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Fourteenth Edition

Principles of Information
Systems
Ralph M. Stair Mark Frydenberg
Professor Emeritus, Florida State University Bentley University

George W. Reynolds Hollis Greenberg

Instructor, Strayer University Wentworth Institute of Technology

Joey Bryant George Schell

Forsyth Technical Community College University of North Carolina Wilmington

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

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Principles of Information Systems, © 2021, 2018 Cengage Learning, Inc.
Fourteenth Edition WCN: 02-300
Ralph M. Stair, George W. Reynolds, Joey
Bryant, Mark Frydenberg, Hollis Greenberg, Unless otherwise noted, all content is © Cengage.
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Brief Contents

PART 1 Information Systems in Business and Society 1

Information Systems: People, Technology, Processes,
Chapter 1
and Structure 2

Chapter 2 Secure Information Systems 28

Corporate and Individual Accountability: Ethical,

Chapter 3
Legal, and Social Issues 66

PART 2 Technology Infrastructure 109

Chapter 4 Hardware and Software 110

Chapter 5 Database Systems and Data Management 170

Business Intelligence: Big Data

Chapter 6
and Analytics 206

Chapter 7 Networks: An Interconnected World 244

Chapter 8 Cloud Computing and the Internet of Things 290

PART 3 Business Information Systems 311

Chapter 9 E-Commerce 312

Chapter 10 Enterprise Systems 364

Chapter 11 Artificial Intelligence (AI) and Automation 402

PART 4
Planning, Implementing, and Managing Information
Systems 447
Chapter 12 Strategic Planning and Project Management 448

Chapter 13 System Acquisition and Development 500

Glossary 560

Subject Index 571

Preface xiv

PART 1 Information Systems in Business and Society 1

Information Systems: People, Technology, Processes,

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

2 Secure Information Systems 28

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

vii

Corporate and Individual Accountability: Ethical, Legal,

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

PART 2 Technology Infrastructure 109

4 Hardware and Software 110

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

Software Suites and Integrated Software Packages 152

Other Personal Application Software 152
Mobile Application Software 153
Workgroup Application Software 154
Enterprise Application Software 155
Programming Languages 155
Software Licenses 157
Open-Source Software 157
Software Upgrades 159

5 Database Systems and Data Management 170

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

6 Business Intelligence: Big Data and Analytics 206

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

7 Networks: An Interconnected World 244

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

8 Cloud Computing and the Internet of Things 290

Cloud Computing 293
Public Cloud Computing 293
Private Cloud Computing 296
Hybrid Cloud Computing 297
Autonomic Computing 298
The Internet of Things (IoT) 299
Examples of IoT 300
Enabling Connectivity with 5G 301
Business Benefits of IoT 302
Types of IoT Applications 302
Potential Issues with IoT Applications 303

PART 3 Business Information Systems 311

9 E-Commerce 312
An Introduction to E-Commerce 314
Categories of E-Commerce 315
Business-to-Business (B2B) E-Commerce 315
Business-to-Consumer (B2C) E-Commerce 317
Consumer-to-Consumer (C2C) E-Commerce 319
E-Government 320
Introduction to M-Commerce 321
M-Commerce in Perspective 322
M-Commerce Sites 322
Advantages of E-Commerce 322
Reach New Customers 323
Reduce Costs 323
Speed the Flow of Goods and Information 323
Increase Accuracy 324
Improve Customer Service 324

Multistage Model for E-Commerce 324

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

10 Enterprise Systems 364

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

11 Artificial Intelligence (AI) and Automation 402

Overview of Artificial Intelligence 404
Artificial Intelligence in Perspective 407
Nature of Intelligence 407
Expert Systems 409
Vision Systems 415
Other AI Applications 416
Artificial Neural Networks 416
AI and Employment 417
Machine and Natural Language 420
Machine Learning Training 420
Machine Learning Across Industries 422
Natural Language Processing 428
Brain Computer Interface 429
Robotics 432
Industrial Robots 433
Industry Applications 434
What’s Next? 435

PART 4
Planning, Implementing, and Managing Information
Systems 447

12 Strategic Planning and Project Management 448

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

13 System Acquisition and Development 500

Subscribe vs. Buy vs. Build 502
Software as a Service (SaaS) 505
Advantages of SaaS 505
Disadvantages of SaaS 506

Buying Off-The-Shelf-Software 508

Package Evaluation Phase 509
Finalize Contract 511
Integration and Testing 511
Implementation 512
Waterfall System Development Process 513
System Investigation 514
System Analysis 522
System Design 529
Construction 535
Integration and Testing 537
Implementation 539
System Operation and Maintenance 543
Agile Development 547

Glossary 560

Subject Index 571

As organizations and entrepreneurs continue to operate in an increasingly

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

xiv

Approach of This Text

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

IS Principles First, Where They Belong

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

Goals of This Text

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

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

professional so that students can better appreciate the role of this key
individual
3. To show the value of the IS discipline as an attractive field of specializa-
tion so that students can evaluate this as a potential career path

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

Survey of the IS Discipline

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

Changing Role of the IS Professional

As business and the IS discipline have changed, so too has the role of the IS
professional. Once considered a technical specialist, today the IS professional
operates as an internal consultant to all functional areas of the organization,
being knowledgeable about their needs and competent in bringing the power
of information systems to bear throughout the entire organization. The IS
professional must view issues through a global perspective that encompasses
the entire enterprise and the broader industry and business environment in
which it operates.
The scope of responsibilities of an IS professional today is not confined to
just his or her organization but encompasses the entire ecosystem of employ-
ees, contractors, suppliers, customers, competitors, regulatory agencies, and
other entities, no matter where they are located. This broad scope of respon-
sibilities creates a new challenge: how to help an organization survive in our
highly interconnected, highly competitive global environment. In accepting
that challenge, the IS professional plays a pivotal role in shaping the business
itself and ensuring its success. To survive, businesses must strive for the high-
est level of customer satisfaction and loyalty through innovative products and
services, competitive prices, and ever-improving product and service quality.
The IS professional assumes a critical role in determining the organizations
approach to both overall cost and quality performance and therefore plays an

important role in the ongoing growth of the organization. This new duality in
the role of the IS worker a professional who exercises a specialist’s skills with
a generalist’s perspective is reflected throughout Principles of Information
Systems, Fourteenth Edition.

IS as a Field of Study
Computer science and business were ranked #1 and #4, respectively, in the
2019 Princeton Review list of top 10 college majors based on research cover-
ing job prospects, alumni salaries, and popularity. A 2019 U.S. News & World
Report study placed, software developer, operations research analyst, and Web
developer as three of the top 25 best jobs for 2019 based on hiring d emand,
median salary, employment rate, future job prospects, stress level, and work
life balance. The U.S. Bureau of Labor Statistics identified information security
analysts, operation research analysts, and software and applications develop-
ers as among the fastest growing occupations for the period 2018 and 2028.
Clearly, the long-term job prospects for skilled and business-savvy informa-
tion systems professionals is good. Employment of such workers is expected
to grow faster than the average for all occupations through the year 2028.
Upon graduation, IS graduates at many schools are among the highest paid of
all business graduates.
A career in IS can be exciting, challenging, and rewarding! Today, per-
haps more than ever before, the IS professional must be able to align IS and
organizational goals and to ensure that IS investments are justified from a
business perspective. The need to draw bright and interested students into
the IS discipline is part of our ongoing responsibility. Throughout this text,
the many challenges and opportunities available to IS professionals are high-
lighted and emphasized.

Changes to the Fourteenth Edition

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

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

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

MindTap for Principles of Information Systems, Fourteenth Edition

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

MindTap allows instructors to measure skills and outcomes with ease.

Personalized teaching becomes yours through a Learning Path built with key
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Instructor Resources

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Acknowledgments
George Reynolds was a skilled teacher, IS enthusiast, dedicated author, and
family man. Over more than 20 years, Cengage has had the privilege of work-
ing with George and witnessing his commitment to writing the best infor-
mation systems textbooks. In addition to Principles of Information Systems,
George worked with Cengage as the author of Fundamentals of Information
Systems, Ethics in Information Technology, and Information Technology for
Managers. His dedication to his work never wavered and was rooted in his
desire to help students excel in their current and future business careers.
In addition to his work, he was deeply devoted to his family, and often
shared stories of barbeques, trips, and other adventures with his wife, chil-
dren, 11 grandchildren, and his dog, Zeus. George was personable and kind,
which made working with him a pleasure. We are deeply saddened by the
loss of our author and friend, but take comfort in knowing that his work will
continue to help students for years to come.
Thank you to all the new contributors—Joey Bryant, Mark Frydenberg,
Hollis Greenberg, George Schell, Ellen Monk, and Joseph Brady who came
together to make this edition possible. Thank you to Mary Pat Shaffer for your
continued support of this title and sharp eye in reviewing. George always
spoke highly of you, and valued your collaboration through the development
process. Thank you to all Cengage team members who supported this e dition,
especially Michele Stulga, Jaymie Falconi, Emily Pope, Amy Savino, Maria
Garguilo, Anna Goulart, Jim Vaughey, and Cassie Cloutier.

Chapter 1
Information Systems: P eople,
Technology, Processes, and
Structure

Chapter 2
Secure Information Systems

Chapter 3
Corporate and Individual
A ccountability: Ethical, Legal,
and Social Issues
Andrey_Popov/Shutterstock.com

Principles Learning Objectives

Managers have an essential • Identify two key management responsibilities in implementing successful
role to play in the successful information systems.
implementation and use of • State three reasons why organizations employ the Leavitt’s Diamond
information systems—that role model to introduce new systems into the workplace.
changes depending on which
type of information system is • Describe four fundamental information system types based on their
being implemented. sphere of influence.
• Discuss the traditional and contemporary view of the role that information
systems play in an organization’s value chains.
The strategic planning process • Identify four benefits of creating a strategic plan.
for the IS organization and the
• Identify four drivers that help set the information system organizational
factors that influence it depend
strategy.
on how the organization is
perceived by the rest of the • Identify three ways the IS organization can be perceived by the rest of
organization. the organization, and how each can influence the IS strategy.
everything possible/Shutterstock.com

The information system worker • Identify six non-technical skills needed to be an effective information
operates at the intersection of system worker.
business and technology and
• Identify two benefits of obtaining a certification in an IS subject area.
designs, builds, and imple-
ments solutions that allow
organizations to effectively
leverage information systems.
Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
IS in Action
mPharma Improves Prescription Availability
and Affordability
Global, Diversity
The people of Africa are struggling to overcome severe healthcare challenges. Africa has
15 physicians per 100,000 inhabitants, less than one-tenth of most countries. Sixty-two
percent of its 1.2 billion people live in rural areas where access to medical facilities is
extremely difficult. The drug manufacturers and the pharmacies have limited data on
which to develop an accurate forecast of the demand for specific drugs. This limited data
leads to frequent out-of-stock situations of essential medicines. After seeing patients,
doctors may need to make several calls to find pharmacies that can fill the necessary
prescriptions. It is not uncommon for a patient to travel miles to a specific pharmacy
only to find out that the needed prescription cannot be filled because it is no longer
in stock.
An information system is a set of interrelated components that work together to col-
lect, process, store, and disseminate information to support fundamental business oper-
ations, data reporting and visualization, data analysis, decision making, communications,
and coordination within an organization. mPharma is a start-up company that builds
information systems that connect patients, hospitals, pharmacies, and drug manufacturers
via networks, software, and mobile phones. With this technology, mPharma manages the
prescription drug inventory for pharmacies and pharmaceutical suppliers in four African
countries. The information systems also enable mPharma to track which drugs are avail-
able at any given time and where. Knowing this information gives patients reliable access
to medicines.
Once patients register in the mPharma system, their health data and prescription
history can be accessed by their doctor. After registration, doctors can prescribe medication
and send a prescription code to the pharmacy and the patient’s mobile phone. In addition,
doctors can see stock information for any of the mPharma partner pharmacies to avoid
sending patients to pharmacies where drugs are unavailable. Doctors and pharmacies
can also communicate directly through mPharma’s messaging system. By taking over the
inventory management for member pharmacies, forecasting demand of prescription drugs,
and bargaining with suppliers, mPharma has been able to lower prescription costs by as
much as 30 percent.
mPharma found that some participants in the program were reluctant to come
on-board. For instance, hospitals were not willing to share patient/doctor data,
pharmacies were not willing to allow mPharma access to their inventory data, and
patients had concerns about the privacy of their data. To prove the system would work,
mPharma launched a pilot program in Zambia that involved several doctors and 1,000
patients who received their prescriptions through the mPharma system. The success
of this pilot helped ease many of these concerns. In addition, mPharma was able to
extract an enormous amount of data to track drug usage and develop a real-time d isease
surveillance system.
mPharma founders had a clear goal: Make prescription drugs in emerging markets
easily accessible and readily affordable. They formed partnerships with venture capitalists,
major pharmaceutical manufacturers, insurance companies, financial institutions, and
governments to build a new technology infrastructure. They then developed information
systems on top of this infrastructure to change how prescriptions are filled and inventory
is managed. These new processes changed who is responsible for forecasting the demand
of prescription drugs. In addition, mPharma used key supporting system complements
including physician, pharmacy, and patient education to ensure successful implementation
and adoption of the system by doctors, patients, and pharmacists.

As you read about information systems, consider the following:

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

Why Learn About Information Systems?

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

What is an Information System

information system: A set of An information system is a set of interrelated components that work together
interrelated components that work to collect, process, store, and disseminate information. This information sup-
together to support fundamental ports fundamental business operations, data reporting and visualization, data
business operations, data reporting
and visualization, data analysis, analysis, decision making, communications, and coordination within an orga-
decision making, communications, and nization. A well-designed information system includes some form of feedback
coordination within an organization. mechanism to monitor and control its operation. This feedback ensures that the
system continues to operate in an effective and efficient manner.
Individuals and organizations use computer-based information systems
every day to accomplish a wide range of both work-related tasks and every-
day living activities. This includes processing the fundamental transactions
required to run a business (e.g. capturing customer orders and payments)
and communicating with fellow employees, customers, business partners, and
other resources. Information systems are also used to analyze large amounts of

data to detect underlying trends to enable accurate forecasts; track costs and
schedule progress on projects, prepare presentations including slides, graphs,
and tables; and monitor results and recommend appropriate actions.

Information Systems—A Means to Achieve

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

Managers’ Role in Implementing Successful Information Systems

An organization’s information system operates within a context of people, technol-
ogy infrastructure, structure, and processes, as shown in Figure 1.1. This model is
Leavitt’s Diamond: A model that known as Leavitt’s Diamond, and it was defined by American psychologist and
states an organization’s information organizational scientist Harold Leavitt. Organizations use this model to introduce
systems operate within a context of
new systems into the workplace in a manner that lowers stress, encourages team-
people, technology infrastructure,
processes, and structure. work, and increases the probability of a successful implementation.
Leavitt’s Diamond highlights the need for an overall implementation approach
that considers all four key components. Unfortunately, company leaders often focus
too narrowly on just the technology infrastructure component. When they do so,
they fail to consider the people, processes, and human structure components. This

failure can create a rough system start-up, frustrated employees, and missed orga-
nizational expectations that can lead to system failure or the need to redo much
of the implementation effort. Managers of the business functions most affected by
the new information system have a key responsibility to ensure that the people,
processes, and human structure components are fully addressed.

People
• Motivation
• Training
• Support

Technology Infrastructure
Processes • Hardware
• Procedures • Software
• Standards • Databases
• Measures • Networks
• Tools • Facilities
• Services

Structure
• Roles
• Responsibilities
• Authority

Figure 1.1
Leavitt’s Diamond
Leavitt’s Diamond proposes that every organizational system operates within a context composed
of people, technology infrastructure, processes, and human structure.

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

People People make the difference between success and failure in all
rganizations. Jim Collins, in his book Good to Great, said, “Those who build great
o
companies understand that the ultimate throttle on growth for any great company
is not markets, or technology, or competition, or products. It is one thing above
all others: the ability to get and keep enough of the right people.”5 Thus, it
comes as no surprise that people are the most important element of information
systems. Indeed, people are involved in information systems in many ways:
people envision information systems and the benefits they can deliver, people
design and build information systems, people support and maintain information
systems, and people use information systems to achieve worthwhile results.
Good information systems can enable people to produce extraordinary
results. They can also boost job satisfaction and worker productivity.6 Infor-
mation systems personnel include all the people who manage, run, program,
and maintain the system, including the chief information officer (CIO), who
leads the IS organization. End users are people who work directly with infor-
mation systems to get results. They can include anyone in the organization—
receptionists, financial managers, product development personnel, salespeople,
human resource managers, marketing representatives, warehouse workers,
executives, and manufacturing line operators.
Employees must be well trained and understand the need for the infor-
mation system, what their role is in using or operating the system, and how
to get the results they need from the system. They must be motivated to use
the information system and have access to system support people as needed.

technology infrastructure: All Technology infrastructure An organization’s technology infrastructure includes

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

Ta b l e 1.1 Global IT projected spending 2017–2019

Spending in Billions
Infrastructure Component 2017 2018 2019
Data center systems $178 $179 $179
Enterprise software $355 $389 $421
Devices $667 $704 $710
IT services $933 $985 $1,030
Communications services $1,393 $1,427 $1,443
Total Spending $3,526 $3,684 $3,783

process: A structured set of related Processes A process is a structured set of related activities that takes input,
activities that takes input, adds value, adds value, and creates an output for the customer of that process. The input
and creates an output for the customer
can be something tangible such as raw materials, data, chemical ingredients,
of that process.
documents, or data. The output can be finished product, information gleaned
from processing the data, a completed form, or a report. The customer of the
process may be an actual business customer or a worker in another organiza-
tional unit of the firm who needs the output of the process to perform his/her
job or to make a decision. A salesperson taking a customer order is an example
of a business process. The items in the order are pulled from inventory and
shipped to the customer. The order then goes through billing, collections, and
is eventually converted into cash.
procedure: A set of steps that need A procedure defines the steps to follow to achieve a specific end result,
to be followed to achieve a specific end such as how to enter a customer order, how to pay a supplier invoice, or how to
result, such as entering a customer
request a current inventory report. Good procedures describe how to achieve
order, paying a supplier invoice, or
requesting a current inventory report. the desired end result, who does what and when, and what to do in the event
something goes wrong. When people are well trained and follow effective pro-
cedures, they can get work done faster, cut costs, make better use of resources,
and more easily adapt to change. When procedures are well documented, they
can greatly reduce training costs and shorten the learning curve.
Using an information system involves setting up and following many pro-
cedures, including those for the operation, maintenance, and security of the
computer. For example, some procedures describe how to gain access to the
system through the use of a log-on procedure and a password. Others describe
who can access facts in the database or what to do if a disaster, such as a fire,
earthquake, or hurricane, makes the information system unusable. Good pro-
cedures can help companies take advantage of new opportunities and avoid
lengthy business disruptions in the event of natural disasters. Poorly developed
and inadequately implemented procedures, however, can cause people to waste
their time on useless rules or can result in inadequate responses to disasters.

structure: A definition of the Structure An organization’s structure defines relationships among members
relationships among the members of of the organization. In addition, it defines the roles, responsibilities, and lines
an organization including their roles,
responsibilities, and lines of authority
of authority that are necessary to complete various activities. Employees must
necessary to complete various understand and accept their roles and responsibilities, and these roles and
activities. responsibilities often change with the introduction of a new information system.

Types of Information Systems

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

Enterprise applications are required to comply with an organization’s security

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

Value Chain
value chain: A series (or chain) of The value chain is a series (or chain) of activities that an organization performs
activities that an organization performs to transform inputs into outputs in such a way that the value of the input is
to transform inputs into outputs in such increased. An organization may have many value chains, and different organiza-
a way that the value of the input is
increased. tions in different industries will have different value chains. As an example of a
simple value chain, consider the gift-wrapping department of an upscale retail
store. It takes packages from customers, covers the packages with decorative
wrapping paper, and gives the packages back to the customers, thus increasing
the perceived value of the gift.
supply chain: A key value chain In a manufacturing organization, the supply chain is a key value chain
whose primary processes include whose primary processes include inbound logistics, operations, outbound
inbound logistics, operations, logistics, marketing and sales, and service as shown in Figure 1.2. An orga-
outbound logistics, marketing and
sales, and service. nization’s supply chain encompasses the processes required to get the right
product or service into the right consumer’s hands in the right quantity at the
right time and at the right cost. These primary processes are directly concerned
with the creation and/or delivery of the product or service. The supply chain
also includes four main support processes, including technology infrastructure,
human resource management, accounting and finance, and procurement.

Figure 1.2 Suppliers Receiving Storage Advertising Customer service

Supply chain and primary and Raw material Storage Shipping Promoting
Transportation Manufacturing Selling
support processes Storage
The primary and support activities
of the manufacturing supply chain
are concerned with creating or
delivering a product or service. Inbound Outbound Marketing
Operations Services
logistics logistics and sales

Technology infrastructure, including information systems

Human resource management

Accounting and finance

Procurement

The concept of value chain is also meaningful to companies that don’t

anufacture products. These companies include tax preparers, restaurants,
m
book publishers, legal firms, and other service providers. By adding a significant
amount of value to their products and services, companies ensure their success.
Organizations are constantly fine-tuning and adjusting their supply chain.
For example, Amazon has transformed from a small, non-profitable online
bookseller to the largest Internet-based retailer in the world, as defined by total
sales and market capitalization. Amazon is continually evolving its approach
to supply chain management to ensure that it can deliver millions of items to
customers at the right price and faster than any other retailer. Amazon offers
customers Amazon Prime, an annual membership that guarantees free two-day
shipping on hundreds of thousands of items. When other online retailers moved
to match Amazon Prime, Amazon began offering free two-day shipping. Its next
move was one-hour delivery with Amazon Prime Now. Amazon customers who
live within 10 miles of an Amazon fulfillment center will soon be able to receive
their eligible packages (under 5 pounds) via drones inside of 30 minutes.
Amazon even introduced Dash buttons, little wireless communications devices

that allow users to simply press a button to order a household staple such as
bottled water, coffee, detergent, and paper products.
What role do information systems play in supply chain management activi-
ties and other organizational activities? A traditional view of information systems
holds that organizations use information systems to control and monitor pro-
cesses and to ensure effectiveness and efficiency. In this view, information sys-
tems are external to the supply chain management process and serve to monitor
or control it. A more contemporary view, however, holds that information sys-
tems are often so intimately involved that they are part of the process itself. From
this perspective, the information system plays an integral role in the process,
whether providing input, aiding product transformation, or producing output.

Critical Zara Supply Chain System

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

Review Questions
1. In what sphere of influence does the Zara supply chain information system
operate?
2. How has the Zara supply chain provided the firm with a competitive advantage?

Critical Thinking Questions

1. How can you ensure that sales assistants at each retail location will use the
information system as intended? (Hint: Refer back to Figure 1.2.)
2. What issues might you encounter in using the information system at Zara? How
might these issues be overcome? Whose responsibility is it to address these issues?

Strategic Planning
strategic planning: A process that Strategic planning is a process that helps managers identify initiatives and
helps managers identify initiatives and projects that will achieve organizational objectives. The strategic plan must
projects that will achieve organizational
take into account that the organization and everything around it is in a state
objectives.
of flux. This includes consumers’ likes and dislikes, changes in competitors,

and suppliers leaving and entering the marketplace. In addition, the costs and
availability of raw materials and labor fluctuate, the fundamental economic
environment (interest rates, growth in gross domestic product, inflation rates)
changes; and the degree of industry and government regulation varies.
Strategic planning provides the following benefits:
• A framework and a clearly defined direction to guide decision making at
all levels and across all organizational units
• The most effective use of the organization’s resources by focusing those
resources on agreed-on key priorities
• The ability of the organization to be proactive and to take advantage of
opportunities and trends, rather than passively reacting to them
• Improved communication among management, employees, the board of
directors, shareholders, and other interested parties
An organization develops an overall strategic plan, which sets the direction
for all the other business units of the organization. Common themes in s etting
strategies include “increase revenue,” “attract and retain new customers,”
“increase customer loyalty,” and “reduce the time required to deliver new
products to market.” In choosing from alternative strategies, managers should
consider the long-term impact of each strategy on revenue and profit, the degree
of risk involved, the amount and types of resources that will be required, and
the potential competitive reaction. Managers of the various business units also
develop a strategic plan that is consistent with the overall organizational plan.
Amazon has made a strategic decision to explore the possible use of deliv-
ery drones to gain a real competitive advantage over competitors who rely on
less efficient ground transportation. Because a large percentage of Amazon
packages weigh less than 5 pounds, drones could become the ideal rapid-
delivery vehicles. Amazon has detailed plans for this service; however, the
company cannot announce if or when the program will start until regulators
set out the rules regarding the commercial use of drones. Such a strategy has
the potential to attract new customers and increase revenue.10

Information System Strategic Planning

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

Figure 1.3
Corporate
Drivers that set IS strategy
organizational strategy and
determine information system
investments
Planners must consider many
factors in setting IS organizational Business
strategy. unit
strategies

IT
Innovative Technology
organizational
thinking innovations
strategies

IT investments:
• Technologies
• Vendors
• Competencies
• People
• Systems
• Projects

Ta b l e 1.2 The IS strategic planning spectrum

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

IS costs and to expand IS services in support of business initiatives.13 The stra-

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

Only 10 percent of surveyed CIOs stated that their IS organization is viewed

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

Critical Business Liaison Role

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

Review Questions
1. What organizational benefits can be gained from the creation of this role and
improved strategic planning?
2. What key drivers should govern the IS strategic plan?

Critical Thinking Questions

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

Information Systems Careers

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

140,000

120,000

100,000
PhD
80,000 Masters
Bachelors
60,000
Associates
Figure 1.4
40,000
Computer and information
science degrees awarded 20,000
U.S. computer and informa-
tion science degrees awarded 0
has exceeded 100,000 since
7

6
–0

–0

–1

1
2–

3–

4–

5–

2010–11.
06

1
20

computer and information science graduates take employment in related fields

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

Typical Information System Roles

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

Chief Information Officer

The role of the chief information officer (CIO) is to employ an IS depart-
ment’s equipment and personnel in a manner to best achieve the goals of
the organization. CIOs must understand finance, accounting, and return on
investment and be able to make wise choices on which of many projects to
fund and staff. They can help companies avoid damaging ethical challenges
by monitoring how their firms are complying with a large number of laws and
regulations. A good CIO is typically a visionary who provides leadership and
direction to the IS department to help an organization achieve its goals. CIOs
need strong technical, business, and inter-personal skills. Those interested in
this career path would do well to explore college-level coursework in business
management, computer science, and information technology. Employers prefer
applicants with at least five years of information technology experience in a
management capacity.

Software Developer
Software developers are the creative minds behind computer programs.
Some develop the applications that allow people to do specific tasks on a
smart phone, video game, laptop, or other computing device. Others develop
the underlying operating systems that run the devices or that control net-
works. Software developers test and debug the software as well as maintain
and upgrade software after it is released for initial use. Software developers
frequently collaborate with management, clients, and others to build a software
product from scratch, according to a customer’s specifications, or to modify
existing software to meet new business needs. Software developers usually
have a bachelor’s degree in computer science and strong computer program-
ming skills.

Information Systems Security Analyst

IS security analysts are responsible for planning, designing, implementing,
and maintaining the security and integrity of their organizations’ systems and
data. They analyze the security measures of the organization and identify and
implement changes to make improvements. Security analysts are responsible
for developing and delivering training on proper security measures. They also
are responsible for creating action plans in the event of a security breach. Most
information security analysts work for computer companies, consulting firms,
or business and financial companies. Most information security analyst posi-
tions require a bachelor’s degree in a computer-related field. Employers prefer
to hire analysts with experience in a related occupation.

Systems Analyst
Systems analysts frequently consult with management and users to define the
scope of and requirements for new information systems. They convey system
requirements to software developers and network architects for implementation.
They bring business and information systems together by understanding the needs
and limitations of both. They also assist in choosing and configuring hardware and
software, matching technology to users’ needs, monitoring and testing the system
in operation, and troubleshooting problems after implementation. A bachelor’s
degree in a computer or information science field is common, although not always
a requirement. Some firms hire analysts with business or liberal arts degrees who
have skills in information technology or computer programming.

Programmer
Programmers convert a program design developed by a systems analyst or
software developer into a working program written in one of many computer
languages. To do this, they must write, debug, and test the program to ensure
that it will operate in a way that it will meet the users’ needs. P
rogrammers
usually work in offices, most commonly in the computer systems design and
related services industry. Most computer programmers have a bachelor’s
degree; however, some employers hire workers with an associate’s degree.
Most programmers specialize in more than one programming language.

Web Developer
These professionals design and maintain Web sites, including site layout and
function, to meet the client’s requirements. The creative side of the job includes
creating a user-friendly design, ensuring easy navigation, organizing content,
and integrating graphics and audio (Figure 1.5). The more technical responsi-
bilities include monitoring Web site performance and capacity.

REDPIXEL.PL/Shutterstock.com

Figure 1.5
Web Developers
Web developers create and
maintain company Web sites.

Business Analyst
Business analysts are responsible for improving a company’s competitiveness
and performance across a broad spectrum of criteria. Evaluating and solving
business challenges is the strong suit of these professionals. They must collect,
review, and analyze information that enables them to make sound recommen-
dations. They often specialize in a particular functional area, such as supply

chain management, marketing, finance, or product development—or in an

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

Ta b l e 1.3 Median annual salary for different information system positions

2018 Median Annual Number of New Job
Job Title Salary Number of Jobs, 2016 Openings, 2016–2026
CIO $202,500 N/A N/A
Software Developer $115,000 1,256,300 302,400
Information Systems $115,250 100,000 28,500
Security Analyst
Systems Analyst $89,500 600,500 54,400
Programmer $65,000 294,900 −21,300
Web Developer $66,100 162,900 24,400
Business Analyst $92,000 N/A N/A
SOURCES: Robert Half 2018 Salary Guide for Technical Professionals and the Bureau of Labor Statistics Employment Projections, 2016–2026

Other IS Careers
In addition to working for an IS department in an organization, IS personnel can
work for large consulting firms, such as Accenture, IBM, and H ewlett-Packard.
Some consulting jobs entail frequent travel because consultants are assigned
to work on various projects at the client location. Such jobs require excellent
project management and people skills in addition to IS technical skills. Related
career opportunities include computer training, computer and computer-
equipment sales, and computer equipment repair and maintenance.
Other IS career opportunities include being employed by technology com-
panies, such as Oracle, IBM, HP, Microsoft, Google, and Dell. Such a career
enables an individual to work on the cutting edge of technology, which can be
challenging and exciting.
As some computer companies cut their services to customers, new compa-
nies are being formed to fill the need. With names such as Speak with a Geek
and Geek Squad, these companies are helping people and organizations with
computer-related problems that traditional computer vendors are no longer solving.
Some people decide to start their own IS businesses rather than continue
to work for someone else. Such small business owners often prefer to be their
own boss, with the freedom to think innovatively and take on new challenges.
Other people become IS entrepreneurs or freelancers. They write programs,
work on IS projects with larger businesses, or develop new applications for
the iPhone or similar devices. Some Internet sites, such as www.freelancer.com,
post projects online and offer information and advice for people working on
their own. Many freelancers work for small- to medium-sized enterprises in
the U.S. market. People doing freelance or consulting work must be creative in
pursuing new business, while also protecting themselves financially. Freelancers
and consultants must aggressively market their talents. To ensure that they are
paid, they should insist that some or all of their fees for a given project are
put into an escrow account. This will help ensure that they are paid for their
efforts even if the client is not satisfied with the end result.

Shadow IT
In addition to IS workers placed within the IS organization, some companies
have people who take on IS-related roles outside the IS organization. For
example, data scientists can be found in the marketing, sales, and supply chain
management departments of large organizations. Data scientists are responsible
for understanding the business analytics technology as well as the business.
They use their understanding to deliver improvements in decision making.
shadow IT: The information systems Shadow IT is a term used to describe the information systems and solu-
and solutions built and deployed by tions built and deployed by departments other than the information systems
departments other than the information department. In many cases, the information systems department may not even
systems department.
be aware of these efforts. Gartner studies have found that shadow IT is over
30 percent of total IT expenditures in large organizations. This statistic means
that non-IT business units are responsible for 30 percent of the total informa-
tion technology costs within an organization.20
At one time, shadow IT was limited to employee or departmental purchases
of nonstandard computing devices and off-the-shelf software from office sup-
ply stores. However, the scope of shadow IT spending has greatly expanded,
largely due to cloud computing and the availability of enterprise software,
file-sharing apps, and collaboration tools as a service. For instance, cloud ser-
vice providers can deliver increasing amounts of computing, network, and
storage capacity on demand and without requiring any capital investment
on the part of the cloud users. These cloud service providers typically offer a
monthly or annual subscription service model; they may also provide training,
support, and data integration services. All of this makes it easier for department
managers to skirt formal procedures associated with the purchase of large cap-
ital expense items—including scrutiny by the information system department.
Shadow IT enables business managers to quickly create highly innova-
tive solutions to real business problems and to test out these solutions. Such
systems may serve as prototypes that evolve into future approved IT solu-
tions. However, shadow IT solutions frequently employ nonapproved vendors,
software, or hardware and may not meet the IS department standards for
control, documentation, security, support, and reliability. This raises security
risks and issues regarding compliance with essential government and industry
standards, such as Basel III (international standards for the banking industry),
FISMA (Federal Information Security Management Act of 2002), GAAP (Gener-
ally Accepted Accounting Principles), HIPAA (Health Insurance Portability and
Accountability Act), IFRS (International Financial Reporting Standards), and
Sarbanes-Oxley Act (accounting regulations for publicly traded companies).
Issues often arise when a shadow IT solution “breaks” and questions are
raised about who is responsible for fixing it and supporting the end users. The
IS department may not have developed the solution, or even been aware of it,
but business users expect their help in “fixing” it. Table 1.4 presents a summary
of the pros and cons associated with shadow IT.
The information systems department may become more comfortable with
shadow IT if it sees the IS department’s role as maximizing the effective use
of technology in the company rather than controlling the use of technology.
Also, shadow IT provides a source of funds outside the IS department budget
to tackle high-priority projects.

Continuous Education
Often, the people filling IS roles have completed some form of certification.
certification: A process for testing Certification is a process for testing skills and knowledge; successful comple-
skills and knowledge. tion of a certification exam results in an endorsement by the certifying authority
that an individual is capable of performing particular tasks or jobs. Certification
frequently involves specific, vendor-provided, or vendor-endorsed coursework.
Getting certified from a software, database, or network company may open

the door to new career possibilities or result in an increase in pay. According

to one survey, 65 percent of employers use IT certifications to differentiate
between equally qualified candidates, while 72 percent of employers require
some form of IT certification for certain job roles. Table 1.5 presents some of
the more in demand certifications.21

Ta b l e 1.4 Pros and cons of shadow IT efforts

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

Ta b l e 1.5 Certifications in high demand

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

Critical Virtual Team Onboarding

Thinking Teamwork
Exercise
You are a recent hire in the 100-person information systems organization of a large
consumer products company with four manufacturing locations, two distribution
centers, and a product research and development facility. These workplaces are
spread around the United States. A virtual team consisting of three new hires
and six experienced information system managers and technicians from the firm’s
various locations has been formed to improve the process of onboarding new
information system hires and getting them up to speed as soon as possible.

Review Questions
1. What skills, knowledge, and experience might the new hires be lacking that
could hinder them in their initial assignments?
2. How might this knowledge gap be filled? Would you consider special training
courses? What about assignments tailored to capture the missing skills and
knowledge?

Critical Thinking Questions

1. Identify some of the advantages of forming a multi-organizational, virtual team
to improve the process. Do you think that the team should consider adding any
non-IS members? Why or why not?
2. What are some of the logistical complications and team dynamic problems that
the team can expect when working on this process?

Summary

Principle:
Managers have an essential role to play in the successful implementation
and use of information systems—that role changes depending on which
type of information system is being implemented.
An information system (IS) is a set of interrelated components that work
together to collect, process, store, and disseminate information to support fun-
damental business operations, data reporting and visualization, data analysis,
decision making, communications, and coordination within an organization.
A well-designed information system provides a feedback mechanism to monitor
and control its operation to make sure it continues to meet its goals and objectives.
A competitive advantage enables an organization to generate more sales or
achieve superior profit margins compared to its rivals. It can be gained in one
of three ways: (1) by providing the same value as its competitors but at a lower
price (cost leadership), (2) by charging higher prices for providing products
which are perceived by the customer as being better (differentiation), or (3) by
understanding and servicing their target market better than anyone else (focus).
Managers have a key responsibility to identify and capitalize on opportu-
nities to employ information systems as a tool to gain competitive advantage.
An organization’s information systems operate within a context of people,
technology infrastructure, processes, and structure. This framework is Leavitt’s
Diamond. This model is used to introduce new systems into the workplace in a
manner that lowers stress, encourages teamwork, and increases the probability
of a successful implementation.
Managers of the business functions most affected by the new information
system have a key responsibility to ensure that the people, processes, and
human structure components are fully addressed.
People make the difference between success and failure in all organiza-
tions. Good systems enable people to produce extraordinary results.

An organization’s technology infrastructure includes all the hardware, soft-

ware, networks, facilities, and services used to develop, test, deliver, control, or
support the information technology applications and services an organization
requires to meet the needs of its customers, suppliers, key business partners,
regulatory agencies, and employees.
A process is a set of related activities that takes input, adds value, and
creates an output for the customer of that process.
Structure has to do with the defined relationships among members of the
organization and their various activities. It also includes processes that assign
roles, responsibilities, and authority to complete the various activities.
When considering the role of business managers in working with
information systems, it is useful to divide information systems into four types
based on their sphere of influence: personal information systems, workgroup
information systems, enterprise information systems, and interorganizational
information systems.
Personal IS includes information systems that improve the productivity of
individual users in performing stand-alone tasks.
Workgroup IS are systems designed to support teamwork and enable
people to work together effectively, whether team members are in the same
location or dispersed around the world.
An enterprise application IS is used to meet organization-wide business
needs and typically shares data with other enterprise applications used within
the organization.
An interorganizational information system (IOS) is a system that enables
sharing of information and conducting business electronically across
organizational boundaries.
The value chain is a series of activities that an organization performs to trans-
form inputs into outputs in such a way that the value of the input is increased.
The supply chain is a key value chain whose primary processes include
inbound logistics, operations, outbound logistics, marketing and sales, and
service. Supply chain management encompasses all the processes required to
get the right product into the right consumer’s hands in the right quantity at
the right time and at the right cost.
Information systems have transformed the nature of work and the shape
of organizations themselves. A traditional view of information systems holds
that organizations use them to control and monitor effectiveness and efficiency.
A more contemporary view holds that information systems are often so inti-
mately involved in the activities of the value chain that they are a part of the
process itself.

Principle:
The strategic planning process for the IS organization and the factors that
influence it depend on how the organization is perceived by the rest of
the organization.
Strategic planning is a process that helps managers identify desired out-
comes and formulate feasible plans to achieve their objectives using available
resources and capabilities.
Strategic planning provides a framework to guide decision making, ensures
effective use of resources, enables an organization to be proactive and take
advantage of opportunities and trends, and it improves communication.
An IS organization can be viewed as a cost center/service provider, a
business partner/business peer, or a game changer.
IS strategic planning is influenced by the corporate and business unit
strategic plans as well as technology innovations and innovative thinking.
The IS strategy identifies the technologies, vendors, competencies, p
eople,
systems, and projects in which the organization will invest to support the
corporate and business unit strategies.

Principle:
The information system worker functions at the intersection of business
and technology and designs, builds, and implements solutions that allow
organizations to effectively leverage information technology systems.
Successful information system workers need to have a variety of personal
characteristics and skills, including the ability to work well under pressure
and in a fast-paced environment constantly undergoing change, good commu-
nication skills, solid analytical and decision-making skills, effective team and
leadership skills, and adeptness at implementing organizational change.
Typical information system roles include CIO, software developer, infor-
mation systems security analyst, systems analyst, programmer, Web developer,
and business analyst.
Technology is one of the fastest-growing areas of the U.S. economy, which
has a strong demand for information system workers.
Only about 60 percent of all information technology outlays are controlled
by the information systems department. Shadow IT is a term used to describe
the information systems and solutions built and deployed by departments
other than the information systems department. In many cases, the information
systems department may not even be aware of these efforts.
Besides working for an IS department in an organization, IS personnel
can work for a large consulting firm or a hardware or software manufacturer.
Developing or selling products for a hardware or software vendor is another
IS career opportunity.
Certification is a process for testing skills and knowledge; successful com-
pletion of a certification exam results in an endorsement by the certifying
authority that an individual is capable of performing particular tasks or jobs.
Certification can result in new career opportunities including promotion and
a salary increase.

Key Terms
certification process
enterprise information system shadow IT
workgroup information system strategic planning
information system structure
interorganizational IS supply chain
Leavitt’s Diamond technology infrastructure
personal information system value chain
procedure workgroup information system

Self-Assessment Test
Managers have an essential role to play in the suc- 2. Managers of the business functions most affected
cessful implementation and use of information by a new information system have a key respon-
systems—that role changes depending on which sibility to ensure that _______________.
type of information system is being implemented. a. only the most current and most advanced
technology is employed
1. Four information system types based on their
b. the people, processes, and human structure
sphere of influence include interorganizational,
components are fully addressed
personal, enterprise, and _______________.

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*** START OF THE PROJECT GUTENBERG EBOOK THE AMERICAN

MISSIONARY — VOLUME 36, NO. 8, AUGUST 1882 ***
CONTENTS.

Page.

EDITORIALS.

Annual Meeting—Mr. Ladd’s Return from Africa 225

The John Brown Steamer 226
Our Opportunity—Atlanta Church 227
Change of Environment Rev. W. W. Patton, D.D. 228
Temperance Text-Books 230
Benefactions 231

THE FREEDMEN.

Anniversary Reports 231

Atlanta University, Ga. 231
Talladega College, Ala. 233
Straight University, New Orleans 234
Tillotson Institute, Austin, Texas 235
View on Bayou at Houston (Cut) 236
Normal School, Wilmington, N.C. 237
Le Moyne Institute, Memphis, Tenn. 238
Lewis High School, Macon, Ga. 238
“Pine Grove College,” Kentucky 240
Familiar Scene in Louisville, Ky. (Cut) 241

AFRICA.
Mr. Ladd’s Journal 242
Egyptians of Upper Egypt (Cut) 245

THE CHINESE.

Letter from Rev. W. C. Pond 246

CHILDREN’S PAGE.

A Tennessee Band of Hope 248

RECEIPTS 249
American Missionary Association,
56 READE STREET, NEW YORK.

President, Hon. WM. B. WASHBURN, Mass.

CORRESPONDING SECRETARY.

Rev. M. E. STRIEBY, D.D., 56 Reade Street, N.Y.

TREASURER.

H. W. HUBBARD, Esq., 56 Reade Street, N.Y.

DISTRICT SECRETARIES.

Rev. C. L. WOODWORTH, Boston. Rev. JAMES POWELL, Chicago.

Rev. G. D. PIKE, D.D., New York.

COMMUNICATIONS
relating to the work of the Association may be addressed to the Corresponding
Secretary; those relating to the collecting fields, to the District Secretaries; letters
for Editor of the “American Missionary,” to Rev. G. D. Pike, D.D., at the New York
Office.

DONATIONS AND SUBSCRIPTIONS

may be sent to H. W. Hubbard, Treasurer, 56 Reade Street, New York, or, when
more convenient, to either of the Branch Offices, Rev. C. L. Woodworth, Dist. Sec.,
21 Congregational House, Boston, Mass., or Rev. James Powell, Dist. Sec., 112
West Washington Street, Chicago, Ill. A payment of thirty dollars at one time
constitutes a Life Member. Letters relating to boxes and barrels of clothing may be
addressed to the persons above named.

FORM OF A BEQUEST.
“I bequeath to my executor (or executors) the sum of ——— dollars, in trust, to pay
the same in ——— days after my decease to the person who, when the same is
payable, shall act as Treasurer of the ‘American Missionary Association’ of New
York City, to be applied, under the direction of the Executive Committee of the
Association, to its charitable uses and purposes.” The Will should be attested by
three witnesses.

The Annual Report of the A. M. A. contains the Constitution of the Association and
the By-Laws of the Executive Committee. A copy will be sent free on application.
THE

American Missionary.
Vol. XXXVI. AUGUST, 1882.
No. 8.
American Missionary Association.

ANNUAL MEETING.
The next Annual Meeting of the American Missionary Association will
be held in Cleveland, Ohio, commencing Tuesday, Oct. 24, at 3 p.m.
Rev. C. L. Goodell, D.D., of St. Louis, Mo., will preach the sermon.
Other addresses and papers will be announced hereafter.
REV. MR. LADD’S RETURN FROM AFRICA.
Our readers, who have followed Mr. Ladd’s journey in Africa, as
given in his interesting journal, will be glad to know of his safe
return and of his excellent and uninterrupted health throughout the
entire trip, which extended about 2,500 miles up the Nile to the
mouth of the Sobat, which is within the territory designated by Mr.
Arthington for the proposed mission.
Persons who have kept themselves informed through the public
press of the condition of things in the Upper Nile region will be
prepared for Mr. Ladd’s somewhat discouraging report of the state of
the country. The Arab leader and prophet, Achmet, of whose
successful rebellion the papers have from time to time given brief
intimations, Mr. Ladd found to be dominating completely a portion of
the very region in which the mission is to be located, and it was by
Divine interposition that Mr. Ladd was enabled to explore so much of
the territory and return safely. Intelligence of a startling character
received at this date (July 8), shows that Achmet has achieved
another victory over the Egyptian troops, more decisive than any
heretofore won, involving the slaughter of 3,000 of the Egyptian
forces, which must for the present, at least, annihilate the authority
of the government in that whole region, while the condition of Egypt
itself, likely to become the theatre of a terrible war, gives little
promise that its authority can be speedily re-established in the
remote provinces of the Soudan. A delay, therefore, is inevitable in
our movements in Eastern Africa.
In the meantime, as was originally planned, Mr. Ladd is endeavoring
to marshal a new recruit of colored missionaries for the Mendi
mission, and expects to accompany them thither at the close of the
present wet season.
THE JOHN BROWN STEAMER.
Some months ago we sent out our circulars to the Sunday-schools in
our churches, asking for $10,000, to enable us to build this memorial
steamer for mission work along the west coast, and up and down
the rivers, in that portion of the “Dark Continent” where there are no
roads, and no beasts of burden, no horses, no camels, no oxen, not
even mules. The need is great. The steamer will save time, toil, and
human life.
Inquiries come to us respecting the success of our appeal. We are
glad to answer: At this date, July 5, we have received $5,524 for the
steamer, and some pledges are yet unpaid. We are also receiving
additional remittances almost every day, and believe that the
amount needed will ultimately be realized. But we are anxious to
hasten the matter. Rev. Mr. Ladd has just returned from his exploring
tour in Eastern tropical Africa, and proposes to visit our Mendi
Mission in Western Africa (for which this steamer is intended) as
soon as the rainy season is over. We ought to have the full amount
for the steamer by September 1.
A good friend, in sending some money, says:—“Why moves the
cause so slowly? In looking over the list of donations, I am pleased
and grieved; pleased that so many are interested to give—grieved
that so few special donations for this very important object are
made.
“Friends of Africa, if you could realize as I do the urgent need of this
steamer to save life and to advance the mission cause, you would
speedily pour in the money for it. It ought to be in service, doing its
greatly needed work this coming autumn. If you will go to Africa and
make one trip (as I have made many) to the Mendi Mission, in a
‘dug out’—a canoe dug out of a log—the distance of more than 100
miles, most of the way on the ocean—you will then see and feel the
need of this proposed steamer. O, why does not every Sunday-
school send in $50, $20, $10 or $5? Why do not individuals, who
have in hand a great abundance, send $50, $100 or $1,000, and so
have this noble work accomplished at once? Come, friends of Africa,
supply the means and send forth this new messenger of mercy, to
cause a great shout of joy to go up from the weary missionaries and
from a long-suffering people!” Who will heed this plea from one who
has known the field and suffered much for it?
OUR OPPORTUNITY.
We find it in Kentucky. Our Executive Committee recently sent their
Field Superintendent to that State for a bit of inspection. As a
sample of opportunity we refer to the deeply interesting article in
this number from President E. H. Fairchild. The A. M. A. has taken up
that school and has assumed the support for six months of Miss
M. R. Barton, a student of Berea, from Illinois. That school-house,
which is the only one in Jackson County that has windows in it, will
give out a good deal of light among those mountain people. At Cabin
Creek, our old ante-bellum battleground, in the foot-hill country, the
people are building an “Academy,” with the money subscribed on the
condition that there shall be no respect of color. The A. M. A. has
been asked to lend there a helping hand. At Williamsburg, the
county seat of Whitley County, a town sixty years old, where a
church has never yet been finished, though three have rotted down
during the process of building, Rev. A. A. Myers has returned to his
old A. M. A. work, and has inspired the people to build a church
edifice 40×60. He works with his own hands by the side of the
citizens. He gets the base-ball club to give an hour a day to the
digging and rolling of stone for the foundation. The First
Congregational Church has been organized, and now the same
people are bent upon getting up a high school, having turned to this
Association for help, which will be gladly rendered, negotiation being
already on foot to secure the teachers, who the citizens say must
come from north of Mason and Dixon’s line. This town, with fine
water power and rafting facilities on the Cumberland, has already
attracted several mills and wood-work factories, one of which is to
make oars for the market in Europe. The railway that is to cross the
mountains to Knoxville will soon reach this place. Out of the
mountain country still further back of this, it is said, went Dick Yates
to be the War Governor of Illinois, and also its present Executive,
Governor Cullom, and other notabilities. At another county seat,
which can scarcely be reached on wheels—horseback being the
almost exclusive mode or travel; Mr. Myers and his wife having come
seventy miles in this way to the recent Berea Commencement—at
this place, Beattyville, the A. M. A. is to aid a recent colored
graduate of Berea, O. W. Titus, to run his, the only colored school in
the county, through the school year. In these mountains is our
opportunity.

In the First Congregational Church of Atlanta, Ga., Pastor Kent

having led his people into a system of giving, found that the first
response for the American Board, with envelopes, brought in $68,
from two hundred and two contributors. This was preceded by five
missionary sermons, illustrated from a large missionary map, and by
a rousing Sunday-school missionary concert. “Do you wonder we are
jubilant?” exclaims the pastor. “It is interesting, but not at all
surprising, to observe how giving promotes spirituality. Our prayer
meetings are full of interest lately, and this increase seems to date
from our recent determination to put our hands to the work of the
Redeemer beyond our own confines. It is delightful. The idea of ‘the
world for Christ,’ is getting hold of them, and I am confident it will
prove the most direct route to self-support. Several have expressed
to me the conviction that they must not only give for the world, but
that they must do more for the home church.”
CHANGE OF ENVIRONMENT
BY PRESIDENT WM. W. PATTON, D.D.

This is a phrase with which the physical philosophers have made the
public ear familiar. The advocates of Darwin’s views have assured us
that all the variations of animal form may be explained by the
relations of life to environment. “Natural selection,” as the key to the
development of different species, denotes simply the effect which
accompanying circumstances have upon life, health and the exercise
of particular organs. “The survival of the fittest,” a companion
phrase, means merely the fact that those forms of life endure which
have the most favorable surroundings. And no one can doubt that in
the chain of causation, which links things together in this world,
there is a continual and most important interaction between all life
and that which environs it.
But may we not ascend, in our reasoning, from animal life to human
thought and character, and find the same law operative? As human
health, form and vigor are found to vary with phenomena of climate,
such as heat and cold, moisture and dryness, and with geographical
location among mountains and valleys, or on broad plains, by the
sea-coast or in the interior, so do we not notice that mental and
moral development depend upon the outward circumstances amid
which one lives? Our natures are plastic, and easily take the impress
of objects with which we come continually in contact. Education is
not merely that from books, but that also which is received from all
manner of surrounding influences, as they exist in the home, in
social intercourse and in the community at large. We see whole
nations continue, century after century, on the same low level of
barbarism, because no change occurs in their outward circumstances
to bring new forces to act upon them. Our Indian tribes are an
illustration. They live, out on the western plains, precisely as their
fathers did for ages before them; and thus they will live so long as
the modifying influence of civilization does not reach them, and
bring a change of environment.
Let such a change occur, however, and a revolution takes place,
whatever race may be involved. Even the most favored nations
improve rapidly, when any external fact comes in, to change
circumstances, and thus to alter the current of thought and the
channel of action. Think how much of modern civilization is owing to
three things, themselves external and mechanical, yet powerfully
affecting mind by their incidental effects—the invention of
gunpowder, of the mariner’s compass and of printing. But if, in
addition to new inventions and industries, there be brought in
schools and churches, to operate directly on mind and heart, the
effect is like placing people in a new climate. It is, indeed, scarcely a
figure of speech, when we sometimes speak of an intellectual and
moral atmosphere—meaning thereby the totality of constant
influences in a community, which affect opinion, modify character
and control conduct. As we breathe the air, every moment of every
day, thinking little of the fact, yet continually drawing in health or
sickness, life or death, so are we unconsciously but most really
influenced for good or evil by all that is going on around us; by
public opinion, social customs, example of friends and neighbors,
existing institutions, industries, amusements, studies, reading,
conversation and religious exercises.
It is a slow process to raise an entire population or a numerous class
of people; but much may be done rapidly, if we select some of the
young of both sexes and change their environment, and so prepare
them to introduce the leaven of improvement into the mass. Thus,
allow colored children to grow up in communities of prevailing
ignorance, superstition and immorality, where they live in miserable
hovels, see only examples of coarseness and rudeness and hear only
a negro dialect, and they will naturally be like their parents and the
neighbors. Nor will it be sufficient merely to put spelling-books and
readers into their hands. Their surroundings are still depressing and
degrading. But send some of these youth away to such institutions
of education as the Atlanta, Fisk and Howard Universities—in other
words, make a total change of environment—and the effect is
marvelous. In addition to having access to books, they go where the
entire conception and standard of living is different and elevated;
where religion is intelligent; where morals are pure; where manners
are refined; where language is grammatical; where clothing is whole
and neat; where public sentiment is on the right side of disputed
questions. It is, indeed, breathing a new atmosphere, where every
breath is health and life. I have watched, with great interest and
satisfaction, the effect of these incidental influences, during my five
years’ connection with Howard University. The revolution which will
occur in a rough specimen of humanity from the interior plantation
districts—dull of countenance, and rude in manners and in dress—
would scarcely be credited. He finds himself in a new world on
reaching Washington, and mingling with older students and the city
population. New ideas of dress, speech and behavior come to him
daily. Chapel exercises, prayer-meetings and the preaching on the
Sabbath raise his religious conceptions. The novel sights along the
streets stimulate as well as interest. The competition of fellow-
students arouses ambition. He hears numerous celebrated public
speakers, and, on Saturdays, goes to the Capitol, and listens to
Congressional debates, sees eminent men, visits the Patent-Office,
the Smithsonian, the National Museum and the Navy-Yard, gets an
idea of our government and of politics, and thus is hourly absorbing
valuable knowledge at every pore. Three or four years of such an
environment make a very different man of him; and all his new ideas
he carries back to his home, and thus becomes a power for good in
the community.
Why will not Christian people appreciate these facts and amply
sustain the American Missionary Association in its noble work of
planting and strengthening the educational institutions which
operate to change for the better the environment of the colored race
in this country? All improvement must be by an influence from
without, which shall quicken and inspire, which shall teach and
guide; and there is no such influence comparable with that which
comes from the combination of schools and churches.
TEMPERANCE TEXT-BOOKS IN OUR SCHOOLS.
Our institutions have always been temperance societies. Mr. John M.
Stearns, Sec. of the Nat. Temp. Soc., at its recent annual meeting,
reporting his tour through the South, said that, as he was talking to
the students at Fisk University, Prof. Spence reported that every
student was required to sign the total abstinence pledge or to leave
the institution. At Atlanta University, he found that all of the 310
students had signed the same pledge; and this is also true of all our
other schools. Then our students, as they go everywhere in their
vacations, become temperance propagandists, organizing societies,
circulating the literature of the reform and securing signatures to the
pledge. But, during the past year, our Executive Committee have
thought to take a step forward, and so have voted to require the use
of some temperance text-book in all our schools. Mr. Stearns found
them introduced into many, and by another year they will be found
in all. The Atlanta University has already had Dr. Richardson’s
Temperance Lesson Book in use for two or three years, to the
highest satisfaction of all concerned. The examination of the class in
this book in the presence of the State Board of Examiners was
pronounced by a visitor the best temperance lecture he had ever
heard. Let such text-books go into all the schools of the South, and
they will hasten on a revolution.

The Roanoke Collegian, of Salem, Va., referring to the John F. Slater

Fund, says: “The most needed right of the negro now is his ability to
write.”
BENEFACTIONS.
John B. Eldridge, of Hartford, Conn., leaves by will $20,000 to Mt.
Holyoke Seminary, and $15,000 to Carleton College, Minn.
Ex-Gov. Chas. H. Hardin, the founder of Hardin College, has given
$19,000 to build a new wing to the edifice.
Mrs. J. S. Herrick, of Madison, Wis., has given $10,000 towards the
Professorship Fund of Chicago Seminary.
Senator Joseph E. Brown, of Atlanta, Ga., has given $50,000 to the
Baptist Theological Seminary, at Louisville, Ky.
Mrs. Ella J. Wheeler, of Boston, has given $30,000 for the
endowment of the Friends’ School in Providence.
Edwin C. Litchfield, who founded the observatory at Hamilton
College, has just given it $2,000 for additions, and has assumed the
payment of the salary of an assistant for Prof. Peters.
With a start of $30,000, given by Mr. E. N. Blake, of Chicago, the
sum of $70,000 has been raised in the West for the Baptist
Theological Seminary in that city; and now it is proposed to secure
$110,000 in the East, $45,000 of which is already pledged.
The Executive Committee of the American Missionary Association at
its last Annual Meeting appealed for $500,000 for the endowment of
its chartered institutions at the South. The anniversaries of the
different colleges of the land are calling the attention of the
benevolent public to their growth and wants. We especially urge the
claims of the colored people South to a full share of the gifts made
for endowment purposes.
THE FREEDMEN.
REV. JOSEPH E. ROY, D.D., Field Superintendent, Atlanta, Ga.

ANNIVERSARY REPORTS.

ATLANTA UNIVERSITY, GEORGIA.

BY REV. C. W. FRANCIS.

Unless you could look through our eyes you would not know, from a
formal record of the closing exercises of our school, how much
interest and hope and pathos are crowded into these busy days.
On Sabbath morning, June 11th, President Ware preached to a
crowded audience, the sermon to the graduating class from the text
1 Tim., 4th chap., 8th verse, giving a forcible presentation of the
thought that right doing is profitable in all respects, for this life. The
examinations were continued for three days, and were attended by a
committee of the Board of Visitors, appointed by the Governor of the
State, who, at the close, made to him a highly favorable report,
which has been published with his approval. Two evenings were
occupied by the exercises of the two literary societies of the school,
which were favorably received by good audiences.
On Thursday, the commencement exercises were held at Friendship
Baptist Church, one of the largest in the city, kindly placed at our
disposal for this purpose, which was filled with a closely packed
audience of about 2,000 people, well dressed, orderly, attentive, and
evidently having a personal pride in the results exhibited. The
appearance and conduct of this commencement audience in
successive years affords a good indication of the steadily improving
condition of the mass of the people, viewed with great satisfaction
by friends who have opportunities for comparison.
A class of twelve was graduated, ten young women from the Normal
course and two young men from the College course, all of whom
presented pieces which received much commendation for their
simplicity, directness and good sense.
The annual address was delivered by Rev. E. W. Bacon, of New
London, Conn., and was a forcible and eloquent plea for self-
education, which was singularly appropriate to the circumstances of
the young people just leaving school, to whom it was primarily
addressed.
Two members of the class which was graduated, had, during the
year, been called away from earth, as well as five from other classes,
being an unusual number of deaths in one year. A precious work of
grace was enjoyed during the year, and more than thirty professed
conversion, of whom fifteen united with the school church. All the
members of the graduating class were professing Christians, which
may also be said of nearly every class which has been graduated
hitherto.
As an evidence of the increasing favor with which this school and its
work is regarded in the community, there may be appropriately
quoted some of the remarks of Rev. C. A. Evans, of the M. E. Church
South, pastor of a large church in the city, formerly General in the
Southern army, who spoke at the close of the class examinations: “I
did not expect to say a word, but I comply with an American habit of
making a speech whenever called upon. I am a Georgia man, and
my children are all Georgia born, and I wish them all to stay here. It
is a kindred wish that every one of you may remain a citizen of
Georgia. I also wish that the friends who have come from afar to be
your instructors shall not take to themselves wings and fly away, but
shall settle in this grand old State, and their children after them.
There is no enmity between the white and colored people in this
State. There is a growing desire of the white people, as you will find,
for your welfare. They are anxious that you should have the best in
social life, the best in intellectual life, and in moral life, to which you
can attain. The State is benefited by good citizens, and God is
glorified by true manhood. I have looked upon these exercises with
great interest as a fellow citizen, expecting to live with you and to
come into contact with you in a thousand ways. I am glad for all I
see and know.”
Remarks in a similar strain were made by several other prominent
gentlemen in attendance.

Extracts From Report of the State Board of Examiners.

We do not believe that we have ever seen better teaching than we

find done at the Atlanta University. Evidences of the same
thoroughness appeared in all grades of the grammar school and
throughout all the classes of the higher departments.
We were particularly struck with one feature in the method of
instruction adopted in this institution, and that was the accuracy of
the language in which every question was required to be answered.
The answer is not only to be given correctly as to substance, but it
must be expressed in words both grammatical and appropriate; if
not, the pupil reciting is asked to correct it, and if unable to do so, it
is passed to others of the class.
Your committee noticed another feature in the management of the
university to which they desire to call your attention as worthy of
high commendation, and that is the manual labor training that is
here afforded in connection with the literary course. Every student,
male and female, is required to work an hour each day at some
useful labor, either on the farm connected with the institution, or in
the household and kitchen department. The tendency of this
regulation is not only to greatly reduce the expenses of board, etc.,
but to induce habits of industry, and impart valuable practical
information for everyday use in after life. The farm, including the
beautiful grounds immediately surrounding the college buildings,
contains about sixty acres, and is under the direction of a thoroughly
practical and energetic gentleman who keeps everything in
admirable order and brings out the best possible results. Specimens
of field and garden crops, embracing a great variety of grasses and
forage plants, cereals and vegetables, were exhibited to your
committee, evincing great efficiency in this department. Samples of
the culinary art were also shown us, and if our eyes and our palates
did not deceive us, they reflected great credit on those who
prepared them for our inspection and entertainment.
Special contributions have been obtained for the establishment of an
industrial department for instruction in the more useful trades.
“Stone Hall,” the gift of Mrs. Valeria G. Stone, of Malden, Mass., is in
process of erection. Other new buildings are projected for the
coming year.
At a recent meeting of the trustees of the university, a resolution
was passed to institute forthwith a post-graduate course of two
years for graduates of the normal department. Its privileges are to
be open to those who have maintained a high standard in the
regular course, and who give promise of efficiency in work for which
this special training is designed to fit them, and the preference is to
be given to graduates of one or more years standing. This course,
while not neglecting intellectual culture, by providing for courses of
reading and for attendance upon recitations and lectures, and for
practice in teaching, is to provide special training in nursing the sick,
sewing, cutting and making of garments, care of household affairs,
the inauguration and management of mission work, and in general
whatever training seems likely to prepare young women of culture
for the responsible duties of actual life. At the same meeting the
trustees directed the executive committee to select as soon as
practicable a suitable person as principal of this course of study, who
shall also be matron of the family of young women who may be
gathered for this purpose; and they are further directed to prepare
plans for the suitable accommodation of such a family.
The trustees also voted that an industrial department for boys be at
once organized, which shall provide for training in carpentry and
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