Fundamentals of Information Systems 9Th Edition Ralph Stair Full Chapter

Fundamentals of Information Systems
9th Edition Ralph Stair

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Ninth Edition
Fundamentals of
Information Systems
Ralph M. Stair
Professor Emeritus, Florida State University
George W. Reynolds
Instructor, Strayer University
Australia • Brazil • Mexico • Singapore • United Kingdom • United States
Fundamentals of Information Systems, © 2018, 2016 Cengage Learning
Ninth Edition
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Ralph M. Stair & George W. Reynolds
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For Lila and Leslie
—RM S
To my grandchildren: Michael, Jacob, Jared, Fievel,

Aubrey, Elijah, Abrielle, Sofia, Elliot, Serina, and Kendall
—G W R
Brief Contents
PART 1 Information Systems in Perspective 1

Chapter 1 An Introduction to Information Systems in
Organizations 2
PART 2 Information Technology Concepts 43

Chapter 2 Hardware and Software 44
Chapter 3 Database Systems and Big Data 110
Chapter 4 Networks and Cloud Computing 156
PART 3 Business Information Systems 213

Chapter 5 Electronic Commerce and Enterprise
Systems 214
Chapter 6 Business Intelligence and Analytics 270
Chapter 7 Knowledge Management and Specialized
Information Systems 296
PART 4 System Development 343

Chapter 8 System Acquisition and Development 344
v
vi BRIEF CONTENTS
PART 5 Information Systems in Business and Society 401

Chapter 9 Cybercrime and Information System Security 402
Chapter 10 Ethical, Legal, and Social Issues of Information
Systems 440
Glossary 478
Subject Index 487
Company Index 501
Contents
Preface xiii
PART 1 Information Systems in Perspective 1
1 An Introduction to Information Systems in Organizations 2

An Introduction to Information Systems 4
Data, Information, and Knowledge 4
The Value of Information 6
Characteristics of Quality Information 6
What Is an Information System? 7
Three Fundamental Types of Information Systems 8
Information Systems in Organizations 10
Value Chains 11
Change in the Organization 13
Soft Side of Implementing Change 15
Careers in Information Systems 21
Finding a Job in IS 29
Certification 30
CASE ONE: BMW: Automaker Competes on the Digital Front 38
CASE TWO: Railroads Struggle to Implement Positive Train Control 39
PART 2 Information Technology Concepts 43
2 Hardware and Software 44

Anatomy of a Computer 46
Processor 46
Memory 48
Secondary Data Storage Devices 49
Enterprise Storage Options 51
Input and Output Devices 52
Output Devices 57
Computer System Types 60
Mobile Computers 61
Thin Clients, Desktops, and Workstations 62
Servers, Mainframes, and Supercomputers 64
Server Farms, Data Centers, and Green Computing 66
Server Farms 66
Data Center 67
Green Computing 67
vii
viii CONTENTS
An Overview of Software 69
Software Sphere of Influence 69
Systems Software 71
Operating Systems 71
Utility Programs 81
Middleware 81
Application Software 83
Overview of Application Software 84
Personal Application Software 85
Workgroup Application Software 91
Enterprise Application Software 91
Programming Languages 92
Software Issues and Trends 93
Software Bugs 93
Copyrights and Licenses 94
Open-Source Software 94
Software Upgrades 95
Global Software Support 95
CASE ONE: Vivobarefoot Upgrades Technology Infrastructure 105
CASE TWO: Société de transport de Montréal (STM) Implements Innovative Mobile App 106
3 Database Systems and Big Data 110

Data Fundamentals 112
Hierarchy of Data 113
Data Entities, Attributes, and Keys 113
The Database Approach 115
Data Modeling and Database Characteristics 117
Data Modeling 117
Relational Database Model 119
Data Cleansing 122
Relational Database Management Systems (DBMSs) 124
SQL Databases 124
Database Activities 125
Database Administration 130
Popular Database Management Systems 131
Using Databases with Other Software 132
Big Data 133
Characteristics of Big Data 134
Sources of Big Data 134
Big Data Uses 135
Challenges of Big Data 136
Data Management 137
Technologies Used to Process Big Data 140
Data Warehouses, Data Marts, and Data Lakes 140
NoSQL Databases 142
Hadoop 144
In-Memory Databases 145
CASE ONE: WholeWorldBand: Digital Recording Studio 152
CASE TWO: Mercy’s Big Data Project Aims to Boost Operations 153
CONTENTS ix
4 Networks and Cloud Computing 156

Network Fundamentals 159
Network Topology 159
Network Types 160
Client/Server Systems 162
Channel Bandwidth 162
Communications Media 163
Communications Hardware 169
Communications Software 169
The Internet and World Wide Web 171
How the Internet Works 173
Accessing the Internet 175
How the Web Works 177
Web Programming Languages 179
Web Services 180
Developing Web Content and Applications 180
Internet and Web Applications 181
Intranets and Extranets 192
The Internet of Things 194
Cloud Computing 197
Public Cloud Computing 199
Private Cloud Computing 201
Hybrid Cloud Computing 201
Autonomic Computing 201
CASE ONE: Cloud Helps Fight Cancer 209
CASE TWO: Globacom Invests in Its Mobile Network Infrastructure in Africa 210
PART 3 Business Information Systems 213
5 Electronic Commerce and Enterprise Systems 214

An Introduction to Electronic Commerce 216
Business-to-Business E-Commerce 217
Business-to-Consumer E-Commerce 217
Consumer-to-Consumer E-Commerce 219
E-Government 219
Mobile Commerce 220
Advantages of Electronic and Mobile Commerce 221
E-Commerce Challenges 222
Electronic and Mobile Commerce Applications 224
Manufacturing 224
Marketing 225
Advertising 225
Bartering 226
Retargeting 227
Price Comparison 228
Couponing 228
Investment and Finance 228
Banking 228
Technology Infrastructure Required to Support E-Commerce and M-Commerce 229
x CONTENTS
Hardware 230
Web Server Software 231
E-Commerce Software 231
Mobile Commerce Hardware and Software 231
Electronic Payment Systems 231
Transaction Processing Systems 235
Traditional Transaction Processing Methods and Objectives 236
Transaction Processing Systems for Small- and Medium-Sized Enterprises 240
Transaction Processing Activities 241
Enterprise Systems 244
Enterprise Resource Planning 245
Advantages of ERP 245
Leading ERP Systems 247
Customer Relationship Management 249
Product Lifecycle Management (PLM) 252
Overcoming Challenges in Implementing Enterprise Systems 256
Hosted Software Model for Enterprise Software 257
CASE ONE: Facebook Moves into E-Commerce 265
CASE TWO: Dunkin’ Donuts Prepares for Rapid Growth 266
6 Business Intelligence and Analytics 270

What Are Analytics and Business Intelligence? 272
Benefits Achieved from BI and Analytics 273
The Role of a Data Scientist 274
Components Required for Effective BI and Analytics 275
Business Intelligence and Analytics Tools 276
Spreadsheets 276
Reporting and Querying Tools 277
Data Visualization Tools 277
Online Analytical Processing 279
Drill-Down Analysis 280
Linear Regression 281
Data Mining 282
Dashboards 283
Self-Service Analytics 285
CASE ONE: Analytics Used to Predict Patients Likely to Be Readmitted 292
CASE TWO: Sunny Delight Improves Profitability with a Self-Service BI Solution 293
7 Knowledge Management and Specialized Information

Systems 296
What Is Knowledge Management? 298
Knowledge Management Applications and Associated Benefits 300
Best Practices for Selling and Implementing a KM Project 301
Technologies That Support KM 303
Overview of Artificial Intelligence 309
Artificial Intelligence in Perspective 310
Nature of Intelligence 310
Brain-Computer Interface 312
Expert Systems 312
CONTENTS xi
Robotics 316
Vision Systems 317
Natural Language Processing 317
Learning Systems 318
Neural Networks 318
Other Artificial Intelligence Applications 319
Multimedia and Virtual Reality 320
Overview of Multimedia 321
Overview of Virtual Reality 323
Interface Devices 324
Forms of Virtual Reality 325
Virtual Reality Applications 325
Other Specialized Systems 327
Assistive Technology Systems 327
Game Theory 328
Informatics 329
CASE ONE: The NASA Knowledge Map 337
CASE TWO: Doctor on Demand Enables Physicians to Make House Calls 338
PART 4 System Development 343
8 System Acquisition and Development 344

Buy versus Build 346
Waterfall System Development Process 348
System Investigation 349
System Analysis 356
System Design 363
Construction 368
Integration and Testing 371
Implementation 372
System Operation and Maintenance 376
Agile Development 381
Buying Off-the-Shelf Software 384
Package Evaluation Phase 385
Finalize Contract 387
Integration and Testing 388
Implementation 388
CASE ONE: Etsy Uses DevOps for Rapid Deployment 397
CASE TWO: British Telecom Spreading Agile Development across the Globe 398
PART 5 Information Systems in Business and Society 401
9 Cybercrime and Information System Security 402

The Threat Landscape 404
Why Computer Incidents Are So Prevalent 404
Types of Exploits 407
Federal Laws for Prosecuting Computer Attacks 418
xii CONTENTS
Implementing Secure, Private, Reliable Computing 419

Risk Assessment 419
Establishing a Security Policy 421
Educating Employees and Contract Workers 421
Prevention 422
Detection 425
Response 426
Using a Managed Security Service Provider (MSSP) 428
Computer Forensics 428
CASE ONE: Fairplay Turns to a Managed Security Service Provider 435
CASE TWO: Sony’s Response to North Korea’s Cyberattack 436
10 Ethical, Legal, and Social Issues of Information Systems 440

Computer Waste and Mistakes 442
Computer Waste 442
Computer-Related Mistakes 443
Preventing Computer-Related Waste and Mistakes 445
Privacy Issues 448
Privacy and the Federal Government 448
Privacy at Work 451
Privacy and Email 452
Privacy and Instant Messaging 453
Privacy and Personal Sensing Devices 453
Privacy and the Internet 454
Privacy and Internet Libel Concerns 455
Privacy and Fairness in Information Use 456
Privacy and Filtering and Classifying Internet Content 456
Corporate Privacy Policies 457
Individual Efforts to Protect Privacy 459
Work Environment 460
Health Concerns 461
Avoiding Health and Environmental Problems 461
Ethical Issues in Information Systems 464
What Is Ethics? 464
Codes of Ethics 466
CASE ONE: FBI Orders Apple to Unlock iPhone 473
CASE TWO: Protecting Health Care Privacy 474
Glossary 478
Subject Index 487
Company Index 501
Preface
As organizations and entrepreneurs continue to operate in an increasingly

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

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

Exposing students to basic IS principles is an advantage even for those stu-
dents who take no IS courses beyond the introductory IS course. Since most
functional areas of the business rely on information systems, an understand-
ing of IS principles helps students in their other course work. In addition,
introducing students to the principles of information systems helps future
business managers and entrepreneurs employ information systems success-
fully and avoid mishaps that often result in unfortunate consequences. Fur-
thermore, presenting IS concepts at the introductory level creates interest
among students who may later choose information systems as their field of
concentration.
Author Team
Ralph Stair and George Reynolds have decades of academic and industrial
experience. Ralph Stair brings years of writing, teaching, and academic expe-
rience to this text. He wrote numerous books and a large number of articles
while at Florida State University. George Reynolds brings a wealth of informa-
tion systems and business experience to the project, with more than 30 years
of experience working in government, institutional, and commercial IS organi-
zations. He has written numerous IS texts and has taught the introductory IS
course at the University of Cincinnati, Mount St. Joseph University, and
Strayer University. The Stair and Reynolds team presents a solid conceptual
foundation and practical IS experience to students.
PREFACE xv
Goals of This Text

Because Fundamentals of Information Systems, Ninth Edition, is written for
business majors, we believe that it is important not only to present a realistic
perspective on IS in business but also to provide students with the skills they
can use to be effective business leaders in their organizations. To that end,
Fundamentals of Information Systems, Ninth Edition, has three main goals:
1. To provide a set of core IS principles that prepare students to function
more efficiently and effectively as workers, managers, decision makers,
and organizational leaders
2. To provide insights into the challenging and changing role of the IS pro-
fessional so that students can better appreciate the role of this key
individual
3. To show the value of the IS discipline as an attractive field of specializa-
tion so that students can evaluate this as a potential career path
IS Principles
Fundamentals of Information Systems, Ninth Edition, although comprehen-
sive, cannot cover every aspect of the rapidly changing IS discipline. The
authors, having recognized this, provide students with an essential core of
guiding IS principles to use as they strive to use IS systems in their academic
and work environment. Think of principles as basic truths or rules that remain
constant regardless of the situation. As such, they provide strong guidance for
tough decision making. A set of IS principles is highlighted at the beginning of
each chapter. The use of these principles to solve real-world problems is driven
home from the opening examples of cutting edge applications to the dozens of
real-world examples of organizations applying these principles interspersed
throughout each chapter to the interesting and diverse end-of-chapter material.
The ultimate goal of Fundamentals of Information Systems, Ninth Edition, is
to develop effective, thinking, action-oriented students by instilling them with
principles to help guide their decision making and actions.
Survey of the IS Discipline

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

As business and the IS discipline have changed, so too has the role of the IS
professional. Once considered a technical specialist, today the IS professional
operates as an internal consultant to all functional areas of the organization,
being knowledgeable about their needs and competent in bringing the power
of information systems to bear throughout the entire organization. The IS pro-
fessional must view issues through a global perspective that encompasses the
entire enterprise and the broader industry and business environment in
which it operates.
The scope of responsibilities of an IS professional today is not confined
to just his or her organization but encompasses the entire ecosystem of
xvi PREFACE
employees, contractors, suppliers, customers, competitors, regulatory agen-

cies, and other entities, no matter where they are located. This broad scope
of responsibilities creates a new challenge: how to help an organization sur-
vive in our highly interconnected, highly competitive global environment. In
accepting that challenge, the IS professional plays a pivotal role in shaping
the business itself and ensuring its success. To survive, businesses must strive
for the highest level of customer satisfaction and loyalty through innovative
products and services, competitive prices, and ever-improving product and
service quality. The IS professional assumes a critical role in determining the
organization’s approach to both overall cost and quality performance and
therefore plays an important role in the ongoing growth of the organization.
This new duality in the role of the IS worker—a professional who exercises a
specialist’s skills with a generalist’s perspective—is reflected throughout Fun-
damentals of Information Systems, Ninth Edition.
IS as a Field of Study
Computer science and business were ranked #1 and #4, respectively, in the
2016 Princeton Review list of top 10 college majors based on research cover-
ing job prospects, alumni salaries, and popularity. A 2016 U.S. News & World
Report study placed computer systems analyst, software developer, and Web
developer as three of the top 20 best jobs for 2016 based on hiring demand,
median salary, employment rate, future job prospects, stress level, and work–
life balance. The U.S. Bureau of Labor Statistics identified software develo-
pers, computer systems analysts, and computer support specialists as among
the fastest growing occupations for the period 2012 and 2022. Clearly, the
long-term job prospects for skilled and business-savvy information systems
professionals is good. Employment of such workers is expected to grow faster
than the average for all occupations through the year 2022. Upon graduation,
IS graduates at many schools are among the highest paid of all business
graduates.
A career in IS can be exciting, challenging, and rewarding! Today, per-
haps more than ever before, the IS professional must be able to align IS and
organizational goals and to ensure that IS investments are justified from a
business perspective. The need to draw bright and interested students into
the IS discipline is part of our ongoing responsibility. Throughout this text,
the many challenges and opportunities available to IS professionals are
highlighted and emphasized.
Changes in the Ninth Edition

A number of exciting changes have been made to the text based on user feed-
back on how to align the text even more closely with changing IS needs and
capabilities of organizations. Here is a summary of those changes:
● Did You Know? Each chapter begins with two or three examples of cut-
ting edge applications illustrating the concepts covered in the chapter.
● Critical Thinking Exercises. Each exercise features a scenario followed
by two review and two critical thinking questions. Placed at the end of
each major section of each chapter, these exercises test the student’s
grasp of the material just read. Students must analyze a real-life scenario
and synthesize the information provided to develop a recommendation of
what needs to be done. The exercises can also be used to stimulate class
discussion or as additional “mini cases” that may be assigned as individual
or team exercises.
PREFACE xvii
● Updated case studies. Two end-of-chapter case studies for each chapter
provide a wealth of practical information for students and instructors.
Each case explores a chapter concept or problem that a real-world organi-
zation has faced. The cases can be assigned as individual or team home-
work exercises or serve as the basis for class discussion.
● Updated summary linked to objectives. Each chapter includes a
detailed summary, with each section of the summary updated as needed
and tied to an associated information system principle.
● Updated end-of-the chapter questions and exercises. More than half of
the extensive end-of-chapter exercises (Self-Assessment Test, Review
Questions, Discussion Questions, Problem-Solving Exercises, Team Activi-
ties, Web Exercises, and Career Exercises) are new.
● New chapters covering the latest IS developments. New chapters
include Database Systems and Big Data, Business Intelligence and Analyt-
ics, System Acquisition and Development, and Cybercrime and Informa-
tion System Security. These chapters cover important topics such as data
governance, Hadoop, NoSQL databases, Cross-Industry Process for Data
Mining, various business analytics techniques, self-service analytics, agile
development, DevOps, extreme programming, Pareto principle, advanced
persistent threat, cyberterrorism, next-generation firewall, risk assessment,
and zero-day attack.
● Extensive changes and updates in each chapter. The remaining chap-
ters in the text have all been extensively updated to provide the latest
information available on a wide range of IS-related topics including hun-
dreds of new and current examples of organizations and individuals illus-
trating the principles presented in the text. In addition, a strong effort was
made to update the art work and figures with over 50 new figures and
images.
Online Solutions
MindTap™
MindTap for Stair/Reynolds Fundamentals of Information Systems, Ninth Edi-
tion, is a truly innovative reading experience with assignments that guide stu-
dents to analyze, apply, and improve thinking! Relevant readings, multimedia,
and activities are designed to move students up the levels of learning, from
basic knowledge and comprehension to application, analysis, synthesis, and
evaluation. Embedded within the eReader, ConceptClips focus on the chal-
lenge of understanding complicated IS terminology and concepts. Student-
tested and approved, the videos are quick, entertaining, and memorable
visual and auditory representations of challenging topics.
MindTap allows instructors to measure skills and outcomes with ease.
Personalized teaching becomes yours through a Learning Path built with key
student objectives and the ability to control what students see and when they
see it. Analytics and reports provide a snapshot of class progress, time in
course, engagement, and completion rates.
ConceptClips
ConceptClip videos help students learn and comprehend intro-level informa-
tion systems terminology by introducing new terms in a friendly and memora-
ble way. Thirteen new concept clips have been created for a total of 41
concept clips.
xviii PREFACE
Adaptive Test Prep

This application allows students to take sample tests designed specifically to
mimic the test bank question instructors use to build real exams. Over 540
questions are included.
Student Resources
Accessible through CengageBrain.com, the student companion Web site con-
tains the following study tools (and more!) to enhance one’s learning
experience:
PowerPoint Slides
Direct access is offered to the book’s PowerPoint presentations that cover the
key points of each chapter.
Classic Cases
A frequent request from adopters is that they’d like a broader selection of
cases to choose from. To meet this need, a set of over 50 cases from the previ-
ous two editions of the text are included here. These are the author’s choices
of the “best cases” from these editions and span a broad range of profit, non-
profit, small, medium, and large organizations in a broad range of industries.
Instructor Resources
Instructor Companion Site

As always, we are committed to providing the best teaching resource
packages available in this market. All instructor materials can be found on the
password-protected Web site at http://login.cengage.com. Here you will find
the following resources:
● Instructor’s Manual The comprehensive manual provides valuable chap-
ter overviews; highlights key principles and critical concepts; offers sam-
ple syllabi, learning objectives, and discussion topics; and features
possible essay topics, further readings, cases, and solutions to all of the
end-of-chapter questions and problems, as well as suggestions for con-
ducting the team activities. Additional end-of-chapter questions are also
included.
● Sample Syllabus A sample syllabus for both a quarter and semester
length course is provided with sample course outlines to make planning
your course that much easier.
● PowerPoint Presentations A set of impressive Microsoft PowerPoint
slides is available for each chapter. These slides are included to serve as a
teaching aid for classroom presentation, to make available to students on
the network for chapter review, or to be printed for classroom distribu-
tion. The goal of the presentations is to help students focus on the main
topics of each chapter, take better notes, and prepare for examinations.
Instructors can add their own slides for additional topics they introduce to
the class.
● Figure Files Figure files allow instructors to create their own presenta-
tions using figures taken directly from the text.
PREFACE xix
Test Bank and Cengage Learning Testing Powered by Cognero

Cognero is a full-featured, online-assessment system that allows instructors to
manage test bank content, quickly create multiple test versions, deliver tests
in several forms including from an LMS, and create test banks anywhere with
Internet access!
To access Cognero, log into your Cengage Learning instructor account at
http://login.cengage.com. Add this title to the bookshelf. Once the title is prop-
erly added to the bookshelf, a link to access Cognero will appear alongside the
link to the instructor companion site. Technical questions, guides, and tutor-
ials are hosted on Cengage Learning Technical Support Web site—http://
support.cengage.com.
Acknowledgments
Creation of a text of this scope takes a strong team effort. We would like to
thank all of our fellow teammates at Cengage Learning for their dedication
and hard work. We would like to thank Joe Sabatino and Kristin McNary, our
Product Directors, for their overall leadership and guidance on this effort.
Special thanks to Jonathan Gross and Michelle Ruelos Cannistraci, our Content
Developers who shepherded the text through the production process and
kept us on track. We are grateful for the excellent work by Michelle Ruelos
Cannistraci in managing the creation of the many supplements to accompany
the text. Our appreciation also goes to Arul Joseph Raj, Joseph Malcolm, Brit-
tani Morgan, Jennifer Ziegler, Aruna Sekar, Kathy Kucharek, and Mathangi
Anantharaman.
We would also like to thank Kristen Maxwell of Evil Cyborg Productions
for creating the ConceptClips videos that so humorously bring many key
terms found in the text to life.
We would especially like to thank Mary Pat Schaffer for her outstanding
work in editing the text and keeping track of the many revisions and changes.
She also did an outstanding job in writing many of the end-of-chapter cases
and creating initial drafts of four of the chapters.
Our Commitment
We are committed to listening to our adopters and readers in order to develop
creative solutions to meet their needs. The field of IS continually evolves, and
we strongly encourage your participation in helping us provide the freshest,
most relevant information possible.
We welcome your input and feedback. If you have any questions or com-
ments regarding Fundamentals of Information Systems, Ninth Edition, please
contact us through your local representative.
PART 1 Information Systems
in Perspective
Chapter 1
An Introduction to Information
Systems in Organizations
Rawpixel.com/Shutterstock.com
1
CHAPTER
An Introduction to Information
1 Systems in Organizations
Syda Productions/Shutterstock.com
Know?
Did You
• A significant contributor to project failures is overlooking • Technology is one of the fastest-growing areas in the
the need to address employee adoption and resistance U.S. economy, and information systems professionals
jointly. One resource claims that 30 to 70 percent of such as software developers, computer systems ana-
large information systems projects fail, at least in part, lysts, and computer support specialists are in high
due to a failure to prepare the business users for the demand.
actual change to come.
Principles Learning Objectives

• The value of information is directly linked to how it • Distinguish data from information and
helps decision makers achieve the organization’s knowledge, and describe the characteristics
goals. of quality data.
• Information systems are composed of fundamen- • Identify the fundamental components of an

tal components that must be carefully assembled information system and describe their function.
and integrated to work well together.
• Managers have an essential role to play in the • Identify the three fundamental information system
successful implementation and use of information types and explain what organizational comple-
systems—that role changes depending on which ments must be in place to ensure successful
type of IS system is being implemented. implementation and use of the system.
• Information systems must be implemented in such • Define the term “the soft side of implementing
a manner that they are accepted and work well change,” and explain why it is a critical factor in
within the context of an organization and support the successful adoption of any major change.
its fundamental business goals and strategies.
• Identify and briefly describe five change models
that can be used to increase the likelihood of
successfully introducing a new information sys-
tem into an organization.
• The information system worker functions at the • Define the types of roles, functions, and careers
intersection of business and technology and available in the field of information systems.
designs, builds, and implements solutions that
allow organizations to effectively leverage infor-
mation technology systems.
4 PART 1 • Information Systems in Perspective
Why Learn about Information Systems?

We live in an information economy. Information itself has real value, and in order to stay competitive,
organizations require a steady flow of information about their business partners, competitors, customers,
employees, markets, and suppliers. Information systems are increasingly being used to gather, store, digest,
analyze, and make sense out of all this information. Indeed, information systems are even embedded in and
control many of the products we use on a daily basis. Using information systems, individuals communicate
instantaneously with one another; consumers make purchases online using mobile devices; project members
dispersed globally and across multiple organizations collaborate effectively; financial institutions manage
billions of dollars in assets around the world; and manufacturers partner with suppliers and customers to
track inventory, order supplies, and distribute goods faster than ever before.
Information systems will continue to change businesses and the way we live. Indeed, many
corporate leaders are using technology to rework every aspect of their organization from product and
service creation through production, delivery, and customer service. To prepare to participate in and
lead these innovations, you must be familiar with fundamental information concepts. Regardless of your
college major or chosen career, knowledge of information systems is indispensable in helping you land
your first job. The ability to recognize and capitalize on information system opportunities can make you
an even more valuable member of your organization and will ultimately help advance your career.
As you read this chapter, consider the following:

• How are organizations using information systems to accomplish their objectives and meet
ever-changing business needs?
• What role might you have in identifying the need for, acquiring, or using such systems?
An Introduction to Information Systems

Information is a central concept of this book. The term is used in the title of
the book, in this section, and in every chapter. To be an effective manager in
any area of business, you need to understand that information is one of an
organization’s most valuable resources. Information is not the same thing as
data, and knowledge is different from both data and information. These con-
cepts will now be explained.
Data, Information, and Knowledge

data: Raw facts such as an employee Data consists of raw facts, such as an employee number, total hours worked in a
number or total hours worked in a week, an inventory part number, or the number of units produced on a produc-
week.
tion line. As shown in Table 1.1, several types of data can represent these facts.
information: A collection of data Information is a collection of data organized and processed so that it has addi-
organized and processed so that it has tional value beyond the value of the individual facts. For example, a sales man-
additional value beyond the value of the
ager may want individual sales data summarized so it shows the total sales for
individual facts.
the month. Providing information to customers can also help companies increase
revenues and profits. For example, social shopping Web site Kaboodle brings
TABLE 1.1 Types of data

Data Represented By
Alphanumeric data Numbers, letters, and other characters
Audio data Sounds, noises, or tones
Image data Graphic images and pictures
Video data Moving images or pictures
CHAPTER 1 • An Introduction to Information Systems in Organizations 5
shoppers and sellers together electronically so they can share information and
make recommendations while shopping online. The free exchange of informa-
tion stimulates sales and helps ensure shoppers find better values.
Another way to appreciate the difference between data and information is to
think of data as the individual items in a grocery list—crackers, bread, soup,
cereal, coffee, dishwashing soap, and so on. The grocery list becomes much
more valuable if the items in the list are arranged in order by the aisle in which
they are found in the store—bread and cereal in aisle 1, crackers and soup in
aisle 2, and so on. Data and information work the same way. Rules and relation-
ships can be set up to organize data so it becomes useful, valuable information.
The value of the information created depends on the relationships defined
among existing data. For instance, you could add specific identifiers to the items
in the list to ensure that the shopper brings home the correct item—whole
wheat bread and Kashi cereal in aisle 1, saltine crackers and chicken noodle
soup in aisle 2, and so on. By doing so, you create a more useful grocery list.
process: A set of logically related Turning data into information is a process, or a set of logically related tasks
tasks performed to achieve a defined performed to achieve a defined outcome. The process of defining relationships
outcome.
among data to create useful information requires knowledge, which is the
knowledge: The awareness and awareness and understanding of a set of information and the ways in which that
understanding of a set of information information can be made useful to support a specific task or reach a decision. In
and the ways that information can be other words, information is essentially data made more useful through the appli-
made useful to support a specific task
cation of knowledge. For instance, there are many brands and varieties of most
or reach a decision.
items on a typical grocery list. To shop effectively, the grocery shopper needs to
have an understanding of the needs and desires of those being shopped for so
that he knows to purchase one can of Campbell’s (not the store brand!) low-
sodium chicken noodle soup for the family member who is diabetic along with
two cans of Campbell’s regular chicken noodle soup for everyone else.
In some cases, people organize or process data mentally or manually. In
other cases, they use a computer. This transformation process is shown in
Figure 1.1.
Select data
Data
Data
Data
Organize data
Data (1,1) Data (1,2) Data (1,3)
Data (2,1) Data (2,2) Data (2,3)
Data (3,1) Data (3,2) Data (3,3)
FIGURE 1.1 Data (n,1) Data (n,2) Data (n,3)
Process of transforming data

into information
Transforming data into information Manipulate data
starts by selecting data, then
organizing it, and finally manipulat- Total 1 Total 2 Total 3
ing the data.
The Value of Information

The value of information is directly linked to how it helps decision makers
achieve their organization’s goals. Valuable information can help people per-
form tasks more efficiently and effectively. Many businesses assume that reports
are based on correct, quality information, but, unfortunately, that is not always
true. For example, Experian (a global information services firm that provides
credit services, marketing services, decision analytics, and consumer services)
estimates that on average, 22 percent of an organization’s customer contact data
is wrong.1 Companies can easily waste over $100 per inaccurate customer con-
tact data record on direct-mail marketing sent to wrong addresses and the inabil-
ity to properly track leads. For example, an organization with 100,000 customers
and a 22 percent error rate projects to a loss of $2.2 million.2
Characteristics of Quality Information

Fundamental to the quality of a decision is the quality of the information used
to reach that decision. Any organization that stresses the use of advanced infor-
mation systems and sophisticated data analysis before information quality is
doomed to make many wrong decisions. Table 1.2 lists the characteristics that
determine the quality of information. The importance of each of these charac-
teristics varies depending on the situation and the kind of decision you are try-
ing to make. For example, with market intelligence data, some inaccuracy and
incompleteness is acceptable, but timeliness is essential. Market intelligence
data may alert you that a competitor is about to make a major price cut. The
exact details and timing of the price cut may not be as important as being
TABLE 1.2 Characteristics of quality information

Characteristic Definition
Accessible Information should be easily accessible by authorized users so they can obtain it in the right for-
mat and at the right time to meet their needs.
Accurate Accurate information is error free. In some cases, inaccurate information is generated because inac-
curate data is fed into the transformation process. This is commonly called garbage in, garbage out.
Complete Complete information contains all the important facts. For example, an investment report that does
not include all important costs is not complete.
Economical Information should also be relatively economical to produce. Decision makers must always balance
the value of information with the cost of producing it.
Flexible Flexible information can be used for a variety of purposes. For example, information on how much
inventory is on hand for a particular part can be used by a sales representative in closing a sale, by
a production manager to determine whether more inventory is needed, and by a financial execu-
tive to determine the amount of money the company has invested in inventory.
Relevant Relevant information is important to the decision maker. Information showing that lumber prices
might drop is probably not relevant to a computer chip manufacturer.
Reliable Reliable information can be trusted by users. In many cases, the reliability of the information depends
on the reliability of the data-collection method. In other instances, reliability depends on the source of
the information. A rumor from an unknown source that oil prices might go up may not be reliable.
Secure Information should be secure from access by unauthorized users.
Simple Information should be simple, not complex. Sophisticated and detailed information might not be
needed. In fact, too much information can cause information overload, whereby a decision maker
has too much information and is unable to determine what is really important.
Timely Timely information is delivered when it is needed. Knowing last week’s weather conditions will
not help when trying to decide what coat to wear today.
Verifiable Information should be verifiable. This means that you can check it to make sure it is correct, per-
haps by checking many sources for the same information.
CHAPTER 1 • An Introduction to Information Systems in Organizations 7
warned far enough in advance to plan how to react. On the other hand, accu-
racy and completeness are critical for data used in accounting for the manage-
ment of company assets, such as cash, inventory, and equipment.
What Is an Information System?

Another central concept of this book is that of an information system. People and
information system (IS): A set of organizations use information systems every day. An information system (IS)
interrelated components that collect, is a set of interrelated components that collect, process, store, and disseminate
process, store, and disseminate data
data and information; an information system provides a feedback mechanism to
and information; an information system
provides a feedback mechanism to monitor and control its operation to make sure it continues to meet its goals and
monitor and control its operation to objectives. The feedback mechanism is critical to helping organizations achieve
make sure it continues to meet its goals their goals, such as increasing profits or improving customer service.
and objectives. A computer-based information system (CBIS) is a single set of hard-
computer-based information ware, software, databases, networks, people, and procedures that are config-
system (CBIS): A single set of ured to collect, manipulate, store, and process data into information.
hardware, software, databases, net- Increasingly, companies are incorporating computer-based information systems
works, people, and procedures that are into their products and services. Investment companies offer their customers a
configured to collect, manipulate, store,
wide range of powerful investment tools, including access to extensive online
and process data into information.
research. Automobiles are available with advanced navigation systems that not
only guide you to your destination but also incorporate information regarding
the latest weather and traffic conditions to help you avoid congestion and traf-
technology infrastructure: All fic delays. Watches, digital cameras, mobile phones, music players, and other
the hardware, software, databases, devices rely on CBIS to bring their users the latest and greatest features.
networks, people, and procedures that
are configured to collect, manipulate,
The components of a CBIS are illustrated in Figure 1.2. An organization’s
store, and process data into technology infrastructure includes all the hardware, software, databases,
information. networks, people, and procedures that are configured to collect, manipulate,
Noolwlee/Shutterstock.com
Andresr/Shutterstock.com
Dukes/Shutterstock.com
Software Networks People

NasonovVasiliy/Shutterstock.com
Sashkin/Shutterstock.com
Dusit/Shutterstock.com
© various shutterstock photos
Databases Procedures Hardware
FIGURE 1.2
Components of a computer-based information system
Hardware, software, networks, people, and procedures are part of a business’s technology infrastructure.
store, and process data into information. The technology infrastructure is a set
of shared IS resources that form the foundation of each computer-based infor-
mation system.
People make the difference between success and failure in all organiza-
tions. Jim Collins, in his book, Good to Great, said, “Those who build great
companies understand that the ultimate throttle on growth for any great com-
pany is not markets, or technology, or competition, or products. It is one
thing above all others: the ability to get and keep enough of the right
people.”3 Thus, it comes as no surprise that people are the most important
element in computer-based information systems.
Good systems can enable people to produce extraordinary results. They
can also boost job satisfaction and worker productivity.4 Information systems
personnel include all the people who manage, run, program, and maintain
the system, including the chief information officer (CIO), who leads the IS
organization. End users are people who work directly with information sys-
tems to get results. They include financial executives, marketing representa-
tives, and manufacturing line operators.
procedure: A set of steps that need A procedure defines the steps to follow to achieve a specific end result,
to be followed to achieve a specific end such as enter a customer order, pay a supplier invoice, or request a current
result, such as enter a customer order,
inventory report. Good procedures describe how to achieve the desired end
pay a supplier invoice, or request a
current inventory report. result, who does what and when, and what to do in the event something
goes wrong. When people are well trained and follow effective procedures,
they can get work done faster, cut costs, make better use of resources, and
more easily adapt to change. When procedures are well documented, they
can greatly reduce training costs and shorten the learning curve.
Using a CBIS involves setting and following many procedures, including
those for the operation, maintenance, and security of the system. For exam-
ple, some procedures describe how to gain access to the system through the
use of some log-on procedure and a password. Others describe who can
access facts in the database or what to do if a disaster, such as a fire, earth-
quake, or hurricane, renders the CBIS unusable. Good procedures can help
companies take advantage of new opportunities and avoid lengthy business
disruptions in the event of natural disasters. Poorly developed and inade-
quately implemented procedures, however, can cause people to waste their
time on useless rules or result in inadequate responses to disasters.
Three Fundamental Types of Information Systems

Most organizations have a number of different information systems. When
considering the role of business managers in working with IS, it is useful to
divide information systems into three types: personal IS, group IS, and enter-
prise IS.
personal IS: An information system Personal IS includes information systems that improve the productivity
that improves the productivity of indi- of individual users in performing stand-alone tasks. Examples include per-
vidual users in performing stand-alone
sonal productivity software, such as word-processing, presentation, and
tasks.
spreadsheet software.
In today’s fast-moving, global work environment, success depends on our
ability to communicate and collaborate with others, including colleagues, cli-
group IS: An information system that ents, and customers. Group IS includes information systems that improve
improves communications and supports communications and supports collaboration among members of a workgroup.
collaboration among members of a
Examples include Web conferencing software, wikis, and electronic corporate
workgroup.
directories.
enterprise IS: An information sys- Enterprise IS includes information systems that organizations use to
tem that an organization uses to define define structured interactions among their own employees and/or with exter-
structured interactions among its own
nal customers, suppliers, government agencies, and other business partners.
employees and/or with external custo-
mers, suppliers, government agencies, Successful implementation of these systems often requires the radical redesign
and other business partners. of fundamental work processes and the automation of new processes. Target
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"In the first place there arose in the provinces of Chih Li

and Shantung a kind of rebellious subjects who had been in the
habit of practicing boxing and fencing in their respective
villages, and at the same time clothing their doings with
spiritualistic and strange rites. The local authorities failed
to take due notice of them at the time. Accordingly the
infection spread with astonishing rapidity. Within the space
of a month it seemed to make its appearance everywhere, and
finally even reached the capital itself. Everyone looked upon
the movement as supernatural and strange, and many joined it.
Then there were lawless and treacherous persons who sounded
the cry of 'Down with Christianity!' About the middle of the
fifth moon these persons began to create disturbances without
warning. Churches were burned and converts were killed. The
whole city was in a ferment. A situation was created which
could not be brought under control. At first the foreign
Powers requested that foreign troops be allowed to enter the
capital for the protection of the legations. The imperial
government, having in view the comparative urgency of the
occasion, granted the request as an extraordinary mark of
courtesy beyond the requirements of international intercourse.
Over five hundred foreign troops were sent to Pekin. This
shows clearly how much care China exercised in the maintenance
of friendly relations with other countries.
"The legations at the capital never had much to do with the

people. But from the time foreign troops entered the city the
guards did not devote themselves exclusively to the protection
of their respective legations. They sometimes fired their guns
on top of the city walls and sometimes patrolled the streets
everywhere. There were repeated reports of persons being hit
by stray bullets. Moreover they strolled about the city
without restraint, and even attempted to enter the Tung Hua
gate (the eastern gate of the palace grounds). They only
desisted when admittance was positively forbidden. On this
account, both the soldiers and the people were provoked to
resentment, and voiced their indignation with one accord.
Lawless persons then took advantage of the situation to do
mischief, and became bolder than ever in burning and killing
Christian converts. The Powers thereupon attempted to
reinforce the foreign troops in Pekin, but the reinforcements
encountered resistance and defeat at the hands of the
insurgents on the way and have not yet been able to proceed.
The insurgents of the two provinces of Chih Li and Shantung
had by this time effected a complete union and could not be
separated. The imperial government was by no means reluctant
to issue orders for the entire suppression of this insurgent
element. But as the trouble was so near at hand there was a
great fear that due protection might not be assured to the
legations if the anarchists should be driven to extremities,
thus bringing on a national calamity. There also was a fear
that uprisings might occur in the provinces of Chih Li and
Shantung at the same time, with the result that both foreign
missionaries and Chinese converts in the two provinces might
fall victims to popular fury. It was therefore absolutely
necessary to consider the matter from every point of view.
"As a measure of precaution it was finally decided to request

the foreign ministers to retire temporarily to Tien-Tsin for
safety. It was while the discussion of this proposition was in
progress that the German minister, Baron Von Ketteler, was
assassinated by a riotous mob one morning while on his way to
the Tsung-Li-Yamen. On the previous day the German minister
had written a letter appointing a time for calling at the
Tsung-Li-Yamen. But the Yamen, fearing he might be molested on
the way, did not consent to the appointment as suggested by
the minister. Since this occurrence the anarchists assumed a
more bold and threatening attitude, and consequently 'it was
not deemed wise to carry out the project of sending the
diplomatic corps to Tien-Tsin under an escort. However, orders
were issued to the troops detailed for the protection of the
legations to keep stricter watch and take greater precaution
against any emergency.
"To our surprise, on the 20th of the fifth moon (June 16th),
foreign (naval?) officers at Taku called upon Lo Jung Kwang,
the general commanding, and demanded his surrender of the
forts, notifying him that failing to receive compliance they
would at two o'clock the next day take steps to seize the
forts by force. Lo Jung Kwang, being bound by the duties of
his office to hold the forts, how could he yield to the
demand? On the day named they actually first fired upon the
forts, which responded, and kept up fighting all day and then
surrendered. Thus the conflict of forces began, but certainly
the initiative did not come from our side. Even supposing that
China were not conscious of her true condition, how could she
take such a step as to engage in war with all the Powers
simultaneously? and how could she, relying upon the support of
anarchistic populace, go into war with the Powers?
{115}
"Our position in this matter ought to be clearly understood by

all the Powers. The above is a statement of the wrongs we have
suffered, and how China was driven to the unfortunate position
from which she could not escape. Our several ministers will make
known accurately and in detail the contents of this decree and
the policy of China to the ministers of foreign affairs in
their respective countries, and assure them that military
authorities are still strictly enjoined to afford protection
to the legations as hitherto to the utmost of their power. As
for the anarchists they will be as severely dealt with as
circumstances permit. The several ministers will continue in
the discharge of the duties of their office as hitherto
without hesitation or doubt. This telegraphic decree to be
transmitted for their information. Respect this."
CHINA: A. D. 1900 (June-July).

Failure of attempt to entrust Japan with the rescuing of
the Legations at Peking.
A British Blue Book, issued on the 18th of February, 1901,

contains correspondence that took place between the Powers
late in June and early in July, looking to an arrangement for
the immediate sending of a large force from Japan to the
rescue of the beleaguered Legations in Peking. As summarized
in the "London Times," this correspondence showed that "the
necessity of asking the help of the only Power that was near
enough to intervene promptly was strongly pressed by Lord
Salisbury on the other Powers in the beginning of July. M.
Delcassé fell in entirely with the scheme and insisted on the
need of putting aside all jealousies or afterthoughts which
might hinder unity of action on the spot. The Russian
Government, however, seems to have misunderstood Lord
Salisbury's meaning and to have conceived him to wish Japan to
settle the Chinese crisis by herself and with a view to her
own interests, a misunderstanding which it required a whole
series of despatches to clear up completely. The Japanese
Government itself showed the most commendable readiness to
act, and on July 11 Mr. Whitehead telegraphed from Tokio, in
reply to an appeal from Lord Salisbury to the Japanese
Government, that 'in consequence of the friendly assurances'
given by Lord Salisbury the Japanese Government had decided to
send one or two more divisions to China. To this Lord
Salisbury replied on July 13 that her Majesty's Government
were willing to assist the Japanese Government up to
£1,000,000 if they at once mobilized and despatched an
additional 20,000 men to Peking. But the latter, in the
absence of any definite scheme of operations on the part of
the Powers, showed an unwillingness to accede to this
proposal, which thus fell through."
CHINA: A. D. 1900 (June-August).

The siege of the Foreign Legations at Peking.
The story of two dreadful months as told by one of the besieged.
The most detailed and altogether best account of the dreadful
experience which the foreigners besieged in the quarter of the
Legations at Peking underwent, from the first week in June
until the 14th day of August, when a rescuing army forced its
way into the city, is that furnished to the "London Times" by
its Peking correspondent, who was one of the besieged. His
narrative, forwarded immediately upon the opening of
communication with the outer world, was published in "The
Times" of October 13 and 15. With some abridgment it is given
here under permission from the Manager of "The Times."
"Missionaries in Peking began collecting together into the

larger mission compounds for common protection. Many ladies
went for safety into the British Legation. Railway
communication was now severed and the telegraph communication
threatened. Our isolation was being completed. In the country
disaffection spread to the districts to the east of Peking,
and the position of the American missionaries at Tung-chau
became one of great danger. It was decided to abandon their
great missionary establishments, and with the native
Christians that could follow them to come into Peking. They
asked for an escort, but Mr. Conger felt himself compelled to
decline one, on the ground that he did not venture to send the
small body of men that he could spare from the Legation
through so dangerous a district. Protection must be looked for
from the Chinese Government. What soldiers could not be sent
to do one fearless American missionary succeeded in doing.
Late in the evening of June 7 the Rev. W. S. Ament, of the
Board Mission, left Peking in a cart, and with 20 other carts
journeyed 14 miles to Tung-chau through a country palpitating
with excitement. It was an act of courage and devotion that
seemed to us who knew the country a deed of heroism. His
arrival was most opportune. He brought safely back with him to
Peking the whole missionary body then in Tung-chau—five men,
including the author of 'Chinese Characteristics,' 11 ladies,
and seven children, together with their Christian servants. …
"More troops were sent for to reinforce the Legation guards in
Peking, but they were sent for too late. Already many miles of
the railway had been torn up, and it was hopeless to expect an
early restoration of communication. … The Empress-Dowager and
the Emperor, who had been for some time past at the Summer
Palace, returned to Peking, entering the city at the same hour
by different gates. Large escorts of cavalry and infantry
accompanied them; Manchu bannermen in large numbers were
posted on the walls. It was noticeable that the body-guard of
the Empress was provided by the renegade Mahomedan rabble of
Tung-fuh-siang, who had long been a menace to foreigners in
the province. The return of the Court was expected to have a
tranquillizing effect upon the populace. But this was not the
case. Students were attacked when riding in the country; our
race-course, grand stand, and stables were burnt by 'Boxers'
armed with knives; Europeans could not venture along the
streets outside the foreign quarter without being insulted.
People were saying everywhere, 'The foreigners are to be
ended.' Streets were being patrolled by cavalry, but there was
every fear that the patrols were in league with the 'Boxers,'
who were marching through the streets bearing banners
inscribed 'Fu Ching Mieh Yang.' 'Protect Pure (the Dynasty),
exterminate the foreigner.'
"The London Mission and the Society for the Propagation of the
Gospel handed over their buildings to the Chinese authorities,
holding them responsible for their safe keeping, and all
missionaries and their families went to the British Legation.
The American Board Mission likewise delivered over their
valuable property to the Government and fell back upon the
great Methodist Episcopalian Mission near the Hata Mên Gate,
beyond the foreign quarter. Tung-chau missionaries and their
families and several hundred Christian converts were already
gathered there. Steps were at once taken to fortify the
compound. Under the direction of Mr. F. D. Gamewell deep
trenches were cut, earthworks thrown up, and barbed-wire
entanglements laid down.
{116}
Watch was kept and sentries posted, provisions laid in, and
all preparations made to withstand a siege. Twenty marines and
a captain from the American Legation were sent as a guard, and
some spare rifles were obtained from the British Legation.
Converts were armed with pikes and knives, and a determined
effort was to be made in case of attack. The mission was,
however, absolutely at the mercy of any force holding the high
city wall and Hata Mên Gate. Without the power of reply the
small garrison could have been shot down from the wall, which
is little more than a stone's throw from the nearest point of
the compound. Shell-fire such as was subsequently used against
the Legations would have smashed the buildings into fragments.
All the Maritime Customs staff and their families living in
the East City, a mile or more beyond the foreign quarter, the
professors and teachers of the Tung-wen-Kuan, Dr. Dudgeon, Mr.
Pethick, the secretary of Li Hung Chang, and others, were
forced to abandon their homes and come in for protection.
Preparations for defence went on at all the Legations, for it
was now inevitable that we should have to fight. A 'conseil de
guerre' was held, attended by all the military officers, and a
plan of defence determined. The palace and grounds of Prince
Su, opposite the British Legation, were to be held for the
Christian refugees, and an area was to be defended some half a
mile long by half a mile broad, bounded by the Austrian and
Italian Legations to the east, the street running over the
north bridge of the canal to the north, the British, Russian,
and American Legations to the west, while the southern
boundary was to be the street running at the foot of the great
City Wall from the American Legation on the west, past the
German Legation on the east, to the lane running from the Wall
north past the French Legation, the buildings of the
Inspectorate General of Customs, and the Austrian Legation.
All women and children and non-combatants were to come into
the British Legation. Each position was to be held as long as
possible, and the final stand was to be made at the British
Legation. No question of surrender could ever be entertained,
for surrender meant massacre.
"On the 10th it was announced that reinforcements were on the

way and that they were coming with the approval of the Viceroy
and of the Chinese Government, an approval more readily
accorded since it was known to the Viceroy that the troops
could not come by train. More than one of the Ministers was so
confident that they were coming that carts were sent to await
their arrival at Machia-pu, the terminal railway station at
Peking. … Then Government gave its first public official
recognition of the 'Boxers' by announcing that the notorious
chief of the 'Boxers,' Prince Tuan, had been appointed
President of the Tsung-li-Yamên. Prince Ching was superseded
but was not removed from the Yamên. One harmless old Chinese,
Liao Shou-hêng was sent into retirement while four rabidly
anti-foreign Manchus entirely ignorant of all foreign affairs
were appointed members. The last hope of any wisdom springing
from the Yamên disappeared with the supersession of Prince
Ching by the anti-foreign barbarian who, more than any other
man in China, was responsible for the outbreak. The following
morning most of the Europeans rode to Machia-pu to await the
arrival of the foreign troops. They waited, but no troops
came, and then rode back past the jeering faces of hordes of
Chinese soldiers. Our security was not increased by this
fiasco.
"Soldiers sent to guard the summer residences of the British

Legation in the Western Hills left their posts during the
night. The buildings had been officially placed under the
protection of the Imperial Government. In the pre-arranged
absence of the soldiers the buildings were attacked by
'Boxers' and entirely burnt to the ground; the soldiers
witnessed if they did not assist in the burning. But worse
events were to happen that day. In the afternoon news passed
through Peking that Mr. Sugiyama, the Chancellor of the
Japanese Legation, had been murdered by soldiers. He had been
sent by his Minister a second time to Machia-pu to await the
arrival of the troops. Passing unarmed and alone in his cart
beyond the Yung-ting Mên, the outer gate on the way to the
station, he was seized by the soldiers of Tung-fuh-siang,
dragged from his cart, and done to death in the presence of a
crowd of Chinese who witnessed his struggles with unpitying
interest and unconcealed satisfaction. …
"On the 12th a deputation, consisting of Chi Hsiu, a member of

the Grand Council and newly appointed to the Yamên, Hsu
Ching-chêng, the ex-Minister, the 'Boxer' leader Chao
Shu-chiao, and another Manchu, called upon the British
Minister. Chi Hsiu made a long address, his theme being the
enduring nature of the friendship between China and England
and the duty which China has always recognized as a sacred
obligation to protect the members of the Legations who were
her guests and the strangers within her walls. Chi Hsiu
assured the Minister that the movement was at an end, that all
was now tranquil, and that there was no more reason to fear.
Yet the very next day Baron von Ketteler himself captured a
'Boxer' from amid the crowd in Legation-street. He carried the
consecrated headpiece, and was armed with a sword. Round his
waist he had a belt containing a talisman of yellow paper
smeared with mystic red symbols by which he was rendered
'impermeable to foreign bullets.' And in the afternoon the
'Boxers' came down in force from the north of the city and the
burning of foreign buildings began. The cry arose that the
'Boxers' were coming. Every man ran to his post, a cordon was
established round the foreign quarter and no one was allowed
to pass. Guards were on watch at all the Legations, but their
numbers, spread over so many posts, were very inadequate, and
they were still further reduced by the guards detached for
duty at the Pei-tang Cathedral, where, three miles distant
within the Imperial City, were gathered in the one great
compound Mgr. Favier, the Bishop, his coadjutor, Mgr. Jarlin,
the missionaries and lay brothers, the sisters of charity, and
a vast concourse of Christian refugees, estimated at 2,000,
who had fled from the massacre in the country. A guard of five
Austrians was sent to the Belgian Legation. The Austrians with
their machine gun commanded the Customs-street leading to the
north: the Italians with a one pounder commanded the
Legation-street to the east. The British with their
Nordenfeldt swept the Canal-street to the north and the
North-bridge, the Russians were on the South-bridge, while the
Americans with their Colt machine gun had command of
Legation-street to the west as far as the court facing the
Imperial Palace. The Russians, having no gun, dropped their
heavy ammunition down the well.
{117}
"As darkness came on the most awful cries were heard in the
city, most demoniacal and unforgettable, the cries of the
'Boxers,' 'Sha kweitze'—'Kill the devils'—mingled with the
shrieks of the victims and the groans of the dying. For
'Boxers' were sweeping through the city massacring the native
Christians and burning them alive in their homes. The first
building to be burned was the chapel of the Methodist Mission
in the Hata Mên-street. Then flames sprang up in many quarters
of the city. Amid the most deafening uproar the Tung-tang, or
East Cathedral, shot flames into the sky. The old Greek Church
in the north-east of the city, the London Mission buildings,
the handsome pile of the American Board Mission, and the
entire foreign buildings belonging to the Imperial Maritime
Customs in the East City burned throughout the night. It was
an appalling sight. Late in the night a large party of
'Boxers' bearing torches were seen moving down Customs-street
towards the Austrian Legation. The machine gun mounted was in
waiting for them. They were allowed to come within 150 yards
in the open street near the great cross road, and then the
order was given and the gun rained forth death. It was a
grateful sound. The torches disappeared. They had come within
a restricted space, and none, we thought, could have escaped.
Eagerly we went forth to count the dead, expecting to find
them in heaps. But there was not one dead. The gun had been
aimed very wide of the mark. Two hundred yards north of the
'Boxers' there is a place where 30 ft. above the level road
the telegraph wires crossed to the station. Next morning they
were found to have been cut by the Austrian fire. The only
persons who suffered injury were possible wayfarers two miles
up the street. There can be little doubt that this fiasco
helped to confirm the Boxers in a belief in their
invulnerability.
"The Tung-tang, or East Cathedral, having been burned, it, was

clear that the Nan-tang, the South Cathedral, was in danger.
Père Garrigues, the aged priest of the Tung-tang, had refused
to leave his post and had perished in the flames. But the
fathers and sisters at the Nan-tang might yet be saved. Their
lives were in great peril; it was necessary to act quickly. A
party of French gentlemen, led by M. Fliche of the French
Legation and accompanied by M. and Mme. Chamot, rode out at
night, and early the following morning safely escorted to the
hotel every member of the mission—Père d' Addosio and his two
colleagues, a French brother, five sisters of charity, and
some twenty native nuns of the Order of Josephine. They were
rescued just in time. Scarcely had they reached a place of
safety when the splendid edifice they had forsaken was in
flames. … It continued burning all day, the region round it,
the chief Catholic centre of Peking, being also burnt. Acres
of houses were destroyed and the Christians in thousands put
to the sword. …
"On the 15th rescue parties were sent out by the American and
Russian Legations in the morning, and by the British and
German Legations in the afternoon, to save if possible native
Christians from the burning ruins around the Nan-tang. Awful
sights were witnessed. Women and children hacked to pieces,
men trussed like fowls, with noses and ears cut off and eyes
gouged out. Chinese Christians accompanied the reliefs and ran
about in the labyrinth of network of streets that formed the
quarter, calling upon the Christians to come out from their
hiding-places. All through the night the massacre had
continued, and 'Boxers' were even now shot redhanded at their
bloody work. But their work was still incomplete, and many
hundreds of women and children had escaped. They came out of
their hiding-places crossing themselves and pleading for
mercy. It was a most pitiful sight. Thousands of soldiers on
the wall witnessed the rescue; they had with callous hearts
witnessed the massacre without ever raising a hand to save.
During the awful nights of the 13th and 14th Duke Lan, the
brother of Prince Tuan, and Chao Shu-Chiao, of the
Tsung-li-Yamên, had followed round in their carts to gloat
over the spectacle. Yet the Chinese Government were afterwards
to describe this massacre done under official supervision
under the very walls of the Imperial Palace as the handiwork
of local banditti. More than 1,200 of the poor refugees were
escorted by the 'foreign devils' to a place of safety. Many
were wounded, many were burnt beyond recognition. All had
suffered the loss of every thing they possessed in the world.
They were given quarters in the palace grounds of Prince Su,
opposite the British Legation. Among them was the aged mother
and the nephew of Ching Chang, recently Minister to France,
and now Chinese Commissioner to the Paris Exhibition. The
nephew was cruelly burnt; nearly every other member of the
family was murdered. A Catholic family of much distinction—a
family Catholic for seven generations—was thus almost
exterminated and its property laid in ashes. It was announced
this day that only 'Boxers' might enter the Imperial City. The
Government was rushing headlong to its ruin.
"On June 16 a party of twenty British, ten Americans, and five

Japanese, with some Volunteers, and accompanied by
Lieutenant-Colonel Shiba, the Japanese military attache,
patrolled the East City, visiting the ruins in the hopes that
some Christians might yet be in hiding. But to our calls
everywhere no reply was given. Refugees, however, from the
East City had managed to escape miraculously and find their
way, many of them wounded, to the foreign Legations, seeking
that protection and humanity that was denied them by their own
people. As the patrol was passing a Taoist temple on the way,
a noted 'Boxer' meeting place, cries were heard within. The
temple was forcibly entered. Native Christians were found
there, their hands tied behind their backs, awaiting execution
and torture. Some had already been put to death, and their
bodies were still warm and bleeding. All were shockingly
mutilated. Their fiendish murderers were at their incantations
burning incense before their gods, offering Christians in
sacrifice to their angered deities. They shut themselves
within the temple, but their defence availed them nothing.
Everyone of them, 46 in all, was in 'Boxer' uniform armed with
sword and lance. Retribution was swift; every man was shot to
death without mercy. In the afternoon a fire broke out in the
foreign drug store in the native city outside the great gate
of the Chien Mên.
{118}
It was the work of 'Boxers,' done while the soldiers were
looking on. In order to burn the foreign drug store and do the
foreigners a few pounds worth of damage, they did not hesitate
to jeopardize by fire property worth millions of pounds, and that
is what happened. Adjoining buildings took fire, the flames
spread to the booksellers' street, and the most interesting
street in China, filled with priceless scrolls, manuscripts,
and printed books, was gutted from end to end. Fire licked up
house after house, and soon the conflagration was the most
disastrous ever known in China, reducing to ashes the richest
part of Peking, the pearl and jewel shops, the silk and fur,
the satin and embroidery stores, the great curio shops, the
gold and silver shops, the melting houses, and nearly all that
was of the highest value in the metropolis. Irreparable was
the damage done. …
"During the night the Americans, fearing an attack from the

street at the back of their Legation, kept the street clear
till daybreak. During one of the volleys four of the
Tsung-li-Yamên Ministers called upon the American Minister.
They were blandly assuring him that all was now quiet, that
there was no need for further alarm, that great was the
tenderness of the Throne for men from afar, when a rattle of
musketry was heard which rendered them speechless with fear.
They hurriedly went away. Assurances of the Throne's
tenderness did not deceive us. Our barricades were everywhere
strengthened and defences systematically planned, for rumour
was quick to reach us that the relief forces had been driven
back to Tien-tsin, and this did not add to the security of our
position. Inside the Imperial City wall, within one hundred
yards of the British picket on the north bridge a large
Chinese camp was formed. Peking was in a state of panic, all
the streets near the foreign quarters were empty, and people
were fleeing from the city. There was a run on the banks, and
the Ssu-ta-hêng, the four great banks, the leading banks of
Peking, closed their doors, and paper money was not in
circulation. The Palace of Prince Su was occupied by the
refugees, and its defence, the most important of all and a
vital one to the British Legation, was entrusted to Colonel
Shiba and Japanese marines and volunteers.
"The crisis was approaching. On the morning of June 19 Mr.

Cordes, the Chinese Secretary of the German Legation, was at
the Yamên, when the secretaries told him that the allied
fleets had taken the Ta-ku forts on June 17. This was
remembered when at 4.30 in the afternoon an ultimatum was sent
to the foreign Ministers. It was a bolt from the blue. They
were to leave Peking within 24 hours. 'A despatch,' they
wrote, 'has arrived from the Viceroy Yu Lu, forwarding a note
which he has received from the doyen of the Consular body in
Tien-tsin, the French Comte du Chaylard, to say that, unless
foreign troops are at once permitted to land at Tien-tsin, the
allied fleets will bombard the Ta-ku forts. As this is
equivalent to a declaration of war, the Tsung-li-Yamên
herewith notify the foreign Ministers that they must leave
Peking within 24 hours, otherwise protection cannot be
guaranteed to them. They will be given safe conduct and
transport.' It was quite in accordance with Chinese custom
that a despatch saying that the seizure of the Ta-ku forts had
been threatened should be sent after the seizure had been
effected. What is distasteful to them to say they avoid
saying. A meeting of the diplomatic body was at once held. It
was decided to accept the ultimatum. They had been given their
passports by the Chinese Government; what other course was
open to them? … Word was passed round that preparation had to
be made to leave Peking the following day. Mr. Conger, the
American Minister, asked for 100 carts; and his Legation spent
most of the night making preparations. No packing was done at
the British Legation, for it was there considered
inconceivable that China should insist upon sending the
Ministers their passports. Only two days before, in the
'Peking Gazette' of June 17, it had been officially announced
that the road to Tien-tsin was unsafe. … When the decision of
the Diplomatic Body became known in Peking the most profound
indignation was everywhere expressed at so unworthy a decision
and the most profound astonishment that such a course of
action should have received the support of M. Pichon, the
French Minister 'Protecteur des Missions Catholiques en
Chine,' and of so humane a man as Mr. Conger, the American
Minister; for to leave Peking meant the immediate abandonment
to massacre of the thousands of native Christians who had
trusted the foreigner and believed in his good faith.
"Early on the morning of the 20th a meeting of the Diplomatic

Body was held at the French Legation. No reply had been
received from the Tsung-li-Yamên to the request for an
audience, and the proposition that all the Ministers should go
to the Yamên found no seconder. Had it been carried out, there
would have occurred one of the most appalling massacres on
record. Two chairs later left for the Yamên. In the first was
the German Minister, Baron van Ketteler, who had this
advantage over the other Ministers, that he spoke Chinese
fluently. In the second was the Chinese Secretary of the
German Legation, Mr. Cordes. News travels quickly in Peking.
Not many minutes later my boy burst into my office—'Any man
speakee have makee kill German Minister!' It was true. The
German Minister had been assassinated by an Imperial officer.
The Secretary had been grievously wounded, but, running for
his life, shot at by a hundred rifles, had escaped as if by a
miracle. A patrol of 15 men under Count Soden, the commander,
went out to recover the body. Fired on by Chinese soldiers
from every side, they were forced to retire. … There was no
more question about leaving for Tien-tsin. Later in the day
the Yamên, evidently indifferent to the gravity of the
position created by the Government, sent an impudent despatch
to the German Legation to the effect that two Germans had been
proceeding in chairs along the Hata Mên-street, and at the
mouth of the street leading to the Tsung-li-Yamên one of them
had fired upon the crowd. The Chinese had retaliated and he
had been killed. They wished to know his name. No reply was
sent, for it was felt to be a mockery. Only too well the Yamên
knew whom they had murdered. Weeks passed before the body was
recovered, and it was not until July 18 that any official
reference was made to the murder. In the course of the morning
a despatch was sent to the Diplomatic Body in reply to the
answer they had sent to the ultimatum of yesterday.
{119}
The country, it said, between Peking and Tien-tsin was overrun
with brigands, and it would not be safe for the Ministers to go
there. They should therefore remain in Peking. It is difficult
to write with calmness of the treachery with which the Chinese
were now acting. Four p. m. was the hour given in the ultimatum
for the Ministers to vacate their Legations, but the ultimatum
had been rescinded, and the Ministers invited to remain in
Peking. Thus it was hoped that they would be lulled into a
false security. Chinese soldiers were secretly stationed under
cover at every vantage point commanding the outposts. At 4 p.
m. precisely to the minute, by preconcerted signal, they
opened fire upon the Austrian and French outposts. A French
marine fell shot dead through the forehead. An Austrian was
wounded. The siege had begun.
"At this time (June 20), at the opening of the siege, the
total strength of the combined Legation guards consisted of 18
officers and 389 men, distributed as follows:
"American.
Three officers, Captain Myers in command, Captain Hall,
Surgeon Lippett, and 53 marines from the Newark.
"Austrian.
Five officers, Captain Thomann, the Commander of the Zenta,
Flag-Lieutenant von Winterhalder, Lieutenant Kollar,
two mid-shipmen, and 30 marines from the Zenta.
"British.
Three officers, Captain B. M. Strouts in command,
Captain Halliday, Captain Wray, and 79 men R. M. L. I.
-30 from H. M. S. Orlando and 49 from Wei-hai-wei.
"French.
Two officers, Captain Darcy and Midshipman Herbert, and
45 marines from the D'Entrecasteaux and Descartes.
"German.
Lieutenant Graf Soden and 51 marines of the
3rd Battalion Kiao-chau.
"Italian.
Lieutenant Paolini and 28 blue-jackets from the Elba.
"Japanese.
Lieutenant Hara and 24 marines from the Atago.
"Russian.
Two officers, Lieutenant Baron von Rahden and Lieutenant
von Dehn, and 79 men—72 marines from the Sissoi Veliki and
Navarin and seven Legation Cossacks.
"Total,
18 officers and 389 men.
"In addition the French sent Lieutenant Henry and 30 men to

guard the Pei-tang Cathedral, and the Italians detached one
officer, Lieutenant Cavalieri, and 11 men for the same humane
mission. To this insignificant force of 18 officers and 389
men of eight nationalities the entire foreign quarter had to
trust for its defence. Fortunately several visitors or
residents had received military training, and they at once
went on the active list and rendered invaluable service. … A
volunteer force numbering altogether 75 men, of whom 31 were
Japanese, was enrolled and armed with all available rifles.
They added greatly to the strength of the garrison, taking
watch and watch like the Regulars, fighting behind the
barricades, and never shrinking from any duty imposed upon
them. There was also an irregular force of 50 gentlemen of
many nationalities, who did garrison guard duty in the British
Legation and were most useful. They were known, from the
gentleman who enrolled them, as 'Thornhill's Roughs,' and they
bore themselves as the legitimate successors on foot of
Roosevelt's Roughriders. Armed with a variety of weapons, from
an elephant rifle to the 'fusil de chasse' with a picture of
the Grand Prix, to all of which carving knives had been lashed
as bayonets, they were known as the 'Carving Knife Brigade.' …
Such were the effective forces. They were provided with four
guns, an Italian one-pounder with 120 rounds, an American Colt
with 25,000 rounds, an Austrian machine gun, and a British
five-barrel Nordenfelt, pattern 1887. Rifle ammunition was
very scanty. The Japanese had only 100 rounds apiece, the
Russians 145, and the Italians 120, while the best provided of
the other guards had only 300 rounds per man, none too many
for a siege the duration of which could not be foreseen.
"Punctually, then, at 4 o'clock Chinese soldiers began firing

upon us whom they had requested to remain in peace at Peking.
And immediately after the Austrian Legation was abandoned. No
sufficient reason has been given for its abandonment, which
was done so precipitately that not an article was saved. It
was left to the mercy of the Chinese, and the guard retired to
the corner of Customs-lane, leading west to the Prince's
Palace. This involved the sacrifice of Sir Robert Hart's and
all the Customs buildings, and hastened the advance of the
Chinese westward. As previously arranged, the American mission
buildings had been abandoned in the morning, for they were
quite untenable. All the missionaries, their wives, and
families crossed over to the British Legation. Converts to the
number of several hundreds joined the other refugees. The
captain and 20 American marines returned to the American
Legation. By an error of judgment on the part of the captain
the mission was finally left in a panic. Almost nothing was
saved, and nearly all the stores accumulated for a siege were
lost. The British Legation was now thronged. Rarely has a more
cosmopolitan gathering been gathered together within the limits
of one compound. All the women and children were there, all
the missionaries, American, British, French, and Russian, all
the Customs staff, the French, Belgian, Russian, American,
Spanish, Japanese, and Italian Ministers, and their families,
the entire unofficial foreign community of Peking, with the
exception of M. Chamot, who remained in his hotel throughout,
though it was in the hottest corner of the besieged area. …
French volunteers bravely stood by their own Legation, and the
Austrian Charge d'Affaires and Mme. von Rosthorn remained there
as long as there was a room habitable. Mr. Squiers, the first
Secretary of the American Legation, with Mr. Cheshire, the
Chinese Secretary, and Mr. Pethiek, the well-known private
secretary of Li Hung Chang, stayed by the United States
Legation, and the staff of the German Legation also kept
stanchly to their posts. … At the British Legation
fortification began in real earnest, the refugees working like
coolies. Sand-bags were made by the thousand, and posts
mounted round the Legation. A way was knocked through the
houses to the Russian Legation, so that the Americans, if they
had to fall back, could pass through to the British Legation.
During the day every Legation was exposed to a continuous fire
from surrounding house-tops, and in the case of the British
Legation from the cover in the Imperial Carriage Park. Chinese
put flames to the abandoned buildings, and the Belgian
Legation, the Austrian Legation, the Methodist Mission, and
some private houses were burned.
{120}
"June 22 opened disastrously. The evening before, Captain

Thomann, the Austrian commander, announced that as the senior
officer he had taken command in Peking. This morning, hearing
from an irresponsible American that the American Legation was
abandoned, he, without taking steps to verify the information,
ordered the abandonment of all the Legations cast of
Canal-street, the detachments to fall back upon the British
Legation. There had been no casualties to speak of, none of
the Legations had been attacked, and every commander who
received the order to retreat regarded the action as madness.
Peremptory orders were sent to the Japanese to abandon the
Prince's Palace or Fu (as I shall henceforth call it), and
they retired to their Legation. In the British Legation
nothing was known of the order when, to the amazement of all,
the Italians, Austrians, and French came running down
Legation-street, followed a little later by the Japanese, and
subsequently by the Germans, who recalled their post on the
wall and marched without a shot being fired at them down under
the wall to Canal-street. Americans and Russians, learning
that all east of Canal-street had been abandoned, saw
themselves cut off, though their communications had not even
been menaced, and retreated precipitately into the British
Legation. It was a veritable stampede—a panic that might have
been fraught with the gravest disaster. Prompt action was
taken. Captain Thomann was relieved of his command, and Sir
Claude MacDonald, at the urgent instance of the French and
Russian Ministers, subsequently confirmed by all their

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Fundamentals of Information Systems

9th Edition Ralph Stair

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

Art and Cover Direction, Production ISBN: 978-1-337-09753-6

Cengage Learning is a leading provider of customized learning solutions with

Cengage Learning products are represented in Canada by Nelson Education, Ltd.

To learn more about Cengage Learning Solutions, visit www.cengage.com

Printed in the United States of America

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

PART 1 Information Systems in Perspective 1

PART 2 Information Technology Concepts 43

PART 3 Business Information Systems 213

PART 4 System Development 343

PART 5 Information Systems in Business and Society 401

Company Index 501

PART 1 Information Systems in Perspective 1

1 An Introduction to Information Systems in Organizations 2

PART 2 Information Technology Concepts 43

2 Hardware and Software 44

3 Database Systems and Big Data 110

4 Networks and Cloud Computing 156

PART 3 Business Information Systems 213

5 Electronic Commerce and Enterprise Systems 214

6 Business Intelligence and Analytics 270

7 Knowledge Management and Specialized Information

PART 4 System Development 343

8 System Acquisition and Development 344

PART 5 Information Systems in Business and Society 401

9 Cybercrime and Information System Security 402

Implementing Secure, Private, Reliable Computing 419

10 Ethical, Legal, and Social Issues of Information Systems 440

Company Index 501

As organizations and entrepreneurs continue to operate in an increasingly

Approach of This Text

IS Principles First, Where They Belong

Goals of This Text

Survey of the IS Discipline

Changing Role of the IS Professional

employees, contractors, suppliers, customers, competitors, regulatory agen-

Changes in the Ninth Edition

Adaptive Test Prep

Instructor Companion Site

Test Bank and Cengage Learning Testing Powered by Cognero

Principles Learning Objectives

• Information systems are composed of fundamen- • Identify the fundamental components of an

Why Learn about Information Systems?

As you read this chapter, consider the following:

An Introduction to Information Systems

Data, Information, and Knowledge

TABLE 1.1 Types of data

Data (1,1) Data (1,2) Data (1,3)

Data (2,1) Data (2,2) Data (2,3)

Data (3,1) Data (3,2) Data (3,3)

FIGURE 1.1 Data (n,1) Data (n,2) Data (n,3)

Process of transforming data

The Value of Information

Characteristics of Quality Information

TABLE 1.2 Characteristics of quality information

What Is an Information System?

Software Networks People

© various shutterstock photos

Databases Procedures Hardware

Three Fundamental Types of Information Systems