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Essentials of MIS
Over the past two decades, mass adoption of information technology and systems has revolutionized
the way business is conducted across the world. Essentials of MIS takes an in-depth look at how
companies use the latest technologies to achieve their objectives and solve key business challenges.
Its rich coverage includes up-to-date case studies from familiar names, such as Uber, Facebook, and
Amazon, and the Career Opportunities section in every chapter illustrates how the skills discussed
are relevant to employers.
Covering the most current and essential topics in MIS, the fifteenth edition features cases, figures,
and tables that have been revised and updated to offer a cohesive and comprehensive view of this
rapidly changing field.
Key Highlights
• Cloud computing, Big Data, and the Internet of Things: The coverage of these topics now
includes more details on cloud services, private and public clouds, hybrid clouds, and managing
Essentials of MIS
cloud services.
FIFTEENTH
EDITION
• Sustainability and ESG: This edition features new coverage of how information systems
promote sustainability and environmental, social, and governance (ESG) goals. Chapter 1 now
includes ESG leadership as a major objective of information systems, while many of the case
studies discuss sustainability issues.
• Updated and expanded coverage of AI: Chapter 11 has been rewritten to include expanded
FIFTEENTH EDITION
coverage of machine learning, deep learning, natural language systems, computer vision systems,
and robotics, reflecting the surging interest in business uses of AI and “intelligent” techniques.
• The Gradebook offers an easy way for you and your students to see their
performance in your course.
Item Analysis lets you quickly see trends by analyzing details like the number of
students who answered correctly/incorrectly, time on task, and more.
And because it's correlated with the AACSB Standards, you can track students'
progress toward outcomes that the organization has deemed important in
preparing students to be leaders.
• With LMS Integration, you can link your MyLab course from Blackboard Learn™,
Brightspace® by D2L®, Canvas™, or Moodle®.
http://www.pearsonmylabandmastering.com
Human Resources
Analyzing security events Spreadsheet sorting, data filtering Chapter 8
Employee training and skills tracking Database design Chapter 12*
Database querying and reporting
Internet Skills
Using online software tools for job hunting and career development Chapter 1
Using online interactive mapping software to plan efficient transportation routes Chapter 2
Using shopping bots to compare product price, features, and availability Chapter 11
Essentials of
Management
Information Systems
Kenneth C. Laudon
New York University
Jane P. Laudon
Azimuth Information Systems
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The rights of Kenneth C. Laudon, Jane P. Laudon, and Carol Guercio Traver to be identified as the authors of this work have been asserted by them in
accordance with the Copyright, Designs and Patents Act 1988.
Authorized adaptation from the United States edition, entitled Essentials of Management Information Systems, 15th Edition, ISBN 978-0-13-794679-2 by
Kenneth C. Laudon, Jane P. Laudon, and Carol Guercio Traver, published by Pearson Education © 2024.
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Glossary 500
Index 515
12
13
14
15
16
17
WHAT’S INCLUDED
• Pearson eTextbook – Enhances learning both in and out of the classroom. Stu-
dents can highlight, take notes, and review key vocabulary all in one place, even
when offline. Seamlessly integrated interactivities and Figure Videos bring con-
cepts to life via MyLab or the app.
• Figure Videos – Have author Ken Laudon walk students through important con-
cepts in each chapter (23 total) using a contemporary animation platform.
• New Video Cases – A brand new collection of video cases (one per chapter) draws
from Pearson’s extensive library of business and technology video clips. The cases
cover key concepts and experiences in the MIS world, illustrating how real-world
businesses and managers are using information technology and systems. Video cases
are listed at the beginning of each chapter.
• MIS Simulations – Foster critical decision making skills with these interactive
exercises that allow students to play the role of a manager and make business
decisions.
• Chapter Warm Ups, Chapter Quizzes – These objective-based quizzes evaluate
comprehension.
• Excel & Access Activities provided inside MyLab MIS support classes covering
Office tools. In addition, Hands-On MIS Projects from the book are available.
• Running Case on Dirt Bikes USA provides additional hands-on projects for each
chapter.
• Dynamic Study Modules help students study chapter topics and the language of
MIS on their own by continuously assessing their knowledge application and per-
formance in real time. These are available as graded assignments prior to class,
and are accessible on smartphones, tablets, and computers.
• Learning Catalytics is a student response tool that helps you generate class discussion,
customize your lecture, and promote peer-to-peer learning based on real-time analytics.
Learning Catalytics uses students’ devices to engage them in more interactive tasks.
18
Chapter Video
1. Business Information Systems in Your Career The New HQ Is in the Cloud: Salesforce President
2. Global E-business and Collaboration How Slack Is Preparing for the Future of Work
3. Achieving Competitive Advantage with Information Systems Celonis Tops $11 Billion Valuation with New Round of Funding
4. Ethical and Social Issues in Information Systems Australia Passes Law Forcing Tech Giants to Pay for News
6. Foundations of Business Intelligence: Databases and Information Management Stitch Fix CEO Sees Business of Personalization as Key to Success;
Stitch Fix President on Booming Growth Amid Pandemic
7. Telecommunications, the Internet, and Wireless Technology Nokia CEO Suri Sees 5G Market Maturity in 2021
8. Securing Information Systems Fastly Internet Outage Exposes Vulnerability of Major Websites; Ransomware Is a Worldwide
Problem: Palo Alto Networks
9. Achieving Operational Excellence and Customer Intimacy: Enterprise Applications Software Startup Freshworks Not in a Rush to Raise Capital
10. E-commerce: Digital Markets, Digital Goods Shopify Earnings Soar Even as Economies Reopen;
Shopify is Writing the Future of Commerce, Says President
11. Improving Decision Making and Managing Artificial Intelligence Predictive Tech Can Save $3B-$4B A Year: Tom Siebel
12. M aking the Business Case for Information Systems and Managing Projects Software Design Is “Really on a Tear,” Figma CEO Says
Business
Challenges
A diagram accompanying each chapter-opening case graphically illustrates how people, organization, and technology elements work together to create an
information system solution to the business challenges discussed in the case.
21
Student Learning-Focused
Student Learning Objectives are organized to focus student attention. Each major
chapter section is based on a Learning Objective and each chapter concludes with a
Review Summary and Review Questions organized around these Learning Objectives.
KEY FEATURES
We have enhanced the text to make it more interactive, leading edge, and appealing
to both students and instructors. The features and learning tools are described in the
following sections.
22
23
3. Achieving Competitive Advantage with Information Systems Entry Level Business Development Representative
6. Foundations of Business Intelligence: Databases and Information Management Entry Level Data Analyst
9. Achieving Operational Excellence and Customer Intimacy: Enterprise Applications Supply Chain Analyst
11. Improving Decision Making and Managing Artificial Intelligence Sales Coordinator
12. M aking the Business Case for Information Systems and Managing Projects Junior Business Systems Analyst
Students can use Career Opportunities to shape their resumes and career plans as
well as to prepare for interviews. For instructors, Career Opportunities are potential
projects for student research and in-class discussion.
In MyLab MIS we have provided additional Career Resources, including
job-hunting guides and instructions on how to build a Digital Portfolio demonstrating
the business knowledge, application software proficiency, and Internet skills acquired
from using the text. The portfolio can be included in a resume or job application or
used as a learning assessment tool for instructors.
Instructor Teaching Resources
Supplements available to Features of the Supplement
instructors at
www.pearson.com
Test Bank The authors have worked closely with skilled test item writers to ensure that higher-level cognitive skills are tested. Test bank
authored by Professor Kenneth Laudon, New York University multiple-choice questions include questions on content but also include many questions that require analysis, synthesis, and
evaluation skills.
AACSB Assessment Guidelines
As a part of its accreditation activities, the AACSB has developed an Assurance of Learning Program designed to ensure that
schools do in fact teach students what they promise. Schools are required to state a clear mission, develop a coherent business
program, identify student learning objectives, and then prove that students do in fact achieve the objectives.
We have attempted in this book to support AACSB efforts to encourage assessment-based education. The end papers of this
edition identify student learning objectives and anticipated outcomes for our Hands-On MIS projects. The authors will provide
custom advice on how to use this text in colleges with different missions and assessment needs. Please email the authors or
contact your local Pearson representative for contact information.
25
PowerPoints The authors have prepared a comprehensive collection of PowerPoint slides for each chapter to be used in your lectures. Many
authored by Professor Kenneth Laudon, New York University of these slides are the same as used by Ken Laudon in his MIS classes and executive education presentations. Each of the slides
is annotated with teaching suggestions for asking students questions, developing in-class lists that illustrate key concepts, and
recommending other firms as examples in addition to those provided in the text. The annotations are like an Instructor’s Manual
built into the slides and make it easier to teach the course effectively.
PowerPoints meet accessibility standards for students with disabilities. Features include but are not limited to:
• Keyboard and Screen Reader access
• Alternative text for images
• High color contrast between background and foreground colors
26
Carol Guercio Traver is a graduate of Yale Law School and Vassar Col-
lege. She has had many years of experience representing major corporations, as well
as small and medium-sized businesses, as an attorney with a leading international
law firm, with specific expertise in technology law, Internet law, privacy law, intellec-
tual property law, and general corporate law. Carol is the co-author of E-commerce:
business. technology. society (Pearson), as well as several other texts on information
technology, and has been the lead project manager/editor on a number of technology-
related projects. Carol is the co-founder and president of Azimuth Interactive, one of
the first edtech firms and a provider of digital media and publisher services for the
education industry.
27
Essentials of
Management
Information
Systems
Chapter 4 approaches that are used throughout this book. While surveying
Ethical and Social Issues in
the role of information systems in today’s businesses, this part
Information Systems
examines a series of major questions: What is an information
31
Business Information
Systems in Your Career
L EARNING OBJECTIVES
After completing this chapter, you will be able to:
1-1 Understand why information systems are essential for running and
managing a business.
1-2 Define an information system, explain how it works, and identify its
people, organizational, and technology components.
1-3 Apply a four-step method for business problem solving to solve
information system-related problems.
1-4 Describe the information systems skills and knowledge that are
essential for business careers.
1-5 Understand how MIS can help your career.
CHAPTER CASES
■ Smart Shelves Reinvent the Retail Space
■ UPS Competes Globally with Information Technology
■ Will a Robot Steal Your Job?
■ Adyen and Fintech: Driving Change in the Financial Services
MyLab MIS Industry
■ Video Case:
The New HQ Is in
the Cloud: Salesforce
President
■ Hands-on MIS Projects:
1-8, 1-9, 1-10, 1-11
32
33
they can help shoppers locate products themselves through their mobile devices.
According to AWM, Smart Shelf has helped some retailers increase sales by more
than 30 percent.
AWM also offers a consumer behavior tracking application it calls a Demographic
Engine, which includes facial recognition technology, that triggers delivery of content
based on demographic criteria like age, gender, and ethnicity. To protect consumer
privacy, the system does not collect images or tie data to personally identifiable in-
formation. Nonetheless, some remain alarmed about the privacy implications of such
software.
Smart Shelf also helps retailers improve operational efficiencies. Retailers deploy-
ing Smart Shelf can view and track their products in real time, highlighting specific
shelves that need restocking. It also can be employed by stores to make the process of
fulfilling online orders more efficient, directing pickers to items even if the products
have been moved from their proper location. The system also helps retailers track
how long pickers take to retrieve items. According to AWM Chief Executive Kevin
Howard, it can cut stores’ fulfillment costs by 60 percent. However, labor experts note
that the system raises concerns about employee monitoring.
The global market for smart shelves such as those offered by AWM is expected
to grow from $3 billion in 2022 to more than $8 billion by 2027, as physical retail-
ers strive to offer a better shopping experience and compete more effectively with
online retailers. In the process, technology is redefining the role of the shelf in retail
marketing.
Sources: Smartshelf.com, accessed November 30, 2022; MarketsandMarkets, “Smart Shelves Market Worth
$8.3 Billion by 2027,” Marketsandmarkets.com, August 16, 2022; Caroline Hayes, “The Doors Never Close
on Digital Shopping,” Eandt.theiet.org, August 16, 2021; Sapna Maheshwari, “It’s Hard Work to Make
Ordering Groceries Online So Easy,” New York Times, June 4, 2021; Brian Wreckler, “The Definitive Guide
to Interactive Retail Smart Shelves,” Perchinteractive.con, January 11, 2021; Jared Council, “Retailers Hope
In-Store Tech Will Keep Shoppers in Stores,” Wall Street Journal, January 15, 2020.
The companies and technologies described here show how essential information
systems are today. Today, retail stores are struggling to stay alive and relevant as
more shoppers gravitate to online shopping and the Internet. One solution is to use
leading-edge innovative information technology to provide new ways of drawing buy-
ers into physical stores and making the in-store buying experience more efficient, safe,
and pleasant. The information flows that drive these reimagined retail businesses
have become much more digital, making use of mobile tools and object-recognition
technology.
The chapter-opening diagram calls attention to important points raised by this
case and this chapter. To compete more effectively against online retailers and take
advantage of new technology solutions, brick-and-mortar retail stores are using inno-
vative systems based on artificial intelligence, Big Data analysis, computer vision and
facial recognition technology, IoT sensors, and smartphones. The use of leading-edge
digital technologies to drive business operations and management decisions is a key
topic today in the management information systems (MIS) world and will be discussed
throughout this text. At the same time, the use of some of these technologies raises
ethical concerns, in this case, about consumer privacy and employee monitoring, top-
ics that also will be further discussed throughout the text.
It is also important to note that deploying information technology has changed
the way retailers using AWM Smart Shelf run their businesses. To effectively use new
digital tools, these companies had to redesign jobs and procedures for gathering, in-
putting, and accessing information. These changes had to be carefully planned to
make sure they enhanced efficiency, service, and profitability.
Business
Challenges
Here are some questions to think about: How do AWM’s systems change retail
operations? How do they improve the customer experience? What ethical concerns do
they raise?
to help them compete. Companies today manage their inventories in near real time
to reduce their overhead costs and get to market faster. If you are not part of this new
supply chain management economy, chances are your business is not as efficient as it
could be. The importance of supply chains and supply chain management has been
highlighted even further by supply chain disruptions introduced by the pandemic.
More than 3.6 billion people worldwide use a social network such as Facebook,
Twitter, Instagram, or Pinterest, including 97 percent of Fortune 500 firms, who use
them to communicate with their customers. This means your customers are empow-
ered and able to talk to each other about your business products and services. Do you
have a solid online customer relationship program in place? Do you know what your
customers are saying about your firm? Is your marketing department listening?
Digital advertising spending worldwide was expected to reach almost $570 billion
in 2022, growing at more than 20 percent a year from 2014 through 2021. Almost
three-quarters of this spending was expected to be for mobile advertising. In contrast,
traditional advertising during this period either declined or was flat. Is your advertis-
ing reaching web and mobile customers?
Various laws require many businesses to retain email messages for a specified pe-
riod, depending on the law. These and similar laws, as well as all of the data being
generated by billions of Internet-linked sensors comprising the Internet of Things
(IoT), online consumer data, and social media data, are spurring the explosive growth
of digital information known as Big Data. At the same time, the retention of all this
data has created privacy concerns and has led to the passage of laws about how such
data must be safeguarded. Does your compliance department meet the minimal re-
quirements for storing financial, health, and occupational information? If it doesn’t,
your entire business may be at risk (Insider Intelligence/eMarketer, 2022b, 2022c;
Porteous, 2021; TitanHQ, 2021).
Briefly, it’s a constantly evolving world of doing business, one that will greatly
affect your future career. Along with the changes in business come changes in jobs
and careers. No matter whether you are a finance, accounting, management, market-
ing, operations management, or information systems major, how you work, where you
work, and how well you are compensated will all be affected by business information
systems. The purpose of this book is to help you understand and benefit from today’s
business realities and opportunities.
TABLE 1.1
Key Challenges in MIS
Cloud computing platform Companies are increasingly turning to a flexible collection of computers on the Internet to perform tasks
emerges as a major business traditionally performed at corporate data centers. Major business applications can be delivered online as an
area of innovation. Internet service (software as a service [SaaS]). What are the costs and benefits of cloud computing and how
much of the firm’s IT infrastructure should be moved to cloud providers?
Big Data and the Internet of Businesses look for insights in huge volumes of data from web traffic, email messages, social media content,
Things (IoT) and Internet-connected devices (sensors). More powerful data analytics and interactive dashboards can
provide real-time performance information to managers to enhance decision making. Does your firm have
the ability to analyze and use Big Data and analytics? How can you use IoT to provide better products and
services?
Artificial intelligence (AI) Computer programs can find patterns in large databases that can help managers understand their business
and provide better products. Where could your company use AI, and where can you find the expertise? What
benefits can you expect? How much will it cost?
The mobile platform Business and personal computing is increasingly moving to smartphones, tablet computers, car infotainment
systems, and wearable devices. Thousands of applications are now available to support collaboration, coordi-
nation of work, communication with colleagues and customers, and online purchases on mobile devices. More
than 90 percent of Internet users access the web with mobile devices. Is your firm making the best use of
mobile capabilities for its employees and customers? How could your firm improve? What are the costs and
benefits?
Return on investment (ROI) Although firms spend millions on information systems and services, they typically have little understanding of
how much benefit they receive. How can your firm measure and understand the benefit it is receiving from
IS/IT expenditures? Are there alternative sources of these services that would cost less?
Online collaboration and social Millions of business professionals use Google Apps, Google Drive, Microsoft 365, Yammer, Zoom, and IBM
networking Connections to support blogs, project management, online meetings, personal profiles, and online communi-
ties. Is your firm making a coordinated effort to use new technologies to improve coordination, collaboration,
and knowledge sharing? Which of the many alternatives should it be using?
Organizations
Security and privacy Security lapses and protecting customer privacy are major public issues that affect all businesses. How does
your company know its data are secure? How much does it spend on security now? What privacy policies
does your firm have in place? How should the firm expand its privacy protections as new laws emerge?
Social business Businesses use social network platforms, including Facebook, Twitter, Instagram, and internal corporate social
tools, to deepen interactions with employees, customers, and suppliers. What use is your company making of
social business tools? Where should it go from there? Is your company getting real value from these platforms?
Remote work (telework) surges The Internet, cloud computing, smartphones, and tablet computers make it possible for growing numbers of
people to work away from the traditional office. This ability proved critical during the height of the Covid-19 pan-
demic, when more than 70 percent of workers worked from home. Going forward, what will your firm’s policies
and technologies be for remote work, and what are the risks for productivity?
brought the peoples and cultures of the world much closer together. The Industrial
Revolution was a worldwide phenomenon energized by expansion of trade among na-
tions, making nations both competitors and collaborators in business. The Internet
has greatly heightened the competitive tensions among nations as global trade
expands and strengthened the benefits that flow from trade and also created signifi-
cant dislocations in labor markets.
In 2005, journalist Thomas Friedman wrote an influential book declaring that the
world was now flat, by which he meant that the Internet and global communications
had greatly expanded the opportunities for people to communicate with one another
and reduced the economic and cultural advantages of industrialized countries. The
United States and European countries were in a fight for their economic lives, accord-
ing to Friedman, competing for jobs, markets, resources, and even ideas with highly
educated, motivated populations in emerging economies (Friedman, 2007). This glo-
balization presents you and your business with both challenges and opportunities.
A growing percentage of the economy of the United States and other industrial-
ized countries in Europe and Asia depends on imports and exports. In 2021, 26 percent
of the US economy resulted from foreign trade of goods and services, both imports
and exports. In certain countries in Europe and Asia, the number exceeds 50 percent
(Organisation for Economic Co-operation and Development [OECD], 2022).
It’s not just goods that move across borders. So too do jobs, some of them high-level
jobs that pay well and require a college degree. Between 1991 and 2019, the United States
lost a net 3.5 million manufacturing jobs to offshore, low-wage producers, so manufac-
turing is now a much smaller part of US employment than it once was. US multinational
companies employ more than 14 million people outside the United States, many of them
in service jobs in information technology, customer call centers, human resources, finan-
cial services, consulting, engineering, architecture, and even medical services, such as
radiology (Amadeo, 2021; U.S. Bureau of Economic Analysis, 2021; Rose, 2021).
On the plus side, the US economy has continued to create millions of new jobs, es-
pecially in 2021 as the country began to emerge from the pandemic. From 2020 to 2030,
employment is projected to grow by almost 12 million jobs. Employment in information
systems and the other service occupations listed previously has rapidly expanded in sheer
numbers, wages, productivity, and quality of work. Outsourcing has actually accelerated
the development of new information systems by reducing the cost of building and main-
taining them. In 2021, job openings in information systems and technologies far exceeded
the supply of applicants (U.S. Bureau of Labor Statistics, 2021a).
The challenge for you as a business student is to develop high-level skills through
education and on-the-job experience that cannot be outsourced. The challenge for
your business is to avoid markets for goods and services that can be produced offshore
much less expensively. The opportunities are equally immense. You can learn how to
profit from the lower costs available in world markets and the chance to serve a mar-
ketplace with billions of customers. You have the opportunity to develop h igher-level
and more profitable products and services. Throughout this book, you will find ex-
amples of companies and individuals who either failed or succeeded in using informa-
tion systems to adapt to this new global environment.
What does globalization have to do with management information systems? The
answer is simple: everything. The emergence of the Internet into a full-blown inter-
national communications system has drastically reduced the costs of operating and
transacting on a global scale. Communication between a factory floor in South Korea
and a distribution center in Belgium is now instant and virtually free. Customers now
can shop in a worldwide marketplace, obtaining price and quality information reli-
ably 24 hours a day. Firms producing goods and services on a global scale achieve
extraordinary cost reductions by finding low-cost suppliers and managing produc-
tion facilities in other countries. Firms such as Google and eBay can replicate their
business models and services in multiple countries without having to redesign their
expensive, fixed-cost information systems infrastructure.
models; customer and supplier intimacy; improved decision making; competitive ad-
vantage; and survival. In addition, businesses today are increasingly being pressured
by various stakeholders, such as employees, customers, governmental authorities, and
investors, to show leadership in pursuing broader environmental, social, and gover-
nance (ESG) goals. ESG is becoming a strategic business imperative, and information
systems are central in enabling companies to meet their ESG goals.
Operational Excellence
Businesses continuously seek to improve the efficiency of their operations to achieve
higher profitability. Information systems and technologies are some of the most im-
portant tools available to managers for achieving higher levels of efficiency and pro-
ductivity in business operations, especially when coupled with changes in business
practices and management behavior.
Walmart, the largest retailer on earth, exemplifies the power of information systems
coupled with sophisticated business practices and supportive management to achieve
world-class operational efficiency. In fiscal 2022, Walmart generated $600 billion in
worldwide sales—in large part because of its Retail Link and Global Replenishment
System, which digitally links its suppliers to every one of Walmart’s stores worldwide. As
soon as a customer purchases an item, the supplier monitoring the item knows to ship a
replacement to the shelf. Walmart is the most efficient retail store in its industry.
Amazon, the world’s largest online retailer, which was expected to generate an
estimated $655 billion in retail e-commerce sales worldwide in 2022, invested an as-
tounding $56 billion in technology and content in 2021 so that it can continue to en-
hance the customer experience and improve process efficiency while operating at an
ever-increasing scale (Amazon.com Inc., 2022; Insider Intelligence/eMarketer, 2022d).
Hong Kong–headquartered TAL Apparel, one of the world’s largest contract ap-
parel manufacturers, exemplifies the use of information systems to enable supplier
intimacy. TAL Apparel produces shirts, blouses, knits, pants, outerwear, and suits for
many of the most famous garment brands, including UK retailer Charles Tyrwhitt,
US retailer Brooks Brothers, and global online retailer and catalog merchant L.L.
Bean. The company also helps its clients manage their supply chains. Every time its
clients sell a dress shirt, for example, the record of the sale appears immediately on
TAL’s computers in Hong Kong. TAL runs the numbers through a computer model
it developed and decides how many replacement shirts to make and in what styles,
colors, and sizes. TAL then sends the shirts to the retailer. TAL’s systems reduce in-
ventory costs and ensure that what customers want is actually on retailers’ shelves.
Competitive Advantage
When firms achieve one or more of these business objectives—operational excel-
lence; new products, services, and business models; customer/supplier intimacy; and
improved decision making—chances are they have already achieved a competitive
advantage. Doing things better than your competitors, charging less for superior
products, and responding to customers and suppliers in real time all add up to higher
sales and higher profits that your competitors cannot match. Apple, Walmart, and
UPS are industry leaders because they know how to use information systems for this
purpose.
Survival
Business firms also invest in information systems and technologies because they are
necessities of doing business. Sometimes these necessities are driven by industry-level
changes. For instance, after Barclays introduced the first automated teller machines
(ATMs) in London to attract customers through higher service levels, its competitors
rushed to provide ATMs to their customers to keep up. Today, virtually all banks
around the world have regional ATMs and link to national and international ATM
networks, such as CIRRUS. Providing ATM services to retail banking customers is
simply a requirement of being in and surviving in the retail banking business.
Most nations have statutes and regulations that create a legal duty for compa-
nies and their employees to retain records, including digital records. For instance,
the European Council’s Regulation on Registration, Evaluation, Authorization,
and Restriction of Chemicals (REACH) and the U.S. Toxic Substances Control Act,
which regulates the exposure of employees to toxic chemicals, require firms to retain
records on employee exposure for a certain period of time. The US Sarbanes–Oxley
Act requires public companies to retain audit working papers and records, including
all email messages, for five years. Many other governments throughout the world also
Figure 1.1
Data and Information
Raw data from a supermarket checkout counter can be processed and organized to produce meaningful information, such
as the total unit sales of dish detergent or the total sales revenue from dish detergent for a specific store or sales territory.
we mean data that have been shaped into a form that is meaningful and useful to
human beings. Data, in contrast, are streams of raw facts representing events occur-
ring in organizations or the physical environment before they have been organized
and arranged into a form that people can understand and use.
A brief example contrasting information and data may prove useful. Examine
Figure 1.1, which provides an example of an information system used by a super-
market. Supermarket checkout counters scan bar codes on products. The bar codes
contain data about the product, such as a numerical identifier, name, and price
(“331 Brite Dish Soap, 1.29), shown in the left portion of the diagram. An informa-
tion system enables these pieces of data to be totaled and analyzed to provide mean-
ingful information, displayed in the right portion of the diagram, such as the total
number of bottles of dish detergent sold at a particular store, which brands of dish
detergent were selling the most rapidly at that store or sales territory, or the total
amount spent on that brand of dish detergent at that store or sales region.
Three activities in an information system produce the information that organiza-
tions need to make decisions, control operations, analyze problems, and create new
products or services. These activities are input, processing, and output. Examine
Figure 1.2, which illustrates how these activities work together within an informa-
tion system. Input captures or collects raw data from within the organization or
from its external environment. Processing converts this raw input into a meaningful
form by classifying, arranging, and performing calculations on it. Output transfers
the processed information to the people who will use it or to the activities for which
it will be used. Information systems also provide feedback, which is output that is
returned to appropriate members of the organization to help them evaluate or cor-
rect the input stage. Figure 1.2 also illustrates that an organization’s information
systems do not operate within a vacuum: they are impacted by various elements in
the environment that surround them, such as the organization’s suppliers, custom-
ers, competitors, and stockholders as well as governmental agencies that regulate
the organization.
In the AWM Smart Shelf system, input includes the digital results from scanning
on-shelf products and store shelf identification codes, along with scanned images of
items customers have selected for purchase. A computer stores and processes these
data to keep track of the items on each shelf, the items each customer purchases or
examines, and a history of the customer’s purchases and items of interest. The system
then determines what items on what shelves need restocking and what items should be
Figure 1.2
ENVIRONMENT Functions of an
Suppliers Customers Information System
An information system
contains information about
ORGANIZATION an organization and its
surrounding environment.
INFORMATION SYSTEM
Three basic activities—input,
processing, and output—
Processing produce the information
Classify organizations need.
Input Output
Arrange Feedback is output returned
Calculate to appropriate people or
activities in the organization
Feedback
to evaluate and refine the
input. Environmental actors,
such as customers, suppliers,
competitors, stockholders,
and regulatory agencies,
Regulatory Stockholders Competitors interact with the organization
Agencies and its information systems.
Figure 1.3
Information Systems
Are More Than
Computers
Using information systems
effectively requires an
understanding of the Organizations Technology
organization, people, and
information technology Information
shaping the systems. An Systems
information system provides
a solution to important
business problems or
challenges facing the firm. People
Organizations
Information systems are an integral part of organizations, and although we tend to
think about information technology changing organizations and business firms, it is,
in fact, a two-way street. The history and culture of business firms also affect how the
technology is used and how it should be used. To understand how a specific business
firm uses information systems, you need to know something about the structure, his-
tory, and culture of the company.
Organizations have a structure that is composed of different levels and specialties.
Their structures reveal a clear-cut division of labor. A business firm is organized as
a hierarchy, or a pyramid structure, of rising authority and responsibility. The upper
levels of the hierarchy consist of managerial, professional, and technical employees,
whereas the lower levels consist of operational personnel. Experts are employed and
trained for different business functions, such as sales and marketing, manufacturing
and production, finance and accounting, and human resources. The firm builds in-
formation systems to serve these different specialties and levels of the firm. Chapter 2
provides more detail on these business functions and organizational levels and the
ways in which information systems support them.
An organization accomplishes and coordinates work through this structured hier-
archy and through its business processes, which are logically related tasks and behaviors
for accomplishing work. Developing a new product, fulfilling an order, and hiring a
new employee are examples of business processes.
Most organizations’ business processes include formal rules that have been devel-
oped over a long time for accomplishing tasks. These rules guide employees in a variety
of procedures, from writing an invoice to responding to customer complaints. Some of
Maar keeren wij tot de tunnamen terug. Andere zulke namen, als
plaatsnamen zoo veelvuldig in Engeland voorkomende, zijn nog
Eckington, Edington, Alkington, Kensington,
B e n n i n g t o n , S h e r r i n g t o n , en honderden anderen, schier
allen patronymicale namen.
Het moet ons niet verwonderen, dat wij in Artesië, even als ook in
Engeland, de Sassische tun- en de Frankische en Friesche
hemnamen thans naast en nevens elkanderen, als ’t ware onder
elkanderen vermengd vinden. Wij weten immers, dat de benden
volks, de volkplanters of landverhuizers, de uitwijkelingen die
Brittannië veroverden en bevolkten, uit maagschappen, gezinnen en
enkelingen van verschillenden volksaard, uit Sassen, Angelen,
Jutten (of Noord-Friezen) en Friezen waren samengesteld.
A u d r e s e l l e s , A r i n g z e l e , T r a m e z e l e . De eerste dezer
namen is verfranscht in zijnen hedendaagschen vorm. Is hij
oorspronkelijk [114]O u d e r z e l e (Ter ouder Zele, woonstede bij de
oude zale of halle) geweest? Dus de zelfde naam die nog eigen is
aan het dorp O u d e z e l e in Fransch-Vlaanderen, en aan het stadje
O l d e n z a a l (ook O l d e n z e e l genoemd) in Twente?
Waarschijnlijk wel.—A r i n g z e l e is weêr een oorbeeldig
Germaansche naam, bestaande uit een patronymicon, met het
bekende woord zele daar achter, dat zoo menigvuldig aan
Vlaamsche plaatsnamen eigen is. De mansnaam, die aan dit
patronymicon ten grondslag ligt komt als A r a en A r o , en in
samengestelde vormen als de mansnamen A r a f r i d en A r a g i s ,
en de vrouwennamen A r o h i l d i s en A r o l i n d a in oude
geschriften voor. Ook leefde hij nog, als A r e , bij de Friezen in de
jaren 1500. A r e m a , oudtijds A e r m a geschreven, is nog heden
een Friesche maagschapsnaam, even als het patronymicon in den
Sassischen vorm A r i n k nog elders in de Nederlanden als
geslachtsnaam bestaat.
Eene andere verbastering van het woord hove kan men aantoonen
bij den naam van het Artesische dorp O f f e k e r q u e , eene
verbastering die lichtelijk op een dwaalspoor, ter naamsverklaring,
leiden kan. Immers het ligt voor de hand om dezen naam te duiden
als O f f e k e r k e , de kerk (ter kerke in den locativus) van O f f e , van
den man die O f f e heette. O f f e toch (O f f o , O f f a , U f f o ) is
een Oud-Germaansche mansnaam, die nog heden bij de Friezen als
zoodanig in volle gebruik is, en al mede oorsprong gegeven heeft
aan de Friesche geslachtsnamen O f f i n g a , O f f e m a , O f f e s ,
O f f e n , O f k e s , enz. en aan de plaatsnamen O f f i n g a w i e r ,
een dorp in Friesland; O f f e n w a r d e n , een dorp bij Bremen
(Duitschland); O f f i g n i e s (dat is oorspronkelijk het patronymicon
O f f i n g e n ), een dorp in Picardië (Frankrijk); O f f a ’ s D y k e , een
oude grenswal in Engeland, in de 8ste eeuw opgericht door O f f a
den Angel-Sassischen koning van Mercia; enz. Intusschen, het
Artesische O f f e k e r q u e heeft met dezen ouden mansnaam niets
te maken. Deze plaatsnaam is oorspronkelijk H o v e k e r k e (ter
kerke bij den hove), zoo als hij nog in oude geschriften voorkomt. In
eene oorkonde [116]van den jare 1100 heet deze plaats eenvoudig
H o v e ; misschien was daar toenmaals nog geen kerk aanwezig.
Aan den voet der heuvels of bergen strekken de dalen zich uit; en
zoo zoekt men ook, nevens de bergnamen, onder de Artesische
plaatsnamen de dalnamen niet te vergeefs. Deze namen zijn zoo
wel eigen aan de werkelijke dalen zelven, als aan de dorpen,
gehuchten, landhoeven, in die dalen gelegen. Op zich zelven,
zonder bijvoegsel, is het woord dal, als naam, eigen aan D a l l e ,
een gehucht bij Lacre. Met bijvoegsels vinden wij de plaatsnamen
W a t e r d a l , gehucht bij Seninghem; B r a m e n d a l , bij
Boisdinghem; L a n g h e n d a l e ; D i e p e n d a l , geh. bij
Boucquehault. Verder B r u c k d a l , gehucht bij Hesdin-l’Abbé;
G r i s e n d a l e , eene landhoeve bij Wimille; M e r l i n g d a l , hoeve,
bij Verlincthun; P i t t e n d a l , To t e n d a l , W y s q u e d a l ,
K i n e n d a l e , enz. De vier eerstgenoemden van deze dalnamen
zijn nog geheel oorbeeldig Dietsch, en in hunne beteekenis
volkomen duidelijk voor iederen Nederlander. In B r u c k d a l
herkennen wij het woord bruck, broek, moeras, dat ook in den naam
Brussel (oorspronkelijk B r o e k z e l e ) voorkomt; in P i t t e n d a l het
woord put, dat ook in West-Vlaanderen en elders in dezen
bijzonderen vorm wordt uitgesproken. Aan den naam M e r l i n g d a l
ligt een patronymicon ten grondslag.