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 MIS
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HOSSEIN BIDGOLI, PH.D.

California State University - Bakersfield

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 MIS
BIDGOLI

9 BRIEF CONTENTS

PART 1: FUNDAMENTALS OF INFORMATION SYSTEMS 2

1 Information Systems: An Overview 2
2 Computers: The Machines Behind Computing 24
3 Database Systems, Data Warehouses, and Data Marts 46
4 Personal, Legal, Ethical, and Organizational Issues of
Information Systems 72
5 Protecting Information Resources 92

PART 2: DATA COMMUNICATION, THE INTERNET,

E-COMMERCE, AND GLOBAL INFORMATION SYSTEMS 118
6 Data Communication: Delivering Information Anywhere and
Anytime 118
7 The Internet, Intranets, and Extranets 144
8 E-Commerce 172
9 Global Information Systems 198

PART 3: IS DEVELOPMENT, ENTERPRISE SYSTEMS,

MSS, IIS, AND EMERGING TRENDS 218
10 Building Successful Information Systems 218
11 Enterprise Systems 242
12 Management Support Systems 262
13 Intelligent Information Systems 284
14 Emerging Trends, Technologies, and Applications 308

Endnotes 333
Index 347
Graphic Compressor/Shutterstock.com

iii
 CONTENTS
Information Technologies at Walmart 15
Part 1 1-6c Porter’s Five Forces Model: Understanding the Business
Environment 16
Fundamentals of Information Systems Information Technologies at Netflix 17
Digital Innovation in Retail Industry Using
Information Technologies 18
1-7 The IT Job Market 18
1-7a CTO/CIO 19
1-7b Manager of Information Systems Services 19
ESB Professional/Shutterstock.com

1-7c Systems Analyst 19

1-7d Network Administrator 19
1-7e Database Administrator 19
1-7f Computer Programmer 19
1-7g Webmaster 19
1-8 Outlook for the Future 20

1 Information Systems: Reviews and Discussions 21

Projects 22
An Overview 2 Are You Ready to Move On? 22
1-1 Computers and Information Systems Case Study 1-1: Using Information Technologies at
in Daily Life 3 Federal Express 23
Smartphones Everywhere and for Everything 4 Case Study 1-2: Mobile Technology: A Key Player for
A New Era of Marketing: YouTube 5 Future Shopping 23
Social Networking and the Vulnerability of Personal
Information 6 2 Computers: The Machines
1-2 Computer Literacy and Information Literacy 7 Behind Computing 24
1-3 The Beginning: Transaction-Processing Systems 7 2-1 Defining a Computer 25
Information Technologies at Domino’s Pizza 8 2-1a Components of a Computer System 26
1-4 Management Information Systems 8 2-2 The History of Computer Hardware and Software 27
1-5 Major Components of an Information System 9 IBM Watson: A Supercomputer with Artificial
1-5a Data 9 Intelligence Capabilities 29
1-5b Database 10 2-3 The Power of Computers 29
1-5c Process 10 2-3a Speed 29
1-5d Information 10 2-3b Accuracy 30
1-5e Examples of Information Systems 11 2-3c Storage and Retrieval 30
1-6 Using Information Systems and Information 2-4 Computer Operations 30
Technologies 11 A Supercomputer in Your Pocket 31
1-6a The Importance of Information Systems 11 2-5 Input, Output, and Memory Devices 31
Information Technologies at The Home Depot 12 2-5a Input Devices 31
Human Resource Information Systems in Action 12 Touchless Computing: The New Paradigm in User
Information Technologies at UPS 13 System Interface 32
1-6b Using Information Technologies for a Competitive 2-5b Output Devices 32
Advantage 14 2-5c Memory Devices 33
iv
 A Popular Application of Cloud Storage: Keeping 3-5c Storage 59
Photos Online 36 3-5d Output 59
2-6 Classes of Computers 36 3-6 Data Marts 61
Popular iPad Business Applications 37 Data Mining and the Airline Industry 62
2-6a Server Platforms: An Overview 37 3-7 Business Analytics 62
Ubiquitous Computing 38 Mobile Analytics in Action: Airbnb 63
2-7 What Is Software? 38 3-8 The Big Data Era 63
Office 365: Making Data and Applications Predictive Analytics in Action 64
Portable 39 3-8a Who Benefits from Big Data? 65
2-7a Operating System Software 39 3-8b Tools and Technologies of Big Data 65
IOS: The Brain Behind Apple Devices 39 3-8c Big Data Privacy Risks 65
2-7b Application Software 40 Big Data in Action 65
2-8 Computer Languages 42 3-9 Database Marketing 66
Reviews and Discussions 44 Database Marketing in Action: Caterpillar
Projects 44 Corporation 67
Are You Ready to Move On? 44 Reviews and Discussions 68
Case Study 2-1: Become Your Own Banker 45 Projects 69
Case Study 2-2: iPads: New Productivity Tools for Are You Ready to Move On? 69
Service Workers 45 Case Study 3-1: Data Mining Helps Students Enroll in
Courses with Higher Chances of Success 70

3 Database Systems, Data Case Study 3-2: Data Mining Tools at Pandora Radio 70

Warehouses, and Data

Marts 46 4 Personal, Legal, Ethical, and
3-1 Databases 47
Organizational Issues of
3-1a Types of Data in a Database 48 Information Systems 72
BI in Action: Law Enforcement 49 4-1 Privacy Issues 73
3-1b Methods for Accessing Files 49 Social Networking Sites and Privacy Issues 73
3-2 Logical Database Design 50 Employee Monitoring: Improving Productivity or
Invasion of Privacy 74
3-2a The Relational Model 51
4-1a E-mail 76
3-3 Components of a DBMS 53
4-1b Data Collection on the Web 76
3-3a Database Engine 53
E-Mail and Corporate Data Leakage 77
3-3b Data Definition 53
Facebook Experiments: Marketing
3-3c Data Manipulation 53 Tools or Unethical Behavior? 78
Graph Databases Move Relational Databases One 4-2 Ethical Issues of Information Technologies 78
Step Forward 54 Ten Commandments of Computer Ethics 79
3-3d Application Generation 55 4-2a Censorship 80
3-3e Data Administration 55 Internet Censorship: A Global Problem 81
3-4 Recent Trends in Database Design and Use 55 4-2b Intellectual Property 81
3-4a Data-Driven Web Sites 55 Software Piracy: A Global Problem 83
3-4b Distributed Databases 56 4-2c Social Divisions and the Digital Divide 83
3-4c Object-Oriented Databases 56 Verizon’s Cybersquatting Suit 83
3-5 Data Warehouses 57 4-3 The Impact of Information Technology in the
Data Warehouse Applications at Marriott Workplace 84
International 58 The Digital Divide in Action 84
3-5a Input 58 4-3a Information Technology and Health Issues 85
3-5b ETL 58 Health and Social Issues of Online Gaming 86
Contents v
 4-4 Green Computing 87 Are You Ready To Move On? 116
Reviews and Discussions 89 Case Study 5-1: Vulnerabilities of Medical Devices 116
Projects 89 Case Study 5-2: Security Breach at Yahoo! 117
Are You Ready to Move On? 90

Part 2
Case Study 4-1: Telecommuting with a New Twist 90
Case Study 4-2: Privacy and Other Legal Issues at Google 91
Data Communication, the Internet,
5 Protecting Information E-Commerce, and Global Information
Systems
Resources 92
5-1 Risks Associated with Information Technologies 93
5-1a The Costs of Cyber Crime to the U.S. Economy 93

Syda Productions/Shutterstock.com
5-1b Spyware and Adware 93
5-1c Phishing, Pharming, Baiting, Quid Pro Quo, SMiShing,
and Vishing 94
5-1d Keystroke Loggers 94
5-1e Sniffing and Spoofing 94
5-1f Computer Crime and Fraud 94
Challenges of Insiders’ Threats 95

6 Data Communication:
Identity Theft at Internal Revenue Service 96
Types of Hackers 97
5-2 Computer and Network Security: Basic Delivering Information
Safeguards 97
Anywhere and Anytime 118
Nearly All Organizations Get Hacked 98
6-1 Defining Data Communication 119
5-3 Security Threats: An Overview 99
6-1a Why Managers Need to Know About Data
5-3a Intentional Threats 99 Communication 119
Protecting Against Data Theft and Data Loss 101 GoToMeeting: Example of an E-collaboration
Social Engineering Costs Ubiquiti Networks More Tool 120
than $39 Million 102 6-2 Basic Components of a Data Communication
5-4 Security Measures and Enforcement: An System 120
Overview 103 6-2a Sender and Receiver Devices 121
5-4a Biometric Security Measures 103 6-2b Modems 121
Biometrics at Phoebe Putney Memorial Hospital 103 6-2c Communication Media 121
5-4b Nonbiometric Security Measures 104 6-3 Processing Configurations 122
5-4c Physical Security Measures 106 Google Invests in Communication Media 123
5-4d Access Controls 107 6-3a Centralized Processing 123
Lost and Stolen Laptops 108 6-3b Decentralized Processing 123
5-4e Virtual Private Networks 109 6-3c Distributed Processing 123
5-4f Data Encryption 109 6-3d Open Systems Interconnection Model 124
5-4g E-Commerce Transaction Security Measures 111 6-4 Types of Networks 125
5-4h Computer Emergency Response Team 111 6-4a Local Area Networks 125
5-5 Guidelines for a Comprehensive Security System 112 6-4b Wide Area Networks 125
Sarbanes-Oxley and Information Security 113 6-4c Metropolitan Area Networks 126
5-5a Business Continuity Planning 113 6-5 Network Topologies 127
Reviews and Discussions 115 6-5a Star Topology 127
Projects 115 6-5b Ring Topology 127
vi Contents
 6-5c Bus Topology 127 7-4f Financial Institutions 155
6-5d Hierarchical Topology 128 7-4g Software Distribution 155
6-5e Mesh Topology 128 7-4h Healthcare 155
6-6 Major Networking Concepts 129 Electronic Health Records Pay Off for Kaiser
6-6a Protocols 129 Permanente 156
6-6b Transmission Control Protocol/Internet Protocol 129 7-4i Politics 156
6-6c Routing 129 The Internet in 2020 157
6-6d Routers 130 7-5 Intranets 157
6-6e Client/Server Model 131 7-5a The Internet versus Intranets 157
6-7 Wireless and Mobile Networks 133 7-5b Applications of an Intranet 158
7-6 Extranets 159
Mobile Computing and Mobile Apps 134
7-7 New Trends: The Web 2.0 and Web 3.0 Eras 160
6-7a Wireless Technologies 135
7-7a Blogs 161
6-7b Mobile Networks 135
7-7b Wikis 161
Mobile Computing in Action: The Apple iPhone 137
LinkedIn: A Professional Social Networking Site 162
6-8 Wireless Security 137
7-7c Social Networking Sites 162
Privacy and Ethical Issues of Wireless Devices 138
Social Media Applications at Walmart 163
6-9 Convergence of Voice, Video, and Data 138
7-7d Business Application of Social Networks 163
Telepresence: A New Use of Data Communication
7-7e RSS Feeds 163
and Convergence 139
7-7f Podcasting 164
Reviews and Discussions 140
Twitter: Real-time Networking with Your Followers 165
Projects 141
7-7g The Internet2 165
Are You Ready to Move On? 141
7-8 The Internet of Everything and Beyond 166
Case Study 6-1: Data Communication at Walmart 141
The Internet of Everything in Action 168
Case Study 6-2: Protecting the Security and Privacy of
Mobile Devices 142 Reviews and Discussions 169

7 The Internet, Intranets,

Projects 169
Are You Ready to Move On? 170
and Extranets 144 Case Study 7-1: Scotts Miracle-Gro’s Intranet: The
Garden 170
7-1 The Internet and the World Wide Web 145 Case Study 7-2: Social Networking in Support of Small
7-1a The Domain Name System 146 Businesses 171
Major Events in the Development of the Internet 147
7-1b Types of Internet Connections 148
What Is HTML? 149
8 E-Commerce 172
7-2 Navigational Tools, Search Engines, and 8-1 Defining E-Commerce 173
Directories 149 8-1a The Value Chain and E-Commerce 173
7-2a Navigational Tools 150 Twitter Helps Businesses Find Customers 175
7-2b Search Engines and Directories 150 Showrooming and Webrooming 175
7-3 Internet Services 151 8-1b E-Commerce vs. Traditional Commerce 176
7-3a E-Mail 151 8-1c Advantages and Disadvantages of E-Commerce 176
7-3b Newsgroups and Discussion Groups 152 The Home Depot Gets Into E-Commerce 177
7-3c Instant Messaging 152 8-1d E-Commerce Business Models 177
7-3d Internet Telephony 153 E-Commerce in 2020 178
7-4 Web Applications 153 8-2 Major Categories of E-Commerce 179
7-4a Tourism and Travel 153 8-2a Business-to-Consumer E-Commerce 179
7-4b Publishing 153 8-2b Business-to-Business E-Commerce 179
7-4c Higher Education 153 8-2c Consumer-to-Consumer E-Commerce 180
7-4d Real Estate 154 8-2d Consumer-to-Business E-Commerce 180
7-4e Employment 154 8-2e Government and Nonbusiness E-Commerce 180
Contents vii
 8-2f Organizational or Intrabusiness E-Commerce 180 Globalization in Action: Alibaba 206
E-Gov in Action: City of Denver, Colorado 181 9-2c Implementation of Global Information Systems 206
8-3 B2C E-Commerce Cycle 181 9-3 Organizational Structures and Global Information
8-4 B2B E-Commerce: A Second Look 182 Systems 207
8-4a Major Models of B2B E-Commerce 182 9-3a Multinational Structure 207
E-Procurement at Schlumberger 183 9-3b Global Structure 207
B2B E-Commerce Growth and Best Practices 184 9-3c International Structure 209
8-5 Mobile and Voice-Based E-Commerce 184 9-3d Transnational Structure 209
Mobile Commerce in Action: 9-3e Global Information Systems Supporting Offshore
The Fast Food Restaurants 185 Outsourcing 209
8-6 E-Commerce Supporting Technologies 186 Global Information System at FedEx 210
8-6a Electronic Payment Systems 186 9-4 Obstacles to Using Global Information Systems 211
Challenges in Using Mobile Payment Systems 187 9-4a Lack of Standardization 211
8-6b Web Marketing 187 9-4b Cultural Differences 211
Mobile Marketing at Starbucks 189 9-4c Diverse Regulatory Practices 212
8-6c Mobile Marketing 189 9-4d Poor Telecommunication Infrastructures 212
8-6d Search Engine Optimization 189 Privacy Law Differences between the United States
and the European Union 213
Challenges in Using Digital Ads 190
9-4e Lack of Skilled Analysts and Programmers 213
8-7 E-commerce and Beyond: Social Commerce 190
Reviews and Discussions 214
Social Commerce at Coca-Cola Company 191
Projects 215
8-8 Hyper-Social Organizations 192
Are You Ready to Move On? 215
Hyper-Social Organization in Action: Spotify 193
Case Study 9-1: Global Information Systems at Toyota
8-9 Social Media Information Systems 193 Motor Company 216
Reviews and Discussions 195 Case Study 9-2: Information Technologies Support
Projects 195 Global Supply Chain 216
Are You Ready to Move On? 196
Case Study 8-1: Widespread Applications
of Mobile Ads 196 Part 3
Case Study 8-2: Bridging the Gap Between E-Commerce IS Development, Enterprise Systems,
and Traditional Commerce 197 MSS, IIS, and Emerging Trends
9 Global Information
Systems 198
9-1 Why Go Global? 199
Global Information Systems at Rohm & Haas 200
Peshkova/Shutterstock.com

9-1a E-Business: A Driving Force 200

9-1b Growth of the Internet 200
Making a Company Web Site Global 201
9-1c The Rise of Non-English Speakers on the Internet 201
9-1d Mobile Computing and Globalization 202
9-2 Global Information Systems: An Overview 202
9-2a Components of a Global Information System 203
The Internet and Globalization in Action 204
10 Building Successful
9-2b Requirements of Global Information Systems 204
Information Systems 218
Video Conferencing Systems Support 10-1 Systems Development Life Cycle: An Overview 219
Globalization 205 10-2 Phase 1: Planning 219
viii Contents
 10-2a Formation of the Task Force 221 Projects 260
10-2b Feasibility Study 221 Are You Ready to Move On? 260
A Feasible Project Becomes Unfeasible 222 Case Study 11-1: ERP at Johns Hopkins Institutions 261
10-3 Phase 2: Requirements Gathering and Case Study 11-2: CRM at Starbucks 261
Analysis 224
10-4 Phase 3: Design 227
10-4a Computer-Aided Systems Engineering 227
10-4b Prototyping 228
12 Management Support
Systems 262
10-5 Phase 4: Implementation 229
12-1 Types of Decisions in an Organization 263
10-5a It Project Management 230
12-1a Phases of the Decision-Making Process 263
10-5b Request for Proposal 231
12-2 Decision Support Systems 266
Failed Order Management System at Avon 232
12-2a Components of a Decision Support System 266
10-5c Implementation Alternatives 233
12-2b DSS Capabilities 267
10-6 Phase 5: Maintenance 235
12-2c Roles in the DSS Environment 267
10-7 New Trends in Systems Analysis and Design 235
12-2d Costs and Benefits of Decision Support
10-7a Service-Oriented Architecture 235 Systems 268
10-7b Rapid Application Development 236 Decision Support Systems at Family
10-7c 
Extreme Programming 236 Dollar 269
Extreme Programming in Action 236 12-3 Executive Information Systems 269
Agile Methodology at HomeAway, Inc. 237 12-3a Reasons for Using EISs 270
10-7d Agile Methodology 237 12-3b Avoiding Failure in Design and Use of EISs 270
Reviews and Discussions 238 12-3c EIS Packages and Tools 271
Projects 239 Executive Information Systems at Hyundai Motor
Are You Ready to Move On? 239 Company 272
Case Study 10-1: Systems Development at SEB Latvia 240 12-4 Group Support Systems 272
Case Study 10-2: Crowdsourcing Pays Off 240 Microsoft Office SharePoint Server: A New Type of
Groupware 273

11 Enterprise Systems 242

12-4a Groupware 273
Groupware and Health IT 274
11-1 Supply Chain Management 243 12-4b Electronic Meeting Systems 274
11-1a SCM Technologies 244 Remote Collaboration with Google Apps for
Work 275
Supply Chain Management at Coca-Cola
Company 245 New Generations of Electronic Meeting
Systems 275
Green SCM in Action: Walmart 245
12-4c Advantages and Disadvantages of GSSs 276
3D Printing in Action: the Medical Field 250
12-5 Geographic Information Systems 276
11-2 Customer Relationship Management 251
12-5a GIS Applications 277
11-2a CRM Applications 252
GISs for Fighting Disease 278
CRM at Delta Air Lines 253
12-6 Guidelines for Designing a Management Support
11-2b Personalization Technology 253 System 279
Amazon’s Personalization Assists Sellers on Its Reviews and Discussions 280
Marketplace 255
Projects 280
11-3 Knowledge Management 255
Are You Ready to Move On? 281
Knowledge Management in Action 256
Case Study 12-1: UPS Deploys Routing Optimization with
11-4 Enterprise Resource Planning 257 a Big Payoff 281
ERP Streamlines Operations at Naghi Group 258 Case Study 12-2: GPS Technology and Analytics Combat
Reviews and Discussions 260 Crimes 282
Contents ix
 13 Intelligent Information 14 Emerging Trends, Technologies,
Systems 284 and Applications 308
13-1 What Is Artificial Intelligence? 285 14-1 Trends in Software and Service Distribution 309
13-1a AI Technologies Supporting Decision Making 285 14-1a Pull and Push Technologies 309
Computers Understanding Common Sense 286 14-1b Application Service Providers 310
13-1b Robotics 286 14-2 Virtual Reality 311
13-2 Expert Systems 288 14-2a Types of Virtual Environments 312
Medical Robotics in Action 289 14-2b Components of a Virtual Reality System 312
13-2a Components of an Expert System 289 14-2c CAVE 313
13-2b Uses of Expert Systems 291 14-2d Virtual Reality Applications 313
Expert Systems in Baltimore County Police Virtual Reality at Lockheed Martin 314
Department 292 14-2e Obstacles in Using VR Systems 315
13-2c Criteria for Using Expert Systems 292 14-2f Virtual Worlds 315
13-2d Criteria for Not Using Expert Systems 292 14-2g Augmented Reality 316
13-2e Advantages of Expert Systems 293 14-3 Radio Frequency Identification: An Overview 317
13-3 Case-Based Reasoning 293 14-3a RFID Applications 318
13-4 Intelligent Agents 293 Coca-Cola Company Uses RFID-Based Dispensers
13-4a Shopping and Information Agents 294 for Generating Business Intelligence 318
13-4b Personal Agents 294 14-4 Quick Response Codes 319
13-4c Data-Mining Agents 294 QR Codes in Action 320
Intelligent Agents in Action 295 14-5 Biometrics: A Second Look 320
13-4d Monitoring and Surveillance Agents 295 Face Recognition Technology in Action 321
13-5 Fuzzy Logic 295 14-6 Trends in Networking 321
13-5a Uses of Fuzzy Logic 296 14-6a Wi-Fi 321
13-6 Machine Learning 297 14-6b WiMAX 322
Fuzzy Logic in Action 297 14-6c Bluetooth 322
Neural Networks in Microsoft and the Chicago 14-6d Grid Computing 322
Police Department 299 14-6e Utility (On-Demand) Computing 323
13-7 Genetic Algorithms 299 14-6f Cloud Computing 323
13-8 Natural-Language Processing 300 Cloud Computing in Support of Small
13-9 Integrating AI Technologies into Decision Support Businesses 325
Systems 300 Edge Computing in Action 327
NLP in Action: The Healthcare Industry 301 14-7 Nanotechnology 328
13-10   Contextual Computing: Making Mobile Devices 14-8 Blockchain Technology and Cryptocurrency 328
Smarter 301
Reviews and Discussions 330
AI Technologies for Decision Making 302
Projects 331
Contextual Computing in Action 303
Are You Ready to Move On? 331
Reviews and Discussions 304
Case Study 14-1: Cloud Computing at Intercontinental
Projects 304 Hotels Group (IHG) 332
Are You Ready to Move On? 305 Case Study 14-2: RFID at Macy’s Department
Case Study 13-1: AI-Based Software Helps Businesses Store 332
Better Understand Customers 305
Case Study 13-2: NLP: Making a Smartphone Endnotes 333
Smarter 306 Index 347

x Contents
 PART 1

1 Information Systems:
An Overview
ESB Professional/Shutterstock.com

LEARNING OBJECTIVES
After studying this chapter, you should be able to:

1-1 Discuss common applications of computers and information systems.

1-2 Explain the differences between computer literacy and information literacy.

1-3 Define transaction-processing systems.

1-4 Define management information systems.

After you finish
1-5 Describe the four major components of an information system. this chapter, go to
1-6 Discuss the differences between data and information. PAGE 21 for the
1-7 Explain the importance and applications of information systems in functional areas
of a business.
STUDY TOOLS
1-8 Discuss how information technologies are used to gain a competitive advantage.

1-9 Explain the Five Forces Model and strategies for gaining a competitive advantage.

1-10 Review the IT job market.

1-11 Summarize the future outlook of information systems.

2   PART
PARTONE:
ONE: Fundamentals of Information Systems
This chapter starts with an overview of common
uses for computers Organizations use and information
computers and
systems, explains the information systems difference between
computer literacy and to reduce costs and information literacy,
and then reviews gain a competitive transaction-processing
systems as one of the advantage in the earliest applications
marketplace.
of information systems. Next, the
chapter discusses the components of
a management information system (MIS), including data, databases,
processes, and information, and then delves into how information
systems relate to information technologies. This chapter also covers
the roles and applications of information systems and explains the
Five Forces Model used to develop strategies for gaining a competitive
advantage. Finally, the chapter reviews the IT job market and touches
on the future of information systems.

1-1 COMPUTERS AND and retail stores as well. For example, a point-of-sale
(POS) system speeds up service by reading the universal
INFORMATION SYSTEMS product codes (UPCs) on items in your shopping cart
(see Exhibit 1.1). This same system also manages store
IN DAILY LIFE inventory, and some information systems can even reor-
der stock automatically. Banks, too, use computers and
Organizations use computers and
information systems to reduce costs
and gain a competitive advantage in the Exhibit 1.1
marketplace. Throughout this book,
you will study many information sys-
tem applications. For now, you will look
at some common applications used in
daily life.
Computers and information sys-
tems are all around you. As a student,
you use computers and office suite
software and might take online classes.
Computers are often used to grade your
exam answers and generate detailed
reports comparing the performance of
each student in your class. Computers
hin255/Shutterstock.com

and information systems also calculate

grades and grade point averages (GPAs)
and can deliver this information to you.
Computers and information sys-
tems are commonly used in grocery
CHAPTER 1: Information Systems: An Overview 3
 information systems for generating your monthly state-
ment, running ATM machines, and for many other bank-
ing activities.
Exhibit 1.2
Many workers are now telecommuters who perform
their jobs at home, and others often use their personal
digital assistants (PDAs) to conduct business while on
the go. The most common PDA is a smartphone (such
as an iPhone, Galaxy, Droid, or a BlackBerry). A typical
PDA includes a calendar, address book, and task-listing
programs; more advanced PDAs often allow for wireless
connection to the Internet and have built-in MP3 players.
Smartphones are mobile phones with advanced capabili-
ties, much like a mini-PC. They include e-mail and Web-
browsing features, and most have a built-in keyboard or
an external USB keyboard (see Exhibit 1.2). Increasingly,
tablet computers, such as iPads, are being used as PDAs.
These tablets come with apps (small programs) for com-
mon applications, and they can improve the user’s effi-

Scanrail1/Shutterstock.com
ciency. The information box “Smartphones Everywhere
and for Everything” highlights several popular applica-
tions of smartphones.
The Internet is used for all kinds of activities, from
shopping to learning to working. Search engines and broad-
band communication bring information to your desktop
in seconds. The Internet is also used for social purposes.
With social networking sites—such as Facebook, Twitter,
Google+, LinkedIn, and Foursquare—you can connect

Smartphones Everywhere and for Everything

With the growing number of apps available for both iPhones and Android phones, individuals and businesses are
using their smartphones as a productivity tool and as an intelligent assistant for all sorts of activities. Here are few
popular examples.
Group texting app GroupMe is used for sending a message to a group of employees or customers. The Samsung
iPolis app, a video camera security system, is used to remotely watch the video that monitors the location of a busi-
ness or home. Apps are available to pay bills, update a company’s Web site, market and advertise a product or service,
reach out to customers, and keep in touch with employees from anywhere. Some businesses give out the Google Voice
phone number to customers so that they can text an order. Google’s calendar is used to coordinate events, and
Instagram is used to post photos of new merchandise.1
According to Massimo Marinucci, the owner and president of The Wine Connection, a $20-million business with six
employees, the iPhone does nearly everything for business that a desktop used to do. Using their iPhones, employ-
ees check inventory, view sales for the day, run reports, print, change prices, and change inventory quantities. The
new POS app allows customers to buy immediately as soon as a new wine becomes available.2
Starwood Hotels & Resorts Worldwide, Inc., plans to offer customers of two of its hotels in Harlem, NY, and Cupertino,
CA, a virtual key. Guests can bypass the crowded check-in desk and enter their rooms using their smartphones. Guests
receive a message on Starwood’s app that will unlock their rooms with a tap or twist of their smartphones, using
Bluetooth technology. Marriott International, Inc., also does mobile check-ins at some of their hotels. Loyalty program
customers can check in via their smartphones and then go to a separate check-in desk to pick up a key.3

4 PART ONE: Fundamentals of Information Systems

with friends, family, and colleagues online and meet people providing an inexpensive medium for targeting a large
with similar interests and hobbies. Twitter (www.twitter customer base.
.com), for example, is a social networking and short- In addition, people use video-sharing sites to watch
message service. Users can send and receive brief text news, sporting events, and entertainment videos. One
updates, called Tweets. These posts are displayed on one’s of the most popular sites is YouTube (www.youtube
profile page, and other users can sign up to have them deliv- .com). You can upload and share video clips via Web sites,
ered to their in-boxes. As an example, the author of this mobile devices, blogs, and e-mails. Users upload most of
textbook sends daily Tweets that consist of links to current the ­content on YouTube, although media corporations
articles about information systems applications, new devel- such as CBS, BBC, Sony Music Group, the Sundance
opments, breaking news, IT jobs, and case e­ xamples. You Channel, and others also provide content. Anyone can
can read these Tweets in Twitter, Facebook, or LinkedIn. watch videos on YouTube, but you must register to upload
Organizations also use social networking sites to give videos. (This book has a YouTube channel on which you
customers up-to-date information and how-to support can watch many practical videos related to information
via videos. These sites can reduce organizations’ costs by systems.) Businesses are increasingly using YouTube to

In the 21st century, knowledge workers need two types

of knowledge to be competitive in the workplace:
computer literacy and information literacy.

A New Era of Marketing: YouTube

Companies use newspapers, magazines, TV shows, and search engines to promote their products, services, and brands.
YouTube is a popular video-sharing service that can be used as a marketing tool. The videos on YouTube are very well
indexed and organized. They are categorized and sorted by “channels.” The channels range from film and animation to
sports, short movies, and video blogging. Individual YouTube users have used this marketing tool to share videos and sto-
ries. One popular application is watching how-to videos for repairing cars, home appliances, and so forth. Corporations can
also take advantage of this popular platform. YouTube represents a great opportunity for marketers to reach consumers
who are searching for information about a brand or related products and services. The service can also be used as a direct
marketing tool. The following are examples of corporations that are using YouTube to promote their products and services:
Quiksilver—This manufacturer of apparel and accessories, including the Roxy brand, frequently posts new videos of
its products, continually renewing its Web presence.
Ford Models—Since 2006, it has uploaded over 554 videos promoting its brand.
University of Phoenix Online—This site has hundreds of video testimonials, reviews, and documentaries that
promote the university’s degree programs.
The Home Depot—Free content, including practical knowledge and money-saving tips for home improvements
may be found at this site.
Nikefootball—Nike maintains several distinct YouTube channels that cater to specific audiences. Consumers can find
content that is relevant to their needs without having to sift through everything.4,5
However, there are some challenges in using YouTube as an advertising medium. In 2017, several companies, includ-
ing Starbucks, Pepsi, AT&T, Verizon, Johnson & Johnson, Volkswagen, and Walmart pulled YouTube ads after ads were
placed on racist videos or alongside unpleasant videos. Alphabet, the parent company of YouTube, has taken steps
to fix this problem by involving more people in reviewing videos and developing more-sophisticated algorithms to
instruct its computers to eliminate this problem.6

CHAPTER 1: Information Systems: An Overview 5

 addition, these workers will
be able to connect to the rest
of the world to share informa-
tion, knowledge, videos, ideas,
and almost anything else that
can be digitized. Throughout
this book, these opportuni-
ties, as well as the power of
computers and information
systems, are explored.
As you read, keep in
mind that the terms infor-
mation systems and informa-
tion technologies are used

Rawpixel.com/Shutterstock.com
interchangeably. Information
systems are broader in scope
than information technolo-
gies, but the two overlap
in many areas. Both are
used to help organizations
be more c­ompetitive and
promote their products and services. See the information to improve their overall efficiency and e­ ffectiveness.
box “A New Era of Marketing: YouTube,” which high- Information technologies offer many advantages for
lights a few such companies. improving decision making but involve some chal-
So what do all these examples mean to you? Com- lenges, too, such as security and privacy issues. The
puters and information technology will help the knowl- information box “Social Networking and the Vulner-
edge workers of the future perform more effectively and ability of Personal Information” describes one of the
productively, no matter what profession they choose. In potential challenges.

Social Networking and the Vulnerability of Personal Information

The popularity of social networking sites such as Facebook, Twitter, Google+, Snapchat, and Foursquare is on the rise.
As of November 1, 2017, Facebook had 2.07 billion monthly active users, and the number is increasing on a daily basis.7
But so is the potential risk. According to an InfoWorld study, over half of all users of social networks in this country are
putting themselves at risk by posting information that could be misused by cybercriminals. Many social networkers
post their full birth dates, their home addresses, photos of themselves and their families, and the times when they will
be away from home. This information could be used by cybercriminals for malicious purposes. According to the report,
9 percent of the 2,000 people who participated in the study had experienced some kind of computer-related trouble,
such as malware infections, scams, identity theft, or harassment. To reduce risk and improve the privacy of your per-
sonal information, the study offers several tips:8
●● Always use the privacy controls offered by the social networking sites.
●● Use long passwords (eight characters or longer) that mix uppercase and lowercase letters with numbers
and symbols.
●● Do not post a phone number or a full address.
●● Do not post children’s names, even in photo tags or captions.
●● Do not be specific when posting information about vacations or business trips.

6 PART ONE: Fundamentals of Information Systems

 1-2 COMPUTER LITERACY enormous volumes of data, such as inventory con-
trol in a multinational textile company. When these
AND INFORMATION systems are ­automated, human involvement is mini-
mal. For example, in an automated payroll system,
LITERACY there is little need for managerial judgment in the task
of printing and sending checks, which reduces person-
In the 21st century, knowledge workers need two nel costs.
types of knowledge to be competitive in the work- Transaction processing systems have come a long
place: computer literacy and information literacy. way. For example, the first ATM opened for busi-
Computer literacy is skill in using productivity soft- ness in 1969 with some very basic features. Similar
ware, such as word processors, spreadsheets, database to other information technologies, ATMs have gone
management systems, and presentation­software, as well through major changes and improvements.9 In 2014,
as having a basic knowledge of hardware and software, JPMorgan Chase introduced electronic banking kiosks
the Internet, and collaboration tools and technologies. (EBKs). Using these kiosks customers can withdraw
Information literacy, on the other hand, is under- cash in a variety of denominations ($10, $20, …). These
standing the role of information in generating and using machines also allow customers to cash a check and
business intelligence. Business intelligence (BI) receive exact change.10 Customers can be identified
is more than just information. It provides historical, cur- using biometric features such as a fingerprint or iris
rent, and predictive views of business operations and scanners.11
environments and gives organizations a competitive The cardless ATM is one of the recent tech-
advantage in the marketplace. (BI is discussed in more nologies deployed by some banks in order to attract
detail in Chapter 3.) To summarize, knowledge workers younger customers. An app provided by the bank is
should know the following: used to withdraw cash. The customers set the amount
using the app and receive a code on his/her smart-
●● Internal and external sources of data
phone which is scanned by the bank’s ATM when the
●● How data is collected customer gets there. The ATM dispenses the cash
●● Why data is collected and sends a receipt over
●● What type of data should be collected the phone, or it can be
●● How data is converted to information and eventually printed at the ATM.12 Computer literacy is skill
to business intelligence According to the in using productivity software,
Chicago-based BMO such as word processors,
●● How data should be indexed and updated spreadsheets, database
Harris Bank, mobile with­
●● How data and information should be used to gain a management systems, and
competitive advantage drawal reduces fraud presentation software, as well
and also increases effi­ as having a basic knowledge
ciency, as a mobile cash of hardware and software, the
Internet, and collaboration tools
transaction takes 15 sec­
and technologies.
1-3 THE BEGINNING: onds compared to 45 sec­
onds for a card-based Information literacy
TRANSACTION-PROCESSING withdrawal. 13 is understanding the role of
information in generating and using
JPMorgan Chase
SYSTEMS says upcoming ATM
business intelligence.

Business intelligence
features will include (BI) provides historical, current,
For the past 60 years, transaction-processing cash withdrawals by tap- and predictive views of business
systems (TPSs) have been applied to structured tasks ping smartphones to the operations and environments
such as record keeping, simple clerical operations, and ATM, the technology and gives organizations a
competitive advantage in the
inventory control. Payroll, for example, was one of the first similar to Apple Pay;
marketplace.
applications to be automated. TPSs focus on data collection withdrawals of up to
and processing, and they have provided enormous reduc- $3,000 on some ATMs; Transaction-processing
systems (TPSs) focus on
tions in costs. and allowing customers
data collection and processing; the
Computers are most beneficial in transaction- to make their credit card major reason for using them is
processing operations. These operations are repeti- and mortgage payments cost reduction.
tive, such as printing numerous checks, or involve at the ATM.14
CHAPTER 1: Information Systems: An Overview 7
 Information Technologies at Domino’s Pizza
In 1960, Domino’s Pizza opened its first store. Today, there are nearly 12,000 stores, half of them outside the United States. In
2007, Domino’s started online and mobile ordering. Today, customers can order online at www.dominos.com or they can use
apps for the iPhone, Android, or Kindle Fire.15 This allows them to customize their pizzas with any combination of ingredients,
enhancing their sense of participation while also saving Domino’s the labor costs associated with phone orders. After placing
the order, the customer can track it all the way to when it is sent out for delivery, keeping an eye on an estimated delivery time.
In 2012, Domino’s surpassed $1 billion in annual sales through its Web site, proving that e ­ lectronic sales will con-
tinue to play a large role in the company’s success. 16

At Domino’s, online ordering seamlessly accomplishes multiple

objectives without the customer even taking notice. First, it creates the
feeling among customers that they are an active part of the pizza-mak-
ing process. Second, it results in greater efficiency at the various stores
because employees do not have to spend as much time taking orders.
Susan Montgomery/Shutterstock.com
They merely need to prepare the orders, which appear in an instant
order queue, with all the customers’ specifications.
Domino’s now has the ability to store its online orders in its database. This data can then be used for many purposes,
including target marketing and deciding which pizzas to offer in the future. The company is also actively using social
media, including Facebook and Twitter, to promote its products and gather customers’ opinions.
In 2014, Domino’s began allowing customers to order pizza using a voice app called “Dom,” powered by Nuance
Communications. It enables users of iOS and Android devices to place orders using their voices.
Twitter is now a part of the ordering system at Domino’s. As of 2015, U.S. customers can order pizza by tweeting a
pizza emoji.17
Starting in 2016 customers were able to order Domino’s Pizza from a Facebook Messenger bot.18 Also, in 2016,
Domino’s Pizza began testing a delivery robot called DRU in New Zealand.19 And the pizza company also announced
plans to beat Amazon and Google to delivery by drones.20
In 2017, Domino's tested self-driving pizza delivery in a joint project with Ford in a specially equipped Ford Fusion
that comes with both self-driving technology and an oven.21

However, there are some security risks associated ●● Watch for signs that the ATM of a gas pump may have
with using ATMs. ATM skimming is a worldwide problem been tampered with. This could be done by physically
costing more than $2 billion a year in fraudulent charges. touching the machine or checking on Bluetooth for
Skimmers, by using a card the size of a credit card installed unusual Wi-Fi networks.
inside the ATM or on the top of the machine, are able to ●● Cover your pin number when entering it.
record PIN numbers and other financial information of the
users. This could happen when you swiped your card at the
ATM or even at a gas station. Skimmers have been stealing 1-4 MANAGEMENT
financial information from cards with magnetic strips, as
chip-based cards are more difficult to steal from. To protect INFORMATION SYSTEMS
your financial informa-
tion while using an ATM, A management information system (MIS) is an
A management
information system (MIS) follow these steps22: organized integration of hardware and software technol-
is an ­organized integration ogies, data, processes, and human elements designed to
●●  heck your bank
C
of hardware and software
statements regularly.
produce timely, integrated, relevant, accurate, and use-
technologies, data, processes, ful information for decision-making purposes.
and human elements designed to Usually, if you report
fraudulent charges The hardware components, which are discussed
produce timely, integrated, relevant,
accurate, and useful information for within two days your in more detail in Chapter 2, include input, output, and
decision-making purposes. bank will reimburse you memory devices and vary depending on the applica-
for anything over $50. tion and the organization. MIS software, also covered
8 PART ONE: Fundamentals of Information Systems
 If an organization has defined its strategic goals,
objectives, and critical success factors, then structuring
the data component to define what type of data
is collected and in what form is usually easy.

in Chapter 2, can include commercial programs,

software developed in-house, or both. The appli-
cation or organization determines the type of
Exhibit 1.3
software used. Processes are usually methods for
performing a task in an MIS application. The
human element includes users, programmers,
Data Database Process Information
systems analysts, and other technical personnel.
This book emphasizes users of MISs.
In designing an MIS, the first task is to clearly
define the system’s objectives. Second, data must
be collected and analyzed. Finally, information must be sections: data, a database, a process, and information
provided in a useful format for decision-making purposes. (see Exhibit 1.3).23
Many MIS applications are used in both the private
and public sectors. For example, an MIS for inventory con- 1-5a
trol provides data (such as how much of each product is on
hand), what items have been ordered, and what items are The data component of an information system is consid-
back-ordered. Another MIS might forecast sales volume ered the input to the system. The information that users
for the next fiscal period. This type of system uses recent need affects the type of data that is collected and used.
historical data and mathematical or statistical models to Generally, there are two sources of data: external and inter-
generate the most accurate forecast, and sales managers nal. An information system should collect data from both
can use this information for planning purposes. In the pub- sources, although organizational objectives and the type of
lic sector, an MIS for a police department, for example, application also determine what sources to use. Internal data
could provide information such as crime statistics, crime includes sales records, personnel records, and so forth. The
forecasts, and allocation of police units. Management can following list shows some examples of external data sources:
examine these statistics to spot increases and decreases in ●● Customers, competitors, and suppliers
crime rates or types of crimes and analyze this data to deter- ●● Government agencies and financial institutions
mine future deployment of law enforcement personnel. ●● Labor and population statistics
As you will see in this book, many organizations use
●● Economic conditions
information systems to gain a competitive advantage.
The information box on Domino’s Pizza describes one Typically, data has a time orientation, too. For exam-
example of this. (Note: MISs are often referred to as just ple, past data is collected for performance reports, and
information systems, and these terms are used inter- current data is collected for operational reports. In addi-
changeably in this book.) tion, future data is predicted for budgets or cash flow
reports. Data can also be collected in different forms,
such as aggregated (e.g., subtotals for categories of
1-5 MAJOR COMPONENTS OF information) or disaggregated (e.g., itemized lists). An
organization might want disaggregated data to analyze
AN INFORMATION SYSTEM sales by product, ter-
ritory, or salesperson.
Data consists of raw facts and
In addition to hardware, software, and human ele- Aggregated data can be is a component of an information
ments, an information system includes four major useful for reporting over- system.
components, which are discussed in the following all performance during
CHAPTER 1: Information Systems: An Overview 9
 a particular sales quarter, for
example, but it limits the ability
of decision makers to focus on
specific factors.
If an organization has defi­
ned its strategic goals, objectives,
and critical success factors, then
structuring the data component
to define what type of data is
collected and in what form is
usually easy. On the other hand,
if there are conflicting goals and
objectives or the company is not

cunaplus/Shutterstock.com
aware of critical success factors,
many problems in data collec-
tion can occur, which affects an
information system’s reliability
and effectiveness.
An information system can include a wide range of
1-5b models to support all levels of decision making. Users
should be able to query an information system and gener-
A database, the heart of an information system, is a ate a variety of reports. In addition, an information sys-
collection of all relevant data organized in a series of tem should be able to grow with the organization so users
­integrated files. (You will learn more about databases in can redefine and restructure models and incorporate new
Chapter 3.) A comprehensive database is essential for information into their analyses.
the success of any information system. To create, orga-
nize, and manage databases, a database management
1-5d
system (DBMS) is used, such as Microsoft Access or
FileMaker Pro for home or small-office use. In a large Although they might seem the same, data and informa-
organization, a DBMS such as Oracle or IBM DB2 tion are different. Data consists of raw facts and by itself
might be used. is difficult to use for making decisions. Information—
Databases are also important for reducing person- the output of an information system—consists of facts
nel time needed to gather, process, and interpret data that have been analyzed by the process component and
manually. With a computerized database and a DBMS, are therefore more useful to the MIS user. For example,
data can be treated as a common resource that is easy to XYZ Company’s total sales last month were $5 million.
access and use. This number is data because it does not tell you how the
company performed. Did it meet the sales goal? Did
1-5c sales increase or decrease from the previous month?
How did the company perform against its top competi-
A database is a collection of all The purpose of an infor- tors? These questions and more can be answered by the
relevant data organized mation system’s process information that an information system provides.
in a series of integrated files. component is generating The quality of information is determined by its use-
The process component of an the most useful type of fulness to users, and its usefulness determines the suc-
information system generates the information for making cess of an information system. Information is useful if it
most useful type of information for decisions. This compo- enables decision makers to make the right decision in a
decision making, including
nent generally includes timely manner. To be useful, information must have the
transaction-processing reports and
models for decision analysis. transaction-processing following qualities:
reports and models for
Information consists of facts ●● Timeliness
decision analysis that can
that have been analyzed by the ●● Integration with other data and information
process component and is an be built into the system
output of an information system. or accessed from external ●● Consistency and accuracy
sources. ●● Relevance
10 PART ONE: Fundamentals of Information Systems
 If information lacks any of these qualities, the results provides. For example, knowing which major is the fast-
are incorrect decisions, misallocation of resources, and est growing can help with decisions on hiring faculty, and
overlooked windows of opportunity. If the system c­ annot knowing the estimated number of students for 2025 can
give users a minimum level of confidence in its reliabil- help with planning facilities.
ity, it will not be used or users might dismiss the reports Example 2 Teletech, an international textile com-
it generates. Information must provide either a base for pany, uses a database to store data on products, sup-
users to explore different options or insight into tasks. pliers, sales personnel, costs, and so forth. The process
Another factor affecting the usefulness of informa- component of the information system conducts analysis
tion is the information system’s user interface. Because this on the data to provide the following information about
interface must be flexible and easy to use, most informa- the preceding month:
tion systems make use of graphical user interfaces (GUIs), ●● Which salesperson generated the highest sales?
with features such as menus and buttons. To be useful, ●● Which product generated the highest sales? The
information systems should also produce information in ­lowest sales?
different formats, including graphics (e.g., pie charts and
●● Which region generated the highest sales?
bar graphs), tables, and exception reports, which highlight
information that is outside a specified range. Supplying Again, forecasting models can be used to generate
information in a variety of formats increases the likelihood predictions for the next sales period, and these predic-
of users understanding and being able to use the informa- tions can be broken down by product, region, and sales-
tion. Note that, in addition to the formal information that person. Based on this information, many decisions could
an information system generates, users need to be able to be made, such as allocating the advertising budget to
make use of informal information—such as rumors, uncon- ­different products and regions.
firmed reports, and stories—when solving problems.
The ultimate goal of an information system is to gen-
erate business intelligence (BI), described earlier in this
1-6 USING INFORMATION
chapter. As you will learn throughout this book, many SYSTEMS AND INFORMATION
different tools, techniques, and types of information sys-
tem technologies are used to generate BI. TECHNOLOGIES
1-5e Information systems are designed to collect data, process
the collected data, and deliver timely, relevant, and use-
To better understand the four main components of an infor-
ful information that can be used for making decisions. To
mation system, take a look at the following two examples.
achieve this goal, an information system might use many
Example 1 A state university stores all student data
different information technologies. For example,
in a database. The collected data includes each student’s
organizations often use the Internet as a worldwide
first name, last name, age, gender, major, nationality, and
network to communicate with one another. Computer
so forth. The process component of the information sys-
networks (wired and wireless), database systems, POS
tem performs all sorts of analysis on this data. For exam-
systems, and radio-frequency identification (RFID) tags
ple, the university’s DBMS has a built-in query capability
are just a few examples of information technologies used
that can generate the ­following information:
to support information systems. The information box on
●● How many students are in each major? The Information Technologies at Home Depot box gives
●● Which major is the fastest growing? you an idea of how companies use information technolo-
●● What is the average age of the student body? gies to stay competitive.
●● Among the international students, which country is
home to the highest number of students? 1-6a 
●● What is the ratio of male to female students in
each major?
Information is the second Information technologies
Many other types of analysis can be done. A fore- most important resource support information systems
and use the Internet, computer
casting model (part of the process component) could (after the human ele-
networks, database systems, POS
be used to generate the estimated number of students ment) in any organiza- ­systems, and radio-frequency
for 2025, for instance. In addition, predictions could be tion. Timely, relevant, and identification (RFID) tags.
made or improved, based on information this system accurate information is a
CHAPTER 1: Information Systems: An Overview 11
 Information Technologies at The Home Depot
The Home Depot revolutionized the do-it-yourself home-improvement industry in the United States. Its stores use a POS
system for both fast customer service and improved inventory management as well as a wireless network for efficient in-
store communication.24 The Home Depot has a Web site to communicate with customers and increase sales with online
orders. It also uses RFID tags to better manage inventory and improve the efficiency of its supply chain network.
The Home Depot maintains a high-speed network connecting its stores throughout North America, and it uses a data-
warehousing application to analyze variables affecting its success—customers, competitors, products, and so forth.25 The
information system gives The Home Depot a competitive advantage by gathering, analyzing, and using information to
better serve customers and plan for customers’ needs.
In 2010, The Home Depot launched a transition to Fujitsu
U-Scan self-checkout software in its U.S. and Canadian retail stores.
The software offers retailers the flexibility to quickly make changes

Sergey Yechikov/Shutterstock.com
to their POS systems, and offers savings in labor costs.26
Other Information Technologies used in some of The Home
Depot stores include virtual and augmented reality (discussed
in Chapter 14), mobile checkout, and heat mapping to reduce
in-store congestion. This technology assists the store manager
to deploy more associates to congested area within the store.27

critical tool for enhancing a company’s competitive position information that helps decision makers in personnel carry
in the marketplace and managing the four Ms of resources: out their tasks more effectively. Web technologies have
manpower, machinery, materials, and money. played a major role in improving the efficiency and effec-
To manage these resources, different types of infor- tiveness of HR departments. For example, intranets are
mation systems have been developed. Although all have often used to provide basic HR functions, such as employ-
the major components shown in Exhibit 1.3, they vary ees checking how much vacation time they have left or
in the kind of data they collect and the analyses they looking up how much they have in their 401(k) plans.
perform. This section discusses some major types of Intranets reduce personnel costs and speed up responses
information systems, focusing on the types of data and to common employee requests. As discussed in Chapter 7,
analysis used in each. an intranet is a network within an organization that uses
A personnel information system (PIS) or human Internet protocols and technologies for collecting, stor-
resource information system (HRIS) is designed to provide ing, and disseminating useful information that supports

Human Resource Information Systems in Action

Large organizations have been using HRISs for years by deploying software platforms such as SAP HR software and
Oracle PeopleSoft. With cost reduction, ease of use, and the availability of cloud-based HR software or software as a
service (SaaS) (discussed in Chapter 14), small and mid-sized organizations can now benefit from HRISs.
Sarnova Inc., a medical products company based in Columbus, Ohio, with over 500 employees, replaced its paper-
based system with an HRIS. They used Workforce from ADP for this implementation. The HRIS enables Sarnova to
track employees by region, title, and category, among other things. According to Christy Gigandet, senior HR partner
at Sarnova Inc., the most beneficial feature of the system is managing the open enrollment for employee benefits.
This automation process has saved the company “at least a month in man hours.” The system has automated the
printing and mailing of employee paperwork and has made it a self-service driven process.28
UltiPro, Sage HRMS, and SuccessFactors are among the most popular HRIS software applications on the market.
They all offer basic HR functions such as time management, payroll, talent management, scheduling, and workforce
planning, among other functions.29

12 PART ONE: Fundamentals of Information Systems

business activities such as sales, customer service, human The information box featuring UPS shows uses of
resources, and marketing. The main difference between information systems and information technologies, par-
an intranet and the Internet is that intranets are private ticularly logistics information systems.
and the Internet is public. A PIS/HRIS supports the fol- A manufacturing information system (MFIS) is used to
lowing decisions, among others: manage manufacturing resources so companies can reduce
manufacturing costs, increase product quality, and make
●● Choosing the best job candidate
better inventory decisions. MFISs can perform many types
●● Scheduling and assigning employees
of analysis with a high degree of timeliness and accuracy.
●● Predicting the organization’s future personnel needs For example, managers could use an MFIS to assess the
●● Providing reports and statistics on employee effect on final product costs of a 7 percent increase in raw
demographics materials or to determine how many assembly-line work-
●● Allocating human and financial resources ers are needed to produce 200 automobiles in the next
three weeks. Manufacturing and operations management
The information box “Human Resource Informa-
can also use social media information systems (SMISs)
tion Systems in Action” highlights some real-life applica-
(discussed in Chapter 8) for crowdsourcing. This platform
tions of HRIS.
provides a global reach to all sorts of talents throughout the
A logistics information system (LIS) is designed to
world for performing certain manufacturing tasks at a mod-
reduce the cost of transporting materials while main-
erate cost. Here are some decisions that an MFIS supports:
taining safe and reliable delivery. The following are a
●● Ordering decisions
few examples of decisions supported by an LIS:
●● Product cost calculations
●● Improving routing and delivery schedules ●● Space utilization
●● Selecting the best modes of transportation ●● The bid evaluation process used with vendors and
●● Improving transportation budgeting suppliers
●● Improving shipment planning ●● Analysis of price changes and discounts

Information Technologies at UPS

Established in 1907, United Parcel Service (UPS) is now a global
company worth $97.37 billion as of November 2017. It uses a
sophisticated information system to manage the delivery of more
than 14 million packages a day.30 The company uses several types of
networks in its operations—particularly, GPS and wireless networks.
Its GPS network includes an algorithm that has helped drivers
reduce the number of left turns they have to take, particularly on
commercial roads. This, along with a vehicle telemetric system, has
reduced the number of accidents and delivery times, thus saving
the company over 20 million miles a year.31,32
To better serve customers, UPS has developed UPS Delivery Inter-
cept, a Web-based service that allows customers to intercept and
reroute packages before they are delivered, thus avoiding potentially
costly mistakes and wasted time and costs. UPS calls the technol-
ogy behind this service Package Flow Technology, which is also used
to map efficient routes for drivers and mark packages for special
handling. Kurt Kuehn, senior vice president of worldwide sales and
iStock.com/Juanmonino

marketing, says, “Innovations like Package Flow Technology and ser-

vices like UPS Delivery Intercept are key components of UPS’s drive to
treat each of our millions of customers as if they’re our only customer.
We’re constantly working on new and innovative ways to harness
technology to help our customers meet their unique needs.”33

CHAPTER 1: Information Systems: An Overview 13

 The goal of a financial information system (FIS) is Here are some decisions that an MKIS supports:
to provide information to financial executives in a timely ●● Analyzing market share, sales, and sales personnel
manner. Here are some decisions an FIS is used to
●● Sales forecasting
support:
●● Price and cost analysis of items sold
●● Improving budget allocation
●● Minimizing capital investment risks
●● Monitoring cost trends 1-6b
●● Managing cash flows
●● Determining portfolio structures Michael Porter, a professor at Harvard Business School,
In addition, marketing information systems identified three strategies for successfully competing in
(MKISs) are used to improve marketing decisions. An the marketplace:35
effective MKIS should provide timely, accurate, and ●● Overall cost leadership
integrated information about the marketing mix-4Ps: ●● Differentiation
price, promotion, place, and product. A growing num-
●● Focus
ber of information technology tools are being used in the
marketing field that could play a major role in running an Information systems can help organizations reduce
effective marketing operation in all types of organizations. the cost of products and services and, if designed cor-
One of these technology tool is data- rectly, they can assist with differentia-
base marketing discussed in Chapter 3. tion and focus strategies. Throughout
Other marketing technology tools are Information this book, you will see many examples
covered below. These IT tools help technologies can help of the cost savings that organizations
organizations for direct marketing and bottom-line and have achieved with information sys-
help them grow leads, opportunities, and tems and technologies. For example,
revenue.34
top-line strategies. Walmart has been using overall cost
●● Business analytics, Web and mobile leadership strategies successfully (see
analytics (discussed in Chapter 3) the upcoming information box).
enable an organization to pinpoint the performance Information technologies can help bottom-line and
of channels, technologies in use, ads campaign, top-line strategies. The focus of a bottom-line strategy is
and offers and everything else that are tractable. improving efficiency by reducing overall costs. A top-line
Popular tools include Google Analytics and Adobe strategy focuses on generating new revenue by offering
Analytics. new products and services to customers or increasing
●● E-mail marketing (discussed in Chapter 7) enables an revenue by selling existing products and services to new
organization to be in constant contact with its custom- customers. For example, e-commerce businesses are
ers in an effective and efficient manner. Popular tools adapting business models to reduce distribution costs
include MailChimp and Constant Contact. dramatically. A good example is antivirus vendors using
●● Search engine marketing (discussed in Chapter 7) that the Internet to distribute software. For a subscription
includes both paid search ads and search engine opti- fee of around $30, you can download the software and
mization (SEO) help an organization to get top rank receive updates for a year. Without the Internet for easy,
listings of the organization’s Web site. Popular tools
inexpensive distribution, vendors could not afford to
include Google AdWords and Bing and Yahoo!
offer software at such a low price.
●● Mobile technologies (discussed in Chapter 6)
As discussed in Chapter 11, many organizations use
enable an organization to sell products and services
enterprise systems, such as supply chain management
to mobile users as their number is increasing on
(SCM), customer relationship management (CRM),
daily bases.
enterprise resource planning (ERP), knowledge man-
●● Marketing automation helps an organization bring
agement (KM), and collaboration software, to reduce
all other IT tools together including analytics, online
forms, customer tracking, personalization technol- costs and improve customer service. The goal of these
ogy (discussed in Chapter 11), customer relation systems is to use information technologies to create
management (CRM) (discussed in Chapter 11), and the most efficient, and effective link between suppli-
automated alerts to sales people. Popular tools include ers and consumers. A successful CRM program, for
HubSpot and Act-On. example, helps improve customer service and create

14 PART ONE: Fundamentals of Information Systems

Information Technologies at Walmart
Walmart (http://walmartstores.com), the largest retailer in the world, built
the Walmart Satellite Network, which is the largest private satellite com-
munication system in the United States. The network links branch stores
with the home office in Bentonville, Arkansas, by using two-way voice and
data and one-way video communication. In addition to the POS systems

Vdovichenko Denis/Shutterstock.com
used for many years, Walmart uses the following information technologies
to gain a competitive advantage:
●● Telecommunications is used to link stores with the central computer
system and then to suppliers’ computers. This system creates a seam-
less connection among all parties.
●● Network technologies are used to manage inventory and implement
a just-in-time inventory system. As a result, products and services can
be offered at the lowest possible prices.
●● Walmart uses an extranet, called RetailLink, to communicate with suppliers. Suppliers are able to review product sales
records in all stores and track current sales figures and inventory levels.36 (Extranets are discussed in Chapter 7.)
●● Electronic data interchange (EDI), discussed in Chapter 11, is used to streamline the order-invoice-payment cycle,
reduce paperwork, and improve accuracy.
●● Walmart is a major user of RFID technologies, which have improved its supply chain and inventory management systems.
●● Starting in 2017, Walmart has been using virtual reality to help train its employees on topics such as management
and customer service. It is estimated that over 150,000 employees will go through the program each year.37
●● The same year, Walmart introduced robots in over 50 locations. These 2-feet-tall robots perform tasks such as checking
stock, finding mislabeled or unlabeled products, and assisting employees to fulfill orders for online customers.38

a long-term relationship between an organization and by designing its computers to look very different than PCs
its customers. and focusing on its computers’ ease of use. As another
For differentiation strategies, organizations try to example, Amazon has differentiated its Web site by using
make their products and services different from their certain information technologies, such as personalization
competitors. Apple has been successful with this strategy technologies (covered in more detail in Chapter 11) to
recommend products to customers based on their previ-
ous purchases. Amazon also uses the one-click sys-
tem for fast checkout. With this system, customers
can enter credit card numbers and addresses once
and, in subsequent visits, simply click once to make a
purchase, without having to enter information again.
With focus strategies, organizations concen-
trate on a specific market segment to achieve a
cost or differentiation advantage. Apple has also
used this strategy to target iPhones to consumer
users rather than business users. Similarly, Macin-
tosh computers are heavily marketed to creative
Peshkova/Shutterstock.com

professionals such as designers, photographers,

and writers. As another example, Abercrombie &
Fitch targets high-end clothing to low-income
customers, such as teenagers and young adults,
while Nordstrom targets its high-end clothing to
high-income customers. Information technologies

CHAPTER 1: Information Systems: An Overview 15

 Exhibit 1.4

Potential
entrants

Threat of
new entrants

Industry
competitors
Bargaining power Bargaining power
of suppliers of buyers
Suppliers Buyers
Rivalry among
existing
competitors

Threat of
substitute products
or services

Substitutes

could assist these companies in reaching their target ●● Threat of new entrants
market segments more cost effectively. ●● Rivalry among existing competitors
Remember that focus and differentiation strategies
work only up to a certain point. Customers are often will- Buyer power is high when customers have many
ing to pay more for a unique product or service or one choices and low when they have few choices. Typically,
with a specific focus. However, cost still plays a major organizations try to limit buyers’ choices by offering
role. If a product or service becomes too expensive, cus- services that make it difficult for customers to switch,
tomers might not be willing to purchase it. which is essentially using a differentiation strategy. For
example, Dell Computer was among the first to offer
computer customization options to customers, and other
1-6c
computer manufacturers followed suit. Grocery stores,
such as Sam’s Club, offer club cards that encourage cus-
Harvard Business School’s Michael Porter created a com- tomers to shop by giving them big discounts, an example
prehensive framework called the Five Forces Model of overall cost leadership strategies. Similarly, airlines
for analyzing an organization, its position in the market- and hotels offer free mileage and points when customers
place, and how informa- use their services. Information systems can make manag-
tion systems could be ing these strategies easier and more cost effective.
Michael Porter’s Five Forces Organizations use these strategies to increase
Model analyzes an organization, used to make the orga-
nization more competi- customer loyalty, thus combating the threat of new
its position in the marketplace, and
how information systems could be tive.39 The five forces, entrants or substitute products. However, certain
used to make it more competitive. shown in Exhibit 1.4, are: information technology tools, such as the Internet,
The five forces include buyer power, have evened the playing field by giving customers
supplier power, threat of substitute Buyer power
●● more access to all sorts of data, such as the various
products or services, threat of new
entrants, and rivalry among existing
●● Supplier power prices for products and services. This increases buy-
competitors. ●●  hreat of substitute
T ers’ bargaining power and decreases supplier power,
products or services which is discussed next.
16 PART ONE: Fundamentals of Information Systems
Information Technologies at Netflix
Using a wide variety of devices, over 109 million Netflix subscribers in the United States and around the world
connect to the company’s Web site and watch unlimited movies and TV episodes.40 The users can also receive
DVDs through the mail. The Internet, personalization technologies, and effective inventory management tech-
niques have revolutionized rental entertainment at Netflix. Any user with an Internet connection can connect
to the Web site and watch movies and TV episodes streamed and delivered instantly to a user’s device. Netflix is
currently using Amazon Web Services (AWS), which has provided the company with a high degree of availability
and speed.41
Using data-mining and collaborative filtering technologies, Netflix’s personalization system actively searches infor-
mation to discover relationships and patterns and make recommendations based on a user’s past movie-viewing
history and questions that were answered on the
Web site. Based on these techniques, Netflix has
created CineMatch, an algorithm that recom-
mends other movies the customer might enjoy.42
The inventory system used by Netflix is fully
automated, and computers and robots play a
major role in managing CDs and DVDs by scan-
ning them as soon as they arrive, notifying the
customer that the shipment has been received,

Maxxa Satori/Shutterstock.com
and quickly making the CDs and DVDs avail­
able for other customers. (Netflix owns over
89 ­million discs.) A machine called a “stuffer”
processes DVDs—puts the discs into the enve-
lopes, folds and closes the envelope, and applies
the sticker to the center of the envelope.43

Supplier power is high when customers have fewer for switching to another provider before the customer
options and low when customers have more options. contract is up.
Organizations might use information systems to make The threat of new entrants into the marketplace is
their products and services cheaper or to offer more ser- low when duplicating a company’s product or service
vices in order to distinguish themselves from competitors is difficult. Organizations often use focus strategies to
(another use of a differentiation strategy). Netflix, for ensure that this threat remains low. For example, devel-
example, uses information technologies to offer prod- oping a search engine that could compete successfully
ucts and services, which increases its power in the mar- with Google would be difficult. In addition, organiza-
ketplace. (For examples of how these focus strategies get tions use information technologies to increase customer
used, see the information box on Netflix.) Organizations loyalty, as mentioned previously, which reduces the
have tools other than information systems and technolo- threat of new entrants. For example, banks offer free bill
gies to increase their power. For example, drug companies paying to attract customers and keep them from switch-
obtain patents for their products to reduce competition. ing to another bank; setting up a bill-paying service at
The threat of customers choosing substitute prod- another bank takes time that most customers do not
ucts or services is high when many alternatives to an want to spend. Similarly, after customizing their home
organization’s products and services are available. Some pages with options offered by sites such as Yahoo! and
organizations add services—such as Amazon’s personal- Google, many users do not want to repeat this process
ized recommendations—to make their positions in the at a new site.
marketplace more distinctive. Other organizations use Rivalry among existing competitors is high when
fees to discourage customers from switching to a com- many competitors occupy the same marketplace
petitor, such as when cell phone companies add charges position; it is low when there are few competitors.
CHAPTER 1: Information Systems: An Overview 17
 Digital Innovation in Retail Industry Using Information Technologies
In order to reduce cost and minimize the gap between
the e-commerce and traditional commerce, brick-and-
mortar retailers are increasingly using information tech-
nologies. This not only improves customer service, but
it also sets these retailers apart from the competition.
Here are few examples of information technologies

Anatoly Tiplyashin/Shutterstock.com
being deployed in retail business:44,45,46
Digital signage or dynamic signage—These are
kiosks placed throughout stores with dynamic content
update capabilities that provide shoppers with up-to-
date information on product offerings and the latest
promotional campaigns. They also allow customers to
print coupons.
Beacon marketing—Use of Apple’s iBeacon or similar technologies allows retailers to deliver in-store targeted
marketing to customers’ smartphones or other handheld devices.
Interactive touch display—These are virtual sales assistants that help shoppers locate a product in the store
through high-definition graphics similar to those that the shoppers see online.
Image search—Retailers using Google, TinEye, or other search engines allow shoppers to take a photo or submit a
photo to search the retailer’s Web site and then buy the item in the store or online.
Mobile wallets—These allow customers to store their credit, debit, or loyalty cards, as well as coupons, and
redeem them electronically in store. They also allow them to validate tickets, redeem vouchers, make transactions,
and use multiple loyalty services. Customers can also do mobile checkout either at the cash register or with a walk-
ing sales associate equipped with a handheld device.
Smart fitting rooms—Wall-mounted tablets inside fitting rooms provide side-by-side comparisons with video of
the various looks a customer has with different clothes. Customers can actually try on the clothes or just overlay
them on his/her image without changing clothing.

For example, online brokerage firms operate in a highly (discussed in Chapter 14) are in high demand.47 Broadly
competitive environment, so they use information tech- speaking, IT jobs fall into the following categories:
nologies to make their services unique. ●● Operations and help desk
The information box highlights the role of infor-
●● Programming
mation technologies in making retail businesses more
competitive. A growing number of retailers are using ●● Systems design
elements of Porter’s Five Forces Model. ●● Web design and Web hosting
●● Network design and maintenance
●● Database design and maintenance

1-7 THE IT JOB MARKET ●● Robotics and artificial intelligence

The educational backgrounds for an IT position

During the past decade, the IT job market has been one can include an AA, BA, BS, MS, or MBA in information
of the fastest growing segments in the economy, and it systems and related fields. The salaries vary based on
continues to be so. Even during the economic down- educational background, experience, and the job’s loca-
turn, certain segments of the IT job market, such as tion. They range from $52,000 for a programmer to over
Web design, infrastructure, and computer and network $240,000 for a chief information security officer.
security, have shown growth compared to the rest of the Popular jobs in the information systems field are
job market. Currently, cloud computing–related jobs described in the following sections.
18 PART ONE: Fundamentals of Information Systems
1-7a knowledge suitable for a specific application. Because
of the popularity of smartphones and mobile devices,
The top information systems job belongs to either the many programmers are now developing apps for iOS and
chief technology officer (CTO) or the chief information Android devices. There is a huge demand for these appli-
officer (CIO). This person oversees long-range planning cations and for the programmers who develop these apps.
and keeps an eye on new developments in the field that
can affect a company’s success. Some organizations also 1-7g
have a chief privacy officer (CPO). This executive posi-
tion includes responsibility for managing the risks and A webmaster designs and maintains the organization’s
business impacts of privacy laws and policies. Web site. Because of the popularity of e-commerce
applications, webmasters have been in high demand.
1-7b In recent years, new IT-related jobs have been created
that appear to also be in high demand.49,50 These jobs include:
This person is responsible for managing all the hardware,
●● Data scientist (see the following paragraph for further
software, and personnel within the information systems
explanation of this job title)
department.
●● Social media/online-community manager
1-7c ●● Social media architect
●● Telework manager or coordinator
This person is responsible for the design and implemen-
●● Search engine optimization specialist
tation of information systems. In addition to computer
●● Business architect
knowledge and an information systems background, this
position requires a thorough understanding of business sys- ●● Mobile technology expert
tems and functional areas within a business organization. ●● Enterprise mobile developer
●● Cloud architect
1-7d
In recent years, a growing number of companies have
This person oversees a company’s internal and external been hiring data scientists (DS) in different sectors of the
network systems, designing and implementing network economy: sports, politics, agriculture, technology, and
systems that deliver correct information to the right retail. Companies such as Microsoft, Google, Facebook,
decision maker in a timely manner. Providing network Bank of America, JPMorgan Chase, and Target are a few
and cybersecurity is part of this position’s responsibility. examples.51 So what does a DS do? A DS may perform dif-
Due to the increasing number of data beaches and ferent tasks in different disciplines. A DS may interact with
security threats, large organizations have created a rela- different users to automate data collection, aggregation,
tively new job title called a chief information security and visualization. He or she deploys statistical and math-
officer (CISO). This executive position is responsible for ematical models and certain artificial intelligence tech-
establishing and implementing policies in order to ensure nologies. The ultimate goal is to help generate business
that information assets and technologies are protected intelligence (BI) and actionable information for decision
against internal and external threats. The salary of this making.52 Below are few specific tasks that a DS performs:53
executive position could be well over $240,000 per year.48 ●● Identify the problem that an organization faces
●● Identify and collect data sets and variables
1-7e

A database administrator (DBA) is responsible for data-

base design and implementation. Additionally, a database
administrator should have knowledge and understanding of
data warehouses and data-mining tools.
wavebreakmedia/Shutterstock.com

1-7f

A computer programmer writes computer programs

or software segments that allow the information system
to perform a specific task. There are many computer
languages available, and each one requires a specific
CHAPTER 1: Information Systems: An Overview 19
 ●● Insure the accuracy and completeness of data sets ●● Personal computers and tablets will continue to improve
●● Apply models and algorithms to data sets in power and quality, so most information system soft-
ware will be able to run on them without problems. This
●● Analyze and interpret the results for the decision makers
trend should make information systems more affordable,
According to a study conducted by IBM, by 2020, easier to maintain, and more appealing to organizations.
there would be more than 2.7 million job openings in ●● Internet growth will continue, which will put small and
data scientist-related fields. The top five qualities of an large organizations on the same footing, regardless of
effective data scientist include:54 their financial status. Internet growth will also make
●● Analytical skills and quantitative reasoning e-collaboration easier, despite geographical distances.
●● Storytelling ability—be able to explain data to non-
●● Computer criminals will become more sophisticated,
technical team members and protecting personal information will become
more difficult.
●● Be a team player—work and interact effectively with
team members Major computing trends that are already underway
●● Be a problem-solver and should continue into the future include:57
●● Have a sense of curiosity—help the organization find ●● Ubiquitous computing: Computing devices every-
new uses for the collected data where with different sizes and power and accessed
through multiple formats such as voice, touch, and
The background and educational degrees for a DS
gesture (discussed in Chapter 2).
varies. Generally speaking some knowledge of mathe-
●● The Internet of things (IoT) and the Internet of every-
matics, statistics, and MIS is needed. There are a variety
thing (IoE): Connected devices through the Web that
of courses and degree programs that prepare students will be used by businesses and individuals for increasing
to become a DS. In 2016, Microsoft launched an online productivity and cost savings (discussed in Chapter 7).
data science degree program with the goal of addressing
●● 3D printing: Creating a physical object from a 3D
a shortage of workers with data science skills.55 digital model for individuals use and businesses. This
could significantly bring down manufacturing costs
1-8 OUTLOOK FOR THE FUTURE ●●
(discussed in Chapter 11).
Pervasive analytics: Building and integrating analyt-
ics capabilities into all everyday business activities
By examining various factors related to designing, imple- (discussed in Chapter 3).
menting, and using information systems, the following ●● Context aware computing: Widespread applications and
predictions can be made: deployment of devices that know users, their devices,
●● Hardware and software costs will continue to decline, so and their locations and serve as intelligent assistants to
processing information will be less expensive. These cost businesses and individuals (discussed in Chapter 13).
savings should make information systems affordable for ●● Smart machines and devices: Continuous improve-
any organization, regardless of its size and financial status. ments in autonomous cars, trucks, drones, and robots,
●● Artificial intelligence and related technologies will such as self-driving cars (discussed in Chapter 13).
continue to improve and expand, which will have an ●● Cloud computing: Growth in cloud computing for
impact on information systems. For example, further multiple applications and multiple users (discussed
development in natural language processing should in Chapter 14).
make information systems easier to use. Also, robots ●● Software defined applications and infrastructures:
will play a major role in the workforce of the future.
The trend toward dynamically assembled infrastruc-
According to Gartner, by 2025, one in three jobs will
tures that are more responsive to user needs and are
be taken by software or robots.56
able to deliver results faster, as opposed to predefined
●● The computer literacy of typical information system infrastructures.
users will improve, as computer basics are taught ●● Security: The importance of computer and network
more in elementary schools.
security will increase, and more attention will be given
●● Networking technology will improve, so connect- to application self-protection (discussed in Chapter 5).58
ing computers will be easier, and sending informa-
●● Increased applications of augmented and virtual
tion from one location to another will be faster.
reality: By 2020, 100 million consumers will shop in
Compatibility issues between networks will become
augmented reality (discussed in Chapter 14).59
more manageable, and integrating voice, data, and
images on the same transmission medium will improve The Industry Connection highlights Microsoft and its
communication quality and information delivery. products and services.
20 PART ONE: Fundamentals of Information Systems
Industry Connection: Microsoft Corporation60
Microsoft, founded in 1975, is the world’s largest software company and is involved in all aspects of desktop computing. In
recent years, Microsoft has also become a major cloud provider. It is best known for the Disk Operating System (DOS), Win-
dows operating systems, and office software suites such as Office. Here are some of the products and services Microsoft offers:

Windows: The most popular operating system for PCs and MSN: An Internet portal combining Web services and free
PC-compatible computers Web-based e-mail (Hotmail)

Windows XP, Windows Vista, Windows 7, Windows 8, SharePoint Server: Groupware for facilitating information
Windows 10: Five widely used OSs for PCs sharing and content management

Windows Server 2003, Server 2008, Server 2010, Server SQL Server 2008, 2010, 2012, 2014, and 2016: Widely used
2012, Server 2016: Five widely used server operating database management systems
systems used in network environments
Xbox: A video game system
Office: The most widely used office suite; includes Word,
Visual Studio: An integrated development environment (IDE)
Excel, Access, and PowerPoint
that can be used to program applications in a number of dif-
Office 365: An online service, similar to Google Apps, that ferent languages (such as C++, Java, Visual Basic, and C#); used
lets users collaborate on documents, spreadsheets, and for console or GUI applications as well as Web applications
e-mail using a combination of subscription desktop soft-
Windows Live ID: A single sign-on service for multiple
ware and Web apps; includes Word, Excel, Exchange, and
Web sites
PowerPoint
Skype: A software application that allows users to commu-
Internet Explorer: A popular Web browser
nicate using voice, videos, and data over the Internet
Expression Web (replacing FrontPage): An HTML editor
Surface: A tablet designed to compete with the iPad
and Web design program for developing Web pages and
other HTML applications Azure: A cloud computing platform

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Reviews and Discussions

1. What are three applications of computers and infor- 2. What are three recommendations for reducing risk
mation systems in your daily life? and improving the privacy of your personal informa-
tion while using social media?

CHAPTER 1: Information Systems: An Overview 21

 3. What is business intelligence (BI)? 6. What are three examples of decisions supported by a
4. Define a management information system (MIS). logistics information system (LIS)?
5. What are four major components of an information 7. What are Michael Porter's three strategies for success-
system? fully competing in the marketplace?
8. What are three examples of specific tasks performed
by a data scientist (DS)?

Projects
1. Identify three applications of information systems at the 4. After reading the information presented in this chapter
college or the university that you are attending. Write a and other sources, write a one-page paper that describes
one-page paper that describes these three applications, the ways two different companies use Michael Porter’s
and provide an example of the type of decisions that are three strategies. How are information systems assisting
being improved by each application. How are multiple these companies in implementing each strategy? How
choice and true-false questions graded? has Walmart (for the most part) become a cost leader?
2. Grocery chains have been using information technolo- 5. After reading the information presented in this
gies for several decades. After reading the information chapter and other sources, write a one-page paper that
presented in this chapter and other sources, write a supports the claim that, in the future, computer crimi-
one-page paper that describes three such technolo- nals will become more sophisticated and that protect-
gies. What are two advantages of a POS system? ing personal information will become more difficult.
3. RFID tags are being increasingly used by companies How should individuals guard against this threat?
such as Macy’s, Walmart, and Home Depot. Identify 6. Banks are promoting online banking to a broad
an additional company that uses RFIDs and write a range of customers. After reading the information
one-page paper that describes the company’s spe- presented in this chapter and other sources, write a
cific application of RFIDs. What are two differences one-page paper that lists three advantages and three
between an RFID and a UPC system? disadvantages of online banking. Why are some cus-
tomers reluctant to use online banking? What are two
examples of popular apps that your own bank uses?

Are You Ready to Move On?

1. Computer literacy is understanding the role of infor- 5. All of the following are among decisions supported by
mation in generating and using business intelligence. a financial information system (FIS) except:
True or False? a. Sales forecasting
2. Data consists of raw facts and is a component of an b. Improving budget allocation
information system. True or False?
c. Minimizing capital investment risks
3. Michael Porter’s Five Forces Model analyzes an
d. Monitoring cost trends
organization, its position in the marketplace, and how
information systems could be used to make it more 6. All of the following are among the new IT-related jobs
competitive. True or False? except:
4. All of the following are among the good practices a. Data scientist
while using social media, except: b. Systems analyst
a. Use long passwords (eight characters or longer) that c. Social media/online-community manager
mix uppercase and lowercase letters with numbers d. Search engine optimization specialist
b. Do not post a phone number or a full address
c. Do not post children’s names, even in photo tags or
captions
d. Be specific when posting information about vaca-
tions or business trips
22 PART ONE: Fundamentals of Information Systems
CASE STUDY 1-1

Federal Express (FedEx), founded and print shipping labels. Custom-

in 1971, handles an average of ers can also link their invoicing,
3 million package-tracking requests billing, accounting, and inventory

Denise Kappa/Shutterstock.com
every day (http://about.van.fedex systems to Ship Manager.61
.com/). To stay ahead in a highly However, Federal Express still
competitive industry, the company spends almost $326 million per
focuses on customer service by year on its call center in order to
maintaining a comprehensive Web reduce customers’ frustration when
site, FedEx.com, where it assists the Web site is down or when cus-
customers and reduces costs. For tomers have difficulty using it.
example, every request for information that is handled at The company uses customer relationship ­ management
the Web site rather than by the call center saves an esti- software called Clarify in its call ­centers to make customer
mated $1.87. Federal Express has reported that customer service representatives’ jobs easier and more efficient and
calls have decreased by 83,000 per day since 2000, which to speed up response time.62
saves the company $57.56 million per year. And because
each package-tracking request costs Federal Express Answer the following questions:
3 cents, costs have been reduced from more than 1. Is technology by itself enough to ensure high-quality
$1.36 ­billion per year to $21.6 million per year by customers customer service?
using the Web site instead of the call center. 2. What are Federal Express’s estimated annual savings
Another technology that improves customer service is from using information technology?
Ship Manager, an application installed on customers’ sites 3. What are a couple of examples of information technolo-
so users can weigh packages, determine shipping charges, gies used by Federal Express?

CASE STUDY 1-2

Faced with strong competition by online Scan It device spend about 10 percent
stores, retailers are looking for new ways more than average.
to improve customer service and lower Clothing retailer Nordstrom is also using
Tyler Olson/Shutterstock.com

operating costs. They have found mobile mobile devices, which it issues to its sales
technology to be the key for achieving associates on the floor so they can scan
this goal. Scan-as-you-go mobile devices items on the spot and let customers pay
are a logical next step after the self- without going through the cash registers.
checkout used by many retailers. Retail The Home Depot uses a device called First
experts predict the new mobile-based Phones as an inventory tracker. If the item
retail devices could eventually bring about the end of tra- is out of stock, First Phones quickly notifies the customer
ditional cash register systems. The mobile checkout stations whether a nearby store has it, then holds the item for the cus-
pioneered at Apple stores appear to be the future. The goal tomer to pick up. Starbucks is using a digital wallet model that
is to speed up and improve customer service and to keep allows customers to pay using their smartphones.63
consumers in stores and spending.
Ahold USA’s Stop & Shop retail stores use a mobile device Answer the following questions:
called Scan It that hangs on the handle of the shopping cart 1. According to this case study, what is an upcoming key
and allows customers to shop and scan as they go through technology that will be used in retail stores to improve
the aisles. If there is a coupon for an item, the device quickly customer service?
gives the customers a credit and the total is recalculated. 2. What is the name of the device used by Ahold USA’s
The device is smart enough to alert the customer if there is Stop & Shop retail stores?
a coupon for a complementary item, such as coffee creamer 3. What will be the role of smartphones in the future of
if the customer has purchased coffee. Shoppers who use the shopping?
CHAPTER 1: Information Systems: An Overview 23
 2 Computers: The
Machines Behind
Computing
Preechar Bowonkitwanchai/Shutterstock.com

LEARNING OBJECTIVES
After studying this chapter, you should be able to:

2-1 Define a computer system, and describe its components.

2-2 Discuss the history of computer hardware and software. After you finish
2-3 Explain the factors distinguishing the computing power of computers. this chapter, go to
2-4 Summarize computer operations.
PAGE 43 for the
2-5 Discuss the types of input, output, and memory devices.
STUDY TOOLS
2-6 Explain how computers are classified.

2-7 Describe the two major types of software.

2-8 List the generations of computer languages.

In this chapter, you will learn about the
major components of If airplanes had a computer and what
developed as
factors distinguish computers have computing power.
You will review a brief developed, today you history of computer
hardware and software would be able to go and learn an overview
of computer operations. around the globe in You will also go
less than 20 minutes
into more detail on for just 50 cents. specific computer
components: input, output, and memory
devices. You will learn how computers are
classified, based on size, speed, and sophistication, and about the two
major types of software—system software and application software—
and the five generations of computer languages.

2-1 DEFINING A COMPUTER manner without the use

of computers. The text A computer is a machine that
was typed and revised accepts data as input, processes
data without human intervention
If airplanes had developed as computers have devel- with word-processing by using stored instructions, and
oped, today you would be able to go around the globe software, and composi- outputs information.
in less than 20 minutes for just 50 cents. Computers tion software was used to
have gone through drastic changes in a short time. For typeset the pages. Print-
example, a computer that weighed more than 18 tons ing, warehousing, inventory control, and shipping were
60 years ago has been replaced by one that now weighs accomplished with the help of computers.
less than 2 pounds. Today’s computer is 100 times more So what is a computer? Many definitions are
powerful and costs less than 1 percent of the 60-year-old possible, but in this book a computer is defined as
computer. a machine that accepts data as input, processes data
As you learned in Chapter 1, you use computers without human intervention by using stored instruc-
every day for a multitude of purposes. You even use tions, and o­utputs ­ information. The instructions,
them indirectly when you use appliances with embedded also called a program, are step-by-step directions for
computers, such as TVs and microwaves.
Computers have become so ubiquitous,
in fact, that a cashless and checkless soci-
ety is likely just around the corner. Simi-
larly, computers might eliminate the need
for business travel. Even now, executives
seldom need to leave their offices for
meetings in other locations because of
technologies such as computer conferenc-
ing and tele­presence systems.
Computers are used in a wide variety
McIek /Shutterstock.com

of tasks, including report distribution in

businesses, rocket guidance control in the
NASA space program, and DNA analy-
sis in medical research. This book could
not have been published in such a timely

CHAPTER 2: Computers: The Machines Behind Computing 25

 Exhibit 2.1

CPU

ALU Control unit

Input devices Output devices

Main memory

­ erforming a specific task, written in a language the

p 2-1a
­computer can understand. Remember that a computer
only processes data (raw facts); it ­cannot change or A computer system consists of hardware and software.
correct the data that is entered. If data is erroneous, Hardware components are physical devices, such as key-
the information the computer provides is also errone- boards, monitors, and processing units. The software
ous. This rule is sometimes called GIGO: garbage in, component consists of programs written in computer
garbage out. languages.
To write a computer program, first you must Exhibit 2.1 shows the building blocks of a com-
know what needs to be done, and then you must plan puter. Input devices, such as keyboards, are used to send
a method to achieve this goal, including selecting the data and information to the computer. Output devices,
right language for the task. Many computer languages such as monitors and printers, display the output a com-
are available; the language you select depends on the puter generates.
problem being solved and the type of computer you Main (primary) memory is where computers
are using. Regardless of the language, a program is store data and instructions, similar to a human brain.
also referred to as the The central processing unit (CPU) is the heart of
source code. This source a computer. It is divided into two components: the
The central processing unit code must be trans- arithmetic logic unit (ALU) and the control unit.
(CPU) is the heart of a computer. It The ALU performs arithmetic operations (1, 2, ∗, /) as
is divided into two components: the lated into object code—
arithmetic logic unit (ALU) and the consisting of binary 0s well as comparison or relational operations (,, ., 5);
control unit. and 1s. Binary code— the latter are used to compare numbers. The control
a set of instructions unit tells the computer what to do, such as instructing
The arithmetic logic unit
(ALU) performs arithmetic used to control the the computer which device to read or send output to.
operations (1, 2, *, /) as well as computer—uses 0s and Some computers have a single processor; other
comparison or relational operations 1s, which the computer computers, called multiprocessors, contain multiple pro-
(,, ., 5); the latter are used to
understands as on or off cessors. Multiprocessing is the use of two or more CPUs
compare numbers.
signals. You will learn in a single computer system. Generally, a multiprocessor
The control unit tells the computer performs better than a ­single-processor com-
more about the binary
computer what to do, such as
system and computer puter in the same way that a team would perform better
instructing the computer which
device to read or send output to. languages later in this than an individual on a large, time-consuming project.
chapter. Some computers use a dual-core processor, which is

26 PART ONE: Fundamentals of Information Systems

 essentially two processors in one, to improve processing for recording, storing, and retrieving information. A
power. Dual-core processors are common in new PCs CPU case (also known as a computer chassis or tower)
and Apple computers. In recent years, multicore proces- is the enclosure containing the computer’s main compo-
sors have been introduced. A quad-core processor con- nents. A motherboard is the main circuit board con-
tains four cores, a hexa-core processor contains six cores, taining connectors for attaching additional boards. In
and an octa-core processor contains eight cores. Simply addition, it usually contains the CPU, basic input/output
put, these new chips are making computers faster than system (BIOS), memory, storage, interfaces, serial and
their predecessors. parallel ports, expansion slots, and all the controllers for
Another component that affects computer per- standard peripheral devices, such as the display monitor,
formance is a bus, which is the link between devices disk drive, and keyboard. A serial port is a communica-
connected to the computer. A bus can be parallel or tion interface through which information is transferred
serial, internal (local) or external. An internal bus enables one bit at a time; a parallel port is an interface between
communication between internal components, such as a computer and a printer that enables the computer
a video card and memory; an external bus is capable to transfer multiple bits of information to the printer
of communicating with external components, such as a simultaneously.
USB device.
Other factors that affect computer performance
include the processor size and the operating system 2-2 THE HISTORY OF COMPUTER
(OS). In recent years, 32-bit and 64-bit processors and
OSs have created a lot of interest. A 32-bit proces- HARDWARE AND SOFTWARE
sor can use 232 bytes (4 GB) of RAM; and, in theory, a
64-bit processor can use 264 bytes (16 EB, or exabytes) Major developments in hardware have taken place
of RAM. So a computer with a 64-bit processor can over the past 60 years. To make these developments
­perform ­calculations with larger numbers and be more more clear, computers are often categorized into
efficient with smaller numbers; it also has better over- “generations” that mark technological breakthroughs.
all performance than a 32-bit system. However, to take Beginning in the 1940s, first-generation computers
advantage of this higher performance, you must also used vacuum tube technology. They were bulky and
have a 64-bit OS. unreliable, generated excessive heat, and were diffi-
Exhibit 2.2 shows additional components of a cult to program. Second-generation computers used
computer system. A disk drive is a peripheral device transistors and were faster, more reliable, and easier

A bus is a link between devices

Exhibit 2.2 connected to the computer. It can
be parallel or serial, internal (local)
or external.

A disk drive is a peripheral

device for recording, storing, and
retrieving information.
Avera/Shutterstock.com

A CPU case is also known as

Ps-42 /Shutterstock.com

a computer chassis or tower. It

is the enclosure containing the
computer’s main components.

A motherboard is the main

circuit board containing connectors
for attaching additional boards. It
usually contains the CPU, basic input/
output system (BIOS), memory,
Zadorozhnyi Viktor/
Shutterstock.com

storage, interfaces, serial and parallel

ports, expansion slots, and all the
controllers for standard peripheral
devices, such as the display monitor,
disk drive, and keyboard.

CHAPTER 2: Computers: The Machines Behind Computing 27

 TABLE 2.1 HARDWARE GENERATIONS
Generation Date Major Technologies Example
First 1946–1956 Vacuum tube ENIAC
Second 1957–1963 Transistors IBM 7094, 1401
Third 1964–1970 Integrated circuits, remote data entry, IBM 360, 370
telecommunications
Fourth 1971–1992 Miniaturization, VSLI, personal Cray XMP, Cray II
computers, optical discs
Fifth 1993–present Parallel processing, gallium arsenide IBM System zEnterprise EC12
chips, optical technologies

to program and maintain. Third-generation comput- IBM has produced a prototype chip with tran-
ers operated on integrated circuits, which enabled sistors that are just 7 nanometers wide, or about
computers to be even smaller, faster, more reliable, 1/10,000th the width of a human hair. Those in use
and more sophisticated. Remote data entry and currently are twice as big.2
telecommunications were introduced during this The field of optical technologies involves the appli-
generation. Fourth-generation computers continued cations and properties of light, including its interactions
several trends that further improved speed and ease with lasers, fiber optics, telescopes, and so forth. These
of use: miniaturization, very-large-scale integration technologies offer faster processing speed, parallelism
(VLSI) circuits, widespread use of personal comput- (several thousand light beams can pass through an ordi-
ers, and optical discs (discs written or encoded and nary device), and interconnection; much denser arrays
read using a laser optical device). The current fifth- of interconnections are possible because light rays do
generation computers include parallel processing not affect each other. Optical computing is in its infancy,
(computers containing hundreds or thousands of CPUs and more research is needed to produce a full-featured
for rapid data processing), gallium arsenide chips that optical computer. Nevertheless, storage devices using
run at higher speeds and consume less power than sili- this technology are revolutionizing the computer field by
con chips, and optical technologies. Table 2.1 summa- enabling massive amounts of data to be stored in very
rizes these hardware generations. small spaces.
Because silicon cannot emit light and has speed Computer languages and software have also devel-
limitations, computer designers have concentrated on oped through five generations. They are discussed in
technology using gallium arsenide, in which electrons more detail in the “Computer Languages” section, but
move almost five times faster than silicon. Devices Table 2.2 summarizes these generations.
made with this synthetic compound can emit light, The information box “IBM Watson: A Super-
withstand higher temperatures, and survive much computer with Artificial Intelligence Capabilities”
higher doses of radiation than silicon devices. The describes a supercomputer that has several features of
major problems with gallium arsenide are difficul- a fifth-generation computer as well as artificial intel-
ties in mass production. This material is softer and ligence capabilities.
more fragile than silicon, so it breaks more easily dur-
ing slicing and polishing. Because of the high costs
and difficulty of production, the military is currently
the major user of this technology. However, research
TABLE 2.2 COMPUTER LANGUAGE TRENDS
continues to eliminate some shortcomings of this
technology. Generation Major Attribute
IBM has already started using carbon nanotubes First Machine language
(CNTs) instead of silicon in its computer chips. CNTs Second Assembly language
are developed using nanotechnology, which is dis- Third High-level language
cussed in Chapter 14. It is one of the methods that
Fourth Fourth-generation language
should keep chip sizes shrinking after the current
Fifth Natural language processing (NLP)
silicon-based technology has reached its limit.1
28 PART ONE: Fundamentals of Information Systems
IBM Watson: A Supercomputer with Artificial Intelligence Capabilities
On February 16, 2011, an IBM supercomputer named
Watson beat two former champions of the television game
show Jeopardy and took away the $1 million prize. At first,
Watson did poorly on a variety of subjects, from politics
to USA Today’s 2008 price hike. The supercomputer also
did not know that Slovenia was the only former Yugoslav
­republic currently in the European Union. Eventually,
though, it pulled ahead, with 18 correct answers compared
to Ken Jennings’s 7 and Brad Rutter’s 4.

Source: YouTube/IBM
To achieve its victory, Watson needed massive comput-
ing power and storage space, including 10 server racks, each
with 10 IBM Power 750 servers; it drew on 200 million pages
of content stored on 4 terabytes of disk space.3 Thousands of
algorithms and computer programs allowed it to break down
Watson has been seen conversing with
human language into pieces so it could search for answers in
musician and winner of the 2016 Nobel
its massive database. It answered questions without exactly
understanding them, but it answered them with a high Prize in Literature Bob Dylan in IBM
degree of confidence! Overall, this was a significant improve- commercials.
ment in a computer’s ability to understand context in human
language. IBM believes that the technology behind Watson can be applied to a variety of fields, including medicine.
Voice integration is the next step in the development of Watson-related ­applications.4,5
Watson powered apps are now available that can serve as personal shopping assistant and help brick-and-motor
companies to increase their cross-sell and up-sell opportunities.6
IBM and Pathway Genomics are developing an app that uses personal history and genetics to evaluate risks and
recommend exercises. This app enables an individual to find out what exercises to do, what to eat, and what medical
tests to ask from a doctor.7
Watson has also been used as a trip-planning service providing travelers with relevant information in order to better
plan their trips.8
As an example, H&R Block, an American tax preparation company, is using Watson to improve the client experi-
ence and assist in identifying credits and deductions. Watson will be able to find the best outcome for each and every
unique tax situation and maximize the tax returns. At the same time, it will assist clients to better understand how
different filing options can impact (increase or decrease) their tax returns.9
Some of the new features and capabilities of Watson include vision-recognizing images and patients’ records,10
battling cancer with advanced genomics,11 and managing call centers.12

2-3 THE POWER OF COMPUTERS can, which improves efficiency. Today’s high-speed
computers make it possible for knowledge workers to
perform tasks much faster than with the slower com-
Computers draw their power from three factors that far puters of the past. Typically, computer speed is mea-
exceed human capacities: speed, accuracy, and storage sured as the number of instructions performed during
and retrieval capabilities. These are discussed in the the following fractions of a second:
following sections.
●● Millisecond: 1/1,000 of a second
2-3a ●● Microsecond: 1/1,000,000 of a second
●● Nanosecond: 1/1,000,000,000 of a second
Computers process data with amazing speed. They are
capable of responding to requests faster than humans ●● Picosecond: 1/1,000,000,000,000 of a second

CHAPTER 2: Computers: The Machines Behind Computing 29

 2-3b TABLE 2.3 STORAGE MEASUREMENTS
Unlike humans, computers do not make mistakes. To (APPROXIMATIONS)
understand computer accuracy more clearly, take a look 1 bit A single value of 0 or 1
at these two numbers: 8 bits 1 byte or character
●● 4.0000000000000000000000001 2 bytes
10
1,000 bytes, or 1 kilobyte (KB)
●● 4.0000000000000000000000002 220 bytes 1,000,000 bytes, or 1 megabyte (MB)
2 bytes
30
1,000,000,000 bytes, or 1 gigabyte (GB)
To humans, these two numbers are so close that they
are usually considered equal. To a computer, however, 2 bytes
40
1,000,000,000,000 bytes, or 1 terabyte (TB)
these two numbers are completely different. This degree 2 bytes
50
1,000,000,000,000,000 bytes, or 1 petabyte (PB)
of accuracy is critical in many computer applications. On 260 bytes 1,000,000,000,000,000,000 bytes, or 1 exabyte (EB)
a space mission, for example, computers are essential for
calculating reentry times and locations for space shuttles.
A small degree of inaccuracy could lead the space shuttle numeric, or special character is represented with an
to land in Canada instead of the United States. 8-bit binary number.
The information box “A Supercomputer in Your
Pocket” highlights the power of smartphones that are
2-3c
faster than a supercomputer of a few years ago.
Storage means saving data in computer memory, and
retrieval means accessing data from memory. Computers
can store vast quantities of data and locate a specific item
quickly, which makes knowledge workers more efficient
2-4 COMPUTER OPERATIONS
in performing their jobs.
In computers, data is stored in bits. A bit is a single Computers can perform three basic tasks: arithmetic
value of 0 or 1, and 8 bits equal 1 byte. A byte is the size operations, logical operations, and storage and retrieval
of a character. For example, the word computer consists operations. All other tasks are performed using one or
of 8 characters or 8 bytes (64 bits). Table 2.3 shows stor- a combination of these operations. For example, play-
age measurements. ing a computer game could require a combination of all
Every character, number, or symbol on the keyboard three operations. During a game, your computer may
is represented as a binary number in computer memory. A perform calculations in order to make a decision (such
binary system consists of 0s and 1s, with a 1 representing as whether to move from point A to point B), it may
“on” and a 0 representing “off,” similar to a light switch. compare two numbers, and it may perform storage and
Computers and communication systems use data retrieval functions for going forward with the process.
codes to represent and transfer data between computers Computers can add, subtract, multiply, divide, and
and network systems. The most common data code for raise numbers to a power (exponentiation), as shown in
text files, PC applications, and the Internet is American the following examples:
Standard Code for Information Interchange (ASCII),
A 1 B (addition) 5 1 7 5 12
developed by the American National Standards Insti-
A 2 B (subtraction) 52253
tute. In an ASCII file, each alphabetic, numeric, or spe-
A p B (multiplication) 5 p 2 5 10
cial character is represented with a 7-bit binary number A / B (division) 5 / 2 5 2.5
(a string of 0s or 1s). Up to 128 (27) characters can be A ⋀ B (exponentiation) 5 ⋀ 2 5 25
defined. There are two additional data codes used by
many operating systems: Unicode and Computers can perform compa­
Extended ASCII. Unicode is capable rison operations by comparing two
of representing 256 (28) characters, and You can store the text numbers. For example, a computer can
Extended ASCII is an 8-bit code that also of more than 1 million compare x to y and determine which
allows representation of 256 characters. number is larger.
books in a memory
Before the ASCII format, IBM’s Computers can store massive
Extended Binary Coded Decimal Inter- device about the size amounts of data in very small spaces
change Code (EBCDIC) was popular. of your fist. and locate a particular item quickly. For
In an EBCDIC file, each alphabetic, example, you can store the text of more
30 PART ONE: Fundamentals of Information Systems
A Supercomputer in Your Pocket
A modern smartphone today has more computing power
and memory than all of NASA during its 1969 mission that
placed two astronauts on the moon and brought them
back safely.13 The Apollo 11 astronauts’ guidance computer
was 2-feet wide, weighed 70 pounds, and had 4 KB of
memory. Its cost in today’s dollars was about $150,000.14
Apple iPhone 8 has 2 GB of RAM, while the iPhone 8 Plus

Everett Historical/Shutterstock.com
and high-end iPhone X both come with 3 GB of RAM. They
are more than 2,000 times faster than the Apollo 11 com-
puter at a fraction of its cost.
You can use your smartphone to order a latté or per-
form a sophisticated statistical analysis. You can shop or
manage a smart home (a home connected to the Internet)
from thousands miles away. Smartphones serve as the
gate to the Internet of things (IoT) discussed in Chapter 7 The Apollo 11 lunar module ascends from
that can connect you to billions of devices. the moon in this July 20, 1969, photo.
As of September 2017, there were more than 3.3 million
apps for Android devices 15 and more than 3.1 million apps for iOS devices. 16 When you combine the speed, memory,
and ease of use of smartphones with the number, variety, and sophistication of over 4 million apps, many of which
are available for free, you can easily see that a supercomputer is in the palm of your hand.

than 1 million books in a memory device about the size tasks with keyboards, but

Benko Zsolt/Shutterstock
of your fist. Later in this chapter, you will learn about for some tasks a scanner
different storage media, such as magnetic disks and tape. or mouse is faster and
more accurate.
●● Mouse—This pointing

.com
2-5 INPUT, OUTPUT, AND device moves the cursor on the
screen, allowing fast, precise cursor positioning. With
MEMORY DEVICES programs that use graphical interfaces, such as Micro-
soft Windows or Mac OS, the mouse has become the
input device of choice.
To use a computer and process data, three major com-
●● Touch screen—This is a combination of input devices,
ponents are needed: input, output, and memory devices. usually working with menus. Some touch screens rely
These are discussed in the following sections. on light detection to determine which menu item has
been selected; others are pressure sensitive. Touch
2-5a screens are often easier to use than ­keyboards, but
Input devices send data and information to the com- they might not be as accurate because selections can
be misread or mistouched. You probably saw touch
puter. They are constantly being improved to make data
screens used extensively on television during the
input easier. Examples of input devices include:
2016 presidential election to quickly show electoral
●● Keyboard—This is the most widely used input device. maps and analyze election data in different ways. The
Originally, keyboards were designed to resemble type- information box “Touchless Computing: The New
writers, but several modifications have been made to Paradigm in User
improve their ease of use. For example, most keyboards System Interface” Input devices send data and
include control keys, arrow keys, function keys, and discusses touchless information to the computer.
other special keys. In addition, some keyboards, such computing, which Examples include a keyboard and
as the split keyboard, have been developed for better may become popular mouse.
ergonomics. You can perform most computer input in the near future.
CHAPTER 2: Computers: The Machines Behind Computing 31
 Touchless Computing: The New Paradigm in User System Interface
Imagine using your tablet, PC, or Macintosh without need-
ing a mouse, keyboard, or touchpad. Like Tom Cruise in
Minority Report, you may soon be able to interact with your

Bosca78/iStock Unreleased/Getty Images

device without touching it, using only ­gestures. In fact,
touchless computing enables you to control what is on
the screen with the movements of your finger. The goal of
touchless computing is to provide an environment similar
to the real world, in which you are able to manipulate
objects using only your fingers.17
This technology should be particularly useful for social
networking sites such as Facebook, in situations where a
user wants to navigate through different types of data in
multiple settings. A San Francisco-based startup company named Leap Motion has designed a device called the Leap
that is the size of a thumb drive. The Leap enables you to control your computer with high degree of accuracy by
waving your hands around. This technology could also radically change our interaction with our TV sets. You will be
able to navigate through channels and programs without touching the remote or the TV set.18
Engineers who use this technology will be able to manipulate 3D models on the screen by mere gesture. The New
York Times has developed a 3D news reader and video reader based on this technology.19

●●  ight pen—This is a light-sensitive stylus connected

L must be able to recognize many special characters and
to the monitor with a cable. When it is placed on an distinguish between uppercase and lowercase letters,
on-screen location, the data in that spot is sent to the so using one is more difficult than using a barcode
computer. The data can be characters, lines, or blocks. A reader. Nevertheless, OCRs have been used success-
light pen is easy to use, inexpensive, and accurate, and it fully in many applications and are improving steadily.
is particularly useful for engineers and graphic designers The U.S. Postal Service uses OCRs to sort mail.
who need to make modifications to technical drawings. ●●  agnetic ink character recognition (MICR) system—
M
●● Trackball—This is kept in a stationary location, but it This reads characters printed with magnetic ink and is
can be rolled on its axis to control the on-screen cur- used primarily by banks for reading the information at
sor. Trackballs occupy less space than a mouse, so they the bottom of checks.
are ideal for notebook computers. However, position- ●●  ptical mark recognition (OMR) system—This is
O
ing with a trackball is sometimes less precise than with sometimes called a “mark sensing” system because it
a mouse. reads marks on paper. OMRs are often used to grade
●●  ata tablet—This consists of a small pad and a pen.
D multiple-choice and true/false tests.
Menus are displayed on the tablet, and you make selec-
tions with the pen. Data tablets are used most widely in 2-5b
computer-aided design and manufacturing applications.
Many output devices are available for both main-
●● Barcode reader—This is an optical scanner that uses
frames and personal computers. Out­put displayed on a
lasers to read codes in bar form. These devices are fast
and accurate and have many applications in inventory,
screen is called “soft copy.” The most common output
data entry, and tracking systems. They are used mostly devices for soft copy are cathode ray tube (CRT), plasma
with UPC systems in retail display, and liquid crystal display (LCD). Soon, organic
stores. light-emitting diode (OLED) displays will replace LCDs.
An output device is capable ●● Optical character OLED screens are brighter, thinner, and consume less
of representing information from a power than LCD technology. However, they are more
reader (OCR)—This
computer. The form of this output
works on the same expensive than LCD technology.
might be visual, audio, or digital;
examples include printers, display principle as a barcode A new type of screen that can fold and roll is being
monitors, and plotters. reader but reads introduced for tablets, wearable devices, and smart-
text instead. OCRs phones. These displays are based on OLED technology
32 PART ONE: Fundamentals of Information Systems
 in some political campaigns to deliver
messages about voting.

2-5c

Two types of memory are common

to any computer: main memory and
secondary memory. Main memory
stores data and information and is usu-
ally volatile, meaning its contents are
lost when electrical power is turned

CBS Interactive Inc./CNET

off. Secondary ­memory, which is
nonvolatile, holds data when the com-
puter is off or during the course of a
program’s operation. It also serves as
archival storage. Main memory plays
Foldable or rollable screens are the newest use of OLED a major role in a computer’s perfor-
technology. mance; to some extent, the more
memory a computer has, the faster and
more efficient its input/output (I/O)
that succeed LED. Since OLEDs don’t have lighting operations are. Graphics cards, also called video adapt-
back-panels, they are thinner and more power efficient. ers, enhance computer performance, too. High-end
Their advantages include increasing the mobility of graphics cards are important for graphic designers, who
devices (a user can change the shape of a device), slim- need fast rendering of 3D images. Many video games
ness, less weight, and durability. 20 also require high-end graphics cards for the best display.
The other type of output is “hard copy,” for which the
most common output device is a printer. Inkjet and laser
printers are standard printers used today. Inkjet printers
Main Memory Devices
produce characters by projecting onto paper electrically The most common type of main memory is a semiconduc-
charged droplets of ink that create an image. High-quality tor memory chip made of silicon. A semiconductor mem-
inkjet printers use multicolor ink cartridges for near-photo ory device can be volatile
quality output and are often used to print digital photo- or nonvolatile. Volatile
Main memory stores data and
graphs. Inkjet printers are suitable for home users who mem­ory is called random information and is usually volatile;
have limited text and photo printing needs. When select- access memory (RAM), its contents are lost when electrical
ing a printer, consider cost (initial and maintenance), qual- al­though you could think power is turned off. It plays a major
ity, speed, space that it occupies, and networking facilities. of it as “read-write mem- role in a computer’s performance.
Laser printers use laser-based technology that cre- ory.” In other words, data Secondary memory, which
ates electrical charges on a rotating drum to attract toner. can be read from and is nonvolatile, holds data when the
The toner is fused to paper using a heat process that cre- written to RAM. Some computer is off or during the course
of a program’s operation. It also
ates high-quality output. Laser printers are better suited examples of the type of serves as archival storage.
to larger office environments with high-volume and informa­ tion stored in
high-quality printing requirements. Other output devices RAM inclu­de open files, Random access memory
(RAM) is volatile memory, in
include plotters for converting computer output to graph- the Clipboard’s contents, which data can be read from and
ics and voice synthesizers for converting computer output running progra­ ms, and written to; it is also called read-
to voice. Voice synthesis has become common. Cash reg- so forth. write memory.
isters at grocery stores use it to repeat item prices. When A special type of Cache RAM resides on the
you call directory assistance, the voice you hear is probably RAM, called cache RAM, processor. Because memory access
computer generated. Voice output is also being used for resides on the processor. from main RAM storage takes several
clock cycles (a few nanoseconds),
marketing. A computer can dial a long list of phone num- Because memory access
cache RAM stores recently accessed
bers and deliver a message. If a number is busy, the com- from main RAM stor- memory so the processor is not
puter makes a note and dials it later. Although the value of age generally takes sev- waiting for the memory transfer.
this method has been questioned, it is constructively used eral clock cycles (a few
CHAPTER 2: Computers: The Machines Behind Computing 33
 nanoseconds), cache RAM stores recently
accessed memory so the processor is not
waiting for the memory transfer.
Exhibit 2.3
Nonvolatile memory is called read-­
only memory (ROM); data cannot be
written to ROM. The type of data usually

Claudio Divizia/Shutterstock.com
stored in ROM includes BIOS information
and the computer system’s clock. There are

Avera/Shutterstock.com
two other types of ROM. Programmable
read-only memory (PROM) is a type of
ROM chip that can be programmed with
a special device. However, after it has been
programmed, the contents cannot be erased.
Erasable programmable read-only memory
(EPROM) is similar to PROM, but its con-
tents can be erased and reprogrammed.
durable. Three common types of optical storage are CD-
ROMs, WORM discs, and DVDs.
Secondary Memory Devices Compact disc read-only memory (CD-ROM), as
Secondary memory devices are nonvolatile and used for the name implies, is a read-only medium. CD-ROMs
storing large volumes of data for long periods. As men- are easy to duplicate and distribute and are widely used
tioned earlier, they can also hold data when the com- in large permanent databases, such as for libraries, real
puter is off or during the course of a program’s operation. estate firms, and financial institutions. They are some-
There are three main types: magnetic disks, magnetic times used for multimedia applications and to distribute
tape, and optical discs. Large enterprises also use storage software products. However, because of its larger
area networks and network-attached storage (discussed capacity—a minimum of 4.7 GB—digital versatile disc
in the next section) for storing massive amounts of data read-only memory (DVD-ROM) is used more often
in a network environment. now, particularly for software distribution.
A magnetic disk, made of Mylar or metal, is used A write once, read many (WORM) disc is also a per-
for random-access processing. In other words, data can manent device. Information can be recorded once and
be accessed in any order, regardless of its order on the cannot be altered. A major drawback is that a WORM
surface. Magnetic disks are much faster but more expen- disc cannot be duplicated. It is used mainly to store infor-
sive than tape devices. mation that must be kept permanently but not altered—
Magnetic tape, made of a plastic material, for example, annual reports and information for nuclear
rese­m­bles a cassette tape and stores data sequentially. power plants, airports, and railroads. SanDisk recently
Re­cords can be stored in announced a Secure Digital (SD) card, a type of WORM
Read-only memory (ROM) a block or separately, disc, that can store data for 100 years but can be written
is nonvolatile; data cannot be with a gap between each on only once with 1 TB of memory.21 In 2016, SanDisk
written to ROM. record or block, called revealed the world’s first 1 TB SD card. This new card
A magnetic disk, made of Mylar
the interrecord gap (IRG). has 16,000 times the capacity of SanDIsk’s first 64 MB
or metal, is used for random-access Magnetic tape is some­­ card introduced in 2000.22
processing. In other words, data can times used for storing Unlike with CD-ROMs and WORM discs, infor-
be accessed in any order, regardless of backups, although other mation stored on an erasable optical disc can be erased
its order on the surface.
media are more common and altered repeatedly. These discs are used when
Magnetic tape, made of now. Exhibit 2.3 shows high-­volume storage and updating are essential. Video-
a plastic material, resembles a both types of magnetic on-demand and various streaming options should reduce
cassette tape and stores data
sequentially.
memory devices. demand for optical media such as Blu-Ray.23
Optical discs use Other secondary memory devices include hard disks,
Optical discs use laser beams laser beams to access USB flash drives, and memory cards (see Exhibit 2.4).
to access and store data. Examples
include CD-ROMs, WORM discs, and and store data. Optical Hard disks come in a variety of sizes and can be internal
DVDs. technology can store vast or external, and their costs have been decreasing steadily.
amounts of data and is Memory sticks have become popular because of their
34 PART ONE: Fundamentals of Information Systems
 TABLE 2.4 CAPACITY OF SECONDARY MEMORY
Exhibit 2.4 DEVICES
Device Storage Capacity
Memory stick 1 TB
Hard disk 16 TB

Timurpix/Shutterstock.com
CD-ROM, CD-R, CD-RW 800 MB
DVD-ROM, DVD-R, DVD-RW 4.7 GB or more
Blu-Ray (latest generation Up to 25 GB on a single-layer disc and
optical disc) 50 GB on a dual-layer disc
SD Card 1 TB
SSD 60 TB
Martin Petransky/Shutterstock.com

in multiple places to improve the system’s reliability. In

other words, if one disk in the array fails, data is not
lost. In some RAID configurations, sequences of data
can be read from multiple disks simultaneously, which
improves performance.
Cloud storage (discussed in Chapter 14) has
become a popular option for many organizations and
individuals in recent years. Used for online storage
and backup, it involves multiple virtual servers that are
usually hosted by third parties. Examples include Just-
Cloud, ZipCloud, MyPCBackup, and Dropbox. Cloud
Yojik /Shutterstock.com

storage may reduce the demand for some of the tradi-

tional storage devices or even replace some of them.25
Large corporations and enterprises that need a lot
of storage space use a server farm or server cluster. This
is a collection of hundreds or thousands of computers
that require a large amount of power to run and keep
cool. The information box
“A Popular Application of
A redundant array of
small size, high storage capacity, and decreasing cost. Flash Cloud Storage: Keeping independent disks
memory is nonvolatile memory that can be e­ lectronically Photos Online” highlights (RAID) system is a collection of disk
erased and reprogrammed. It is used mostly in memory a popular application of drives used for fault tolerance and
cards and USB flash drives for storing and transferring cloud storage. improved performance, and is typically
found in large network systems.
data between computers and other devices. Table 2.4
compares the capacity of common storage devices. Storage Area Used for online storage and backup,
Another type of memory device that is gaining in cloud storage involves multiple
Networks and virtual servers that are usually
popularity is the solid-state drive (SSD). With SSDs,
Network-Attached hosted by third parties. Customers
similar to a memory stick, there are no moving parts.
That is why an SSD-equipped PC will boot very fast,
Storage buy or lease storage space from
third parties based on their current
in seconds, much faster than a PC equipped with a A storage area net- or future needs.
hard disk. On July 6, 2015, Samsung announced an work (SAN) is a dedi­ A storage area network
SSD that offers 2 TB of capacity in a 2.5-inch form cated high-speed net­work (SAN) is a dedicated high-speed
factor for laptops and desktops.24 consisting of both hard- network consisting of both hardware
and software used to connect and
A redundant array of independent disks ware and software used
manage shared storage devices,
(RAID) system is a collection of disk drives used for to connect and manage such as disk arrays, tape libraries, and
fault tolerance and improved performance, and is typi- shared storage devices, optical storage devices.
cally found in large network systems. Data can be stored such as disk arrays, tape
CHAPTER 2: Computers: The Machines Behind Computing 35
 ●●  ybrid solutions (combining a SAN and a NAS) might
H
be available.
A Popular Application of Cloud ●● A SAN offers only storage; a NAS system offers both
Storage: Keeping Photos Online storage and file services.
●● NAS is popular for Web servers and e-mail servers
If you want to share photos with family and friends there because it lowers management costs and helps make
are several options. Social media such as Facebook and these servers more fault tolerant. It is also becoming a
Instagram are two major options. However, there are useful solution for providing large amounts of hetero-
issues with social media such as privacy concerns (who geneous data (text, documents, voice, images, movies,
sees which photos), and some people who are intended to and so forth) for consumer applications.
have access may not be users of a particular social media. ●● The biggest issue with NAS is that, as the number of
There are better options for sharing photos with users increases, its performance deteriorates. How-
enhanced capabilities through cloud storage. Drop- ever, it can be expanded easily by adding more servers
box, Flickr, Shutterfly, SmugMug, and Google Drive or upgrading the CPU.
are among the top options. Some are free, and others
involve annual fees for terabytes of storage.
The problem with using a smartphone for taking and 2-6 CLASSES OF COMPUTERS
sharing a photo is that the photo may never leave its origi-
nal place! The user has to move it to social media and may Usually, computers are classified based on cost, amount of
have to sync a smartphone with a tablet or laptop. Cloud memory, speed, and sophistication. Using these criteria,
storage can do all of these things automatically. Most cloud computers are classified as subnotebooks, notebooks, per-
storage systems come with a variety of options, including sonal computers, minicomputers, mainframes, or supercom-
public and private galleries and automatic uploading from puters. Supercomputers are the most powerful; they also
phones and tablets. They also offer drag-and-drop upload- have the highest storage capabilities and the highest price.
ing, organizing, and the ability to edit photos online.26 Mainframe computers are usually compatible with
the IBM System/360 line introduced in 1965. As men-
tioned in the Industry Connection later in this chapter,
IBM System zEnterprise EC12 is the latest example in
libraries, and optical storage devices. A SAN network this class. Systems that are not based on System/360 are
makes storage devices available to all servers on a local referred to as “servers” (discussed in the next section)
area network (LAN) or wide area network (WAN). or supercomputers. Supercomputers are more expen-
(LANs and WANs will be discussed in Chapter 6.) sive, much bigger, faster, and have more memory than
Because a SAN is a dedicated network, servers can personal computers, minicomputers, and mainframes.
access storage devices more quickly and do not have to The fiftieth TOP500 list of the fastest supercomput-
use their processing power to connect to these devices. ers in the world, released in November 2017, has China
Typically, SANs are used only in large enterprises overtaking the United States in the total number of
because of their cost and installation complexity. ranked systems by a margin of 202 to 143. It is the larg-
SANs speed up data access performance, and est number of supercomputers China has ever claimed on
despite their cost, they are more economical than having the TOP500 ranking, with the U.S. presence shrinking to
storage devices attached to each server. A SAN’s capacity its lowest level since the list’s inception 25 years ago.
can be extended easily, even to hundreds of terabytes. Just six months ago, the United States led with 169
Network-attached storage (NAS), on the systems, with China coming in at 160. Despite the rever-
other hand, is essentially a network-connected computer sal of fortunes, the 143 systems claimed by the United
dedicated to providing file-based data storage services to States gives them a solid second place finish, with Japan in
other network devices. Software on the NAS handles fea- third place with 35, followed by Germany with 20, France
tures such as data storage, with 18, and the United Kingdom with 15.
file access, and file and A project was started in 2015 in the United States
Network-attached storage storage management. to develop a supercomputer that is 10 times faster than
(NAS) is essentially a network- When choosing bet­ today’s supercomputers. This new supercomputer will
connected computer dedicated to
providing file-based data storage ween a SAN and a NAS be able to perform a quintillion mathematical instruc-
services to other network devices. system, consider the fol- tions per second (that is 1 million trillion). These kinds
lowing factors: of supercomputers will be used for running mathematical

36 PART ONE: Fundamentals of Information Systems

Popular iPad Business Applications
The iPad is a tablet computer designed and developed by Apple.
iPad users can browse the Web, read and send e-mail, share
photos, watch HD videos, listen to music, play games, read
e-books, and much more by using a multitouch user interface.
Currently, iPads are used by many business professionals,

wavebreak media/Shutterstock.com
including the following:28,29
Health care workers—To access medical applications and for
bedside care
Sales agents and service workers—To perform on-the-road
sales presentations and to display product information
Insurance agents—To display quotes
Real estate agents—To provide remote, interactive, visual home tours for interested home buyers
Legal professionals—To access legal documents and conduct a NexisLexis search from a car, office, or courtroom
Teachers and students—To access Windows applications and resources
Financial professionals—To access Windows trading applications, dashboards, documents, real-time quotes,
Bloomberg Anywhere, and portfolio analysis tools
Corporate campus workers—To access corporate data so employees can collaborate with their colleagues while
moving from office to office
Remote and mobile workers—To access Windows business applications, desktops, and data while on the road

models and analysis for applications such as the danger ●● Provide support for video applications by offering hands-
posed by climate change.27 free real-time video that can be saved and analyzed later.
Applications for computers include anything from Experts believe we are entering the era of wearable,
doing homework (subnotebook, notebook, and ­ personal ubiquitous computing. See the information box on the
computer) to launching space shuttles (supercomputer). next page for more on this topic.
Because all computers are steadily increasing in speed and Current trend in I/O devices may be summarized as:32
sophistication, delineating different classes of computers
is more difficult now. For e­ xample, a notebook computer ●● Thinner and lighter laptops and tablets
today has more power than a mainframe of the 1970s, and all ●● Faster and larger memory
indications suggest that this trend will continue. The infor- ●● Widespread applications of wireless devices
mation box “Popular iPad Business Applications” highlights
some of the business applications available for the iPad. ●● Increased applications of interactive computing using
In addition to their applications in healthcare, gesture, touch, and voice
wearable devices could also be used in other fields for
improving productivity. For example, in the manufac- 2-6a
turing field they might:30,31
A server is a computer and all the software for man-
●● Improve employee safety by providing a hands-free aging network resources and offering services to a net-
environment to work. work. Many different server platforms are available for
●● Improve employee monitoring by helping to keep performing specific tasks, including the following:
track of what’s going on.
●● Application serv-
●● Provide service support by helping employees to A server is a computer and all
ers store computer the software for managing network
access online tools aiding in resolving issues faster. software, which users resources and offering services to a
●● Provide support for plant monitoring by offering can access from their network.
warnings when a component fails. workstations.

CHAPTER 2: Computers: The Machines Behind Computing 37

Discovering Diverse Content Through
Random Scribd Documents
 Der Alkohol verleitet tatsächlich zu den leichtsinnigsten
Geschlechtsverbindungen und gefährlichsten Abenteuern. Tausende
von jungen Männern erwerben ihre Geschlechtskrankheit, wenn sie
angeheitert zum Haus der Dirne gehen. Ja, die meisten haben wohl
die Bekanntschaft der Prostitution erst mit erleichternder Hilfe des
Alkohols gemacht. F o r e l machte unter seinen geschlechtskranken
Patienten eine Statistik und fand, daß 75% davon sich unter dem
Einfluß des Alkohols angesteckt hatten.

Je höher der Alkoholgehalt eines Getränkes, desto stärker auch

seine Wirkung. Aber von den Getränken mit geringem Alkoholgehalt,
wie z. B. Bier, werden oft solche Mengen getrunken, daß trotzdem
stärkste Wirkungen, Trunkenheit, leichtsinnige
Geschlechtsverbindung, venerische Ansteckung, geschlechtliche
Verirrungen u. dergl. zustande kommen. Und die Statistik lehrt, daß
die Zahl der unehelichen Geburten mit dem Bierverbrauch in den
einzelnen Städten steigt und sinkt.

Von den Sittlichkeitsdelikten kommt ein sehr hoher Prozentsatz

aus dem Alkoholgenuß. Und was diesen vielen und vielerlei
Ausschreitungen, Fehlern, Unbesonnenheiten und Vergehen an
Unglück, Familienjammer und sozialem Elend folgt, das ist kaum zu
übersehen. Hier gibt's für den einsichtsvollen Menschen nur einen
Weg, den der Enthaltsamkeit vom Alkohol.

Wie Schreck fährt's manchem durch die Glieder, wenn es heißt, er

soll kein Bier mehr trinken. So fest sitzt es in seinen Lebensbegriffen,
daß ihn der Verzicht ungeheuerlich anmutet. Und doch gibt's nicht
den kleinsten Vorteil, der im Alkohol wohnt, sondern nur Nachteil,
unbedingten, unbegrenzbaren Schaden. Was schädlich ist, geht
wider die menschliche Vernunft. Darum räumen wir etwas aus dem
Weg, was die Menschen in ihrer gesamten Entwicklung hindert, und
verzichten auf den Alkohol. In diesem Verzicht liegt Selbstachtung,
Stolz, Würde. Gute Entschlüsse machen den Menschen reifer,
willenskräftiger, sittlich freier. Und der Verzicht auf den Alkohol ist ein
guter Entschluß!
 Meidest du den Alkohol, so meidest du von selbst jene häßlichen
Stätten, wo der Alkohol bewußt und planmäßig zur sinnlichen
Anreizung gebraucht wird, die Animierkneipen und alle anderen
Kneipen „mit Damenbedienung“. Es liegt etwas unsäglich Häßliches
und Niedriges, etwas namenlos Gemeines in diesen Kneipen, und es
ist mir völlig unverständlich, wie ein junger Mann in der Dunstwolke
dieser alkoholischen Geilheit auch nur einen einzigen Atemzug tun
kann.

Hier stehen wir auf der Grenze, wo die körperlichen Anreize der
Geschlechtlichkeit in die geistigen übergehen. Und so, wie du den
Körper freihalten mußt von unsauberen Dingen, so gib auch dem
Geist nur und ausschließlich gute Nahrung. Leicht mag das nicht
sein. Denn die erotische Hochspannung der Kultur hat auch in die
Literatur und in die Kunst einen erotisch-neurasthenischen Ton
hineingetragen. Die Betonung des Sexuell-Sinnlichen kommt dem
Interesse der Menge entgegen. Sexuelle Dinge werden breit, mit
zynischer Behaglichkeit oder mit geschickt und elegant verborgener
Lüsternheit geschildert oder gemalt. Vor nichts scheut man zurück,
und die Schamlosigkeit macht sich breit unter dem Deckmantel des
„Realismus“.

Wir wollen ganz absehen von Kolportageromanen, die auf die

niedrigsten Instinkte spekulieren. Nein, auch fähige Schriftsteller,
begabte Bildhauer und Maler haben sich der Erotik verschrieben und
prostituieren ihre Kunst, um den billigen Beifall der Menge zu
erhaschen.

Wieviel Unheil richten sie in jugendlichen Köpfen an! Unruhige

sinnliche Wünsche werden geweckt, sittliche Begriffe gestürzt; denn
das, was ohne Zweifel schlecht ist, wird durch diese erotische
Literatur „interessant“ gemacht. Wieviel schlechte Handlungen
entsteigen der durch schlechte Lektüre verwilderten Phantasie! Wie
oft erfährt der Richter, daß ein schlechtes Buch den Antrieb zu einer
sittlichen oder strafrechtlichen Entgleisung gab!

Die Zahl der scheußlichen Witzblätter ist groß, und selbst

Witzblätter, denen manch ernstes Wort eine Bedeutung gab, haben
sich dem erotischen Zynismus mit Haut und Haaren verschrieben.
Die Inseratenseiten wimmeln von Anzeigen erotischer Literatur, von
Anpreisungen von „Aktzeichnungen“, die angeblich nur für „Kenner“
oder „Künstler“ bestimmt sind. Aller Schmutz kann in solchen
Inseratteilen abgeladen werden, und die vielen Anzeigen von
Heiratsgesuchen, von Wohnungen „mit separatem Eingang“ und
dergleichen sind nur eine schwungvolle geldliche Ausnützung der
allgemeinen Lüsternheit.

Schmach und Schande über eine Presse, die sich ihrer

erzieherischen Pflicht so wenig bewußt ist!

Am meisten hast du dich zu schützen vor jener Literatur, die

angeblich „Aufklärung“ verbreiten will in geschlechtlichen Dingen
und mit allerlei unverfänglichen oder auch verfänglichen Titeln die
Neugier der Jugend erregt. Ich weiß aus vielen Berichten, die mir
zugegangen sind, wie solche Bücher Schaden anrichten. Die
Lüsternheit und Sinnlichkeit des Verfassers steigt zwischen den
Zeilen auf und teilt sich dem Leser – ihn erregend – mit, so daß
mancher mir schon berichtete, wie sehr ihn gerade diese
Aufklärungsliteratur zur Onanie und sinnlichen Gesprächen
verleitete.

Auch da, wo der Inhalt des Buches an sich richtig und gut ist,
kann diese Gefahr bestehen, denn hier macht der Ton die Musik, und
ich stehe keineswegs bei denjenigen, die da meinen, man müsse aus
Gründen der „Natürlichkeit“ den letzten zarten Schleier der
Schamhaftigkeit von den geschlechtlichen Dingen hinwegnehmen.
Nicht das restlose Wissen, nicht die absolute Entschleierung ist der
beste Schutz, sondern die zarte, poesievolle und doch kraftvoll-
gesunde Auffassung vom Liebesleben, jene innere, tiefe und
wahrhaftige Schamhaftigkeit. Nicht im Verstand liegt die Sittlichkeit,
sondern in der Seele. Darum haben diejenigen die höchsten
sittlichen Kräfte, die die stärksten Glaubenskräfte haben.

Prostituiert ist auch die bildende Kunst. Vorbei ist die Hoheit der
griechischen Meister, die mit der Darstellung der Nacktheit höchste
Schamhaftigkeit und sittliche Würde verbanden. Wir leugnen gar
nicht die sinnlichen Elemente des Kunstgenießens. Aber die Kunst
soll unsere Sinnlichkeit idealisieren, durch das körperlich Schöne den
Enthusiasmus der Seele wecken, nicht aber die rohe Sinnlichkeit
entflammen und den aufstrebenden Geist in die Fesseln der
quälenden Körperlichkeit bannen. Eine gemeine Kunst verführt zu
einsamen Triebverirrungen, zu Lüsternheit und Ausschweifung. Es ist
nicht ratsam, in Kunstfragen den Staatsanwalt und die Polizei zur
obersten Instanz zu machen. Bessere Richter einer gesunkenen,
feilen und geilen Kunst sind guter Geschmack, anständige Gesinnung
und Selbstachtung. Das Angebot wird durch die Nachfrage
hervorgelockt, und jeder vernünftige Mensch sollte es für unter
seiner Würde halten, ein Bildwerk zu betrachten oder gar zu kaufen,
das die Lüsternheit herausfordert.

Der Stolz müßte sich auch aufbäumen gegen den Schmutz, der
sich in photographischen oder literarischen Pikanterien breit macht.
Warum gehen junge Männer nicht diesen gemeinen Anreizen aus
dem Wege? Warum erschweren sie sich den Kampf und lassen sich
immer mehr herabziehen? Nicht die gewissenlosen Händler sollte
man anklagen, sondern die charakterlosen Männer, die den Schmutz
begehren.

Das Denken in geschlechtlichen Dingen ist sehr wohl ein Maßstab

der allgemeinen Kraft und Sittlichkeit eines Volkes überhaupt, und es
ist charakteristisch, wenn wir aus Frankreich hören, daß dort die
Väter ihren beim Militär dienenden Söhnen zur Unterhaltung
pornographische Photographien senden.
 Was aber soll man dazu sagen, wenn sogar die dramatische Kunst,
die den stärksten Einfluß auf das Volk hat, ihre Verantwortlichkeit
verliert und im sexuellen Zynismus landet? Die Kunst geht nach Brot,
und wenn der Brotherr, das Publikum, einen verkommenen
Geschmack hat und mit gierigem Blick nach Lüsternheiten Ausschau
hält, dann darf man sich nicht wundern, wenn die Bühne
französische Ehebruchsdramen und zynisch-erotische Vaudevilles
aufführt. Da ist der Held der Bühne nicht der stolze, edle Mensch,
nicht Tell, Tasso oder Posa, sondern der seine Frau betrügende
Ehemann, der weichlich-erbärmliche Don Juan, der in tausend
Ängsten vor dem Entdecktwerden und in tausend Nöten von einer
jammervollen Situation in die andere gerät, und der uns dann als
von den Frauen besonders begehrt dargestellt wird. Sieht man, wie
vollbesetzt diese Theater sind, und wie im Publikum die Mienen ohne
alle Selbstbeherrschung gierig-lüstern werden, so kann man das
Gefühl von Scham und Empörung nicht unterdrücken über ein Volk,
das so seine großen Männer vergißt, und über Menschen, die so sehr
alles Edle, Schöne, Menschliche von der Geilheit überwuchern
lassen.

Schule deinen Geschmack und deinen ganzen inneren Menschen

an echter, edler Kunst und sei zu stolz, ein Spielball dieser lüstern-
geschäftlichen Spekulationskunst zu werden.

Halte dich auch fern von den auf niedriger Stufe stehenden
Varieté-Theatern, wo der Humorist ein privilegierter Zotenreißer ist
und die Tänzerinnen mit dem Mangel an Kleidung den noch
größeren Mangel an Können verdecken, wo ein rauch- und
bierdunstiges Lokal bis zum letzten Platz mit Männern angefüllt ist,
und sogar Frauen sich nicht scheuen, ihr eigenes Geschlecht auf der
Bühne prostituiert zu sehen. Warum sind die Varietés, die
Singspielhallen, die Konzertcafés mit erotisch-winselnder
Geigenmusik überfüllt, und warum können sich ernste Bühnen so
schwer halten? Weil die Massen korrumpiert sind, und weil die
wachsende Degeneration die Sinnlichkeit triumphieren läßt und
zugleich die Selbstkritik schweigen heißt.
 Diese bedrohlich angewachsene Sinnlichkeit wird von dem Kapital
in raffinierter Weise ausgeschlachtet. Ganze Industrien rechnen ja
mit dieser Sinnlichkeit. Aber wieviel Unheil richtet sie an! Wieviel
Nervenkraft und Menschenglück wird dabei zerstört! Es ist nicht
ehrlich, Geld zu verdienen, wenn ein anderer dabei geschändet wird.

Aber niemand ist genötigt, sich diesen Schäden hinzugeben. Setze

an die Stelle dieses wirren und wüsten Treibens deinen Stolz, deine
Würde, dein besseres Ich und eine ernste Arbeit mit festem
Lebensziel, dann wird die Gefahr deine Kräfte stählen. Die Arbeit ist
die Grundlage deines Lebens, und die Stunden, die nicht deinen
Pflichten gehören, sondern dir selbst, die sollst du ausfüllen mit
Schönem, mit guter Lektüre. Unser deutsches Schrifttum ist reich an
guten Büchern. Du sollst die freien Stunden benutzen, gute Kunst
kennen zu lernen. In Museen und Galerien ist Gelegenheit dazu. Und
vor allem sollst du die Natur, deine Heimat, kennen lernen und
wandern, damit dein Körper stark und dein Geist fröhlich werde.
Geh allem aus dem Wege, was dich herabzieht.
Schaue nur Schönes, denke nur Gutes, handle
nur edel, dann wirst du den Sinn und die
Schönheit des Lebens in dir selbst finden, weil
du in Harmonie mit dem Weltprinzip bist.
 Schlußwort.
So bist du mir nun gefolgt, lieber junger Freund, und wir haben
das Gebiet durchwandert, das gleicherweise Glück und Unglück,
Jubel und Tränen, Schönheit und Grauen umschließt, in das fast alle
Menschen mit Kraft und Sehnsucht einziehen, und in dem wir sie
weiterwandern sehen mit Krankheit, Schwäche, gebrochener Seele,
verlorener Jugend und beladen mit wirren und schwülen
Geheimnissen.

So viel Jammer entsteigt der Unwissenheit!

War's da nicht recht, deine Augen sehend zu machen? Ich habe

dir nicht nur Häßliches zeigen und dich vor Gefahren warnen wollen,
nein, auch die Schönheiten des Liebesgefühls habe ich in dir keimen
lassen, weil ich weiß, daß alle Lebensschönheit nur in der Natur
steckt und die Natur auch im Menschen wohnt. Naturalia non sunt
turpia!

Nicht das ist die wahre Sittlichkeit, die einen Gegensatz zwischen
Mensch und Natur errichtet, die vom Menschen ein Abtöten seiner
Natur verlangt und ihn in einen letzten Endes vergeblichen Kampf
zwischen Tun und Willen stürzt. Nein, die wahre Sittlichkeit liegt im
Erkennen der erdgeborenen Natur des Menschen und in dem festen
Willen, schrittweise und allmählich auf höhere Stufen zu gelangen.
Weder haben diejenigen recht, die leichtsinnig in den Tag
hineinleben, die alles, so wie es ist, für gut halten und vom Baume
des Lebens so viel Früchte herabnehmen, wie sie erhaschen können,
noch können wir denjenigen folgen, die in düsterem Pessimismus
alle Lebensschönheit nicht sehen wollen und sich auf den Himmel
vorzubereiten wähnen, während doch zugleich ihr Aszetismus ein
göttliches Gebot in den Staub zieht.

Zwischen diesen zwei Irrenden steht der wahrhaft sittliche

Mensch, der sein Leben und seine Persönlichkeit reich und kraftvoll
entfaltet, aber nicht eingreift in die Rechte der anderen und nicht
das Wohl der Nachgeborenen untergräbt. Dem die tiefe Erkenntnis
der biologischen Zusammenhänge ein starkes
Selbstverantwortlichkeitsgefühl aufzwingt, und der seine Wünsche
schweigen heißt, wenn ihre Befriedigung die feinen geheimnisvollen
Fäden verwirrt, die alle Menschen in Glück und Unglück miteinander
verbinden.

Da sehen wir die strengen Grenzen zwischen individueller und

sozialer Ethik. Die eine lebt sowohl im Aszetismus wie in der
Vergnügungssucht der Masse, die sich in ihrem oberflächlichen
Individualismus eine Kollektivethik geschaffen hat. Beide aber maßen
sich an, selbst Richter aller Dinge zu sein. Hoch über beiden steht
die soziale Ethik, die von Einzelnen in das Volk getragen wird, von
jenen Einzelnen, in denen die schreiende sexuelle Not der Menschen
ein Echo fand, und in denen das Menschheitsgewissen, jene feine
und sichere Unterscheidungskraft zwischen Gut und Böse, lebte.

Diese soziale Ethik nimmt einem natürlichen Triebe alles, was ihn
häßlich macht und die Menschennatur herabwürdigt, und sie
gestaltet sein Äußern so, wie es das Wohl der sozialen Gesamtheit
verlangt.

Alle Ethik hat ihre Wurzeln im Geschlechtsleben. Denn das

Geschlechtsgefühl ist die eigentliche Urquelle aller menschlichen
Sympathiegefühle und aller sozialen Organisationen überhaupt. Ist
daher das Geschlechtsleben krank und verdorben, so muß der ganze
Bau des Menschendaseins erschüttert werden.

Das Geschlechtsleben ist die höchste und stärkste

Entwicklungskraft der Menschheit. Es hat der Religion Nahrung
gegeben, hat Kultur, soziale Gemeinschaft und Kunst entwickelt und
dem Geist seine feinsten Blüten gegeben. Aber es ist auch die Kraft,
die wie keine andere die Menschen hinabstößt in Schwäche und
Elend, in Verwilderung und Versumpfung, in leiblichen und geistigen
Tod. Das Geschlechtsgefühl ist dem Menschengeschlecht Himmel
und Hölle zugleich. Darin liegt sein tiefer, eherner Ernst.

Aus dem Geschlechtsgefühl quillen Menschenwerte. Ein niedriges

Geschlechtsleben schafft Krankheit und niedriges, schlechtes
Denken. Ein reines Geschlechtsleben dient der Gesundheit, adelt den
Menschen und veredelt die Rasse. Diese Reinheit vereinigt
Natürlichkeit mit feinstem Schamgefühl, gesunde Kraft mit
zartschöner, idealistischer Auffassung.

Das ist's, wozu ich dich mit diesem Buche hinführen wollte. Nicht
die „Natürlichkeit“ in jenem stumpfen Sinne einer seelenlosen
Nüchternheit, die das Geschlechtliche zu einer Alltagsgebärde
stempelt. Die dem Liebesgefühl seine Gefahren dadurch nehmen
will, daß man es in der Nüchternheit körperlicher
Selbstverständlichkeit erstickt. Nein, diejenige Natürlichkeit will ich
dich lehren, die zwar den körperlichen Untergrund aller Dinge sieht,
aber alle Körperkultur nur als Ausgangspunkt einer kraftvollen
Seelenkultur erkennt.

Dem Seelenkultus dienen wir! Der rohe Körperkult dient letzten

Endes der Form- und Zügellosigkeit, wenn der Seele feinste
Strömungen nicht das körperliche Tun durchwehen. Die Seele allein
birgt die wahre Scham, des Geschlechtsempfindens zarteste Blüte.

So habe ich dir die Wege deines Tuns gewiesen. Unbeirrt und
klaren Auges kannst du in das Leben hinaustreten. Trenne dich von
der Masse, von denen, die ideallos geworden sind, folge dem Stern
deines besseren Ich, schreite mutig und siegreich durch alle
Gefahren! Vermehre nicht das Unglück und den Kummer der
Menschen, sondern sei in deiner sittlichen Kraft wie ein Licht, das ins
Dunkle strahlt und auch anderen Menschen das Leben verschönt.
 So trenne ich mich von diesem Buche und
t r e n n e m i c h v o n d i r.

Lebe wohl!

Dein Leben sei rein und ehrlich und voll

Glück! Und daß es so sei, gehe den einsamen
Weg der Guten!

Lebe wohl!
 Fußnoten:
1 Man lese „Arbeit, Kraft und Erfolg“, Wege zur Steigerung der
Leistungsfähigkeit in körperlichem und geistigem Schaffen. Von Emil Peters.
Mk. 4.25. Zu beziehen durch den Volkskraft-Verlag, Konstanz am Bodensee.

2 Volkskraft-Verlag, Konstanz am Bodensee.

3 Volkskraft-Verlag, Konstanz am Bodensee, geh. Mk. 2.75, geb. Mk. 4.50.

4 Wissenschaft und Sittlichkeit, Berlin 1908.

5 Die Gefahren des außerehelichen Geschlechtsverkehrs. 2 Aufl. München

1904. A. Müller.

6 a. a. O., S. 6.

7 Volkskraft-Verlag Konstanz am Bodensee, geh. Mk. 2.75, geb. Mk. 4.50.

Porto 25 Pfg.
 Anmerkungen zur
Transkription:
Das Original ist in Fraktur gesetzt.

Schreibweise und Interpunktion des

Originaltextes wurden übernommen;
lediglich offensichtliche Druckfehler
wurden korrigiert.

Einige Ausdrücke wurden in beiden

Schreibweisen übernommen:

andererseits (Seiten 38 und 39) und

andrerseits (Seiten 26, 31, 97 und
106)
gesunderen (Seite 34) und
gesünderen (Seite 90)
gesunder (Seite 19) und gesünder
(Seiten 88 und 116)

Folgende offensichtliche Druckfehler

wurden korrigiert:

geändert wurde
"Daß ist die große"
in
"Das ist die große" (Seite 18)
geändert wurde
"Buche „Der nervöse Mensch“."
in
"Buche „Der nervöse Mensch“.[1]"
(Seite 34)
geändert wurde
"den G o n o c c o c i N e i s s e r i oder"
in
"den G o n o c c o c i N e i s s e r i oder"
(Seite 96)
geändert wurde
"führt zur Dishamonie, und"
in
"führt zur Disharmonie, und" (Seite
118)
geändert wurde
"Volkskraf-Verlag, Konstanz am
Bodensee, geh. Mk. 2,75, geb. Mk.
4,50."
in
"Volkskraft-Verlag, Konstanz am
Bodensee, geh. Mk. 2.75, geb. Mk.
4.50." (Fußnote 3)
 *** END OF THE PROJECT GUTENBERG EBOOK JUGEND, LIEBE
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