Ebook Principles of information systems (9th edition): Part 2

(BQ) Part 2 book Principles of information systems has contents: Electronic and mobile commerce, enterprise systems, knowledge management and specialized information systems, information and decision support systems, the personal and social impact of computers.

PART • 3• Business Information Systems Chapter Electronic and Mobile Commerce Chapter Enterprise Systems Chapter 10 Information and Decision Support Systems Chapter 11 Knowledge Management and Specialized Information Systems Electronic and Mobile Commerce CHAPTER • 8• PRINCIPLES ■ Describe the current status of various forms of e-commerce, including B2B, B2C, C2C, and e-Government ■ Outline a multistage purchasing model that describes how e-commerce works ■ Define m-commerce and identify some of its unique challenges E-commerce and m-commerce can be used in many innovative ways to improve the operations of an organization ■ Identify several e-commerce and m-commerce applications ■ Identify several advantages associated with the use of e-commerce and m-commerce ■ Although e-commerce and m-commerce offer many advantages, users must be aware of and protect themselves from many threats associated with use of this technology ■ Identify the major issues that represent significant threats to the continued growth of e-commerce and m-commerce ■ Organizations must define and execute a strategy to be successful in e-commerce and m-commerce ■ Outline the key components of a successful e-commerce and m-commerce strategy ■ E-commerce and m-commerce require the careful planning and integration of a number of technology infrastructure components ■ Identify the key components of technology infrastructure that must be in place for e-commerce and m-commerce to work ■ Discuss the key features of the electronic payment systems needed to support e-commerce and m-commerce ■ ■ Electronic commerce and mobile commerce are evolving, providing new ways of conducting business that present both opportunities for improvement and potential problems LEARNING OBJECTIVES Electronic and Mobile Commerce Information Systems in the Global Economy Staples, United States Staples Upgrades E-Commerce System to Increase Conversion Rate Staples Inc created the first office supply superstore in 1986 and has grown to over 2,000 stores in 22 countries Staples has a reputation for using technology and information systems, both in the store and on the Internet, to provide customers with easy access to the office supplies that they need After investing heavily in online sales, Staples has become the second largest Internet retailer after Amazon.com Staples e-commerce sales total over $5 billion annually, nearly one-third of its total sales Staples e-commerce sales include selling online to independent consumers, called business-to-consumer e-commerce, or B2C, and selling to businesses at special bulk rates, called business-to-business e-commerce or B2B Staples provides two Web sites to cater to its two types of customers: Staples.com for B2C home office and small businesses and StaplesLink.com for B2B larger businesses According to IBM, who works with Staples in developing their e-commerce technologies, both e-commerce channels figure prominently in the company’s long-term growth strategy Recently Staples decided to invest in its B2C site so it could better support the rapidly changing business strategies that make Staples a market leader Staples also needed its Web site to accommodate surges in customer volume without any loss in performance Staples knows that reliability and performance are foundational requirements for an ecommerce Web site to succeed The ability to execute online business initiatives quickly gives a company an advantage over competitors Due to complexity and functional limitations in the information systems, Staples.com was falling short of these requirements Staples worked with consultants from IBM to upgrade its Staples.com hardware, software, and overall information systems Powerful new Web servers were installed that were more efficient and scalable so that additional power could be added as needed IBM WebSphere Commerce software was a key component in creating a new e-commerce system that is stable and can manage customer transaction data more efficiently The new system works seamlessly with Staples back-end systems for unified database management Staples views its new e-commerce system as a “foundation of a new way of interacting with its customers,” according to an IBM case study The company is using the system to create a unique online shopping experience for its customers, which is a central reason it now leads in the market The new Staples.com provides a personalized and customdesigned online environment for its customers Staples believes that allowing customers to quickly find items that suit their unique needs is crucial for customer retention This is the philosophy behind Staples “easy” marketing strategy Staples conducted thorough marketing research to find out what its online customers liked and disliked about its Web site services The results yielded ideas for new systems that could make customer’s lives easier Staples developed a new service called “Easy Reorder” that analyzes a customer’s order history, looking for patterns, and creates an inventory list that is updated with each order Another system named “Easy Rebate” simplifies the process for claiming product rebates The investment in new e-commerce systems has provided Staples with significant returns An important statistic in e-commerce is the conversion rate—the share of online shoppers that start by browsing and end by buying Since the system upgrade, the Staples.com conversion rate has improved by 60 percent Staples.com is also much more stable than it was earlier When it experienced a surge of 9,000 orders in one hour on | Chapter 311 312 Part | Business Information Systems the day after Thanksgiving—the so-called Black Friday—it suffered no degradation in performance Staples realizes that online competition poses a serious threat to its market dominance Selling online is no longer considered an accessory to a brick-and-mortar business, but has become a major sales channel that can make or break a business E-commerce tactics and strategies have become an important consideration in meeting a company’s primary goals and objectives Staples and most other large corporations are engaged in serious ecommerce battles online to gain or maintain rank in their respective markets As you read this chapter, consider the following: • What advantages e-commerce and m-commerce offer sellers and vendors over traditional shopping venues? • Why Learn About Electronic and Mobile Commerce? What are the limitations of m-commerce and e-commerce? What doesn’t sell well online, and why are some shoppers uncomfortable shopping online? Electronic and mobile commerce have transformed many areas of our lives and careers One fundamental change has been the manner in which companies interact with their suppliers, customers, government agencies, and other business partners As a result, most organizations today have or are considering setting up business on the Internet To be successful, all members of the organization need to participate in that effort As a sales or marketing manager, you will be expected to help define your firm’s e-commerce business model Customer service employees can expect to participate in the development and operation of their firm’s Web site As a human resource or public relations manager, you will likely be asked to provide Web site content for use by potential employees and investors Analysts in finance need to know how to measure the business impact of their firm’s Web operations and how to compare that to competitors’ efforts Clearly, as an employee in today’s organization, you must understand what the potential role of e-commerce is, how to capitalize on its many opportunities, and how to avoid its pitfalls The emergence of m-commerce adds an exciting new dimension to these opportunities and challenges This chapter begins by providing a brief overview of the dynamic world of e-commerce and defining its various components AN INTRODUCTION TO ELECTRONIC COMMERCE electronic commerce Conducting business activities (e.g., distribution, buying, selling, marketing, and servicing of products or services) electronically over computer networks such as the Internet, extranets, and corporate networks Electronic commerce is the conducting of business activities (e.g., distribution, buying, selling, marketing, and servicing of products or services) electronically over computer networks such as the Internet, extranets, and corporate networks Business activities that are strong candidates for conversion to e-commerce are paper-based, time-consuming, and inconvenient activities for customers Thus, some of the first business processes that companies converted to an e-commerce model were those related to buying and selling For example, after Cisco Systems, the maker of Internet routers and other telecommunications equipment, put its procurement operation online, the company reported that it halved cycle times and saved an additional $170 million in material and labor costs Similarly, Charles Schwab & Co slashed transaction costs by more than half by shifting brokerage transactions from traditional channels such as retail and phone centers to the Internet Business-to-Business (B2B) E-Commerce business-to-business (B2B) e-commerce A subset of e-commerce where all the participants are organizations Business-to-business (B2B) e-commerce is a subset of e-commerce where all the participants are organizations B2B e-commerce is a useful tool for connecting business partners in a virtual supply chain to cut resupply times and reduce costs Although the business-toconsumer market grabs more of the news headlines, the B2B market is considerably larger Electronic and Mobile Commerce | Chapter 313 and is growing more rapidly As early as 2003, over 80 percent of U.S companies had already experimented with some form of B2B online procurement.1 Covisint operates a Web portal that supports B2B by performing data translations and code conversions to enable auto makers and parts suppliers to collaborate on orders, scheduling, shipping, and other manufacturing-related tasks Covisint is expanding its data translation and collaboration services into the healthcare industry to enable sharing of patient care data among healthcare providers and insurance companies.2 Business-to-Consumer (B2C) E-Commerce Early business-to-consumer (B2C) e-commerce pioneers competed with the traditional “brick-and-mortar” retailers in an industry selling their products directly to consumers For example, in 1995, upstart Amazon.com challenged well-established booksellers Waldenbooks and Barnes and Noble Although Amazon did not become profitable until 2003, the firm has grown from selling only books on a U.S.-based Web site to selling a wide variety of products (including apparel, CDs, DVDs, home and garden supplies, and consumer electronic devices) from international Web sites in Canada, China, France, Germany, Japan, and the United Kingdom Although it is estimated that B2C e-commerce represents only about 3.4 percent of retail sales in the U.S., the rate of growth of online purchases is three times faster than the growth in total retail sales.3 One reason for the rapid growth is that shoppers find that many goods and services are cheaper when purchased via the Web, including stocks, books, newspapers, airline tickets, and hotel rooms They can also compare information about automobiles, cruises, loans, insurance, and home prices to find better values More than just a tool for placing orders, the Internet is an extremely useful way to compare prices, features, and value Internet shoppers can, for example, unleash shopping bots or access sites such as eBay Shopping.com, Google Froogle, Shopzilla, PriceGrabber, Yahoo! Shopping, or Excite to browse the Internet and obtain lists of items, prices, and merchants Yahoo! is adding what it calls “social commerce” to its Web site by creating a new section of Yahoo! where users can go to see only those products that have been reviewed and listed by other shoppers As mentioned in Chapter 7, bots are software programs that can follow a user’s instructions; they can also be used for search and identification By using B2C e-commerce to sell directly to consumers, producers or providers of consumer products can eliminate the middlemen, or intermediaries, between them and the consumer In many cases, this squeezes costs and inefficiencies out of the supply chain and can lead to higher profits and lower prices for consumers The elimination of intermediate organizations between the producer and the consumer is called disintermediation Dell is an example of a manufacturer that has successfully embraced this model to achieve a strong competitive advantage People can specify a unique computer online, and Dell assembles the components and ships the computer directly to the consumer within five days Many retailers have elected to increase their sales by adding a Web site component to their operations For example, American Eagle Outfitters launched a B2C Web site for Martin + OSA, its brand targeting 28- to 40-year old men and women Says Laura DubinWander, president of Martin + Osa: “We’re excited to introduce Martin + Osa as a global brand through our e-commerce Web site Free shipping and returns, along with unique shopping tools, give customers a world-class online shopping experience that’s both frictionless and fun.”4 business-to-consumer (B2C) e-commerce A form of e-commerce in which customers deal directly with an organization and avoid intermediaries Consumer-to-Consumer (C2C) E-Commerce Consumer-to-consumer (C2C) e-commerce is a subset of e-commerce that involves consumers selling directly to other consumers eBay is an example of a C2C e-commerce site; customers buy and sell items directly to each other through the site Founded in 1995, eBay has become one of the most popular Web sites in the world; in 2007, 2.3 billion items were listed for sale and 276 million registered users bought and sold items valued at more than $57 billion.5 Many C2C sites are on the Web, with some of the more popular being Bidzcom, Craigslist, eBid, ePier, Ibidfree, Ubid, and Tradus The growth of C2C is responsible for consumer-to-consumer (C2C) e-commerce A subset of e-commerce that involves consumers selling directly to other consumers 314 Part | Business Information Systems reducing the use of the classified pages of a newspaper to advertise and sell personal items Many people make a living out of selling items on auction Web sites C2C is highly popular among college students because they represent a large community of low-income people in the same geographical region who watch for values Universities often set up Web sites for students to sell textbooks and other items to other students EachNet.com trains students on how to open online stores in monthly promotions in universities across China Students are the most active traders, though they have low average buying power Still, “it indicates the huge market potential out there when the young users grow up and are able to pay more,” according to Song Xing, an analyst with Analysys, a global telecommunications consultancy and research firm.6 e-Government e-Government The use of information and communications technology to simplify the sharing of information, speed formerly paper-based processes, and improve the relationship between citizens and government e-Government is the use of information and communications technology to simplify the sharing of information, speed formerly paper-based processes, and improve the relationship between citizens and government Government-to-consumer (G2C), government-tobusiness (G2B), and government-to-government (G2G) are all forms of e-Government, each with different applications Citizens can use G2C applications to submit their state and federal tax returns online, renew auto licenses, apply for student loans, and make campaign contributions Information about the 2008 economic stimulus payments that were sent to over 130 million taxpayers was available on the IRS Web site for months before the rebates were mailed out G2B applications support the purchase of materials and services from private industry by government procurement offices, enable firms to bid on government contracts, and help businesses receive current government regulations related to their operations Business.gov allows businesses to access information about laws and regulations and relevant forms needed to comply with federal requirements for their business G2G applications are designed to improve communications among the various levels of government For example, the E-Vital initiative establishes common electronic processes for federal and state agencies to collect, process, analyze, verify, and share death record information Geospatial One-Stop’s Web portal, GeoData.gov, makes it easier, faster, and less expensive to find, share, and access geospatial information for all levels of government The next section describes a basic model that supports products for purchase via e-commerce methods Multistage Model for E-Commerce A successful e-commerce system must address the many stages that consumers experience in the sales life cycle At the heart of any e-commerce system is the user’s ability to search for and identify items for sale; select those items and negotiate prices, terms of payment, and delivery date; send an order to the vendor to purchase the items; pay for the product or service; obtain product delivery; and receive after-sales support Figure 8.1 shows how e-commerce can support each of these stages Product delivery can involve tangible goods delivered in a traditional form (e.g., clothing delivered via a package service) or goods and services delivered electronically (e.g., software downloaded over the Internet) Search and Identification An employee ordering parts for a storeroom at a manufacturing plant would follow the steps shown in Figure 8.1 Such a storeroom stocks a wide range of office supplies, spare parts, and maintenance supplies The employee prepares a list of needed items—for example, fasteners, piping, and plastic tubing Typically, for each item carried in the storeroom, a corporate buyer has already identified a preferred supplier based on the vendor’s price competitiveness, level of service, quality of products, and speed of delivery The employee then logs on to the Internet and goes to the Web site of the preferred supplier From the supplier’s home page, the employee can access a product catalog and browse until finding the items that meet the storeroom’s specifications The employee fills out a request-for-quotation form by entering the item codes and quantities needed When the Electronic and Mobile Commerce | Chapter 315 Figure 8.1 Buyer Multistage Model for E-Commerce (B2B and B2C) Traditional delivery Electronic distribution Search and identification After-sales service Product and service delivery Selection and negotiation Purchasing employee completes the quotation form, the supplier’s Web application prices the order with the most current prices and shows the additional cost for various forms of delivery— overnight, within two working days, or the next week The employee might elect to visit other suppliers’ Web home pages and repeat this process to search for additional items or obtain competing prices for the same items Selection and Negotiation After the price quotations have been received from each supplier, the employee examines them and indicates, by clicking the request-for-quotation form, which items to order from a given supplier The employee also specifies the desired delivery date This data is used as input into the supplier’s order-processing TPS In addition to price, an item’s quality and the supplier’s service and speed of delivery can be important in the selection and negotiation process B2B e-commerce systems need to support negotiation between a buyer and the selected seller over the final price, delivery date, delivery costs, and any extra charges However, this is not a fundamental requirement of most B2C systems, which offer their products for sale on a “take-it-or-leave-it basis.” Purchasing Products and Services Electronically The employee completes the purchase order specifying the final agreed-to terms and prices by sending a completed electronic form to the supplier Complications can arise in paying for the products Typically, a corporate buyer who makes several purchases from the supplier each year has established credit with the supplier in advance, and all purchases are billed to a corporate account But when individual consumers make their first, and perhaps only, purchase from the supplier, additional safeguards and measures are required Part of the purchase transaction can involve the customer providing a credit card number Another approach to paying for goods and services purchased over the Internet is using electronic money, which can be exchanged for hard cash, as discussed later in the chapter 316 Part | Business Information Systems The Department of Education and Training for Victoria, Australia, chose three primary suppliers for desktop computers to be used in Victorian government schools Staff can purchase products directly from these preferred suppliers with no need for requesting separate price quotes because the terms of purchase have already been negotiated Staff need only to download negotiated price lists from a Web site and complete online purchase orders to order equipment This process ensures competitive pricing from financially viable providers who have agreed to provide three-year, on-site warranty of equipment evaluated to be technically cost effective It also eliminates days or weeks of delay in completing necessary paperwork and obtaining approvals.7 Product and Service Delivery Electronic distribution can be used to download software, music, pictures, video, and written material through the Internet faster and for less expense than shipping the items via a package delivery service Most products cannot be delivered over the Internet, so they are delivered in a variety of other ways: overnight carrier, regular mail service, truck, or rail In some cases, the customer might elect to drive to the supplier and pick up the product Many manufacturers and retailers have outsourced the physical logistics of delivering merchandise to cybershoppers—the storing, packing, shipping, and tracking of products To provide this service, DHL, Federal Express, United Parcel Service, and other delivery firms have developed software tools and interfaces that directly link customer ordering, manufacturing, and inventory systems with their own system of highly automated warehouses, call centers, and worldwide shipping networks The goal is to make the transfer of all information and inventory—from the manufacturer to the delivery firm to the consumer—fast and simple For example, when a customer orders a printer at the Hewlett-Packard (HP) Web site, that order actually goes to FedEx, which stocks all the products that HP sells online at a dedicated e-distribution facility in Memphis, Tennessee, a major FedEx shipping hub FedEx ships the order, which triggers an e-mail notification to the customer that the printer is on its way and an inventory notice to HP that the FedEx warehouse now has one less printer in stock (see Figure 8.2) For product returns, HP enters return information into its own system, which is linked to FedEx This signals a FedEx courier to pick up the unwanted item at the customer’s house or business Customers don’t need to fill out shipping labels or package the item Instead, the FedEx courier uses information transmitted over the Internet to a computer in his truck to print a label from a portable printer attached to his belt FedEx has control of the return, and HP can monitor its progress from start to finish Figure 8.2 Product and Information Flow for HP Printers Ordered over the Web Order Shipment notification Shipment notification Order Order Customer Product delivery Hewlett-Packard Shipment notification FedEx distribution facility FedEx Product delivery After-Sales Service In addition to capturing the information to complete the order, comprehensive customer information is captured from the order and stored in the supplier’s customer database This information can include customer name, address, telephone numbers, contact person, credit Electronic and Mobile Commerce history, and some order details For example, if the customer later contacts the supplier to complain that not all items were received, that some arrived damaged, or even that the product provides unclear instructions, all customer service representatives can retrieve the order information from the database via a computing/communications device Companies are adding the capability to answer many after-sales questions to their Web sites, such as how to maintain a piece of equipment, how to effectively use the product, and how to receive repairs under warranty The preceding sections discuss how a successful e-commerce system must address the many stages that consumers experience in the sales life cycle In addition, looking at an e-commerce system from the perspective of the provider of goods or services, the system must support the activities associated with supply chain management and customer relationship management These aspects of the e-commerce system are discussed next Supply Chain Management As mentioned in Chapter 2, supply chain management (SCM) is increasingly accomplished using the Internet exchanges An organization with many suppliers can use Internet exchanges to negotiate competitive prices and service SCM is becoming a global issue, as companies have parts and products made around the world.8 One example of an electronic marketplace is Aviall, a wholly owned subsidiary of the Boeing Company that provides after-market supply-chain management services for the aerospace, defense, and marine industries Aviall’s mission is to be the global leader in aircraft parts sales through world-class customer service to every customer, every time The firm markets and distributes products for more than 225 manufacturers and offers approximately million catalog items from 39 customer service centers located in North America, Europe, and the Asia-Pacific region Its Inventory Locator Service (ILS) unit provides buyers and sellers immediate access via its Web site to aircraft and marine inventory 24 hours a day, seven days a week Some 20,000 ILS subscribers around the globe access the ILS databases 60,000 times per day to complete transactions, from purchase initiation and order tracking to fulfillment Subscribers can negotiate online, place orders, send and receive purchase orders and invoices, and track their negotiation history Over 3,500 customer shipments are created daily.9 Customer Relationship Management As discussed in Chapter 2, customer relationship management (CRM) involves managing every aspect of an organization’s interactions with its customers or clients including marketing and advertising, sales, customer service after the sale, and programs to retain loyal customers CRM systems enable a company to collect customer data, contact customers, educate them about new products, and actively sell products to existing and new customers CRM systems can also obtain and analyze customer feedback to help design new or improved products and services Superior Industries manufactures a complete line of portable and stationary conveying equipment used in ship, barge, and rail loading and unloading applications for sugar, rock, coal, and wood The firm markets through a dealer network serving the United States and Canada, and recently established an international presence by installing equipment at mines in Chile, Russia, Israel, Aruba, and Mexico Superior employs 300 people at its Morris, Minnesota, headquarters with additional manufacturing operations in Prescott Valley, Arizona Superior uses a CRM system to keep information about its distributor and dealer networks, generate quotes for customers, store customer lead and contact data, and save every quote and document associated with the sales process.10 E-Commerce Challenges A company must overcome many challenges to convert its business processes from the traditional form to e-commerce processes, especially for B2C e-commerce This section summarizes three key challenges: 1) defining an effective e-commerce model and strategy, 2) dealing with consumer privacy concerns, and 3) overcoming consumers’ lack of trust | Chapter 317 318 Part | Business Information Systems The first major challenge is for the company to define an effective e-commerce model and strategy Although companies can select from a number of approaches, the most successful e-commerce models include three basic components: community, content, and commerce, as shown in Figure 8.3 Message boards and chat rooms can build a loyal community of people who are interested in and enthusiastic about the company and its products and services Providing useful, accurate, and timely content—such as industry and economic news and stock quotes—is a sound approach to encourage people to return to your Web site time and again Commerce involves consumers and businesses paying to purchase physical goods, information, or services that are posted or advertised online Figure 8.3 Three Basic Components of a Successful E-Commerce Model Content Industry news Economic news Stock prices Commerce Consumers and businesses buying and selling Community Message boards Chat rooms While the number of people shopping online and the dollar volume of online shopping continue to increase, about one-third of all adult Internet users will not buy anything online because they have privacy concerns or lack trust in online merchants.11 In addition to having an effective e-commerce model and strategy, companies must carefully address consumer privacy concerns and overcome their lack of trust According to the Privacy Rights Clearinghouse, the approximate number of computer records containing sensitive personal information involved in security breaches in the United States from January 2005 to March 2008 is nearly 224 million!12 This represents the approximate number of records, not people affected Some people have been the victim of more than one breach Following are a few examples of security beaches in which personal data was compromised • One of TD Ameritrade’s databases was hacked, and the e-mail addresses, phone numbers, and home addresses for more than 6.3 million customers were stolen • Customer names, addresses, telephone numbers, and credit card numbers were compromised by an intrusion into the Web site of online retailer Geeks.com • An international gang of cybercriminals hacked into the computer records of the OmniAmerican Bank of Fort Worth, Texas They stole account numbers, created new PINs, fabricated debit cards, and withdrew cash from ATMs around the world • Attacks on Web servers hosted by a third-party service provider compromised the names, addresses, credit card data, debit card data, and passwords of people who shopped on Major League Soccer’s MLSgear.com Web site identify theft Someone using your personally identifying information without your permission to commit fraud or other crimes In some cases, the compromise of personal data can lead to identity theft According to the Federal Trade Commission (FTC), “Identity theft occurs when someone uses your personally identifying information, like your name, Social Security number, or credit card number, without your permission, to commit fraud or other crimes.”13 Thieves may use consumers’ credit card numbers to charge items to their account, use identification information to apply for a new credit card or a loan in their name, or use their name and Social Security number to receive government benefits 644 Index | overview of, 399–405, 431–432 MIS/DSS (management information systems/decision support systems), 359 mission-critical systems, 494 MMS (model management system), 23 mobile banking, 17, 328 mobile commerce See m-commerce model base (of DSS), 423 model management software, 423–424 model management system (MMS), 23 model-driven DSSS, 423 models See also specific model change, 54 modems, 240–241 modulation, 240 monitoring stage (decision making), 396 Moore, Gordon, 91 Moore’s Law, 91, 125 Morphbank, 201–202 mouse, 103 movies piracy, 592 and virtual reality, 469 moving (in change model), 54 MP3 format, 114, 148 MRP (material requirements planning), 409 MS-DOS, 140 MSSPs (managed security service providers), 598–599 Mueller, Robert, 275 Muhsen, Mohammed, 49 multicore microprocessors, 95 multileaf collimator (MLC), 151 multiplexers, 241 multiprocessing, 95 municipal Wi-Fi networks, 232 music on the Internet, 294–295 piracy, 592 N NAFTA (North American Free Trade Agreement), 382 NAS (network-attached storage), 102–103 Nash, John, 472 National Do Not Call Registry, 251 Nationwide’s data center, 544 natural language processing, 454 natural languages, 166 Near-Field Communications (NFC), 230 Neeleman, David, 367 Negroponte, Nicholas, 118 Nelson, Josh, 252 NET platform, 280, 556 net present value, 512 NetWare, 144 network applications and telecommunications services, 245–257 network nodes, 236 network operating system (NOS), 242–243 network utilities, 148 network-attached storage (NAS), 102 networking capabilities of OSs, 139 social, 30, 291–293 network-management software, 243 networks See also specific type described, 14 and distributed processing, 236–245 home and small business, 250 intranets and extranets, 300 linking personal computers to, 249 neural, 455 newsgroups, 290 NFC (Near-Field Communications), 230 Niagra Falls Bridge Commission, 228 niche strategy, 63 Nike+iPod Sports Kit, 257 nominal group technique, 425 nonoperational prototypes, 498 nonprogrammed decision, 396–397 North American Free Trade Agreement (NAFTA), 382 NOS (network operating system), 242–243 NOT operator, and search engines, 282 O Object Data Standard, 212 object query language (OQL), 212 object-oriented database management system (OODBMS), 212 object-oriented databases, 212, 215 object-oriented investigation, systems development, 512–513 object-oriented programming languages, 164–165 object-oriented systems analysis, 522 object-oriented systems design, 537–538 object-oriented systems development (OOSD), 508–509 object-relational database management system (ORDBMS), 212 objects in programming languages, 164–165 Office PowerPoint, 157 Office software suite, 159–160 off-the-shelf software, 152–153, 172 OLAP (online analytic processing), 211, 215 OLEDs (organic light-emitting diodes), 112 OLTP (online transaction processing) systems, 203–206, 214, 359–360 on-demand computing, 554 business, 58–59 outsourcing and, 502–503 on-demand software, 153 OneNote (Microsoft), 193–194 online analytic processing (OLAP), 211, 215 online banking, 324–326 online data entry, input, 104 online job hunting, 72–73 online real estate services, 327 Online Reputation Management, 342 online shopping, 319 online training, 70 online transaction processing (OLTP) systems, 203–206, 214, 359–360 OODBMS (object-oriented database management system), 212 OOSD (object-oriented systems development), 508–509 open shops, 542 open-source DBMS (database management system), 201 | ERP systems, 374 operating system, 142 software, 168–169 operating systems (OSs) current, 140–143 enterprise, and special, 144–146 overview of, 136–137, 171 types and functions of, 137–140 Operation Copycat, 592 operational feasibility, 512 operational prototypes, 498 optical data readers, 107 optical discs, 101 optimization model described, 396–397 search engine (SEO), 283 spreadsheet software feature, 156–157 OQL (object query language), 212 OR operator, and search engines, 282 ORDBMS (object-relational database management system), 212 order processing TPSs, 361 organic light-emitting diodes (OLEDs), 112 organizational change, 53–54 organizational culture, 53, 74 organizational learning, 54, 446 organizational structure types, 48–53, 74 organizations best for IS work, 67 described, 4, 44, 74 general model of (fig.), 45 and information systems (ISs), 44–59 performance-based systems, 64–66 privacy policies, 608 OSs See operating systems (OSs) outplacement services, 417 output devices, types of, 103–104, 111–115, 124 outputs database, 199–200 described, 10 to MIS, 402–404 and productivity, 65 outsourcing described, 58–59 and on-demand computing, 502–503 P P3P (Platform for Privacy), 603 PA74 (Privacy Act of 1974), 30, 604–605 packet shaping techniques, 275 Palm OS, 146 PANs (personal area networks), 236 parallel computing, 95, 96 parallel start-up, 560 password sniffers, 590 patches, 562 patent, copyright violations, 591–593 Patterson, David, 95 payments See also banking, online banking using cell phones, 346 payroll systems batch processing, 359 enterprise applications, 162–163 Index inputs, processing, outputs, feedback, 10–11 and transaction processing systems (TPSs), 19 PBX (private branch exchange), 242 PC-DOS, 140 PDA (personal digital assistant) OSs, 146 PDF files, 445 pen input devices, 108 people and information systems, 15 perceptive system, 449 performance indicators, and competitive advantage, 62 system standard described, utilities for monitoring Web, 148 performance-based information systems, 64–66 personal application software, types of, 155–160 personal area networks (PANs), 236 personal computers See also computers input devices, 103–109, 124 linking to mainframes, networks, 249 safe disposal of, 591 personal information managers (PIMs), 158–159 personal productivity software, 136, 155–160 personal sphere of influence, 136 personalization of Web pages, 337 PERT (Program Evaluation and Review Technique ), 507 phase-in approach, 559 phishing, 332, 593 phones cell See cell phone iPhone, 235 PHP (Hypertext Preprocessor), 280 physical design of databases, 188 in systems design, 537 picocell, 246 piecemeal approach (in systems implementation), 559 pilot start-up, 559–560 PIMs (personal information managers), types of, 158–159 pipelining, 89 piracy, software, 591–592, 613 pixels, 111 place shifting, 14 planned data redundancy, 188 planning disaster, 540–542 enterprise resource planning See ERP human resource, 415 IS, 492 material requirements, 409 strategic, 430 plasma display, 111 Platform for Privacy Preferences (P3P), 603 plug-ins, Web, 276 plunge (in systems implementation), 559 podcasting, 14, 289–290 point evaluation system, 548–549 point-of-sale (POS) devices, 108 transaction processing system, 364 policies computer-use, 580–582 corporate privacy, 608 policy-based storage management, 103 pop-up 645 646 Index | ads, 274 blocker utilities, 148 portable computers, 116–117 portals, Web, 267, 276–277 Porter, Don, 376 Porter, Michael, 45, 60, 64 POS (point-of-sale) devices, 108 poverty, fighting global, 49 power conservation, 28–29 power management companies and ISs, 31 predictive analysis, 206–207 preliminary evaluation, 547 presentation graphics programs, 157–158 preventing computer crime, 594–601, 613–614 computer waste, mistakes, 580–582, 613 computer-related scams, 593–594 health and environmental problems, 610–611 price comparison, mobile, 328 primary keys (data hierarchy), 184–185 primary storage (main memory), 88 printers, types of, 112–113 privacy and electronic health records, 187 Finland’s information system and, 607 and information systems, 28–30, 600–609 and the Internet, 301 laws, and enterprise systems, 382 for online consumers, 333 Privacy Act of 1974 (PA74), 30, 604–605 private branch exchange (PBX), 242 problem solving in DSSs, 418–421 and decision making, 395 procedures described, 15 preventing computer waste, mistakes, 580–582 restart, 539 sign-on, 539 process design, 55 process symbols in DFDs, 518 processes described, processing described, 8, 10 distributed, 210–211 interactive, 539 processors, 88–96, 242 procurement, electronic, 19 product configuration software, 340 production, and ERP, 376 productivity described, 65 products ordering systems, 396–397 pricing and marketing, 414 and quality, 57–58 specification system, 393 professional services and information systems, 31–32 profit center, 406 program code, 163 Program Evaluation and Review Technique (PERT), 507 program trading, 11 programmed decision, 396–397 programmers, 488 programming languages See also specific language expert system, 463 types and evolution of, 163–167, 172 Web, 280 programs See computer programs project deadline, 507 Project Gutenberg Online Book Catalog, 114–115 project management tools, and systems development, 507–508 project milestone, 507 project organizational structure, 51 project schedule, 507 projecting (data), 190 proprietary software, 152, 171 prosthetic limbs, 456 protocols See specific protocol prototyping in systems development, 498–500, 524 public domain software, 169 public network services, 254 publishing companies and information systems, 31 purchasing and e-commerce, 18, 315–316 and ERP systems, 20, 376 products on the Internet, 609 systems, 362 Push e-mail, 285 Q QBE (Query-by-Example), 197–198 quality in organizations, 57–58 and standards in systems development, 506–507 quality control, 410 Query-by-Example (QBE), 197–198 questionnaires, 516 Quill Corp vs North Dakota, 333 R RAD (rapid application development), 497, 500, 524–525 radio frequency identification See RFID on the Internet, 294–295 RAID (redundant array of independent/inexpensive disks), 100 RAM (random access memory), 92–93 Raman, Sundar, 143 random access memory (RAM), 92–93 rapid application development (RAD), 497, 500, 524–525 Rational Unified Process (RUP), 501 Ray, Amitabh, 503 read-only memory (ROM), 93 real estate online services, 327 virtual reality applications, 470 Really Simple Syndication (RSS), 290 records (data management), 183 recruiting, human resources, 415–416 Red Hat Linux, 144 Reddi, M.N., 247 reengineering described, 54 and continuous improvement, 54–56, 504 | refreezing (in change model), 54 register, 88 relational database model, 189 releases (software), 562 reorder point (ROP), 409 repetitive stress injury (RSI), 611 replicated databases, 211 report layout, 521 reports See also specific type computer scam, 594 design, 551 and document production, 366–367 marketing manager, 415 MIS-generated, 402–405, 431 systems analysis, 522–523 systems development, 520–522 systems investigation, 513 request for maintenance forms, 562 request for proposal (RFP), 546, 566 requirements analysis, 520, 522, 525–526 rescue disks, 137 research marketing, 412 search engines and Web, 282–285 restart procedures, 539 retail companies and information systems (ISs), 31 return on investment (ROI) described, 64, 65, 74, 491 in electronic and mobile commerce, 333 in systems design, 547 revenue center, 406 reverse 911 service, 249 RFID (Radio Frequency Identification) applications of, 471, 474 and data warehouses, 204 described, 109 product tracking with, 63 tags, 109, 471, 489–490, 603 RFPs (request for proposals), 546, 566 rich Internet applications, 279 Ritter, Bill, 26 robotics, 24–25, 450–452 ROI See return on investment roll up (data), 204 ROM (read-only memory), 93 rootkits, 587, 595 ROP (reorder point), 409 Rothbaum, Barbara, 467 routers, 242 RSI (repetitive stress injury), 611 RSS (Really Simple Syndication), 290 Ruffles, Walt, 51 rules (conditional statements, 460 RUP (Rational Unified Process), 501 Ryder’s GPS system, 550 S SaaS (software as a service), 153–154, 201, 299, 555 Sabine, Dr Ringhofer, 243 safety See also computer crime, privacy, security safe work environment, 609–610 salaries Index administration, 417 in IS, 67 sales analysis, and marketing research, 414 and marketing, and information systems (ISs), 31 ordering, and ERP, 379 sales and operations plan (S&OP), 375 sales forecasting, 374, 384 SANs (storage area networks), 102–103, 556 Sarbanes-Oxley Act, 368, 490, 582, 594, 598 satisficing model, 398, 431 scalability described, 120 of operating systems, 139 scams, computer-related, 593–594 Scanion, David, 411 Scanlin, Jim, 98, 181 scanning devices, 106–107 scenarios, 537–538 schedule feasibility, 512 scheduled reports, 403 scheduling, human resource, 417 Schein, Edgar, 54 schema (database), 194–195 SCM (supply chain management), 46–47, 317 screen layout, 521 screen savers, 149 script bunnies, 586 scripts, 586 SDLC (systems development life cycle), 496–503 search engine optimization (SEO), 283, 342 search engines, 282 secondary storage (permanent storage), 98 secure shell (SSH), 288 Secure Sockets Layer (SSL), 344 securing data transmission, 243–244 wireless networks, 244 security See also computer crime disposal of personal computers, 591 of electronic health records, 187 federal requirements for systems, 537 and information systems, 28–30 Internet issues, 301 IS careers, 72 SaaS tools, 154 sensitive personal information breaches, 318 sign-on procedure, 539 in systems design, 539–543 threats to e- and m-commerce, 331 utilities, 148 Web server, 338–339 security dashboards, 598 Segway scooters, 471 selecting (data), 189–190 semantic Web, 203 semistructured problems, 420 Sense and Respond (S&R) problem solving, 397 SEO (search engine optimization), 283, 342 sequence diagrams, 538 sequential access, 98 sequential access storage devices (SASDs), 98 Serial Line Internet Protocol (SLIP), 272 server farms, 120 647 648 Index | server utilities, 148 servers, 120, 239–240 service-oriented architecture (SOA), 149 services Internet issues, 301 search engine, 284 shared electronic calendars, 427 shared workspace, 255 SharePoint, 297 shareware, 169 shell, 541 Shelman, Tom, 71 shopping carts, electronic, 340 shopping on the Web, 294 shoulder surfing, 584 sign-on procedure, 538 Simon, Herbert, 395 Simonyi, Charles, 106 simplex channel, 226 single-user license, 168 Singularity Is Near, The (Kurzweil), 448 site preparation, 557–558 SLIP (Serial Line Internet Protocol), 272 slipstream upgrade, 562 small and medium-size enterprises (SMEs) ERP for, 374 ISM top CRM for (table), 379 TPSs for, 363 smart cards, 345 smartphones, 116, 146 SME See small and medium-size enterprises sniffing passwords, 590 SOA (service-oriented architecture), 149 social bookmarking, 293–294 social engineering, 583 social networking, 30, 291–293 Société Générale scandal, 581 software See also specific type antivirus, 587–589 application, 135 bugs, 167, 172 CRM (customer relationship management), 376–379 described, 13, 171 developing in-house, 555–556 e-commerce, 339–341 ERP, 162–163 GSS, 423–428 maintaining, 562 middleware, 149–150 model management, 423 network, 242–243 network-management, 243 open-source, 168–169 optimization, 397 overview of, 134–136 piracy, 591–592, 613 span-filtering, 286 systems See systems software trends and issues in, 167–170 upgrades, 170 virtualization, 149, 555 Web server, 338 software as a service (SaaS), 153–154, 201, 299, 555 software suites, 159–160 Sokolov, Yuri, 445 source data automation, 104, 363 sourcing, crowd, 488 spam blocking, 28, 148 described, 97, 286, 579 spatial data technology, 213 speech-recognition technology, 105 speed clock, 89–90 of goods, information in e-commerce, 329 Internet issues, 301 of telecommunications media, 225 spiders, 283 spoofing, 332 SPOT (Smart Personal Objects Technology), 471 spreadsheet analysis software, 156–157 spreadsheets, 419 spyware, 589–590 SQL (Structured Query Language), 197, 199 SRAM (Static Random Access Memory), 93 SSL (Secure Sockets Layer), 344 staff positions, 50 stakeholders in systems development, 487, 524 standards popular Web, 277–278 system performance, start-up (in systems implementation), 559 Static Random Access Memory (SRAM), 93 static Web pages, 339 statistical sampling, 516 steering committee, 513 Stewart, Nancy, 181 storage capacity, computer, 92 data, 366 databases, 196 OS functions and, 139 secondary, 97–103 storage area networks (SANs), 102–103, 556 storefront brokers, 336 strategic alliance, partnership, 63 strategic planning, 430 strategies, organizational, 54 Strong, Gary, 105 structured interview, 515 Structured Query Language (SQL), 197, 199 style sheets, CSS, 278 supercomputers, 122 suppliers, bargaining power of, 61 supply chain management (SCM), 46–47, 317, 375–376 support global software, 170 IT department, 70 problem solving, 420 sustaining change, 53 switches, 242 symmetric DSL (SDSL), 248–249 Sync service for in-car communication, 236 synchronous communications, 226 syntax of programming languages, 164 system controls, 542–543 system maintenance and review, 28 system operators, 68 | system performance measurement, 565 system performance products, 565 system performance standard, system software, 13 system testing, 558 systems See also specific system concepts, components, described, 8–9, 34 development See systems development mission-critical, 494 performance-based, 64–66 systems analysis in systems development, 514–523, 525 systems analysts, 488–489, 497, 524 systems design described, 28, 497 environmental considerations, 545–552 interface, controls, system security, 538–543 logical, physical, object-oriented, 537–538 overview of, 536–537, 566–568 systems development described, 26–28, 35 factors affecting success, 503–510 failure factors, 505 in IS departments, 68–70 life cycles (SDLCs), 496–503 overview of, 486–496, 524–526 systems analysis, 514–523 systems design See systems design systems investigation, 510–513 systems development life cycle (SDLC), 496–503, 524–525 systems implementation, 28, 567, 498, 552–559 systems investigation, 497, 510–513 systems investigation and analysis, 27 systems investigation report, 513 systems maintenance, 561 systems maintenance and review, 498 systems operation, maintenance, 560–564, 567 systems request form, 511 systems review, 564–565, 568 systems software described, 134 types of, 136–150 T tablet PCs, 117–118 tacit knowledge, 444 tags, RFID, 109, 471, 489–490, 603 tax software, 283 taxation in electronic and mobile commerce, 333–334 TCO (total cost of ownership), 66, 547 TCP (Transmission Control Protocol), 271 team organizational structure, 51 teams systems development, 487–489 virtual, 51–52 technical documentation, 556 technical feasibility, 511–512 technological infrastructure described, 11 required for e- and m-commerce, 337–346, 348 technology acceptance model (TAM), 57 technology diffusion, 57 Index technology infrastructure, 11 technology infusion, 57 technology-enabled relationship management, 324 telecommunications described, 13–15 in the global economy, 224–225 hardware, 240–242 overview of, 225–236, 258–259 services and network applications, 245–257 and virtual workers, workgroups, 251–252 telecommunications media, 225 telecommunications protocol, 225 telecommuting, 14, 251 telemarketing, 609 telepresence systems, 467 television on the Internet, 294–295 Telnet, 288 terminals, computer, 106 Terrorist Finance Tracking Program, 594 testing benchmark, 548 and quality control, 410 in systems implementation, 558–559 text messaging, 285–286 Thenoz, Philippe, 47 thin clients, 119 thin-film transistor (TFT) LCDs, 111–112 threats to electronic and mobile commerce, 331–334, 347–348 Three Gorges Dam (China), 209 time-driven review, 565 Topez Web-performance monitoring utility, 148 Torvalds, Linus, 142 total cost of ownership (TCO), 66, 547 total quality management, 58, 74 touch-screen voting, 109 touch-sensitive screens, 108 TPSs (transaction processing systems), 19–20, 34 activities of, 363–367 control and management issues, 367–369 overview of, 358–363, 384–385 tracking business processes, 359 Web site, 339 trade agreements, and globalization, 33 traditional approach to data management, 185–186 traditional organizational structure, 50 training human resource, 416 online, user, 70 virtual reality applications, 468 transaction processing cycle, 363 transaction processing system audit, 368 transaction processing systems (TPSs), 19–20, 34 activities of, 363–367 control and management issues, 367–369 overview of, 358–363, 384–385 transactions described, 19 transborder data-flow laws, 33 translation services on the Internet, 298 Transmission Control Protocol (TCP), 271 T-REX data mining tool, 206 Trojan horses, 586–587 tunneling, 300 TurboTax, 160 649 650 Index | Turek, David, 123 Turing, Alan, 448 twisted-pair wire, 227–228 Twitter, 293, 427 U UIGEA (Unlawful Internet Gambling Enforcement Act of 2006), 585 ultra wideband (UWB), 230 UML (Unified Modeling Language), 133, 513 unfreezing (in change model), 54 unified communications, 256 Unified Modeling Language (UML), 133, 513 unified threat management (UTM), 540 Uniform Resource Locators (URLs), 271 unit testing, 558, 559 UNIX operating system, 144 Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA), 585 unmanned combat air vehicles (UCAVs), 452 unstructured interviews, 515 unstructured problems, 420 upgrades slipstream, 562 software, 170 upper-CASE tools, 509 upstream management, 46 URLs (Uniform Resource Locators), 271 USA Patriot Act, 594, 598, 605 user acceptance document, 560 user documentation, 556 user interface described, 137 dialog manager, 421 for expert systems, 459, 462 user preparation (in systems development), 557 user satisfaction, 56 user software, 155–160, 171 user training, 70 usernet, and newsgroups, 290 users in systems development, 487 utility companies and information systems (ISs), 31 computing, 58–59 programs, 171, 147–149 UTM (unified threat management), 540 UWB (ultra wideband), 230 V value added, value chain described, 45 ValueIT utility, 149 variants (virus), 587 Ventury, Dominic, 346 versions (software), 562 very small aperture terminal (VSAT), 233 video logs (vlogs), 288–289 video on the Internet, 294–295 videoconferencing, 252, 291 Vieraitis, Bob, 367 virtual database systems, 212–213 virtual databases, 556 virtual machines, 149, 552, 553 virtual organizational structure, and collaborative work, 51–53 virtual private networks (VPNs), 245 virtual reality described, 25–26, 474 forms and applications of, 467–470 interface devices, 465–466 virtual reality system, 465 virtual tape, 101 virtual workgroups, 428 virtualization, 552 virtualization software, 149, 555 viruses combating, 586–589 described, 586 visa programs for foreign IT workers, 68 vision systems, 452–453 Visual Basic (Microsoft), 164 visual programming languages, 164 vlogs (video logs), 288–289, 290 VMWare, 149 voice mail, 249 Voice over Internet Protocol (VoIP) services, 248–249, 291 voice recognition, 454 voice-activated systems, 471 voice-to-text services, 250 VoIP (Voice over Internet Protocol) services, 248–249, 291 volume testing, 558 von Ahn, Luis, 69–70 voting systems, 109 VPNs (virtual private networks), 245 W Wade, Leslie Anne, 585 wage administration, 417 Wales, Jimmy, 284 Walsh, Jeff, 406 WANs (world area networks), 238 WAP (wireless application protocol), 273, 343, 348 war driving, 244 waste, computer, 578–579 Web See also Internet, World Wide Web described, 14–15 Internet offices, 296 overview of, 392 semantic, 203 shopping on the, 294 unauthorized, 301 Web 2.0, 15, 279, 293, 392, 400, 427 Web applications, 282–300, 392–393 Web auctions, 294, 327 Web browsers, 276 Web crawling, 283 Web logs See blogs Web page construction software, 339 Web pages See also Web sites creating, 280–281 sending, receiving, 339 static and dynamic, 339 Web plug-ins, 276 Web portals, 267, 276–277 | Web programming languages, 280 Web server software, 338 Web services, 280–281, 341 Web site development tools, 339 Web sites 3-D, 297 blog sites, 289 and e-commerce, 334–337 hosting, 334–335 m-commerce, 320 social networking, 292–293 tracking, 339 WEP (Wired equivalent privacy), 244 wide area wireless network options, 232–235 Wi-Fi Alliance, 231 Wi-Fi phones, 291 Wi-Fi Protected Access (WPA), 244 Wikipedia, 284–285 wikis, 284–285 WiMAX (Worldwide Interoperability for Microwave Access), 234 Windows Embedded, 146 Windows Mobile, 146 Windows Vista, 140 Windows XP, 140 Wintel, 141 Wired equivalent privacy (WEP), 244 wireless communications, 229–230 connection to Internet, 273 networks, 14, 244 transmission media, 227 wireless application protocol (WAP), 273, 343, 348 Wireless Markup Language (WML), 343 wireless mesh, 233–234 wireless networks securing, 244 uses of, 14 WML (Wireless Markup Language), 343 Wolfensohn, James, 49 Word (Microsoft), Track Changes feature, 156 word processing applications, 156 Index work environment issues, 609–610 workgroup application software, 161 workgroup operating systems, 143–144 workgroup software, 426 workgroup sphere of influence, 136 workgroups described, 136 telecommunications and virtual workers, 251–252 virtual, 428 workstations, 119 wide area networks (WANs), 238 World Bank, 49 World Is Flat, The (Friedman), 32, 35 World Wide Web (WWW) See also Internet, Web described, 14–15, 266, 276 overview of, 276–282 Worldwide Interoperability for Microwave Access (WiMAX), 234 worms, 586, 587 WPA (Wi-Fi Protected Access), 244 X Xing, Song, 314 XML (Extensible Markup Language), 277, 280–281 XP (extreme programming), 500–501 Y Yee, Jim, 55 Z Zigbee wireless communications, 231 Zip disks, 99 zip files, 148 z/OS (IBM OS), 145 Zuniga, Amanda, 47 651 652 Index | Company Names Numbers 14 Commerce, 344 37signals.com, 296 3VR Security, 471 5DT, Inc., 26 7-Eleven, 239 A ABC News, 289–290 AbeBooks.com, 328 Accenture, 72, 414, 503, 509 AccuFund, 363 Ace Hardware, 402 Acer, 592 AdMob, Inc., 412 Adobe, 13, 276, 279, 280, 281, 299, 339, 445, 592 Advance America, 127–128 Aelera Coproration, 502 Aeroflex Incorporated, 92 AES Technologies, 335 Aetna, 59 Aflac, 225 Air Products and Chemicals, Inc., 375 Aircel Business Solutions, 235 Alcatel, 243 All Nippon Airways Company, 580 Allergan, 58 Allstate Insurance, 554 Alltel, 328 Amazon.com, 57, 72, 97, 115, 203, 281, 294, 295, 296, 306, 311, 313, 321, 503 AMD, 95, 552 America Online (AOL), 254, 273, 276, 287, 291 American Airlines, 90 American Eagle Outfitters, 313, 324, 378 American Express, 345 American Home Products, 170 American Honda, 297 American of Martinsville, 378 Amerisure, 119 Ameritrade, 324 Amherst Alarm, 256 AMR Research, 337, 555 Analsys, 314 Anheuser-Busch Companies, 67 Animal Logic, 121 AOL (America Online), 588, 599, 600, 602 Apache, 598 APPIAN, 436 Apple Computers, 14, 63, 90, 114, 117, 119, 141–142, 144, 147, 149, 171, 203, 231, 235, 237, 257, 273, 280, 285, 287, 289, 295, 332, 344, 377, 586–587, 592, 603, 611 Applix, 211 Arek Oy, Ltd., 607 Art Technology Group (ATG), 324 Art.com, 493 Arvest, 328 Aselsan, 388 Aspen Skiing Company, 561 Associated Newspapers, 598 Associated Press, 13, 275 Association for Computing Machinery (ACM), 611–612 AstraZeneca, 411 Asus, 118 AT&T, 17, 108, 144, 231, 234, 235, 246, 256, 273, 291, 320, 328, 464 Auctions, 327 Audible.com, 295 Austin-Hayne, 464 Autodesk, 426, 592 Avanax, 153 AVG, 588 Aviall, 317 B Babel Fish Translation, 298 BAE Systems, Inc., 67 Ball Aerospace, 45 Banc of America Securities Prime Brokerage, 212 Bancorp South, 328 Bank of America, 201, 307, 556 Bank of China, 122 Barclays, 29, 251, 345 Barcle, 328 Barnes & Noble, 313 Baseball Hall of Fame, 193 BaseCamp, 427 Baskin-Robbins, 162 Bebo, 604Bell Canada, 352 Bell South, 599 Best Buy, 72, 552, 586 Bharti Airtel, 247 Bid4Spots, 414 Bidzcom, 313 Bigreds.com, 332 BikeSomeWhere.com, 328 BillMeLater, 344, 345 Bird & Bird (B&B), 478 BitDefender, 588 BizAutomation.com, 381 BizNova Consulting, 487 BlackBerry (Research in Motion), 249, 285, 328, 377 Blagg & Johnson, 458 Blair Corporation, 327 Blancco, 561 Blogcatalog.com, 289 Blogdigger, 289 Blogger.com, 289 Blue Cross, 153 Blue Cross Blue Shield, 542 Blue Shield, 153 BMW, 412 Bochringer Ingelheim, 404 Boeing, 14, 25, 26, 162, 225, 307, 317, 409, 469 Boekhandels Groep Nederland (BGN), 108 Bombardier Flexjet, 398 Boost, 328 BOSaNOVA, 119 Bosch Security Products, 87 Boston College, 465 Boston Dynamics, 452, 453 BRE Bank, Poland, 494 | Brigham and Women’s Hospital, 457 British Airways, 395–396 British Petroleum (BP), 404 British Telcom, 599 BroadSpire, 334, 335 BroadVision, 281 BT, 225, 500 Burlington Northern Santa Fe Corporation, 372 Business Objects, 209, 211, 412 C C2Net, 169 Cabelas, 547 Cablecom, 422 Caldera OpenLinux, 142 Callserve, 291 Cambridge Health Alliance (CHA), 261 Canon, 552 Capital Groups Companies, The, 67 Car Toys, Inc., 381 Carbonetworks, 545 CardersMarket, 319 Careerbuilder.com, 287 CareerXroads, 73 Carnegie Mellon Software Engineering Institute, 547 Carnegie Mellon University, 69, 167, 452, 453, 454, 506 Carsberg Breweries, 535–536 CBSSports.com, 585 CDW Corporation, 251 Cedarlane, 374 Center Beam, 502 Center for Systems Innovation, 492 Central Michigan University, 378 Champs Sports, 344 Charles Schwab & Co., 312, 454 CheapTickets, 334 Chesapeake Energy, 212 Chevron Corporation, 299 Chico’s, 213 Chiquita Brands, 381 Choctaw Electric, 234 Chromalloy Gas Turbine, 409 Chrysler, 414 Chubb Commercial Insurance, 445 Cigna Healthcare, 25 Cincinnati Bell, 495 Cinergy Corporation, 419 Cingular, 320 Cisco Systems, 72, 223, 224, 225, 243, 262, 312 Citibank, 17, 330, 345, 381, 582 Citysearch, 320 Clarity Systems, 62 Classmates.com, 604 Clear Channel Communications, 289, 506 ClearContent, 286 Clearwire, 234 Clorox Company, 329 CMA-CGM, 47 CNA, 444 CNN, 284, 584 Coca-Cola Enterprises, 98, 117, 398, 491 Cognos, 209, 211, 402 Collexis, 446 Comcast, 275, 291 Index Commerce One, 603 complaints.com, 342 CompuServe, 600 Computer Associates International, 455, 500, 594 Computer Security Institute, 583 comScore Networks, 323 Comtrend Corporation, 229 Connectbeam, 307 Constellation Energy, 488 ContentWatch Inc., 600 Con-way Inc., 107 Corel, 159, 160 Corporate Communications, 335 Costco, 108, 321 Counterpane, 599 Course Technology, 271, 288 Covisint, 254, 313 Cox Communications, 252 Craigslist, 313, 320, 327 Cray, 123, 552 Creative Artists Agency (CAA), 181 CSX Transportation, 118 CUNA Mutual Group, 71 Cutting Edge Information, 47 CVS Corporation, 213 Cyberhomes, 327 D DaimlerChrysler, 162 Dassault Systems, 469 Data, 108 DataTern, 593 DB2, 280 Decisioning, Inc., 23 Deere & Company, 398 Del Monte Corporation, 329 Del Monte Foods, 262 del.icio.us, 279, 293–294 Dell, Inc., 28, 64, 72, 90, 114, 120, 143, 231, 313, 322, 340, 369, 408 Dell Computer, 545, 552, 553, 592 Deloitte & Touche, 406 Deloitte Touche Tohmatsu, 223 Delta Airlines, 409, 443 Desktop Search, 149 Detroit Trading Exchange, 323 DHL, 316 Dial Directions, 105 Digg, 279, 294, 412 Direct Marketing Association, 609 DirectRevenue, 590 Disney, 237, 498 D-Link, 240 DLJdirect, 454 DoCoMo, 343 DreamWorks Studios, 253 DT Research, 117, 118, 119 DTE Energy, 509 Duke University, 487 Dun & Bradstreet, 341 Dunkin’ Brands, 162, 402 E E*Trade, 583 653 654 Index | EachNet.com, 314 Eastman Kodak Company, 106, 111, 335 eBay, 72, 203, 294, 306, 313, 320, 332, 333, 344, 414, 561, 577, 591 eBid, 313 EBT, 281 Eclipse Workbench, 556 eCourier, 412 eDynaQuote, 327 Electronic Data Systems (EDS), 72, 503 E-Loan, 298 EMC, 103, 541, 545 Emory University, 467 Energy Optimizers, Ltd., 231 Enterprise Rent-A-Car, 436 Epinions, 279 Equifax, 608 ERF Wireless, 245 Ericsson, 243, 320, 441, 603 Ernst & Young LLP, 73 ETAI Group, 219 E-Trade, 324 Excite, 313 Expedia, 334 Experian, 608 F Fab Lab, 13 FabTrol, 376 FaceBook, 14, 30, 73, 279, 291, 292, 293, 342, 401, 406, 412, 424, 585, 604 Fairfax County Public Schools, 67 Fakespace Systems, Inc., 466 FedEx, 15, 43, 307, 316, 359, 360, 362, 403 Femtocell Base Stations, 246 Ferwick & West LLP, 152 Festo AG & Co., 31 FHA Anonymous, 327 Fidelity Investments, 454 FileNet, 281 Firestar Software, 593 First Bank, 328 First Data, 108, 344 First Health of the Carolinas, 487 Flexnet, 284 Flickr, 279, 293 Florida State University, 77 FlowerShop.com, 320 Ford Motor Company, 147, 236, 412, 471 Ford-Otosan, 58 Forrester Research, 17, 28 Fossil, 3–4 Fox News, 284 Free Translation, 298 freecreditreport.com, 608 Frito-Lay, 375 F-Secure Corporation, 587, 588 FTD.com, 344 Fujitsu, 106, 117 G Galenicum, 374 Gartner Group, 66, 582, 593 Geek Squad, 561 Geeks.com, 318 Genalytics, 206 General Electric, 502 General Electric Aircraft Engine Group, 464 General Mills, Inc., 67, 329, 333, 393 General Motors (GM), 133, 502, 547 Georgia Aquarium, 365 Geospatial, 314 Gibson Guitar, 256 Girl Scouts of the USA, 101 GlobalTech Solutions, 412 GM (General Motors), 133, 502, 547 Gmail, 285 godaddy.com, 271 Google, 21, 72, 77, 96, 97, 149, 159, 160, 161, 187, 201, 202, 235, 247, 252, 276, 279, 281, 282, 283, 289, 290, 295, 296, 297, 298, 299, 307, 313, 342, 454, 470, 555, 559 GotVoice, 250 Grand & Toy, 62 Greenfield Online, 159 Groove Networks, 426 GRUMA, 485–486 Guardent, 599 Gujarat Reclaim and Rubber Products Ltd (GRRP), 372 H H&R Block, 283 Hackensack University Medical Center, 394 Handspring, 116 Hanford Brothers Company, 540 Hannaford Brothers, 489 Harris Corporation, 116 Harris Interactive, 540 Harrisdirect, 324 Hayes, 240 HazMat Loader, 464 Herbertsons Distilleries, 85 Hess Corporation, 491 Hewlett-Packard (HP), 70, 90, 103, 108, 113, 119, 142, 144, 145, 170, 243, 250, 253, 291, 292, 316, 374, 402, 419, 545, 552, 554, 565, 592 Hi5, 604 HighMark, 423 Hitachi Data Systems Corporation, 103 Home Depot, 213 Hon Hai, 408 HopeLab, 25 Horizon Blue Cross Blue Shield, 590 HostWay, 334, 335 HotJobs, 287 Hotmail, 285 Hula, 295 Humane Society of the United States, 555 Hutchinson Port Holdings, 398 I IAG Research, 414 Ibidfree, 313 | IBM, 3, 12, 39, 49, 59, 77, 85, 90, 92, 96, 101, 103, 116, 120, 121, 122, 123, 128, 135, 140, 141, 142, 144, 145, 149, 161, 168, 170, 189, 194, 197, 201, 203, 212, 287, 311, 374, 398, 402, 415, 420, 426, 427, 446, 447, 500, 501, 502, 503, 552, 554, 556, 561, 565, 592, 599 ICQ, 602 iHealthRecord, 422 Ikea, 414 Imbee, 604 Imperial Chemical Industries, 154 Imprint Business Systems, 464 Improv, The, 153 IMS Health, 208, 582 Industrial and Commercial Bank of China, 325 Infor, 211 Informatica, 209 Information Builders, 402 Informix, 280 Infosys, 69 ING Direct, 419 Inline Internet Systems, 203 Intacct, 381 Intel, 12, 90, 91, 95, 142, 145, 234, 273, 552 Intelitek, 451 IntelliVid, 150 Intermountain Healthcare, 188 Internet Content Rating Association (ICRA), 599 Internet Security Systems (ISS), 597, 599 Intuit, 163, 201, 212, 283, 363 Iomega Corporation, 100, 114 Iowa Health System, 87 IRobot, 452 ISM, Inc., 378 IT Shared Services Center (SSC), 535–536 J J Crew, 503 J Paul Getty Trust, 218 Jack Henry & Associates, 17 Jaiku, 279 Japan Post, 381 JCPenney, 153, 306 JetBlue Airways, 90, 201, 344, 368, 556 JetFlash, 596 Jigsaw, 378 Jo-Ann Stores, 421–422 John Hopkins University, 105, 452 Johnson & Johnson, 78–79, 414 Johnson Controls, 254 Jott, 250 JP Morgan, 324 Juniper Research, 320 K Kabel, 378 Kaspersky, 588 Keiper GmbH & Co KG, 437 Kerr-McGee, 233 Ketera Technologies, 299 Kimberly-Clark Corporation, 329, 469 Kindred Healthcare, 149, 555 Kiva.com, 406 Index Kohl’s, 252 Kroger, 239, 329 KRUU radio, 143 Kryptonite, 342 L Lamborghini, 267 Legato Systems, Inc., 103 Lending Club, 406 Lending Tree, 298 Lenovo, 90, 117, 143, 596 LG Electronics, 225, 328 LG Phillips, 111 Lionbridge Technologies, 382 Lions Gate Entertainment, 604 Livejournal.com, 289 Lloyd’s Insurance, 11 Loanexa, 327 LoanPerformance, 423 Los Alamos National Lab, 595 Lotus, 49, 159, 512 Lowe’s, 374–375 Lufthansa Cargo, 211, 464 Lyons Bakeries, 162 M Macromedia, 203 Macronimous.com, 335 Magnify, 206 Maporama, 357 Mapunity, 247 Maryland Dept of Transportation, 581 Massachusetts General Hospital, 457 Massachusetts Institute of Technology (MIT), 5, 118, 298 MasterCard, 230, 345, 352, 556 MasterFoods USA, 333 MatheMEDics, 464 Mattel, 502 Mayo Clinic, 128, 610 McAfee, 148, 561, 586, 588, 592 McDowell Distilleries, 85 McKesson Corporation, 225, 502 McKinsey & Co., 545 MEDecision, 464 Medical Missions for Children (MMC), 556 Medkinetics, 100 Mental Images, 12 Mercedes-Benz, 12 Mercury Interactive, 148 Merrill Lynch, 249 Metaserver, 559 MGM Mirage, 508 Microcom, 240 Microsoft, 13, 21, 30, 70, 72, 105, 108, 117, 138, 140–141, 144, 146, 148, 149, 156, 157, 159, 160, 161, 163, 164, 167, 168, 170, 171, 176, 187, 189, 193, 194, 201, 202, 205, 211, 230, 231, 236, 237, 243, 250, 254, 255, 273, 276, 279, 281, 282, 285, 287, 291, 296, 297, 307, 339, 342, 357, 381, 382, 383, 397, 402, 404, 426, 426–427, 427, 446, 470, 471, 491, 500, 506, 507, 509, 512, 536, 555, 556, 562, 587, 592, 597, 599, 603, 611 MicroStrategy, 209, 211 655 656 Index | Millennium Partners Sports Club Management, 502 Mitre Corporation, 67 Mitsubishi Motors of North America, 281 MLSgear.com, 318 Mobileye, 471 Mobius Management Systems, 514 MoneyAisle.com, 326 MoneyZap, 344, 345 Monster.com, 73, 268, 287, 417 Montres Rolex S.A., 332 Moody’s Corporation, 579 Morgan Stanley, 307 Motion Picture Association of America, 592 Motorola, 108, 114, 141, 234, 240, 307, 320, 328 Mozilla, 285 mTLD Top Level Domain Ltd, 320 MTV, 584 Municipal Corporation of Delhi (MCD), 389 MWEB, 588 MWH Global, 445 MyOwnDB, 201 MySpace, 14, 30, 73, 207, 243, 279, 291, 293, 320, 342, 604 MySQL, 189, 201, 280 N Namesdatabase.com, 604 Napster, 295 NASA, 579 National Aquarium, Baltimore, 141 National Audubon Society, 419 National Football League (NFL), 351–352 National Public Radio (NPR), 289 Nationwide, 544 NaviTag, 472 NCR Teradata, 206 Neiman-Marcus, 25, 469 Net2Phone, 291 NetBooks, 381 NetStudio, 339 NetSuite, 381 Network Associates Inc., 587 New York Stock Exchange, 536 Nextel, 246 Nike, 257 Nissan Motor Company, 24 Nokia, 108, 116, 117, 118, 231, 234, 320, 328, 511 North Dakota State University, 468 Northop Grumman Corporation, 71, 541 Norton AntiVirus, 588 Novamente LLC, 479 Novell, 144, 170, 243 O Oak Ridge National Lab, 595 Oanda.com, 341 Oberto Sausage Company, 375 Objectivity, 212 Office Depot, 321 OfficeMax, 62 Ohio Casualty Corporation, 501 OmniAmerican Bank of Fort Worth, 318 Onsale, 327 OpenOffice, 159 OpenPro, 363 Optimum Energy, 545 Oracle, 3, 49, 72, 120, 127, 189, 194, 201, 203, 204, 207, 209, 211, 212, 280, 377, 381, 382, 500, 509, 556, 565 Orbitz, 334 Oregon Health & Science University, 150 Overstock, 344 P Pacific Data Images, 253 Packet8, 291 Palm, Inc., 146 PalmOne, 116 Palomar Pomerado Health, 469 Partners Healthcare, 457 Paybill.com, 325 PayPal, 16, 344, 345, 577 PC Pinpoint, 561 Penril/Bay Networks, 240 PeopleSoft, 373 Pepsi, 333 Perdue Employees Federal Credit Union, 330 PersonalHealthKey, 422 Pfizer, 307 Pine Cellular, 234 Pine Telephone, 234 Pitney Bowes, 213 Pixar, 12 Pixel Xi, 118 Popkin Software, 509 Porsche, 63 Porter Adventist Hospital, 452 PPR, 65 Pratt & Whitney, 443 Prevention Partners, Inc., 374 PriceGrabber, 313 Priceline, 334 PricewaterhouseCoopers, 585 Procter & Gamble, 53, 224, 307, 329, 408, 423, 491 Prodigy, 254 Prosper.com, 406 Prover Technology, 509 Providence Washington Insurance Company, 402 Puma, AG, 65 Purdue University, 507 Q Quadstone, 207 Qualcomm, 149, 231, 320 Qualys, 555 Quick Loans, 67 Quicken Loan, 298 Quill Corporation, 333 R Radio Shack, 552 RadioFrame Picocell, 246 Rational Rose, 509 Rational Software Corporation, 500, 501, 556 | Real Player, 276 RealSpace Vision Communication Inc., 468 Realtor.com, 327 Red Brick Systems, 207 Red Hat Linux, 142, 144, 169, 171, 593 Redfin, 327 Redwing, 363 Reebok, 344 Relativity Technologies, 563 Rensselaer Polytechnic Institute, 479 Reputica Ltd, 342 Research in Motion, 146, 291, 377 Restoration Hardware, 454 Retail Systems Research LLC, 320 Reuters, 406 Revolution Card, 108 Rhapsody, 295 Ripoff Report, 342 Riptech, 599 ROI (Dutch Institute for Public Administration), 245 Rolex, 63 Royal Bank of Canada, 352, 500 Ryder, 550 S Sage, 363 Sahlgrenska University Hospital, 208 Saks Fifth Avenue, 25, 469 Salesforce.com, 381 Salvation Army, 378–379 Samsung, 108, 114, 117, 234, 328 Sandia National Laboratories, 464 SANS Institute, 595 SAP Corporation, 3, 20, 153, 176, 211, 225, 341, 377, 378, 381, 382, 383, 446, 485–486, 535, 554 SAS Institute, 206, 417 Saxon Innovations, 592 SB Broadband, 235 ScanScout, 414 Schumacher Group, 422 Schwab.com, 583 Seagate Technology, 586 Sears, 143, 153, 321 Second Life, 30, 412, 469, 479 Segway, 471 Sendmail, Inc., 169 Serena, 424 Seriosity, 286 Serran Tech, 201 Sharp Health Care, 67 ShopLaTiDa, 327 ShopLocal, 328 Shopzilla, 313 Siemens, 243 Sightward, 207 SimulScribe, 250 Sirius Satellite Radio, 54 Sirius XM Radio, 556 Six Flags, 494 Skire, 508 SkiSpace, 424 Skype, 287 Skyway Software, Inc., 494 Sling Media, 295 Index smart USA, 379 Smith Drug, 471 Société Générale, 581 SoftQuad, 339 Softsmart, 170 Software AG, 205 Software Engineering Institute (SEI), 506 Solidcore Systems, 367 Sonic Restaurants, 213 Sony, 90, 114, 115, 116, 117, 128, 441 Sony Ericsson, 328 SourceForge, 591 Southern States, 494 Southside Electric Cooperative, 149 Southwest Airlines, 201, 232, 556 SpinVox, 250 SpiralFrog, 295 Spotwave Zen, 246 Sprint, 234, 235, 246, 256, 273, 320, 328 SPSS, 207 Squidoo, 284 Stanford University, 464 Staples, Inc., 547, 311 Starwood Hotels and Resorts Worldwide, 333 State Farm Insurance, 443 Storage Technology, 101 Sugar CRM, 377, 378 Sun Microsystems, 144, 153, 159, 164, 165, 280, 281 Sun Trust, 328 Superior Industries, 317 Surya Roshni Ltd, 194 Sutter Health, Sybase, Inc., 170, 189, 194, 205, 207, 218 Symantec, 29, 147, 148, 592, 599 Symbian, 146 Synovus, 328 Systest, 72 T Tactician Corporation, 417 Tagged, 604 Talend Open Data Solutions, 219 Tandem, 207 Target, 408 Tata Group, 443 TaxEngine.com, 283 TD Ameritrade, 318 TD Waterhouse, 324 TD Waterhouse Group, 454 TeamF1, 286 Techcombank, 245 Technorati, 289 TeleCheck, 344, 345 TeleNav, 256 Tellabs, 553, 593 Telmex, 235 Terabitz, 327 Terasoft Corporation, 470 Tesco, 47 The Gap Inc., 590 Thinkfree, 160 Ticketmaster, 239 Time Warner, 412 TJX, 244 657 658 Index | T-Mobile International, 243, 246, 256, 291 Togo’s, 162 Tokyo Electron, 582 TopCoder, 69 Toshiba, 90, 128, 552, 596 Toyota, 409 ToysRUs, 344 Trackvia, 201 Tradus, 313 Transco, 464 TransUnion, 608 TransUnion Interactive, 66 Travelocity, 334 Trend Micro, 398, 588 Tridel Corporation, 495 Triumph Distilleries, 85 Trulia, 327 TRW Automotive Holdings, 557 Tween Brands, Inc., 409, 421 Twitter, 279, 293, 342, 427 U UB Group, 85 uBid, 313, 327 Ufida, 382 uLocate, 328 Union Bank of California, 55, 56 United Airlines, 28, 64, 443, 580 United Parcel Service (UPS), 316, 359 University Corporation for Advanced Internet Development (UCAID), 270 University of Auckland, 66 University of California-Santa Cruz, 448, 479 University of Chicago, 30 University of Denver, 72 University of Edinburgh, 472 University of Illinois, 466 University of Maryland, 206 University of Miami, 67 University of North Carolina Hospital, 102 University of Pennsylvania, 67 University of Phoenix, 255 University of South Carolina, 446 University of Texas, 404 University of Toronto, 488 UNIX Systems Lab, 144 U.S Bancorp, 240 U.S Bank, 346 U.S Livermore National Laboratories, 12 U.S Robotics, 240 UUNet, 599 V Valero Energy, 176 Varian Medical Systems, 151, 554 Veritas Software Corporation, 103 Verizon, 225, 228–229, 234, 246, 256, 273, 291, 320, 599 Versant, 212 Vertex Distribution, 374 Vignette, 281 Vintners, 85 Virginia Tech, 28 Visa, 230, 331, 345, 352 Visible Systems, 509 Visio, 509 VistaPrint, 545 VMware, 555 Vocollect, 471 Volvo Cars Belgium, 78 Vonage, 291 VPL Research, 465 W Wachovia Corporation, 17, 26, 328 Walden-books, 313 Walgreens, 422 Wal-Mart, 8, 46, 61, 73, 97–98, 143, 153, 162, 181, 186, 224, 321, 323, 344, 361, 408, 489–490 Walt Disney, 237, 498 Walters Metal Fabrication, 376 Ward Systems Group, 455, 456 WebEx Communications, 367 WeBidz, 327 WebMD, 422 WebOffice, 427 WebPhone, 291 Wells Fargo, 580 Western Union, 344 WhitePages.com, 401 Whitmann Price Consulting, 177, 220 Widgit Software, 149 Wikipedia, 97, 279, 284, 320 Wireless Advocates, 108 Workday, 381 World Bank, 49 Wyse, 119 X Xcerion AB, 279 Xiotech, 103 XM Satellite Radio, 54, 201 Xobni, 286 XuQa, 604 Y Yahoo!, 72, 77, 149, 268, 276, 281, 282, 287, 313, 320, 332, 342, 414 Yansha, 39 Yorba Linda Library Commission, 599 YourTechOnline.com, 561 YouTube, 29, 279, 293, 342, 412 YuMeNetworks, 414 Z Z Corporation, 113 Zillow, 327 Zoho, 160 ... market information, and run back-office operations  322 Part | Business Information Systems Dell sells its products through the Dell.com Web site to trade exclusively with established business partners... United States from January 20 05 to March 20 08 is nearly 22 4 million! 12 This represents the approximate number of records, not people affected Some people have been the victim of more than one breach... Refers to the use of any of several technologies to enforce policies for controlling access to digital media such as movies, music, and software 3 32 Part | Business Information Systems loss due