rings of
smoke into the still air. A pile of illustrated papers lay within reach, syphons
and decanters stood upon a table at his elbow, and he was just falling into a
doze when he heard a woman's voice, and in another moment his valet
opened the outer door with his master-key and ushered Mrs. Sinclair in.
Melville jumped to his feet and greeted her effusively, checking her
mixture of apologies and reproaches with admirable tact.
"It was a case of Mahomet and the mountain," she said. "You didn't
come and didn't answer my letters—I never thought you could be so
abominably rude, Melville—and I wanted to see you, so there was no help
for it but to disregard proprieties and come here. Why don't you marry some
charming girl, so that I can call without being compromised or
compromising you? You would be a delightful husband."
"So I have been explaining," Melville answered, "but the charming girl
has the bad taste to prefer somebody else. Get some tea, Jervis, and some
strawberries and things."
Mrs. Sinclair settled herself in a comfortable chair, with her back to the
light, and took stock of her surroundings.
"I wonder how it is that bachelors always have such delightful quarters?
This room is an effective answer to the old sneer that no place can be quite
comfortable without a woman's touch."
"Perhaps I'm a bit effeminate in my tastes," Melville replied. "Lots of

musical Johnnies are, you know. How is Sir Ross Buchanan?"
He switched off the conversation from trifles to essentials with perfect

ease, and Mrs. Sinclair showed no resentment.
"He hasn't been near me since the day you saw him," she answered.
"That is the principal reason why I've called now. Sir Ross hasn't been to
see me, nor have you, and I'm being bored to death. Why have you stopped
away, Melville?"
"I've had some business to attend to," he said, "and it didn't turn up
trumps. And now I'm a sick man—broke, and generally down on my luck."
"All the more reason for you to avoid your own company," she retorted.
"Moping's no use to anybody. Come and dine with me to-night?"
"Delighted," said Melville, but without enthusiasm.
"I'll get a box somewhere, and we'll pretend we're going the pace. My
show, you know," she added, thinking that the expense might be
inconvenient to him.
Melville liked the little touch of camaraderie.
"You're a good sort, Lavender," he said approvingly. "What a pity you

and Sir Geoffrey couldn't run together in double harness!"
A slight frown crossed her brow.
"If you mourn over the pity of everything you'll die of compassion," she
remarked, "and that's a silly sort of end for any man to come to. How is Sir
Geoffrey? Have you seen him lately?"
"No," said Melville, "but I am going to Fairbridge to-morrow."
"Take me," said Mrs. Sinclair impulsively.
"My dear Lavender!" Melville said aghast; "what on earth will you want
me to do next?"
He was not only astonished but alarmed at the suggestion, for nothing
could be devised more fraught with danger to his own schemes. Yet he did
not know what a woman of Lavender's temperament might not be capable
of doing. On her part, it is true, Mrs. Sinclair had made the suggestion on
the spur of the moment, but, having once made it, she was fascinated by it.
Possibly, unrecognised by herself, there was in her heart some remorse for
the injury she had done Sir Geoffrey, some hunger to set eyes once more
upon the man who, if old enough to be her father, had nevertheless been her
husband; at all events, she insisted.
"Why should I not go?"
"You would save yourself an unpleasant interview if you gave yourself

up to the police at once," Melville answered; "but, of course, you are not
serious. Fancy putting your head in the lion's mouth like that!" and he
laughed.
Mrs. Sinclair looked at him gravely.
"I've been doing nothing but think for a week," she said, "and, do you
know, I'm really not sure that it would not be the best thing for me to go to
Sir Geoffrey and tell him all about it. I don't believe he would prosecute me
or even apply for a divorce. Of course, I should have to come to terms with
the Sinclair lot, and Sir Geoffrey might have to see me through any
difficulty with them. But if I did that, he's just the sort of man to take care
that I should be no worse off afterwards than I was before. He always
respected people who did the square thing. And as for the rest, he knows
that if he fed me I'm not the sort of reptile to sting his bosom."
Melville grew more and more anxious, for this mood was a difficult one
to combat. He affected to consider the point sympathetically.
"You may be right," he replied; "but that's not the Sir Geoffrey whom I
know. He has always been most generous to me, but I've never seen the soft
side of the man. He does respect people who do the square thing, but, on the
other hand, he never forgives those who don't. And he's as proud as
Lucifer."
"I know," said Lavender, and flushed.
Melville noted her heightened colour and drew confidence from it.
"After you left him, Lavender—that morning—all those years ago——"

"Yes?" she said, as Melville seemed to hesitate.
"Well, how do you suppose he took it?"
"I can't possibly tell," she replied impatiently, and Melville drove his
advantage further home; he would work upon her imagination as much as
he could.
"I can picture him so clearly," Melville said meditatively. "At first he
was angry—frightfully angry, and only thought of how he would punish
you when you came back. Then, as you stayed away, he began—more to
save his own honour than for any other reason—to invent explanations of
your absence, but all the time he was raging at having been made a fool of
by the child whom he had honoured by marrying. Then he began to search
for you, at first with the idea of saving you from going to the devil, but
afterwards with the different idea that he might be able to divorce you and
put an end to the whole miserable business. But years went by and you
never came back, and the little nine days' wonder was forgotten and he
inherited the title, and now he not only hopes but believes that you are dead.
And if you crop up again you'll hurt him in his pride ten thousand times
more than you did when you left him, because then he was nobody in
particular, and now he's a baronet and the best part of a millionaire, with a
big position and heaps of friends, all of whom suppose him to be unmarried.
You will be his dead past rising up like a ghost and ruining him, and he will
never forgive you. Sir Geoffrey never does forgive. No, Lavender, you will
have to pay for what you've done; pay to the uttermost farthing!"
There was silence for some moments, and then the tension was broken
by the valet bringing in the tea-things, which he placed by Mrs. Sinclair.
Melville rose and heaped some strawberries on a plate, flanking them with
wafer-biscuits.
"It's a nice little world as it is," he said, as if carrying on some trivial

conversation begun before the servant came into the room. "People ought
always to enjoy things as they are. That's not only good philosophy, but a
much easier one to put into practice than is commonly supposed."
He drank the tea that Mrs. Sinclair gave him, and waited until the valet
noiselessly disappeared.
"Well?" he said interrogatively.
"I suppose you are right, as usual," she answered, with some reluctance,
and Melville breathed more freely. "I suppose it would be madness to
confess. But can't I go with you to-morrow, all the same? You can take me
on the river and leave me somewhere while you go to the house. I promise
not to get in your way."
Melville did not care about the idea, but having carried the point that
was most important, thought it might be politic to conciliate the woman
upon whose docility so much depended.
"I will take you with pleasure," he said cordially. "We will get a boat at
Shipton's, near the old lock, and row up stream to the Manor House. I will
leave you somewhere near there, and after I've seen Sir Geoffrey we will
drift down in time to catch a train at St. Martin's Hill."
"I'll take a luncheon basket," Mrs. Sinclair said, her usual cheerfulness
returning, "and we'll make a picnic of it."
But when Melville had put her into a cab and regained his cosy room,
he shook his head doubtfully.
"I don't like it a little bit," he said moodily. "Fancy my piloting that
good lady up to Fairbridge of all places in the world! It would be just my
luck if Ralph and Gwen were punting and spotted us, and Lavender gave
the show away. Or Sir Geoffrey even might see her, attired in the latest
thing in river costumes and looking as fit as a fiddle, when he fondly
imagines she's dying of consumption in a garret in Hampstead. It's a jolly
sight too dangerous to please yours truly. I hope to goodness it will rain cats
and dogs!"
CHAPTER XII.
A PICNIC.
In spite of Melville's hope that rain might come to prevent the proposed
excursion up the river, the following day dawned bright and sunny, and as
he stood by the front door waiting for Mrs. Sinclair, who was to call for him
on her way to Waterloo, he was conscious of the joy of mere existence that
comes to men sometimes.
Punctual to the minute Mrs. Sinclair arrived, and before long the pair
were at the boathouse by St. Martin's Lock. The boatman was apologetic;
there was a regatta six miles up stream at Longbridge, and he could only
offer Melville the choice between a Canadian canoe and a rather heavy
boat; all his other boats were engaged for the whole day.
Mrs. Sinclair laughed.
"You'll have to work for once," she said. "I'm so sorry, but I cannot row
at all, and I'm not going to trust myself, and my frock, and my luncheon to
that canoe. We'll have the boat, please."
"Can you steer?" Melville asked.
"Not a little bit," she answered cheerfully; "it doesn't matter, does it?"
"There'll be a rare pack higher up," the boatman said to Melville, "but
perhaps you'll not be going so far as Longbridge? If you do, and get into the
crush, unship your rudder altogether. That'll be better than running any risks
of being run into by any launches."
So the luncheon basket was transferred to the boat, and with easy
strokes Melville sculled slowly up the stream.
"Better not try to steer at all," he remarked, as they zigzagged from one
bank to the other. "Keep the lines by you in case I want your help, but while
we have the river to ourselves I can manage better alone. Just tell me if
there's anything coming down. So:" he fastened the rudder lines loosely on
to the arms of Mrs. Sinclair's seat, and she, with a sigh of satisfaction,
opened her parasol and resigned herself to the delicious spirit of idleness
which makes a day up the river so enjoyable.
Nor could Melville fail to be glad that they had come; he possessed the
faculty of getting the last ounce of pleasure out of whatever he had in hand,
and a tête-à-tête with a charming and sympathetic woman in a boat on a
summer's day was peculiarly to his taste. He resolutely put out of his mind
all idea of possible complications if she should chance to be seen by Sir
Geoffrey, and determined only to enjoy himself.
So he pulled indolently along, keeping under the shady bank, and

lingering sometimes to pull a few wild flowers or to let his companion
snatch at the round heads of the yellow lilies that seemed to evade her grasp
with such intelligent skill; she insisted upon exploring every creek, however
narrow, and the morning passed in laughing idleness.
In one of these little creeks, about a mile below Fairbridge, they found
an ideal spot for luncheon, and, making the boat secure to the gnarled roots
of a willow, Melville unstrapped the basket and carried it ashore. Mrs.
Sinclair laid the cloth upon a level space of turf, while Melville spread the
cushions from the boat to form easy couches for them. He surveyed the
preparations with much satisfaction.
"You are a perfect hostess, Lavender. Chicken, and rolls, and, as I live, a
salad! How has that lettuce kept so cool, I wonder?"
"As I have, by the simple process of doing nothing," she replied. "Stand
that Moselle in the water, Melville, unless your thirst won't allow you to
wait."
"I don't wonder the basket was so heavy," he remarked, as he obeyed

her. "You've brought a full-blown luncheon—and trimmings. Silver spoons,
by gad!"
"Well, you don't want to use tin ones just because you're eating out of
doors, do you?"
"There are other things," he argued; "white metal, for instance. What is
white metal?"
"I haven't the least idea," she said. "Mix the salad, and don't ask
Mangnall's questions. The oil and vinegar are in those little screw-stoppered
bottles."
"If you're ever hard up you can start a business to cater for picnic
parties," Melville suggested; "Lavinie et Cie.," or something of that sort;
"salads a specialite;" and you can patent a luncheon basket full of cunning
little dodges like a dressing-case. Are you sure the salt isn't in your tooth-
powder bottle now?"
"Quite sure," Lavender answered. "Fall to, good sir, fall to."
The al-fresco luncheon was a great success, and was supplemented by

an early cup of tea, and afterwards Melville lay upon his back smoking
cigarettes, while Lavender threw crumbs of bread to the fish that swarmed
by the boat, and fought and leaped over each other in greedy haste to make
the most of their unexpected treat.
It was very quiet in this creek, which was separated from the main
stream by a tongue of land covered with trees and dense undergrowth. Upon
the bank where Lavender and Melville reclined, ground ivy and white nettle
grew in profusion, while willow-wort and meadow-sweet overhung the
stream, and marsh marigolds flung back the sunlight from their glorious
blooms; behind them flowering grasses and tufted rushes waved in
luxuriance, and behind again there rose a screen of willows, flanked by
silver birch and tapering poplars.
The place and the hour alike seemed to be pointed out for the exchange
of tender confidences and happy day-dreams, but for the man, at any rate,
the soft emotions had no charm. In the temple where money is enshrined as
a god there is no welcome, and, indeed, no room, for love, and Melville
Ashley's heart was such a temple. His interview with his uncle was
impending, and the best use to which he could put this peaceful interval was
to ascertain how Lavender Sinclair's own affairs were progressing.
He broke the silence which had fallen upon them.
"What is happening about Sir Ross Buchanan?"
Mrs. Sinclair threw the last handful of crumbs to the ravenous fish and
leaned back with a weary sigh.
"Can't we forget everything horrid today?" she entreated.
"I can't," Melville answered; "besides, the real object of this trip is my
visit to Sir Geoffrey, and—well, one thought leads to another, you know.
Have you heard from Sir Ross?"
"I told you yesterday I hadn't," she replied; "but didn't we settle all this
the other day? It was arranged that I should tell you anything he said when
he said it, and in the meantime do nothing at all."
"I know," Melville said; "but a lot can happen in a few days. One thinks,
for instance."
"Oh, yes! one thinks!" Mrs. Sinclair assented.
She seemed reluctant to pursue the subject, and Melville thought it

might be well to give her a lead. As a general rule he refrained from making
direct statements or asking direct questions, for anything straight-forward
was foreign to his nature, but in the present instance the objection was
lessened by his knowledge of his companion's story.
"Well, I've been thinking," he said, "and, among other things, thinking
that perhaps you ought to meet Sir Ross half way."
"What do you mean?"
"Half way about me," Melville answered, avoiding her direct look. "If
he objects so violently to my coming to your house I can be less constant in
my attendance, and you won't be any worse off than you were before you
wrote to me. I shall be, of course," he added politely, "but that is my
misfortune. You needn't tell Sir Ross in so many words that you have
ordered me off your premises, but he will think you have done so, and
everything will be—as you were, don't you know."
He rolled a cigarette delicately between his long fingers, focussing all

his attention upon the operation.
"That is impossible," she said coldly. "Sir Ross only presumed to dictate
because he understood that I was engaged to him."
"Quite so," said Melville.
"Of course it's impossible that I should marry him now."
"Why?" Melville enquired calmly.
"Why?" she echoed in astonishment. "You told me yourself that my

marriage with Mr. Sinclair was invalid because Sir Geoffrey was alive, and
yet you ask me why I can't marry Sir Ross! I wronged one man—in
ignorance—but I have no intention of wronging another deliberately. I may
as well say, once and for all, that if Sir Ross applies to me again I shall tell
him that our engagement is finally broken off."
"Why be so heroic?" Melville said. "Millionaire baronets don't grow on

blackberry bushes."
"If they did I wouldn't pick them off, now that you have enlightened
me," Mrs. Sinclair answered. "I'm not that sort."
"Sir Ross is an enormously rich man," Melville protested, "and is worth

keeping; and, in addition, Sir Geoffrey is a very old man, which is another
argument in favour of a less drastic policy than the one that you suggest."
"You seem very keen on my becoming Lady Buchanan."
"I am," said Melville. "Candidly, I think you will make a frightful
mistake if you break off the engagement, when a little temporising would
save the situation."

Principles of Information Systems 14Th Edition Ralph M Stair All Chapter

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Principles of information systems 14th

Edition Ralph M. Stair

George W. Reynolds Hollis Greenberg

Joey Bryant George Schell

Australia • Brazil • Mexico • Singapore • United Kingdom • United States

Product Assistants: Anna Goulart and Tom

Learning Designer: Emily Pope ISBN: 978-0-367-11241-0

Vice President, Marketing – Science, Technology, &

Content Manager: Michele Stulga Notice to the Reader

Printed in the United States of America

To my grandchildren: Michael, Jacob, Jared, Fievel,

PART 1 Information ­Systems in Business and Society 1

Chapter 2 Secure Information Systems 28

Corporate and Individual ­Accountability: Ethical,

PART 2 Technology Infrastructure 109

Chapter 5 Database Systems and Data Management 170

Business Intelligence: Big Data

Chapter 7 Networks: An Interconnected World 244

Chapter 8 Cloud Computing and the Internet of Things 290

PART 3 Business Information Systems 311

Chapter 10 Enterprise Systems 364

Chapter 11 Artificial Intelligence (AI) and Automation 402

Chapter 13 System Acquisition and Development 500

Subject Index 571

PART 1 Information ­Systems in Business and Society 1

Information Systems: People, ­Technology, Processes,

2 Secure Information Systems 28

Corporate and Individual Accountability: Ethical, Legal,

PART 2 Technology Infrastructure 109

4 Hardware and Software 110

Software Suites and Integrated Software Packages 152

5 Database Systems and Data Management 170

6 Business Intelligence: Big Data and Analytics 206

7 Networks: An Interconnected World 244

8 Cloud Computing and the Internet of Things 290

PART 3 Business Information Systems 311

Multistage Model for E-Commerce 324

10 Enterprise Systems 364

11 Artificial Intelligence (AI) and Automation 402

12 Strategic Planning and Project Management 448

13 System Acquisition and Development 500

Buying Off-The-Shelf-Software 508

Subject Index 571

As organizations and entrepreneurs continue to operate in an increasingly

Approach of This Text

IS Principles First, Where They Belong

Goals of This Text

2. To provide insights into the challenging and changing role of the IS

Survey of the IS Discipline

Changing Role of the IS Professional

Changes to the Fourteenth Edition

of Business International (AACSB). Standards are indicated by a red

MindTap for Principles of Information Systems, Fourteenth Edition

MindTap allows instructors to measure skills and outcomes with ease.

Instructor Companion Site

Test Bank and Cengage Testing Powered by Cognero

Principles Learning Objectives

As you read about information systems, consider the following:

Why Learn About Information Systems?

What is an Information System

Information Systems—A Means to Achieve

Managers’ Role in Implementing Successful Information Systems

The various components of Leavitt’s Diamond will now be discussed.

PART 1 Information Systems in Business and Society 1

Corporate and Individual Accountability: Ethical,

PART 1 Information Systems in Business and Society 1

Information Systems: People, Technology, Processes,