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information
systems Paige Baltzan
4e

Daniels College of Business

University of Denver
 information
systems 4e
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brief
contents
module one
BUSINESS DRIVEN MIS 3
chapter 1 Management Information Systems: Business
Driven MIS 5
chapter 2 Decisions + Processes: Value Driven
Business 33
chapter 3 Ebusiness: Electronic Business Value 63
chapter 4 Ethics + Information Security: MIS Business
Concerns 91

module two
TECHNICAL FOUNDATIONS OF MIS 113
chapter 5 Infrastructures: Sustainable Technologies 115
chapter 6 Data: Business Intelligence 147
chapter 7 Networks: Mobile Business 183

module three
ENTERPRISE MIS 209
chapter 8 Enterprise Applications: Business
Communications 211
chapter 9 Systems Development and Project
Management: Corporate Responsibility 249
GLOSSARY 277
NOTES 292
INDEX 298

v
contents
module one BUSINESS DRIVEN
MIS 3
CHAPTER 1 MANAGEMENT INFORMATION
SYSTEMS: BUSINESS DRIVEN
MIS 5
SECTION 1 .1 >> Business Driven MIS 6
COMPETING IN THE INFORMATION AGE 6
LIVING THE DREAM Sensors and Bears—A Perfect
Match 7
Data 7
FYI People in China and India Are Starving for Your
Jobs 9
Information 9
Business Intelligence 10
Knowledge 11
THE CHALLENGE: DEPARTMENTAL COMPANIES 12
SYSTEMS THINKING AND MANAGEMENT INFORMATION
SYSTEMS 13
BUSTED The Interent of Things Is Wide Open—For
Everyone! 14
Systems Thinking 15
SHOW ME THE MONEY Who Really Won the 2014
Winter Olympics? 15
MIS Department Roles and Responsibilities 16
SHOW ME THE MONEY Is Technology Making Us
Dumber or Smarter? 17
SECTION 1 .2 >> Business Strategy 19
DUE DILIGENCE Safekeeping Data 19
IDENTIFYING COMPETITIVE ADVANTAGES 19
MY NOT TO-DO LIST What Happens on YouTube
Stays on YouTube—FOREVER 21
THE FIVE FORCES MODEL—EVALUATING INDUSTRY
ATTRACTIVENESS 22
Buyer Power 22
SHOW ME THE MONEY SWOT Your Student 23
Supplier Power 24
Threat of Substitute Products or Services 24
Threat of New Entrants 25
Rivalry among Existing Competitors 25
Analyzing the Airline Industry 25
FYI Cool College Start-Ups 26
THE THREE GENERIC STRATEGIES—CHOOSING A BUSINESS
FOCUS 26
SHOW ME THE MONEY Death of a Product 27
LIVING THE DREAM One Laptop per Child 28
VALUE CHAIN ANALYSIS—EXECUTING BUSINESS
STRATEGIES 28
BUSTED Listen to Spider-Man; He Knows What He’s
Talking About! 29
CHAPTER 2 DECISIONS + PROCESSES:
VALUE DRIVEN BUSINESS 33
SECTION 2.1 >> Decision Support Systems 34
MAKING BUSINESS DECISIONS 34
The Decision-Making Process 35
Decision-Making Essentials 35
MEASURING BUSINESS DECISIONS 37
Efficiency and Effectiveness Metrics 39
The Interrelationship Between Efficiency and Effectiveness
MIS Metrics 39
SHOW ME THE MONEY Is It Effective or Is It
Efficient? 39
DUE DILIGENCE Get the Cow Out of the Ditch 40
USING MIS TO MAKE BUSINESS DECISIONS 40
Operational Support Systems 41
Managerial Support Systems 41
Strategic Support Systems 42
USING AI TO MAKE BUSINESS DECISIONS 43
BUSTED The Criminal in the Cube Next Door 45
Expert Systems 45
Neural Networks 46
FYI Got Junk? Get a Hunk! 47
LIVING THE DREAM Track Your Life 48
Genetic Algorithms 48
Intelligent Agents 49
SHOW ME THE MONEY If It Ain’t Broke,
Don’t Fix It 49
Virtual Reality 49
SECTION 2.2 >> Business Processes 50
FYI Long-Distance Hugs 50
MANAGING BUSINESS PROCESSES 50
BUSINESS PROCESS MODELING 52
USING MIS TO IMPROVE BUSINESS PROCESSES 53
Operational Business Processes—Automation 54
 Managerial Business Processes—Streamlining 55
Strategic Business Processes—Reengineering 57
MY NOT TO-DO LIST You Accidently Sent Your
Confidential Email to Your Significant Other to Your
Grandmother—Ouch! 59
SHOW ME THE MONEY Streamlining Your Email 59
CHAPTER 3 EBUSINESS: ELECTRONIC
BUSINESS VALUE 63
SECTI ON 3.1 >> Web 1.0: Ebusiness 64
DISRUPTIVE TECHNOLOGIES 64
Disruptive versus Sustaining Technology 64
The Internet and World Wide Web—The Ultimate Business
Disruptors 65
DUE DILIGENCE Unethical Disruption 65
WEB 1.0: THE CATALYST FOR EBUSINESS 65
Web 1.0: The Catalyst for Ebusiness 65
Expanding Global Reach 67
Opening New Markets 68
Reducing Costs 68
Improving Effectiveness 69
SHOW ME THE MONEY Nasty-Gal: 8 Years Old and
Worth $100 Million 70
THE FOUR EBUSINESS MODELS 70
Business-to-Business (B2B) 71
Business-to-Consumer (B2C) 71
Consumer-to-Business (C2B) 72
Consumer-to-Consumer (C2C) 72
Ebusiness Forms and Revenue-Generating Strategies 72
LIVING THE DREAM Crazy over Access 73
EBUSINESS TOOLS FOR CONNECTING AND
COMMUNICATING 74
Email 74
Instant Messaging 75
Podcasting 75
Videoconferencing 75
Web Conferencing 76
Content Management Systems 76
THE CHALLENGES OF EBUSINESS 76
Identifying Limited Market Segments 76
Managing Consumer Trust 76
BUSTED Virtual Abandonment 77
Ensuring Consumer Protection 77
Adhering to Taxation Rules 77
SECTI ON 3.2 >> Web 2.0: Business 2.0 77
WEB 2.0: ADVANTAGES OF BUSINESS 2.0 77
Content Sharing through Open Sourcing 78
User-Contributed Content 78
Collaboration inside the Organization 79
SHOW ME THE MONEY Analyzing Websites 79
Collaboration outside the Organization 80
NETWORKING COMMUNITIES WITH BUSINESS 2.0 80
MY NOT TO-DO LIST Social Not Working 81
Social Tagging 82
MY NOT TO-DO LIST Viral Foxes and Devil
Babies 83
DUE DILIGENCE Anti-Social Networking 83
BUSINESS 2.0 TOOLS FOR COLLABORATING 84
Blogs 84
Wikis 84
FYI Don’t You Just Love ­Mötley Crüe? 85
Mashups 85
LIVING THE DREAM Kiva Collaboration` 86
THE CHALLENGES OF BUSINESS 2.0 86
Technology Dependence 86
Information Vandalism 86
FYI Using Hashtags 87
Violations of Copyright and Plagiarism 87
WEB 3.0: DEFINING THE NEXT GENERATION OF ONLINE
BUSINESS OPPORTUNITIES 87
BUSTED Connectivity Break-Down 87
Egovernment: The Government Moves Online 88
Mbusiness: Supporting Anywhere Business 89
CHAPTER 4 ETHICS + INFORMATION
SECURITY: MIS BUSINESS
CONCERNS 91
SECTION 4.1 >> Ethics 92
INFORMATION ETHICS 92
Information Does Not Have Ethics; People Do 93
BUSTED Information—Does It Have Ethics? 94
MY NOT TO-DO LIST Do You Really Want
to Risk It? 95
DEVELOPING INFORMATION MANAGEMENT POLICIES 95
Ethical Computer Use Policy 95
Information Privacy Policy 96
DUE DILIGENCE The Right to Be Forgotten 97
Acceptable Use Policy 97
SHOW ME THE MONEY 15 Million Identity Theft
Victims 97
Email Privacy Policy 98
FYI Monitoring Employees 99
Social Media Policy 99
Workplace Monitoring Policy 100
BUSTED I’m Being Fired for Smoking, but I Was at
Home and It Was Saturday 101
SECTION 4.2 >> Information Security 101
PROTECTING INTELLECTUAL ASSETS 101
Security Threats Caused by Hackers and Viruses 103
SHOW ME THE MONEY Beyond Passwords 104
THE FIRST LINE OF DEFENSE–PEOPLE 105
MY NOT TO-DO LIST Lifelock: Keeping Your Identity
Safe 106
THE SECOND LINE OF DEFENSE–TECHNOLOGY 106
People: Authentication and Authorization 106
Contents | vii
 DUE DILIGENCE Doodling Passwords 109
Data: Prevention and Resistance 109
SHOW ME THE MONEY Hackers Love Phish,
and I Don’t Mean the Band 110
Attack: Detection and Response 111
module two
TECHNICAL
FOUNDATIONS OF MIS 113
CHAPTER 5 INFRASTRUCTURES:
SUSTAINABLE
TECHNOLOGIES 115
SECTION 5 .1 >> MIS Infrastructures 116
THE BUSINESS BENEFITS OF A SOLID MIS
INFRASTRUCTURE 116
SUPPORTING OPERATIONS: INFORMATION MIS
INFRASTRUCTURE 117
Backup and Recovery Plan 118
DUE DILIGENCE I Don’t Have a Temperature, but I’m
Positive I Have a Virus 119
Disaster Recovery Plan 119
Business Continuity Plan 121
SHOW ME THE MONEY Recovering from
Disaster 122
DUE DILIGENCE Zombies Attack the University of
Florida 123
FYI Creating a BCP Plan 124
SUPPORTING CHANGE: AGILE MIS INFRASTRUCTURE 124
Accessibility 124
Availability 125
Maintainability 125
Portability 126
Reliability 126
SHOW ME THE MONEY Ranking the -ilities 126
Scalability 127
Usability 127
SECTION 5 .2 >> Building Sustainable MIS
Infrastructures 127
MIS AND THE ENVIRONMENT 128
DUE DILIGENCE Laptop? Notebook? Netbook?
Tablet? 128
Increased Electronic Waste 128
LIVING THE DREAM Solving the Ewaste
Problem 129
FYI Ewaste and the Environment 129
LIVING THE DREAM Smart Cities 130
Increased Energy Consumption 130
Increased Carbon Emissions 131
SUPPORTING THE ENVIRONMENT: SUSTAINABLE MIS
INFRASTRUCTURE 131
Grid Computing 131
SHOW ME THE MONEY How Big Is Your Carbon
Footprint? 131
viii | Contents
Virtualized Computing 132
Cloud Computing 137
FYI Virtualization for Your Cell Phone 137
BUSTED Hack Attack 141
Utility Computing 143
SHOW ME THE MONEY Upcycle Your Old PC 144
CHAPTER 6 DATA: BUSINESS
INTELLIGENCE 147
SECTION 6.1 >> Data, Information, and
Databases 148
THE BUSINESS BENEFITS OF HIGH-QUALITY
INFORMATION 148
Information Type: Transactional and Analytical 148
Information Timeliness 149
Information Quality 150
SHOW ME THE MONEY Determining Information
Quality Issues 151
Information Governance 152
STORING INFORMATION USING A RELATIONAL DATABASE
MANAGEMENT SYSTEM 153
Storing Data Elements in Entities and Attributes 154
Creating Relationships through Keys 155
DUE DILIGENCE That’s Not My Mother in the
Casket! 155
Coca Cola Relational Database Example 155
USING A RELATIONAL DATABASE FOR BUSINESS
ADVANTAGES 155
Increased Flexibility 157
MY NOT TO-DO LIST Yes, I Started the Internet 157
Increased Scalability and Performance 158
Reduced Information Redundancy 158
Increased Information Integrity (Quality) 158
SHOW ME THE MONEY Excel or Access? 158
Increased Information Security 159
DUE DILIGENCE Sorry, I Didn’t Mean to Post Your
Social Security Number on the Internet 159
DRIVING WEBSITES WITH DATA 160
SECTION 6.2 >> Business Intelligence 162
DATA WAREHOUSING 162
History of the Data Warehouse 162
Data Mart 163
FYI Butterfly Effects 164
Information Cleansing (or Scrubbing) 164
BUSINESS INTELLIGENCE 166
SHOW ME THE MONEY Clean My Data! 167
The Problem: Data Rich, Information Poor 168
The Solution: Business Intelligence 168
BUSTED Follow the Data 169
THE POWER OF BIG DATA 170
Virtualization 170
Analyzing Big Data 170

LIVING THE DREAM 2 Trillion Rows of Data
­Analyzed Daily—No Problem 172
DATA MINING 172
Data Mining Process Model 173
Data Mining Analysis Techniques 173
DUE DILIGENCE Unethical Data Mining 175
Data Mining Modeling Techniques for Predictions 176
DATA ANALYSIS 178
Advanced Data Analytics 178
Data Visualization 179
FYI News Dots 181
CHAPTER 7 NETWORKS: MOBILE
BUSINESS 183
SECTI ON 7.1 >> Connectivity: The Business Value of a
Networked World 184
THE CONNECTED WORLD 184
Network Categories 185
Network Providers 185
Network Access Technologies 186
Network Protocols 188
BUSTED Never Run with Your iPod 190
Network Convergence 190
SHOW ME THE MONEY Net Neutrality 192
BENEFITS AND CHALLENGES OF A CONNECTED WORLD 193
FYI Music in the Clouds 193
Security 194
My Not To-Do List Should Airlines Allow Cellphones on
Flights? 195
DUE DILIGENCE Teddy the Guardian 195
Social, Ethical, and Political Issues 196
SECTI ON 7.2 >> Mobility: The Business Value of a
Wireless World 196
WIRELESS NETWORKS 196
Personal Area Networks 197
Wireless LANs 197
Wireless MANs 198
SHOW ME THE MONEY Wireless Networks and
Streetlamps 198
Wireless WAN—Cellular Communication System 199
Wireless WAN—Satellite Communication System 201
LIVING THE DREAM Saving the World One Phone at
a Time 201
Protecting Wireless Connections 201
Managing Mobile Devices 202
FYI Sports Sensors 202
BUSINESS APPLICATIONS OF WIRELESS NETWORKS 203
Radio-Frequency Identification (RFID) 203
Global Positioning System (GPS) 204
Geographic Information Systems (GIS) 205
LIVING THE DREAM Wi-Fi for Fishes 205
BUSTED Snapping a Theftie 206
module three
ENTERPRISE
MIS 209
CHAPTER 8 ENTERPRISE
APPLICATIONS: BUSINESS
COMMUNICATIONS 211
SECTION 8.1 >> Supply Chain Management 212
BUILDING A CONNECTED CORPORATION THROUGH
INTEGRATIONS 212
Integration Tools 213
SUPPLY CHAIN MANAGEMENT 214
Visibility into the Supply Chain 216
TECHNOLOGIES REINVENTING THE SUPPLY CHAIN 218
3D Printing Supports Procurement 219
RFID Supports Logistics 220
LIVING THE DREAM 3D Printing for Poverty 220
Drones Support Logistics 221
Robotics Supports Materials Management 221
DUE DILIGENCE 3D Printing Weapons 222
DUE DILIGENCE Robots Took My Job 223
MY NOT TO-DO LIST Fixing the Post Office 223
The Extended Supply Chain 223
SECTION 8.2 >> Customer Relationship Management
and Enterprise Resource Planning 224
CUSTOMER RELATIONSHIP MANAGEMENT 224
FYI Ruby Receptionists 225
The Power of the Customer 226
Operational and Analytical CRM 228
Marketing and Operational CRM 228
SHOW ME THE MONEY Nice Emotions 228
BUSTED I’m Stuck in London and I’ve Been
Robbed—Help Me! 230
Sales and Operational CRM 230
Customer Service and Operational CRM 231
DUE DILIGENCE Customer Power to the
Rescue 232
Analytical CRM 233
SHOW ME THE MONEY Straight Jacket Customer
Service 233
The Future of CRM 234
ENTERPRISE RESOURCE PLANNING 234
The Benefits of ERP 237
Core ERP Components 237
Extended ERP Components 239
SHOW ME THE MONEY Classic Cars 241
Measuring ERP Success 242
ORGANIZATIONAL INTEGRATION WITH ERP 243
On-Premise ERP 243
Cloud ERP 243
Hybrid ERP 245
FYI Bean Integration 247
Contents | ix
CHAPTER 9 SYSTEMS DEVELOPMENT DEVELOPING A SERVICE-ORIENTED ARCHITECTURE 263
AND PROJECT Service 263
Interoperability 264
MANAGEMENT: CORPORATE Loose Coupling 265
RESPONSIBILITY 249 SHOW ME THE MONEY Scratch 265
SECTION 9 .1 >> Developing Enterprise SECTION 9.2 >> Project Management 266
Applications 250
USING PROJECT MANAGEMENT TO DELIVER SUCCESSFUL
THE SYSTEMS DEVELOPMENT LIFE CYCLE (SDLC) 250 PROJECTS 266
Phase 1: Planning 250 Unclear or Missing Business Requirements 267
FYI Have You Met Ted? If Not, You Need To! 252 Skipped Phases 267
Phase 2: Analysis 252 Changing Technology 268
Phase 3: Design 253 The Cost of Finding Errors in the SDLC 268
Phase 4: Development 254 Balance of the Triple Constraint 268
Phase 5: Testing 254 FYI Sharepoint 268
MY NOT TO-DO LIST Flawed Development 256
PRIMARY PROJECT PLANNING DIAGRAMS 269
Phase 6: Implementation 256
LIVING THE DREAM CharityFocus.org 272
FYI Reducing Ambiguity in Business
Requirements 257 OUTSOURCING PROJECTS 272
Phase 7: Maintenance 258 MY NOT TO-DO LIST Honestly, It Cost $7,500 for a
Steak Dinner 272
SOFTWARE DEVELOPMENT METHODOLOGIES 259
Outsourcing Benefits 273
SHOW ME THE MONEY Planning for the Outsourcing Challenges 274
Unexpected 260 DUE DILIGENCE DUI in a Golf Cart 274
Agile Software Development Methodologies 260
SHOW ME THE MONEY Death March 275
Rapid Application Development (RAD) Methodology 261
Extreme Programming Methodology 262
GLOSSARY 277
BUSTED Faking Your Own Death 262
Rational Unified Process (RUP) Methodology 263 INDEX 298
Scrum Methodology 263

x | Contents
information
systems 4e
© Fry Design Ltd/Getty Images

2 MODULE 1 | Business Driven MIS

 module one

coming
M
ost companies today rely heavily on the use of
management information systems (MIS) to run
various aspects of their businesses. Whether they
need to order and ship goods, interact with customers, or
conduct other business functions, management information
systems are often the underlying infrastructure performing the
activities. Management information systems allow companies
to remain competitive in today’s fast-paced world and especially
when conducting business on the Internet. Organizations must adapt
to technological advances and innovations to keep pace with today’s
rapidly changing environment. Their competitors certainly will!
No matter how exciting technology is, successful companies do
not use it simply for its own sake. Companies should have a solid
BUSINESS
business reason for implementing technology. Using a technological DRIVEN MIS
solution just because it is available is not a good business strategy.
The purpose of Module 1 is to raise your awareness of the vast
opportunities made possible by the tight correlation between busi- module one
BUSINESS DRIVEN MIS
ness and technology. Business strategies and processes should
chapter 1: Management Information Systems: Business Driven MIS
always drive your technology choices. Although awareness of an chapter 2: Decisions + Processes: Value Driven Business
chapter 3: Ebusiness: Electronic Business Value
emerging technology can sometimes lead us in new strategic direc- chapter 4: Ethics + Information Security: MIS Business Concerns

module two
tions, the role of information systems, for the most part, is to support
existing business strategies and processes. ■
TECHNICAL FOUNDATIONS OF MIS

module three
ENTERPRISE MIS

CHAPTER 1 | Management Information Systems: Business Driven MIS 3

© Chad Baker/Photodisc/Getty Images RF

4 MODULE 1 | Business Driven MIS

 one
management
information systems:
business driven MIS

T
his chapter sets the stage for the CHAPTER OUTLINE

textbook. It starts from ground SE CT ION 1.1 > >

what’s in IT for me?

zero by providing a clear descrip- Business Driven MIS

tion of what information is and how it ■ Competing in the Information
fits into business operations, strategies, Age

and systems. It provides an overview ■ The Challenge: Departmental

Companies
of how companies operate in competi-
■ The Solution: Systems Thinking
tive environments and why they must and the MIS Solution
continually define and redefine their
­
SE CT ION 1. 2 > >
business strategies to create competi-
Business Strategy
tive advantages. Doing so allows them
■ Identifying Competitive
to survive and thrive. Information sys- Advantages
tems are key business enablers for ■ The Five Forces Model—­
successful operations in competitive Evaluating Industry
Attractiveness
environments.
■ The Three Generic Strategies—
You, as a business student, must Choosing a Business Focus
understand the tight correlation between ■ Value Chain Analysis—­
Executing Business Strategies
continued on p. 6

CHAPTER 1 | Management Information Systems: Business Driven MIS 5

fact The confirmation or
validation of an event or object.
information age The
present time, during which infinite
quantities of facts are widely
available to anyone who can use a
computer.
Internet of Things A world
where interconnected, Internet-
enabled devices or “things” can
collect and share data without
human intervention.
machine to machine
(M2M) Devices that connect
directly to other devices.

continued from p. 5
business and technology. You must first recognize informa-
tion’s role in daily business activities, and then understand
how ­
information supports and helps implement global busi-
ness ­strategies and competitive advantages. After reading this
­chapter, you should have a solid understanding of business
driven information systems and their role in managerial decision
making and ­problem solving. ■
{SECTION 1.1}
Business Driven MIS
before the information age. Now, it’s not at all unusual to read
about a business student starting a multimillion-dollar com-
pany from his or her dorm room. Think of Mark Zuckerberg,
who started Facebook from his dorm, or Michael Dell (Dell
Computers) and Bill Gates (Microsoft), who both founded their
legendary companies as college students.
You may think only students well versed in advanced technol-
ogy can compete in the information age. This is simply not true.
Many business leaders have created exceptional opportunities
by coupling the power of the information age with traditional
business methods. Here are just a few examples:
∙ Amazon is not a technology company; its original business
focus was to sell books, and it now sells nearly everything.
∙ Netflix is not a technology company; its primary business
focus is to rent videos.

LEARNING OUTCOMES ∙ Zappos is not a technology company; its primary business

LO1.1 Describe the information age and the differences
among data, information, business intelligence, and
knowledge.
LO1.2 Identify the different departments in a company and
why they must work together to achieve success.
LO1.3 Explain systems thinking and how management infor­
mation systems enable business communications.
COMPETING IN THE
INFORMATION AGE
Did you know that . . .
∙ The movie Avatar took more than four years to create and
cost $450 million.
∙ Lady Gaga’s real name is Stefani Joanne Angelina
Germanotta.
∙ Customers pay $2.6 million for a 30-second advertising time
slot during the Super Bowl.1
A fact is the confirmation or validation of an event or object.
In the past, people primarily learned facts from books. Today,
by simply pushing a button people can find out anything, from
anywhere, at any time. We live in the information age, when
infinite quantities of facts are widely available to anyone who
can use a computer. The impact of information technology on
the global business environment is equivalent to the printing
press’s impact on publishing and electricity’s impact on pro-
ductivity. College student startups were mostly unheard of
focus is to sell shoes, bags, clothing, and accessories.
Amazon’s founder, Jeff Bezos, at first saw an opportunity to
change the way people purchase books. Using the power of the
information age to tailor offerings to each customer and speed
the payment process, he in effect opened millions of tiny virtual
bookstores, each with a vastly larger selection and far cheaper
product than traditional bookstores. The success of his origi-
nal business model led him to expand Amazon to carry many
other types of products. The founders of Netflix and Zappos
have done the same thing for videos and shoes. All these entre-
preneurs were business professionals, not technology experts.
LO1.1 However, they understood enough about the information age to
apply it to a particular business, creating innovative companies
that now lead entire industries.
Over 20 years ago a few professors at MIT began describing
the Internet of Things (IoT), a world where interconnected
Internet-enabled devices or “things” have the ability to collect
and share data without human intervention. Another term com-
monly associated with The Internet of Things is machine-to-
machine (M2M), which refers to devices that connect directly
to other devices. With advanced technologies devices are con-
necting in ways not previously thought possible and researchers
predict that over 50 billion IoT devices will be communicat-
ing by 2020. Kevin Ashton, cofounder and executive director
of the Auto-ID Center at MIT, first mentioned the Internet of
Things in a presentation he made to Procter & Gamble. Here’s
Ashton explanation of the Internet of Things:
“Today computers—and, therefore, the Internet—are almost
wholly dependent on human beings for information. Nearly all

6 MODULE 1 | Business Driven MIS

data Raw facts that describe
the characteristics of an event or
object.
structured data Data that
has a defined length, type, and
format and includes numbers,
dates, or strings such as Customer
Address.
machine-generated data human-generated
Data created by a machine without data Data that humans, in
human intervention. interaction with computers,
generate.

Living the rate, temperatures, and blood-oxygen ­ levels

Sensors and Bears—A Perfect
Match
Two London-based entrepreneurs are building
an Internet of huggable things for sick ­children
to make any hospital visit more like a trip to
Disneyland. Teddy The Guardian captures heart
when a child grabs it by the paw to give it a
cuddle. All measurements are sent wirelessly
to nurses and parents, mobile devices. The
new cute, cuddly teddy bear is packed full of
sensors designed to track children’s vital signs
and help quickly find out potential issues.
Teddy The Guardian takes from 5 to 7 seconds
to record measurements and is programmed
to run five times per hour. Future versions of
Teddy The Guardian will be interactive, using
machine learning to find out the child’s favorite
song or bedtime story and then play the related
content for a more soothing hospital visit. Big
pharmaceutical companies in the United States
have already placed over $500,000 in orders
and plan to donate the bears to hospitals
and clinics.
This is clearly a brilliant idea, and soon we
will see Teddy The Guardian in many local hos-
pitals and clinics. Can you identify any additional
markets where Teddy The Guardian should
focus? Can you think of any ethical issues
related to huggable things? Can you think of any
security issues related to huggable things?

of the roughly 50 petabytes (a petabyte is 1,024 terabytes) of
data available on the Internet were first captured and created
by human beings by typing, pressing a record button, taking a
digital picture or scanning a bar code.
The problem is, people have limited time, attention and
­accuracy—all of which means they are not very good at captur-
ing data about things in the real world. If we had computers that
knew everything there was to know about things—using data
they gathered without any help from us—we would be able to
track and count everything and greatly reduce waste, loss and
cost. We would know when things needed replacing, repairing
or recalling and whether they were fresh or past their best.”2
IoT is transforming our world into a living information system
as we control our intelligent lighting from our smart phone to
a daily health check from our smart toilet. Of course with all
great technological advances come unexpected risks and you
have to be prepared to encounter various security issues with
IoT. Just imagine if your devices are hacked by someone who
now has the ability to shut off your water, take control of your
car, or unlock the doors of your home from thousands of miles
away. We are just beginning to understand the security issues
associated with IoT and M2M and you can be sure that sensi-
tive data leakage from your IoT device is something you will
most likely encounter in your life.
Students who understand business along with the power asso-
ciated with the information age and IoT will create their own
opportunities and perhaps even new industries. Realizing the
value of obtaining real-time data from connected “things” will
allow you to make more informed decisions, identify new
opportunities, and analyze customer patterns to predict new
behaviors. Our primary goal in this course is to arm you with
the knowledge you need to compete in the information age.
The core drivers of the information age include:
∙ Data
∙ Information
∙ Business intelligence
∙ Knowledge (see Figure 1.1)
LO1.1 Describe the information age and the differences among
data, information, business intelligence, and knowledge.
Data
Data are raw facts that describe the characteristics of an event
or object. Before the information age, managers manually col-
lected and analyzed data, a time-consuming and complicated
task without which they would have little insight into how to
run their business. Structured data has a defined length, type,
and format and includes numbers, dates, or strings such as Cus-
tomer Address. Structured data is typically stored in a tradi-
tional system such as a relational database or spreadsheet and
accounts for about 20 percent of the data that surrounds us. The
sources of structured data include:
∙ Machine-generated data is created by a machine with-
out human intervention. Machine-generated structured data
includes sensor data, point-of-sale data, and web log data.
∙ Human-generated data is data that humans, in interaction
with computers, generate. Human-generated structured data
includes input data, click-stream data, or gaming data.

CHAPTER 1 | Management Information Systems: Business Driven MIS 7

unstructured big data A collection snapshot A view of comprehend massive amounts of data daily,
data Data that is not of large, complex data data at a particular moment which helps them make more successful busi-
defined and does not sets, including structured in time. ness decisions.
follow a specified format and unstructured data,
and is typically free-form which cannot be analyzed A snapshot is a view of data at a particular
text such as emails, Twitter using traditional database moment in time. Figure 1.2 shows sales data
tweets, and text messages. methods and tools. for Tony’s Wholesale Company, a fictitious
business that supplies snacks to stores. The
data highlight characteristics such as order
date, customer, sales representative, product,
Unstructured data is not defined and does not follow a speci- quantity, and profit. The second line in Figure 1.2, for instance,
fied format and is typically free-form text such as emails, Twit- shows that Roberta Cross sold 90 boxes of Ruffles to Walmart
ter tweets, and text messages. Unstructured data accounts for for $1,350, resulting in a profit of $450 (note that Profit = Sales
about 80 percent of the data that surrounds us. The sources of - Costs). These data are useful for understanding individual sales;
unstructured data include: however, they do not provide us much insight into how Tony’s
∙ Machine-generated unstructured data includes satellite business is performing as a whole. Tony needs to answer ques-
images, scientific atmosphere data, and radar data. tions that will help him manage his day-to-day operations such as:
∙ Human-generated unstructured data includes text messages, ∙ Who are my best customers?
social media data, and emails. ∙ Who are my least-profitable customers?
Big data is a collection of large, complex data sets, including ∙ What is my best-selling product?
structured and unstructured data, which cannot be analyzed using
traditional database methods and tools. Lacking data, managers ∙ What is my slowest-selling product?
often found themselves making business decisions about how ∙ Who is my strongest sales representative?
many products to make, how much material to order, or how
∙ Who is my weakest sales representative?
many employees to hire based on intuition or gut feelings. In
the information age, successful managers compile, analyze, and What Tony needs, in other words, is not data but information.

F I G U R E 1 . 1 The Differences among Data, Information, Business Intelligence, and Knowledge

Data Information Business Knowledge

Intelligence

Raw facts that Data converted Information collected The skills, experience,
describe the into a meaningful from multiple sources and expertise, coupled
characteristics and useful that analyzes patterns, with information and
of an event context trends, and relationships intelligence, that create
or object for strategic decision a person’s intellectual
making resources

Order date Best-selling Lowest sales per week Choosing not to fire a
Amount sold product compared with the sales representative
Best customer economic interest rates who is underperforming
Customer
Best-selling product by knowing that person is
number Worst-selling
month compared to experiencing family
Quantity product
sports season and city problems
ordered Worst
team wins and losses Listing products that are
customer
about to expire first on
the menu or creating
them as a daily special
to move the product

8 MODULE 1 | Business Driven MIS

information Data converted
into a meaningful and useful
context.
report A document containing
data organized in a table, matrix,
or graphical format allowing
users to easily comprehend and
understand information.
static report A report created dynamic report A report
once based on data that does not that changes automatically during
change. creation.

People in China next-door neighbors.” The video of Thomas ∙ What can students do to prepare them-
Friedman’s lecture at MIT discussing the flat selves for competing in a flat world?
and India Are world is available at
Starving for http://mitworld.mit.edu/
Your Jobs3 video/266. If you want
to be prepared to com- © Terry Vine/Blend Images/Getty Images
“When I was growing up in Minneapolis, my par- pete in a flat world, you
ents always said, ‘Tom, finish your dinner. There must watch this video
are people starving in China and India.’ Today and answer the follow-
I tell my girls, ‘Finish your homework, because ing questions:
people in China and India are starving for your ∙ Do you agree or
jobs.’ And in a flat world, they can have them, disagree with Fried-
because there’s no such thing as an American man’s assessment
job anymore.” Thomas Friedman. that the world is flat?
In his book, The World Is Flat, Thomas ∙ What are the poten-
Friedman describes the unplanned cascade of tial impacts of a flat
technological and social shifts that effectively world for a student
leveled the economic world and “acciden- performing a job
tally made Beijing, Bangalore, and Bethesda search? © Terry Vine/Blend Images/Getty Images

F I G U R E 1 . 2 Tony’s Snack Company Data

analyzed data making it insight-
ful for humans providing context
Order Sales Unit Total Unit Total and structure that is extremely
Date Customer Representative Product Qty Price Sales Cost Cost Profit valuable when making informed
business decisions.
4-Jan Walmart PJ Helgoth Doritos 41 $24 $ 984 $18 $738 $246
4-Jan Walmart Roberta Cross Ruffles 90 $15 $1,350 $10 A report is a document containing
$900 $450
5-Jan Safeway Craig Schultz Ruffles 27 $15 $ 405 $10 $270 $135 data organized in a table, matrix,
or graphical format allowing users
6-Jan Walmart Roberta Cross Ruffles 67 $15 $1,005 $10 $670 $335
to easily comprehend and under-
7-Jan 7-Eleven Craig Schultz Pringles 79 $12 $ 948 $6 $474 $474
stand information. Reports can
7-Jan Walmart Roberta Cross Ruffles 52 $15 $ 780 $10 $520 $260 cover a wide range of subjects or
8-Jan Kroger Craig Schultz Ruffles 39 $15 $ 585 $10 $390 $195 specific subject for a certain time
9-Jan Walmart Craig Schultz Ruffles 66 $15 $ 990 $10 $660 $330 period or event. A static report
10-Jan Target Craig Schultz Ruffles 40 $15 $ 600 $10 $400 $200 is created once based on data that
does not change. Static reports
11-Jan Walmart Craig Schultz Ruffles 71 $15 $1,065 $10 $710 $355
can include a sales report from
last year or salary report from five
Information years ago. A dynamic report changes automatically during cre-
ation. Dynamic reports can include updating daily stock market
Information is data converted into a meaningful and useful
prices or the calculation of available inventory.
context. The simple difference between data and information is
that computers or machines need data and humans need infor- Having the right information at the right moment in time can
mation. Data is a raw building block that has not been shaped, be worth a fortune. Having the wrong information at the right
processed, or analyzed and frequently appears disorganized moment; or the right information at the wrong moment can be
and unfriendly. Information gives meaning and context to disastrous. The truth about information is that its value is only

CHAPTER 1 | Management Information Systems: Business Driven MIS 9

variable A data as good as the people who use it. A variable is a data characteristic that stands for a value that
characteristic that stands People using the same informa- changes or varies over time. For example, in Tony’s data, price
for a value that changes tion can make different decisions and quantity ordered can vary. Changing variables allows
or varies over time. depending on how they interpret managers to create hypothetical scenarios to study future
­
or analyze the information. Thus ­possibilities. Tony may find it valuable to anticipate how sales
business
intelligence (BI) information has value only insofar or cost increases affect profitability. To estimate how a 20
Information collected as the people using it do as well. percent increase in prices might improve profits, Tony simply
from multiple sources changes the price variable for all orders, which automatically
Tony can analyze his sales data
such as suppliers, calculates the amount of new profits. To estimate how a 10 per-
and turn them into information
customers, competitors, cent increase in costs hurts profits, Tony changes the cost vari-
to answer all the above questions
partners, and industries able for all orders, which automatically calculates the amount
that analyze patterns, and understand how his business
of lost profits. Manipulating variables is an important tool for
trends, and relationships is operating. Figures 1.3 and 1.4,
any business.
for strategic decision for instance, show us that Walmart
making. is Roberta Cross’s best customer,
and that Ruffles is Tony’s best Business Intelligence
product measured in terms of total Business intelligence (BI) is information collected from
sales. Armed with this information, Tony can identify and then multiple sources such as suppliers, customers, competitors,
address such issues as weak products and under-performing sales partners, and industries that analyzes patterns, trends, and
representatives. relationships for strategic decision making. BI manipulates

F I G U R E 1 . 3 Tony’s Data Sorted by Customer “Walmart” and Sales Representative “Roberta Cross”

Sales
Order Date Customer Representative Product Quantity Unit Price Total Sales Unit Cost Total Cost Profit
26-Apr Walmart Roberta Cross Fritos 86 $19 $1,634 $17 $1,462 $172
29-Aug Walmart Roberta Cross Fritos 76 $19 $1,444 $17 $1,292 $152
7-Sep Walmart Roberta Cross Fritos 20 $19 $380 $17 $340 $40
22-Nov Walmart Roberta Cross Fritos 39 $19 $741 $17 $663 $78
30-Dec Walmart Roberta Cross Fritos 68 $19 $1,292 $17 $1,156 $136
7-Jul Walmart Roberta Cross Pringles 79 $18 $1,422 $8 $632 $790
6-Aug Walmart Roberta Cross Pringles 21 $12 $252 $6 $126 $126
2-Oct Walmart Roberta Cross Pringles 60 $18 $1,080 $8 $480 $600
15-Nov Walmart Roberta Cross Pringles 32 $12 $384 $6 $192 $192
21-Dec Walmart Roberta Cross Pringles 92 $12 $1,104 $6 $552 $552
28-Feb Walmart Roberta Cross Ruffles 67 $15 $1,005 $10 $670 $335
6-Mar Walmart Roberta Cross Ruffles 8 $15 $120 $10 $80 $40
16-Mar Walmart Roberta Cross Ruffles 68 $15 $1,020 $10 $680 $340
23-Apr Walmart Roberta Cross Ruffles 34 $15 $510 $10 $340 $170
4-Aug Walmart Roberta Cross Ruffles 40 $15 $600 $10 $400 $200
18-Aug Walmart Roberta Cross Ruffles 93 $15 $1,395 $10 $930 $465
5-Sep Walmart Roberta Cross Ruffles 41 $15 $615 $10 $410 $205
12-Sep Walmart Roberta Cross Ruffles 8 $15 $120 $10 $80 $40
28-Oct Walmart Roberta Cross Ruffles 50 $15 $750 $10 $500 $250
21-Nov Walmart Roberta Cross Ruffles 79 $15 $1,185 $10 $790 $395
29-Jan Walmart Roberta Cross Sun Chips 5 $22 $110 $18 $90 $20
12-Apr Walmart Roberta Cross Sun Chips 85 $22 $1,870 $18 $1,530 $340
16-Jun Walmart Roberta Cross Sun Chips 55 $22 $1,210 $18 $990 $220
1,206 $383 $20,243 $273 $14,385 $5,858

Sorting the data reveals the information that Roberta Cross’s total sales to Walmart were $20,243 resulting in a profit of $5,858.
(Profit $5,858 = Sales $20,243 - Costs $14,385)

10 MODULE 1 | Business Driven MIS

analytics The science
of fact-based decision
making.
predictive behavioral knowledge Skills, knowledge
analytics Extracts analytics Uses data experience, and expertise worker Individuals
information from data about people’s behaviors coupled with information valued for their ability
and uses it to predict to understand intent and and intelligence that to interpret and analyze
future trends and identify predict future actions. creates a person’s information.
behavioral patterns. intellectual resources.

F I G U R E 1 . 4 Information Gained after Analyzing Tony’s Data ­ ehavioral ­analytics uses data
B
about people’s behaviors to under-
Tony’s Business Information Name Total Profit stand intent and predict future
actions. Tony will set the strategic
Who is Tony’s best customer by total sales? Walmart $560,789
direction for his firm, which might
Who is Tony’s least-valuable customer by total sales? Walgreens $45,673 include introducing new flavors
Who is Tony’s best customer by profit? 7-Eleven $324,550 of potato chips or sports drinks as
Who is Tony’s least-valuable customer by profit? King Soopers $23,908 new product lines or schools and
What is Tony’s best-selling product by total sales? Ruffles $232,500 hospitals as new market segments
What is Tony’s weakest-selling product by total sales? Pringles $54,890 based on both predictive and
behavioral analytics.
What is Tony’s best-selling product by profit? Tostitos $13,050
What is Tony’s weakest-selling product by profit? Pringles $23,000 Knowledge
Who is Tony’s best sales representative by profit? R. Cross $1,230,980 Knowledge includes the skills,
Who is Tony’s weakest sales representative by profit? Craig Schultz $98,980 experience, and expertise, coupled
What is the best sales representative’s best-selling product by total Ruffles $98,780 with information and intelligence,
profit? that creates a person’s intel-
Who is the best sales representative’s best customer by total profit? Walmart $345,900 lectual resources. Knowledge
What is the best sales representative’s weakest-selling product by Sun Chips $45,600 workers are individuals valued
total profit? for their ability to interpret and
Who is the best sales representative’s weakest customer by total profit? Krogers $56,050 analyze information. Today’s
workers are commonly referred
to as knowledge workers and they
multiple variables and in some cases even hundreds of vari- use BI along with personal experience to make decisions based
ables including such items as interest rates, weather conditions, on both information and intuition, a valuable resource for any
and even gas prices. Tony could use BI to analyze internal company.
data, such as company sales, along with external data about the Imagine that Tony analyzes his data and finds his weakest
environment such as competitors, finances, weather, holidays, sales representative for this period is Craig Schultz. If Tony
and even sporting events. Both internal and external variables considered only this information, he might conclude that firing
affect snack sales, and analyzing these variables will help Tony Craig was a good business decision. However, because Tony
determine ordering levels and sales forecasts. For instance, BI has knowledge about how the company operates, he knows
can predict inventory requirements for Tony’s business for the Craig has been out on medical leave for several weeks; hence,
week before the Super Bowl if, say, the home team is playing, his sales numbers are low. Without this additional knowledge,
average temperature is above 80 degrees, and the stock mar- Tony might have executed a bad business decision, delivered
ket is performing well. This is BI at its finest, incorporating all a negative message to the other employees, and sent his best
types of internal and external variables to anticipate business sales representatives out to look for other jobs.
performance.
The key point in this scenario is that it is simply impossible to
Analytics is the science of fact-based decision making. A big collect all the information about every situation, and yet with-
part of business intelligence is called predictive analytics, out that, it can be easy to misunderstand the problem. Using
which extracts information from data and uses it to predict data, information, business intelligence, and knowledge to
future trends and identify behavioral patterns. Top managers make decisions and solve problems is the key to finding suc-
use predictive analytics to define the future of the business, ana- cess in business. These core drivers of the information age are
lyzing markets, industries, and economies to determine the stra- the building blocks of business systems. Figure 1.5 offers a few
tegic direction the company must follow to remain profitable. different examples of data through knowledge.

CHAPTER 1 | Management Information Systems: Business Driven MIS 11

 FIGURE 1.5
Transformation from Data to Knowledge

DATA: I have one item.

INFORMATION: The item I have is a product that has the most sales during the
month of December.

BUSINESS INTELLIGENCE: The month of December this year is going to see interest
rates rise by 10 percent and snow stores are expected to cause numerous problems
throughout the East coast.

KNOWLEDGE: Given the unexpected financial issues caused by the storms and the
interest rate hike we will offer a discount on purchase in November and December
to ensure sales levels increase by 10 percent.

THE CHALLENGE: consumers; they maintain transactional data. Finance and

accounting focus on managing the company’s resources and

DEPARTMENTAL maintain monetary data. Operations management focuses on

manufacturing and maintains production data, while human

COMPANIES LO1.2
Companies are typically organized by department or functional
area such as:
∙ Accounting: Records, measures, and reports monetary
transactions.
∙ Finance: Deals with strategic financial issues including
money, banking, credit, investments, and assets.
∙ Human resources: Maintains policies, plans, and procedures
for the effective management of employees.
∙ Marketing: Supports sales by planning, pricing, and promot-
ing goods or services.
∙ Operations management: Manages the process of ­converting
or transforming or resources into goods or services.
∙ Sales: Performs the function of selling goods or services (see
Figure 1.6).
Each department performs its own activities. Sales and mar-
keting focus on moving goods or services into the hands of
resources focuses on hiring and training people and main-
tains employee data. Although each department has its own
focus and data, none can work independently if the company
is to operate as a whole. It is easy to see how a business deci-
sion made by one department can affect other departments.
Marketing needs to analyze production and sales data to
come up with product promotions and advertising strategies.
Production needs to understand sales forecasts to determine
the company’s manufacturing needs. Sales needs to rely on
information from operations to understand inventory, place
orders, and forecast consumer demand. All departments
need to understand the accounting and finance departments’
information for budgeting. For the firm to be successful, all
­departments must work together as a single unit sharing com-
mon information and not operate independently or in a silo
(see Figure 1.7).
LO1.2 Identify the different departments in a company and why
they must work together to achieve success.

12 MODULE 1 | Business Driven MIS

 system A collection of
parts that link to achieve a
common purpose.
goods Material items service Tasks that
or products that customers customers will buy to
will buy to satisfy a want or satisfy a want or need.
need. Clothing, groceries,
cell phones, and cars are all
examples of goods that people
buy to fulfill their needs.

FIGURE 1.6
Departments Working Independently

Accounting
Records, measures, and
reports monetary
transactions.

Finance
Sales Tracks strategic financial
Performs the function of issues including money,
selling goods or services. banking, credit,
investments, and assets.

Operations
management Human resources
Manages the process of Maintains policies, plans,
converting or transforming and procedures for the
resources into goods or effective management of
services. employees.
Marketing
Supports sales by
planning, pricing, and
promoting goods or
services.

SYSTEMS THINKING Successful companies operate cross-functionally, integrat-

AND MANAGEMENT
INFORMATION
SYSTEMS LO1.3
You probably recall the old story of three blind men attempting
to describe an elephant. The first man, feeling the elephant’s
girth, said the elephant seemed very much like a wall. The sec-
ond, feeling the elephant’s trunk, declared the elephant was
like a snake. The third man felt the elephant’s tusks and said
the elephant was like a tree or a cane. Companies that operate
departmentally are seeing only one part of the elephant, a criti-
cal mistake that hinders successful operation.
CHAPTER 1
ing the operations of all departments. Systems are the primary
enabler of cross-functional operations. A system is a collection
of parts that link to achieve a common purpose. A car is a good
example of a system, since removing a part, such as the steering
wheel or accelerator, causes the entire system to stop working.
Before jumping into how systems work, it is important to have
a solid understanding of the basic production process for goods
and services. Goods are material items or products that cus-
tomers will buy to satisfy a want or need. Clothing, groceries,
cell phones, and cars are all examples of goods that people buy
to fulfill their needs. Services are tasks performed by people
that customers will buy to satisfy a want or need. Waiting
tables, teaching, and cutting hair are all examples of services
that people pay for to fulfill their needs (see Figure 1.8).
| Management Information Systems: Business Driven MIS 13
productivity The
rate at which goods and
services are produced
based upon total output
given total inputs.
production The
process where a
business takes raw
materials and processes
them or converts them
into a finished product
for its goods or services.
Production is the process where
a business takes raw materials
and processes them or converts
them into a finished product for
its goods or services. Just think
about making a hamburger (see
Figure 1.9). First, you must gather
all of the inputs or raw materials
such as the bun, patty, lettuce,
tomato, and ketchup. Second, you
process the raw materials, so in
this example you would need to
cook the patty, wash and chop the lettuce and tomato, and
place all of the items in the bun. Finally, you would have your
output or finished product—your hamburger! P ­ roductivity is
the rate at which goods and services are produced based upon
total output given total inputs. Given our previous example,
if a business could produce the same hamburger with less
expensive inputs or more hamburgers with the same inputs
it would see a rise in productivity and possibly an increase
in profits. Ensuring the input, process, and output of goods
and services work across all of the departments of a company
is where systems add tremendous value to overall business
productivity.

FIGURE 1.7
Departments Working Together

Accounting
• Transactional data
• Purchasing data
• Payroll data
• Tax data
Sales
Finance
• Potential customer data
• Investment data
• Sales report data
• Monetary data
• Commission data
• Reporting data
• Customer support data

Business Decisions

Operations management Human resources

• Manufacturing data • Employee data
• Distribution data • Promotion data
• Production data • Vacation data
Marketing
• Promotion data
• Sales data
• Advertising data

The Interent of Things Is Wide Open—for Everyone!

I
oT is transforming our world into a living
information system as we control our intel-
ligent lighting from our smart phone to a
daily health check from our smart toilet. Of
course, with all great technological advances
come unexpected risks, and you have to be pre-
pared to encounter various security issues with
IoT. Just imagine if your devices are hacked by
someone who now can shut off your water, take
control of your car, or unlock the doors of your
home from thousands of miles away. We are
just beginning to understand the security issues
associated with IoT and M2M, and you can be
sure that sensitive data leakage from your IoT
device is something you will most likely encoun-
ter in your life.5
In a group, identify a few IoT devices you are
using today. These can include fitness trackers
that report to your iPhone, sports equipment
that provides immediate feedback to an app,
or even smart vacuum cleaners. If you are not
using any IoT devices today, brainstorm a few
you might purchase in the future. How could a
criminal or hacker use your IoT to steal your sen-
sitive data? What potential problems or issues
could you experience from these types of illegal
data thefts? What might be some of the signs
that someone had accessed your IoT data ille-
gally? What could you do to protect the data in
your device?

14 MODULE 1 | Business Driven MIS

Systems Thinking areas handle different parts of the systems thinking
sale, thanks to MIS, to the cus- A way of monitoring the
Systems thinking is a way of monitoring the entire system by
tomer the sale is one continuous entire system by viewing
viewing multiple inputs being processed or transformed to pro- multiple inputs being
process. If one part of the com-
duce outputs while continuously gathering feedback on each processed or transformed
pany is experiencing problems,
part (see Figure 1.10). Feedback is information that returns to produce outputs while
however, then, like the car without
to its original transmitter (input, transform, or output) and continuously gathering
a steering wheel, the entire system
modifies the transmitter’s actions. Feedback helps the system feedback on each part.
fails. If order fulfillment packages
maintain stability. For example, a car’s system continuously
the wrong product, it will not mat- feedback Information
monitors the fuel level and turns on a warning light if the gas
ter that shipping, billing, and cus- that returns to its original
level is too low. Systems thinking provides an end-to-end view
tomer service did their jobs right, transmitter (input,
of how operations work together to create a product or service.
since the customer will not be transform, or output) and
Business students who understand systems thinking are valu- modifies the transmitter’s
satisfied when he or she opens the
able resources because they can implement solutions that con- actions.
package.
sider the entire process, not just a single component.
MIS can be an important enabler management
Management information systems (MIS) is a business of business success and innova- information
function, like accounting and human resources, which moves tion. This is not to say that MIS systems A business
information about people, products, and processes across the function, like accounting
equals business success and inno-
and human resources,
company to facilitate decision making and problem solving. vation, or that MIS represents
which moves information
MIS incorporates systems thinking to help companies operate business success and innovation. about people, products,
cross-functionally. For example, to fulfill product orders, an MIS is a tool that is most valuable and processes across
MIS for sales moves a single customer order across all func- when it leverages the talents of the company to facilitate
tional areas including sales, order fulfillment, shipping, bill- people who know how to use and decision making and
ing, and finally customer service. Although different functional manage it effectively. To perform problem solving.

Who Really Won the 2014 Winter Olympics?
If you were watching the 2014 Winter Olympics, I bet you were excited
to see your country and its amazing athletes compete. As you were fol-
lowing the Olympics day by day, you were probably checking different
websites to see how your country ranked. And depending on the web-
site you visited, you could get a very different answer to this seemingly
easy question. On the NBC and ESPN networks, the United States ranked
second, and on the official Sochie Olympic website, the United States
ranked fourth. The simple question of who won the 2014 Winter Olym-
4
pics changes significantly, depending on whom you asked.
Winter Olympics 2014 Medal Ranking According to NBC News
In a group, take a look at the following two
charts and brainstorm the reasons each
internationally recognized source has a
­different listing for the top five ­winners.
What measurement is each chart using to
determine the winner? Who do you believe
is the winner? As a manager, what do you
need to understand when reading or listen-
ing to business forecasts and reports?
Winter Olympics 2014 Medal Ranking According to Official
Sochie Olympic Website

Rank Country Gold Silver Bronze Total Rank Country Gold Silver Bronze Total
1 Russian Fed. 13 11 9 33 1 Russian Fed. 13 11 9 33
2 United States 9 7 12 28 2 Norway 11 5 10 26
3 Norway 11 5 10 26 3 Canada 10 10 5 25
4 Canada 10 10 5 25 4 United States 9 7 12 28
5 Netherlands 8 7 9 24 5 Netherlands 8 7 9 24

CHAPTER 1 | Management Information Systems: Business Driven MIS 15

chief information
officer (CIO) Responsible
for (1) overseeing all uses
of MIS and (2) ensuring
that MIS strategically aligns
with business goals and
objectives.
chief data
officer Responsible for
determining the types of
information the enterprise
will capture, retain,
analyze, and share.
chief technology
officer (CTO)
Responsible for ensuring the
throughput, speed, accuracy,
availability, and reliability of
an organization’s information
technology.
the MIS function effectively, almost all com-
panies, particularly large and medium-sized
ones, have an internal MIS department, often
called information technology (IT), informa-
tion systems (IS), or management informa-
tion systems (MIS). For the purpose of this
text, we will refer to it as MIS.

MIS Department Roles

and Responsibilities
FIGURE 1.8 Management information systems is a relatively
Different Types of Goods and Services new functional area, having been around formally in
most organizations only for about 40 years. Job titles,
roles, and responsibilities often differ dramatically
GOODS SERVICES from organization to organization. Nonetheless, clear
Material items or products Tasks performed by people trends are developing toward elevating some MIS
that customers will buy to that customers will buy positions within an organization to the strategic level.
satisfy a want or need. to satisfy a want or need. Most organizations maintain positions such as chief
executive officer (CEO), chief financial officer
(CFO), and chief operations officer (COO) at the
strategic level. Recently there are more MIS-related
strategic positions such as chief information officer
Cars Teaching (CIO), chief data officer (CDO), chief technology
officer (CTO), chief security officer (CSO), chief
privacy officer (CPO), and chief knowledge officer
(CKO). See Figure 1.11.
Waiting
Groceries The chief information officer (CIO) is responsible
tables
for (1) overseeing all uses of information technology
and (2) ensuring the strategic alignment of MIS with
business goals and objectives. The CIO often reports
Clothing Cutting hair directly to the CEO. CIOs must possess a solid and
detailed understanding of every aspect of an organiza-
tion coupled with tremendous insight into the capabil-
ity of MIS. Broad functions of a CIO include:
1. 
Manager—ensure the delivery of all MIS
projects, on time and within budget.
FIGURE 1.9 2. 
Leader—ensure the strategic vision of
Input, Process, Output Example MIS is in line with the strategic vision of
the organization.
3. 
Communicator—advocate and commu-
Input Process Output nicate the MIS strategy by building and
maintaining strong executive relationships.

The chief data officer (CDO) is responsible

Lettuce, Cook the patty—put
for determining the types of information the
tomatoes, patty, the ingredients Hamburger
enterprise will capture, retain, analyze, and
bun, ketchup together
share. The difference between the CIO and
CDO is that the CIO is responsible for the infor-
mation systems through which data is stored and
processed, while the CDO is responsible for the
data, regardless of the information system.
The chief technology officer (CTO) is
responsible for ensuring the throughput,
speed, accuracy, availability, and reliability

16 MODULE 1 | Business Driven MIS

 F I G U R E 1 . 1 0 Overview of Systems Thinking chief security
officer
(CSO) Responsible
for ensuring the security
Output
Input Process of MIS systems and
• The resulting
• Data that is • Computer program information from
developing strategies
entered in a that processes the and MIS safeguards
the computer
computer data against attacks from
program
hackers and viruses.

chief privacy
officer
(CPO) Responsible for
Feedback ensuring the ethical and
• Controls to ensure legal use of information
correct processing within a company.

of an organization’s information technology. CTOs are similar
to CIOs, except that CIOs take on the additional responsibility
for effectiveness of ensuring that MIS is aligned with the organi-
zation’s strategic initiatives. CTOs have direct responsibility for
ensuring the efficiency of MIS systems throughout the organiza-
tion. Most CTOs possess well-rounded knowledge of all aspects
of MIS, including hardware, software, and telecommunications.
The chief security officer (CSO) is responsible for ensur-
ing the security of MIS systems and developing strategies and
MIS safeguards against attacks from hackers and viruses. The
role of a CSO has been elevated in recent years because of the
number of attacks from hackers and viruses. Most CSOs pos-
sess detailed knowledge of networks and telecommunications
because hackers and viruses usually find their way into MIS
systems through networked computers.
The chief privacy officer (CPO) is responsible for ensuring
the ethical and legal use of information within an organiza-
tion. CPOs are the newest senior executive position in MIS.
Recently, 150 of the Fortune 500 companies added the CPO
position to their list of senior executives. Many CPOs are law-
yers by training, enabling them to understand the often com-
plex legal issues surrounding the use of information.
The chief knowledge officer (CKO) is responsible for
collecting, maintaining, and distributing the organiza-
tion’s knowledge. The CKO designs programs
and systems that make it easy for people to reuse
knowledge. These systems create repositories
of organizational documents, methodologies,
tools, and p­ ractices, and they establish methods
for filtering the information. The CKO must con-
tinuously encourage employee contributions to
keep the systems up-to-date. The CKO can contrib-
ute directly to the organization’s bottom line by
reducing the learning curve for new employees or
employees taking on new roles.
Danny Shaw was the first CKO at Children’s Hospital in
Boston. His initial task was to unite information from dis-
parate systems to enable analysis of both the efficiency and
chief knowledge
effectiveness of the hospital’s officer (CKO)
care. Shaw started by building a Responsible for
series of small, integrated infor- collecting, maintaining,
mation systems that quickly dem- and distributing
onstrated value. He then gradually company knowledge.
built on those successes, creating
a knowledge-enabled organization one layer at a time. Shaw’s
information systems have enabled administrative and clinical
operational analyses.
With the election of President Barack Obama comes the
appointment of the first-ever national chief technology offi-
cer (CTO). The job description states that the first CTO must
“ensure the safety of our networks and lead an interagency
effort, working with chief technology and chief information
officers of each of the federal agencies, to ensure that they use
best-in-class technologies and share best practices.” A federal-
level CTO demonstrates the ongoing growth of technology
positions outside corporate America. In the future expect to see
many more technology positions in government and nonprofit
organizations.
Is Technology Making Us Dumber or Smarter?
Choose a side and debate the following:
∙ Side A Living in the information age has made us smarter
because we have a huge wealth of knowledge at our fingertips
whenever or wherever we need it.
∙ Side B Living in the information age has caused people to
become lazy and dumber because they are no longer building
up their memory banks to solve problems; machines give them
the answers they need to solve problems.

CHAPTER 1 | Management Information Systems: Business Driven MIS 17

chief intellectual property
officer Manage and defend
intellectual property, copyrights, and
patents.
chief automation
officer Determines if a person
or business process can be
replaced by a robot or software.
chief user experience
officer Create the optimal
relationship between user and
technology.
MIS skills gap The difference
between existing MIS workplace
knowledge and the knowledge
required to fulfill the business
goals and strategies.

All the above MIS positions and responsibilities are critical
to an organization’s success. While many organizations may
not have a different individual for each of these positions, they
must have leaders taking responsibility for all these areas of
concern. The individuals responsible for enterprisewide MIS
and MIS-related issues must provide guidance and support to
the organization’s employees. According to Fast Company
magazine a few ­executive levels you might see created over the
next decade include:
∙ Chief intellectual property officer will manage and defend
intellectual property, copyrights, and patents. The world of
intellectual property law is vast and complicated as new inno-
vations continually enter the market. Companies in the near
future will need a core leadership team member who can not
only wade through the dizzying sea of intellectual property laws
and patents to ensure their own compliance, but also remain
vigilant to protect their own company against infringement.
∙ Chief automation officer determines if a person or business
process can be replaced by a robot or software. As we con-
tinue to automate jobs a member of the core leadership team
of the future will be put in charge of identifying opportunities for
companies to become more competitive through automation.
∙ Chief user experience officer will create the optimal rela-
tionship between user and technology. User experience used
to be an afterthought for hardware and software designers.
Now that bulky instruction manuals are largely (and thank-
fully) a thing of the past, technology companies need to
ensure that their products are intuitive from the moment they
are activated.
MIS skills gap is the difference between existing MIS work-
place knowledge and the knowledge required to fulfill the
business goals and strategies. Closing the MIS skills gap by
aligning the current workforce with potential future business
needs is a complicated proposition. Today, employers often

FIGURE 1.11
The Roles and Responsibilities of MIS

Chief security officer (CSO)

Responsible for ensuring the security
of business systems and developing
strategies and safeguards against
attacks by hackers and viruses.

Chief knowledge officer (CKO)

Responsible for collecting,
maintaining, and distributing Chief technology officer (CTO)
company knowledge. Responsible for ensuring the
speed, accuracy, availability,
and reliability of the MIS.

MIS Department Roles

and Responsibilities

Chief information officer (CIO)

Chief privacy officer (CPO)
Responsible for (1) overseeing all uses of
MIS and (2) ensuring that MIS strategically Responsible for ensuring the ethical and
aligns with business goals and objectives. legal use of information within a
company.

18 MODULE 1 | Business Driven MIS

Another random document with
no related content on Scribd:
estado y causas en que la
pobreza se conserua y cria, y avn
augmenta como es en la vida que
por remedio escogeis. En verdad
que el que viuiendo en
seruidunbre le pareçe huyr la
pobreza no puedo sino afirmar
que grandemente a sí mesmo se
engaña, pues sienpre veo al tal
menesteroso y miserable y en
neçesidad de pedir, y que le den.
Miçilo.—Yo quiero, gallo,
responder por mí y por aquellos
que la neçesidad los trae a este
vibir, con los quales comunicando
muchas vezes con mucho gusto y
plazer me solian dezir los
fundamentos y razones con que
apoyauan y defendian su opinion,
que a muchos oy dezir que
seguian aquella vida del palaçio
porque a lo menos en ella no se
temia la pobreza, pues que
conforme a la costumbre de otros
muchos honbres trabajauan auer
su cotidiano mantenimiento de su
industria y natural soliçitud,
porque ya venidos a la vejez,
quando las fuerças faltan por
flaqueza o enfermedad, esperan
tener alli en qué se poder
mantener.
Gallo.—Pues veamos agora si
esos dizen la verdad. Mas antes
me pareçe que con mucho mayor
trabajo ganan esos tales el
mantenimiento que quantos en el
mundo son. Porque lo que alli se
gana hase de alcançar con
ruegos; lo qual es más caro que
todo el trabajo, sudor y preçio
conque en el mundo se pueda
comprar. Quanto más que avn
quieren los señores que se
trabaje y se sude el salario; y de
cada dia se les augmentan dos
mil negoçios y ocupaçiones[1112]
para el cunplimiento de las[1113]
quales no basta al honbre la
natural salud y buena dispusiçion
para los acabar[1114]; por lo qual
es neçesario venir a enfermedad
y flaqueza y cuando los
señores[1115] sienten a sus
criados que por su indispusiçion
no los pueden seruir y abastar a
sus negoçios los despiden de su
seruiçio, casa y familia[1116]. De
manera que claramente ves ser
engañados por esa razon, pues
les acarreó el palaçio más
miseria, enfermedad y trabajo,
lleuauan[1117] quando a él fueron.
Miçilo.—Pues dime agora tú
gallo; pues no te pareçe que los
miseros como yo sin culpa
podrian elegir y seguir aquella
vida por gozar (siquiera) de aquel
deleyte y contentamiento que da
vibir en aquellas anchas y
espaçiosas casas, habitaçion y
morada de los dioses y de sola
persona real? enhastiados y
mohinos destas nuestras
miserables y ahumadas choças
que más son pozilgas de puercos
que casas y habitaçion de
honbres; y ansi mouidos[1118]
someternos a su seruiçio, avnque
no se goze alli de más que de la
vista de aquellos marauillosos
tesoros que estan en aquellos
suntuosos aparadores de oro[1119]
y de plata, bagillas y tapetes y
otras admirables riquezas que
entretienen al honbre con sola la
vista en deleyte y contentamiento,
y avn comiendo y beuiendo en
ellos, casi en esperança de los
comer y tragar?
Gallo.—Esto es, Miçilo, lo
verdadero que primero se auia de
dezir, que es causa prinçipal que
mueue a los semejantes honbres
a trocar su libertad por
seruidumbre, que es la cobdiçia y
ambiçion de solo gustar y ver las
cosas profanas, demasiadas y
superfluas; y no el ir a vuscar
(como primero deçiades) lo
neçesario y conueniente a vuestra
miseria[1120], pues eso mejor se
halla[1121] en vuestras choças y
pobres[1122] casas aunque
vaçias[1123] de tesoro, pero ricas
por libertad, y esas esperanças
que dezis que prometen los
señores con la conuersaçion de
su generosidad, digo que son
esperanças vanas, y de
semejante condiçion que las
promesas con que el amante
mançebo entretiene a su amiga,
que nunca le falta vna esperança
que la dar de algun suçeso, o
herençia que le ha de venir,
porque la vanidad de su amor, no
piensa poderla conseruar sino
con la vana esperança de que
algun tienpo[1124] ha de tener
grandes tesoros que la dar, y ansi
ambos dos confiados de aquella
vanidad llegan a la vejez
mantenidos de solo el deleyte que
aquella vana esperança les dio,
abiertas las bocas hasta el morir,
y se tienen estos por muy
satisfechos porque gozaron de vn
contentamiento que les entretubo
el viuir, avnque con trabajo y
miseria. Desta manera se an los
que viben en el palaçio, y avn es
de mejor condiçion la esperança
destos miseros amantes que la de
que se sustentan los que viuen de
salario y merçed, porque aquellos
permaneçen en su señorio y
libertad, y estos no. Son como los
compañeros de Ulixes, que
transformados por Cyrçes en
puercos rebolcandose en el suçio
çieno estimauan en más gozar de
aquel presente deleyte y
miserable contentamiento que ser
bueltos a su humano natural.
Miçilo.—¿Y no te pareçe, gallo,
que es gran feliçidad y cosa de
gran[1125] estima y valor tener a la
contina comunicaçion y
familiaridad con ylustres,
generosos prinçipes y señores,
aunque del palaçio no se sacasse
otro bien ni otro prouecho, ni otro
interes?
Gallo.—Ha, ha, ha.
Miçilo.—¿Y de qué te ries, gallo?
Gallo.—Porque nunca oí cosa
más digna de reyr. Porque yo no
ternia por cosa más vana que
comunicar y asistir al Rey más
prinçipal que en el mundo ay, si
otro interes no se sacasse de alli:
¿pues no me sería igual trabajo
en la vida que auer de guardar
tanto tienpo aquel respeto, aquel
sosiego y asiento, miramiento y
seueridad que se deue tener ante
la presençia y acatamiento de la
gran magestad del Rey? Agora,
pues que emos tratado de las
causas que les traygan a estos a
vibir en tal estado de
seruidunbre [1126], vengamos
agora a tratar los trabajos,
afrentas y injurias que padeçen
para ser por los señores elegidos
en su seruiçio, y para ser
preferidos a otros que estan
oppuestos con el mesmo deseo al
mesmo salario; y tanbien veremos
lo que padeçen en el proçeso de
aquella miserable vida, y al[1127]
fin en que acaban[1128]. Quanto a
lo primero es neçesario que si has
de entrar a viuir con algun señor,
que vn dia y otro vayas y vengas
con gran continuaçion su casa, y
que nunca te apartes de sus
vmbrales y puerta, aunque te
tengan por enojoso y importuno, y
aunque con el rostro y con el
dedo te lo den a ententer, y
aunque te den con la puerta en
los ojos no te has de enojar, mas
antes has de disimular, y comprar
con dineros al portero la memoria
de tu[1129] nonbre, y que al llegar
a la puerta no le seas importuno.
Demas desto es nesçesario que
te vistas de nueuo con más
sumptuosidad y costa que lo
sufren tus fuerças conforme a la
magestad[1130] del señor que
pretendes[1131] seruir. Para lo
qual conuiene que, o vendas tu
hazienda[1132], o te empeñes para
delante pagar del salario[1133] si al
presente no tienes qué vender, y
con esto has de vestirte del color
y corte que sepas que más vsas o
le aplaze al señor[1134] porque en
cosa ninguna no discrepes ni
passes su voluntad, y tanbien has
de mirar que le acompañes con
gran cordura do quiera que fuere,
y que mires si has de yr adelante,
o detrás: en que lugar, o mano. Si
has de yr entre los prinçipales, o
con la trulla y comunidad de
familia por hazer pompa y aparato
de gente; y con todo esto has de
sufrir con paçiençia aunque
passen muchos dias sin que tu
amo te quiera mirar a la cara, ni
echarte de ver, y si alguna vez
fueres tan dichoso que te quisiere
mirar, si te llamare y te dixere
qualquiera cosa que él quisiere, o
se le viniere a la boca, entonçes
verás te cubrir de vn gran sudor, y
tomarte vna gran congoja, que se
te çiegan los ojos de vna súbita
turbaçion, prinçipalmente quando
ves los que estan al rededor que
se ryen viendo tu perplegidad y
que mudo no sabes qué dezir. En
tanta manera que a vna cosa que
acaso te pregunta respondes vn
gran disparate por verte cortado,
lleno de empacho[1135]. Y a este
embaraço de naturaleza llaman
los virtuosos que delante estan
verguença, y los desuergonçados
lo llaman temor[1136] y los
maliçiosos dizen que es neçedad
y poca esperençia; y tú,
miserable, quando has salido tan
mal desta primera conuersaçion
de tu señor quedas tan mohino y
acobardado que de descontento
te aborreçes, y despues de auerte
fatigado muchos dias y auer
passado muchas noches sin
sueño con cuydado de asentar y
salir con tu intinçion y quando ya
has padeçido mil tormentos y
aflicçiones, injurias y afrentas, y
no por alcançar vn reyno en
posesion, o vna çiudad, sino
solamente vn pobre salario de
çinco mil marauedis, ya que algun
buen hado te faboreçio, al cabo
de muchos dias vienen a
informarse de ti y de tu
habilidad[1137], y esta esperiençia
que de tu persona[1138] se haze
no pienses que le es poca
vfaneza y presunçion al[1139]
señor, porque le es gran gloria
quererse seruir[1140] de honbres
cuerdos y habiles[1141] para
qualquiera cosa que se les
encomiende; y avn te has de
aparejar que han de hazer
examen y informaçion de tu vida y
costunbres. ¡O desuenturado de
ti! que congojas te toman quando
piensas si por maliçia de vn ruyn
vezino que quiera informar de ti
vna ruyn cosa, o que quando
moço passó por ti alguna liuiana
flaqueza, y por no te ver
auentajado, por tener enuidia de
tus padres, o linaje informa mal
de ti, por lo qual estás en ventura,
de ser desechado y excluido; y
tanbien como acaso tengas algun
opositor que pretenda lo que tú y
te contradiga, es neçesario que
con toda su diligencia rodee todas
las cabas y muros por donde
pueda contraminar y abatir tu
fortaleza.
Este tal ha de examinarte la vida
y descubrirte lo que esté muy
oculto y enterrado por la
antigüedad del tienpo[1142] y
sabida alguna falta, o miseria, ha
de procurar con toda su industria
porque el Señor lo sepa. Que
tengo por mayor el daño que
resulta en tu persona saber el
señor tu falta verdadera, o
impuesta, que no el prouecho que
podra resultar de seruirse de ti
todos los dias de su vida.
Considera ¡o Miçilo! al pobre ya
viejo y barbado traerle en examen
su cordura, su linaje, costunbres y
ser; de lo que ha estudiado, qué
sabe, qué ha aprendido; y si
estaua en opinion de sabio hasta
agora, y con ello cunplia, agora
ha de mostrar lo que tiene
verdadero. Agora, pues,
pongamos que todo te suçeda
bien y conforme a tu voluntad.
Mostraste tu discreçion y
habilidad[1143] y tus amigos,
vezinos y parientes todos te
faboreçieron y informaron de ti
bien. El señor te reçibio; la muger
te açepto; y al mayordomo
despensero y ofiçiales y a toda la
casa plugo con tu venida. En fin
vençiste. ¡O bienauenturado
vençedor[1144] de vna gran
vitoria!; mereçes ser coronado
como a trihunfador de vna antigua
Olinpia[1145], o que por ti se ganó
el reyno de Napoles o pusiste
sobre el muro la vandera en la
Goleta. Razon es que reçibas el
premio y corona igual á tus
méritos, trabajos y fatigas. Que de
aqui adelante vibas descansado,
comas y bebas sin trabajo de la
abundançia del señor, y como
suelen dezir, de oy más duermas
a pierna tendida. Mas ante todo
esto es al reues. Porque de oy
más no has de sosegar a comer
ni a beber. No te ha de vagar,
dormir ni pensar vn momento con
oçio en tus proprias miserias[1146]
y neçesidades; porque sienpre
has de asistir a tu señor, a tu
señora, hijos y familia. Sienpre
despierto, sienpre con cuydado,
sienpre soliçito de agradar más a
tu señor, y quando todo esto
huuieres hecho con gran
cuydado, trabajo y soliçitud te
podrá dezir tu señor que heziste
lo que eras obligado, que para
esto te cogio por su salario y
merçed, porque si mal siruieras te
despidiera y no te pagara, porque
él no te cogio para holgar. En fin
mil cuydados, trabajos y
pasiones, desgraçias y mohinas
te suçederan de cada dia en esta
vida de palaçio; las quales no
solamente no podra sufrir vn libre
y generoso coraçon exerçitado en
vna[1147] virtuosa ocupaçion, o
estudio de buenas letras, pero
aun no es de sufrir de alguno que
por pereza, cobdiçia y ambiçion
desee comunicar aquellas
grandeças y sumptuosidades
agenas que de si no le dan algun
otro interes más que[1148] verlas
con admiraçion sin poderlas
poseer. Agora quiero que
consideres la manera que tienen
estos señores para señalar el
salario que te han de dar en cada
vn año por tu seruiçio. El procura
que sea a tienpo y a coyuntura y
con palabras y maneras que sean
tan poco que si puede casi le
siruas de valde, y pasa ansi que
ya despues de algunos dias que
te tiene asegurado y que a todos
tus parientes y amigos y a todo el
pueblo has dado a entender que
le sirues ya, quando ya siente que
te tiene metido en la red y
muestras estar contento y hufano
y que preçias de le seruir, vn dia
señalado, despues de comer
hazete llamar delante de[1149] su
muger y de algunos amigos
iguales a él en edad, auariçia y
condiçion, y estando sentado en
su[1150] silla como en teatro, o
tribunal, limpiandose con vna paja
los dientes hablando con gran
grauedad y seueridad te
comiença a dezir. Bien has
entendido, amigo mio, la buena
voluntad que emos tenido a tu
persona, pues teniendote respeto
te preferimos en nuestra
compañia y seruiçio a otros
muchos que se nos ofreçieron y
pudieramos reçebir. Desto, pues,
has visto por esperiençia la
verdad no es menester agora
referirlo aqui, y ansi por el
semejante tienes visto el
tratamiento, orden y ventajas que
en estos dias has tenido en
nuestra casa y familiaridad.
Agora, pues, resta que tengas
cuenta con nuestra llaneza, poco
fausto, que conforme a la pobreza
de nuestra renta viuimos
recogidos, humildes como
çiudadanos en ordinario comun.
De la mesma manera querria que
subjetasses el entendimiento a
viuir con la mesma humildad, y te
contentasses con aquello poco
que por ti podemos hazer del
salario comun[1151], teniendo
antes respeto al contentamiento
que tu persona terna de seruirme
a mí, por[1152] nuestra buena
condiçion, trato y familiaridad; y
tambien con las merçedes,
prouechos y fabores que andando
el tienpo te podemos hazer. Pero
razon es que se te señale alguna
cantidad de salario y merçed, y
quiero que sea lo que te pareçiere
a ti. Di lo que te pareçera, porque
por poco no te querria desgraçiar.
Esto todo que tu señor te ha dicho
te pareçe tan gran llaneza y fabor
que de valde estás por le seruir, y
ansi enmudeçes vista su
liberalidad; y porque no ve que no
quieres dezir tu pareçer soys
conçertados que lo mande vno de
aquellos que estan alli viejos,
auarientos, semejantes y criados
de la moçedad con él. Luego el
terçero te comiença a encareçer
la buena fortuna que has auido en
alcançar a seruir tan valeroso
señor. El qual por sus meritos y
generosidad todos quantos en la
çiudad ay le desean seruir y tú te
puedes tener por glorioso, pues
todos quedan enuidiosos[1153]
deseando tu mesmo bien;
avnque[1154] los fabores y
merçedes que te puede cada dia
hazer son bastantes para pagar
qualquiera seruiçio sin alguna
comparaçion, porque parezca que
so color y titulo del salario te
pueda[1155] mandar, reçibe agora
çinco mil maravedis en cada vn
año con tu raçion; y no hagas
caudal desto que en señal de
açeptarte por criado te lo da para
vnas calças y vn jubon, con
protestaçion que no parará aqui,
porque más te reçibe a titulo de
merçed, debajo del qual te espera
pagar; y tú confuso sin poder
hablar lo dexas ansi, arrepentido
mil vezes de auer venido a le
seruir, pues pensaste a trueque
de tu liberdad remediar con vn
razonable salario toda tu pobreza
y neçesidades con las quales te
quedas como hasta aqui, y avn te
ves en peligro que te salgan más.
Sy dizes que te den más, no te
aprouechará y dezirte han que
tienes ojo a solo el interes y que
no tienes confiança ni respeto al
señor; y avnque ves claro tu daño
no te atreues[1156] despedir,
porque todos diran que no tienes
sosiego ni eres para seruir vn
señor ni para le sufrir; y si dixeres
el poco salario que te daua,
injuriaste, porque diran que no
tenias meritos para más. Mira
batalla tan miserable y tan infeliz.
¿Que harás? Neçesitaste a mayor
neçesidad; pues por fuerça has
de seruir confiado solo de la vana
esperança de merçed, y la mayor
es la que piensa la que te haze en
se seruir de ti, porque todos estos
señores tienen por el prinçipal
articulo de su fe, que los hizo tan
valerosos su naturaleza, tan altos,
de tanta manifiçençia y
generosidad que el soberano
poder afirman tenersele[1157]
vsurpado. Es tanta su presunçion
que les paraece que para solos
ellos y para sus hijos y
desçendientes es poco lo que en
el mundo ay, y que todos los otros
honbres que en el mundo viben
son estiercol, y que les basta solo
pan que tengan qué comer, y el
sol que los quiera alunbrar, y la
tierra que los quiera tener sobre
sí; y teniendo ellos diez y
veynte[1158] cuentos de renta y
más, no les pareçe vn marauedi:
y si hablan de vn clerigo que tiene
vn beneffiçio que le renta çien
ducados, o mil, santiguanse con
admiraçion: y preguntan a quien
se lo dize si aquel beneffiçio tiene
pie de altar; qué puede valer; y
muy de veras tienen por opinion
que para ellos solos hizo
naturaleza el feysan, el francolin,
el abutarda, gallina y perdiz y
todas las otras aues preçiadas, y
tienen muy por çierto que todo
hombre es indigno de lo comer.
Es, en conclusion, tanta su[1159]
soberuia y ambiçion destos que
tienen por muy aueriguado que
todo honbre les deue a ellos
salario por quererse dellos seruir;
ya que has visto como eligen los
hombres a su proposito, oye
agora cómo se han contigo en el
discurso de tu seruiçio. Todas sus
promesas verás al reues, porque
luego se van hartando y
enhadando de ti, y te van
mostrando con su desgraçia y
desabrimiento que no te quieren
ver, y procuran dartelo a entender
en el mirar y hablar y en todo el
tratamiento de tu persona. Dizen
que veniste tarde al palaçio y que
no sabes seruir y que no ay otro
hombre del palaçio sino el que
vino a él de su niñez. Si tiene la
mujer o hija moça y hermosa, y tú
eres moço y gentil hombre tiene
de ti zelos, y vibe sobre auiso
recatandose de ti: mirate a las
manos, a los ojos, a los pies.
Mandan al mayordomo que te
diga vn dia que no entres en la
sala y comunicaçion del señor, y
otro dia te dize que ya no comas
en la mesa de arriba, que te bajes
abajo al tinelo a comer, y si
porfias por no te injuriar mandan
al paje que no te dé silla en que te
asientes, y tu tragas destas
injurias dos mil por no dar al vulgo
mala opinion de ti. ¡Quanta
mohina y pesadumbre reçibes en
verte ansi tratar! y ves la nobleza
de tu libertad trocada por vn vil
salario y merçed. Verte llamar
cada hora criado y sieruo de tu
señor. ¿Qué sentira tu alma
quando te vieres tratar como a
más vil esclauo que dineros
costó? Que criado y sieruo te han
de llamar; y no te puedes
consolar con otra cosa sino con
que no naçiste esclauo, y que
cada dia te puedes libertar si
quisieres, sino que no lo osas
hazer porque ya elegiste por vida
el seruir, y quando ya el mundo y
tu mal hado te ven ya desabrido y
medio desesperado, o por
manera de piedad, o por te
entretener y prendarte para mayor
dolor, date vn çevo muy delicado,
vna dieta cordial como a honbre
que está para morir, y suçede que
se van los señores vn dia a holgar
a vna huerta, o romeria, mandan
aparejar la litera en que vaya la
señora y auisan a toda la gente
que esté a punto, que han todos
de caualgar; y quando está a
cauallo el señor y la señora está
en la litera, mandate la señora a
gran priesa llamar. ¿Que sentira
tu alma quando llega el paje con
aquel fabor? Estás en tu cauallo
enjaezado a toda gallardia y
cortesania, y luego partes con vna
braua furia por ver tu señora qué
te quiere mandar[1160]. Y ella
haziendose toda pedaços de
delicadeça y magestad te
comiença a dezir: Miçilo, ven acá;
mira que me hagas vna graçia, vn
soberano seruiçio y plazer. Haslo
de hazer con buena voluntad,
porque tengo entendido de tu
buena diligençia y buena
inclinaçion que a ti solo puedo
encomendar vna cosa tan amada
de mi[1161], y de ti solo se puede
fiar. Bien has visto quanto yo amo
a la mi armenica perrica graçiosa;
está la miserable preñada y muy
çercana al parto, por lo qual no
podre sufrir que ella se quede
acá. No la oso fiar[1162] destos
mal comedidos criados que avn
de mi persona no tienen cuydado,
quanto menos se presume que
ternan de la perrilla, avnque
saben que la amo como a mí.
Ruegote mucho que la traigas en
tus manos delante de ti con el
mayor sosiego que el cauallo
pudieres lleuar, porque la cuytada
no reçiba algun daño en su
preñez; y luego el buen Miçilo
reçibe la perrilla encomendada a
su cargo de lleuar, porque casi
lloraua su señora por se la
encomendar, que nunca a las
tales se les ofreçe fabor que suba
de aqui. ¡Qué cosa tan de reyr
será ver vn escudero gallardo,
graçioso, o a vn honbre honrrado
de barba larga y grauedad lleuar
por medio de la çiudad vna
perrica miserable delante de sí,
que le ha de mear y ensuçiar sin
echarlo él de ver! y con todo esto
quando se apean y la señora
demanda su armenica no le
faltará alguna liuiana desgraçia
que te poner por no te agradeçer
el trabajo y afrenta que por ella
pasaste. Dime agora, Miçilo,
¿quál hombre ay en el mundo por
desuenturado y miserable que
sea, que por ningun interes de
riqueza ni tesoro que se le
prometa, ni por gozar de grandes
deleytes que a su imaginaçion se
le antojen auer en la vida del
palaçio, trueque la libertad, bien
tan nunca bastantemente
estimado de los sabios, que dizen
que no ay tesoro con que se
pueda comparar; y viban en estos
trabajos, vanidades, vurlerias y
verdaderas niñerias del mundo en
seruidumbre y captiuerio
miserable? ¡Quál será, si de seso
totalmente no está pribado, y mira
sienpre con ojos de alinde las
cosas, con que todas se las
hazen muy mayores sin
comparaçion? ¿Quién es aquel
que teniendo algun offiçio, o arte
mecanica, avnque sea de vn
pobre çapatero como tú, que no
quiera más con su natural y
propria libertad con que naçio ser
señor y quitar y poner en su casa
conforme a su voluntad, dormir,
comer, trabajar y holgar quando
querra, antes que a voluntad
agena viuir y obedeçer?
Miçilo.—Por çierto, gallo,
conuençido me tienes a tu opinion
por la efficaçia de tu persuadir, y
ansi digo de hoy más que quiero
más vibir en mi pobreza con
libertad que en los trabajos y
miserias del ageno seruiçio viuir
por merçed. Pero pareçe que
aquellos solos seran de escusar,
a los quales la naturaleza puso ya
en edad razonable y no les dio
offiçio en que se ocupar para se
mantener. Estos tales no pareçe
que seran dignos de reprehension
si por no padeçer pobreza y
miseria quieren seruir.
Gallo.—Miçilo, engañaste;
porque esos muchos más son
dignos de reprehension, pues
naturaleza dio a los honbres
muchas artes y offiçios en que se
puedan ocupar, y a ninguno dexó
naturaleza sin habilidad para los
poder aprender; y por su oçio,
negligençia y viçio quedan torpes
y neçios y indignos de gozar del
tesoro inestimable de la libertad;
del qual creo que naturaleza en
pena de su negligençia los privó;
y ansi mereçen ser con vn garrote
vivamente castigados como
menospreçiadores del soberano
bien. Pues mira agora, Miçilo,
sobre todo, el fin que los tales
han. Que quando han consumido
y empleado en esta suez y vil
trato la flor de su edad, ya que
estan casi en la vejez, quando se
les ha de dar algun galardon,
quando pareçe que han de
descansar, que tienen ya los
miembros por el seruiçio contino
inhabiles para el trabajo; quando
tienen obligados a sus señores a
alguna merçed, no les falta vna