c om - N ot Your Aver age Bookst or e 64 INTRODUCTION 66 Section 3.1 Business and the Internet 66 DISRUPTIVE TECHNOLOGY 66 Disruptive versus Sustaining Technology The Internet-Business Disruption 67 EVOLUTION OF THE INTERNET 68 Evolution of the World Wide Web 69 ACCESSING INTERNET INFORMATION 71 INTRODUCTION 37 Section 2.1 Decision-Making Systems 35 DECISION MAKING 37 TRANSACTION PROCESSING SYSTEMS 38 DECISION SUPPORT SYSTEMS 39 EXECUTIVE INFORMATION SYSTEMS 41 Digital Dashboards 41 Artificial Intelligence 43 Data Mining 46 Section 2.2 Enterprise Systems 46 ENTERPRISE SYSTEMS 46 SUPPLY CHAIN MANAGEMENT 47 CUSTOMER RELATIONSHIP MANAGEMENT 48 CRM Strategy 50 BUSINESS PROCESS REENGINEERING 50 Finding Opportunity Using BPR 51 Pitfalls of BPR 52 ENTERPRISE RESOURCE PLANNING 52 ERP Software 53 Finding the Right ERP Solution 53 Key Terms 55 Closing Case One: Consolidating Touchpoints for Saab 55 Closing Case Two: Made-to-Order Businesses 56 Closing Case Three: Delta Air Lines Plays Catch-Up Making Business Decisions 60 INTRODUCTION 5 Section 1.1 Information Systems in Business 5 INFORMATION TECHNOLOGY'S ROLE IN BUSINESS 5 Information Technology's Impact on Business Operations 6 INFORMATION TECHNOLOGY BASICS 7 Information 8 IT Resources 8 IT Cultures 9 ROLES AND RESPONSIBILITIES IN INFORMATION TECHNOLOGY 10 The Gap Between Business Personnel and IT Personnel 12 MEASURING INFORMATION TECHNOLOGY'S SUCCESS 12 Efficiency and Effectiveness Metrics 13 Benchmarking-Baseline Metrics 13 The Interrelationship Between Efficiency and Effectiveness IT Metrics 14 Section 1.2 Business Strategy 16 IDENTIFYING COMPETITIVE ADVANTAGES 16 THE FIVE FORCES MODEL-EVALUATING BUSINESS SEGMENTS 17 Buyer Power 18 Supplier Power 18 Threat of Substitute Products or Services 18 Threat of New Entrants 19 Rivalry Among Existing Competitors 19 THE THREE GENERIC STRATEGIES-CREATING A BUSINESS FOCUS 20 VALUE CHAIN ANALYSIS-TARGETING BUSINESS PROCESSES 20 Value Creation 21 Key Terms 24 Case Closing One: Say “Charge It” with Your Cell Phone 24 Case Closing Two: Innovative Business Managers 25 Case Closing Three: The World Is Flat-Thomas Friedman 27 Making Business Decisions 28 Opening Case: Revvi n g U p S a l e s at Har l ey- D avi dson 33 Opening Case: Ap p le-Mer gi ng Te c h n o lo g y,B u sin ess, and En te rta in me n t 2 Networks, Telecommunications, and Wireless Computing 208Įnterprise Resource Planning and Collaboration Systems 295Īppendix A Business Basics (on the Web site at Appendix B Business Process (on the Web site at Glossary 333 NotesĬhapter 2 Driving Technology Choices with Business InitiativesĬontents CHAPT E R 1 Information Systems in Business 1Ĭ H APT E R 2 Strategic Decision Making 32 AM Y P HI L L I PSĮnterprise Fundamentals and Concepts Unit 2 A day does not go by that I don't think of you. Looking forward to a million more laughs together. To Debbie and Heather: Life without laughter is no life at all! I am truly blessed to have you as my best friends. Essentials of business driven information systems / Paige Baltzan, Amy Phillips. Library of Congress Cataloging-in-Publication Data Baltzan, Paige. Bluhm Senior media project manager: Susan Lombardi Cover design: Kami Carter Interior design: Kami Carter Typeface: 10/12 Utopia Compositor: Laserwords Private Limited Printer: Quebecor World Versailles Inc. 1 2 3 4 5 6 7 8 9 0 WCK/WCK 0 9 8 7 ISBN 978-0-07-337672-1 MHID 0-07-337672-8 Executive editor: Scott Isenberg Developmental editor II: Trina Hauger Senior marketing manager: Sankha Basu Manager of publishing tools: Mary Conzachi Production supervisor: Gina Hangos Design manager: Kami Carter Senior photo research coordinator: Jeremy Cheshareck Senior media project manager: Lynn M. Some ancillaries, including electronic and print components, may not be available to customers outside the United States. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning. Copyright © 2009 by The McGraw-Hill Companies, Inc. Louis Bangkok Bogotá Caracas Kuala Lumpur Lisbon London Madrid Mexico City Milan Montreal New Delhi Santiago Seoul Singapore Sydney Taipei TorontoĮSSENTIALS OF BUSINESS DRIVEN INFORMATION SYSTEMS Published by McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY, 10020. PAIGE BALTZAN Daniels College of Business, University of DenverĪMY PHILLIPS Daniels College of Business, University of Denverīoston Burr Ridge, IL Dubuque, IA New York San Francisco St.
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