Management information systems: managing the digital firm

Pearson International Edition

MANAGEMENT INFORMATION SYSTEMS

M AN A G IN G TH E DIGITAL FIRM

Management

Information

Systems

MANAGING THE DIGITAL FIRM

Asian Network

te n th edition I O f°r Higher Education

No 0008

Kenneth C. Laudon

New York University

Jane P. Laudon

Azimuth Information Systems

PEARSON

Pearson Education International

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About the Authors

K e n n e th C . Laud on is a Professor o f Inform ation Systems at N ew York University's Stern

School o f Business. He holds a B.A. in Economics from Stanford and a Ph.D. from Columbia

University. He has authored tw elve books dealing with electronic com m erce, inform ation

systems, organizations, and society. Professor Laudon has also written over forty articles

concerned with the social, organizational, and m anagement impacts o f inform ation systems,

privacy, ethics, and m ultim edia technology.

Professor Laudon’s current research is on the planning and m anagem ent o f large-scale

inform ation system s and m ultim edia inform ation technology. H e has received grants from

the National Science Foundation to study the evolution o f national inform ation systems at

the Social Security Adm inistration, the IRS, and the FBI. Ken’s research focuses on enter￾prise system im plem entation, com puter-related organizational and occupational changes in

large organizations, changes in m anagem ent ideology, changes in public policy, and under￾standing productivity change in the knowledge sector.

Ken Laudon has testified as an expert before the United States Congress. He has been a

researcher and consultant to the O ffice o f Technology Assessm ent (United States Congress),

D epartm ent o f H om eland Security, and to the O ffice o f the President, several executive

branch agencies, and Congressional Com mittees. Professor Laudon also acts as an in-house

educator for several consulting firm s and as a consultant on systems planning and strategy

to several Fortune 500 firms.

At NYU's Stern School o f Business, Ken Laudon teaches courses on Managing the Digital

Firm, Inform ation Technology and Corporate Strategy, Professional Responsibility (Ethics),

and Electronic Com m erce and Digital Markets. Ken Laudon's hobby is sailing.

J an e P rice L au d o n is a m anagem ent consultant in the inform ation system s area and the

author o f seven books. H er special interests include system s analysis, data m anagem ent,

MIS auditing, software evaluation, and teaching business professionals how to design and

use inform ation systems.

Jane received her Ph.D. from Colum bia University, her M.A. from Harvard University,

,-md her B.A. from Barnard College. She has taught at Columbia University and the N ew York

U niversity Graduate School o f Business. She maintains a lifelong interest in Oriental lan￾guages and civilizations.

ghters, Erica and Elisabeth, to whom this book is dedicated.

Brief Contents

Part One

Chapter 1

Chapter 2

Chapter 3

Chapter 4

Part One Project

Part Two

Chapter 5

Chapter 6

Chapter 7

Chapter 8

Part Two Project

Organizations, Management, and the Networked

Enterprise 1

Inform ation Systems in Global Business Tbday 2

Global E-Business: H ow Businesses Use Inform ation Systems 38

Inform ation Systems, Organizations, and Strategy 80

Ethical and Social Issues in Inform ation Systems 124

Analyzing Business Processes for an Enterprise System 165

Information Technology Infrastructure 167

IT Infrastructure and Em erging Technologies 168

Foundations o f Business Intelligence: Databases and Inform ation

M anagem ent 222

Télécomm unications, the Internet, and W ireless Technology 260

Securing Inform ation Systems 312

Creating a N ew Internet Business 351

Part Three

Chapter 9

Chapter 10

Chapter 11

Chapter 12

Part Three Project

Part Four

Chapter 13

> Chapter 14

Chapter 15

Part Four Project

Key System Applications for the Digital Age 353

Achieving Operational Excellence and Customer Intim acy: Enterprise

Applications 354

E-Commerce: Digital Markets, Digital Goods 388

Managing Knowledge 428

Enhancing Decision M aking 470

Designing an Enterprise Inform ation Portal 508

Building and Managing Systems 509

Building Systems 510

Project Management: Establishing the Business Value o f Systems and

Managing Change 552

Managing Global Systems 592

Redesigning Business Processes for Healthlite Yogurt Com pany 629

International Case Study 631

Your Digital Portfolio 645

References R I

Glossary G 1

Photo and Screen Shot Credits I’ 1

Indexes I 1

Part One

Chapter 1

Chapter 2

Organizations, Management, and the Networked

Enterprise 1

Information Systems in Global Business Tbday 2

♦ Opening Case: Smart Systems and Smart Ways o f Working H elp Tbyota Become

Num ber One 3

1.1 The Role o f Inform ation Systems in Business Tbday 5

Globalization Opportunities 7 • The Emerging Digital Firm 7 • Strategic

Business Objectives o f Inform ation Systems 8

♦ In te ra c tiv e Session: O rganizations virtual Managem ent at Accenture 9

1.2 Perspectives on Inform ation Systems 13

What is an Inform ation System? 14 • Dim ensions o f Inform ation

Systems 16

♦ In te ra c tiv e Session: Technology UPS Com petes Globally with Inform ation

Technology 20

It Isn't Just Technology: A Business Perspective on Information Systems 22 •

Com plem entary Assets: Organizational Capital and the Right Business

Model 24

1.3 Contem porary Approaches to Inform ation Systems 26

Technical Approach 26 • Behavioral Approach 27 • Approach o f This Text:

Sociotechnical Systems 27

1.4 Hands-on MIS 29

Understanding Inform ation Systems Requirements: Dirt Bikes USA 29 •

Im proving Decision Making: Using Databases to Analyze Sales TVends 30 •

Achieving Operational Excellence: Using Internet Software to Budget for

Shipping Costs 31

L e a r n in g Track M o d u le : H ow Much Does IT Matter? 31

Summary 32 • Key Terms 33 • Review Questions 33 • Discussion Questions 33 •

Video Case 33 • Teamwork: Analyzing a Business System 34

♦ Case Study: Morgan Stanley’s Return on System N oninvestm ent 35

Global E-Business: How Businesses Use Information

Systems 38

♦ Opening Case: Inform ation Systems Join the Tupperware Party 39

2.1 Business Processes and Inform ation Systems 41

Business Processes 41 • H ow Inform ation Technology Enhances Business

Processes: Efficiency and Transformation 43

2.2 Types o f Business Inform ation Systems 44

Systems from a Functional Perspective 44

v

♦ In te ra c tiv e Session: Organizations Inform ation Systems H elp Kla Solve Its

Quality Problem s 48

Systems from a Constituency Perspective 52

♦ In te ra c tiv e Session: M anagem ent Managing Tt-avel Expenses: N ew Tbols, N ew

Savings 55

Relationship o f Systems to One Another 58

2.3 Systems That Span the Enterprise 59

Enterprise Applications 59 • Intranets and Extranets 66 • E-Business,

E-Commerce, and E-Government 67

2.4 The Inform ation Systems Function in Business 67

The Inform ation Systems Departm ent 68 • Organizing the Inform ation

Systems Function 68

2.5 Hands-on MIS 70

Analyzing Financial Perform ance: Dirt Bikes USA 71 • Im proving

Decision Making: Using a Spreadsheet to Select Suppliers 72 • Achieving

Operational Excellence: Using Internet Software to Plan Efficient

Transportation Routes 73

L e a r n in g T ra ck M o d u le : Challenges o f Using Business Inform ation Systems 73

Summary 74 • Key Terms 75 • Review Questions 75 • Discussion Questions 76 •

Video Case 76 • Teamwork: Describing Managem ent Decisions and Systems 76

♦ Case S tu dy: Can Inform ation Systems H elp Prevent a Public Health Crisis? 77

Information Systems, Organizations, and Strategy 80

Opening Case: W ill the N ew US Airways Be Able to Fly? 81

3.1 Organizations and Inform ation Systems 83

What Is an Organization? 84 • Features o f Organizations 86

3.2 H ow Inform ation Systems Impact Organizations and Business Firms 90

Economic Impacts 90 • Organizational and Behavioral Impacts 92 • The

Internet and Organizations 95 • Im plications for the Design and

Understanding o f Inform ation Systems 95

3.3 Using Inform ation Systems to Achieve Com petitive Advantage 95

Porter's Com petitive Forces M odel 96 • Inform ation System Strategies for

Dealing with Com petitive Forces 97

♦ In te ra c tiv e Session: Technology 7-Eleven Stores Ask the Custom er by Asking thi

Data 101

The Internet’s Impact on Com petitive Advantage 103 • The Business Value

Chain Model 104

♦ In te ra c tiv e Session: O rganizations Am azon.com : An Internet Giant Fine-Tunes

Its Strategy 107

Synergies, Core Com petencies, and Network-Based Strategies 109

3.4 Using Systems for Com petitive Advantage: M anagem ent Issues 113

Sustaining Com petitive Advantage 113 • Perform ing a Strategic System-,

Analysis 114 • Managing Strategic Transitions 114

3.5 Hands-on MIS 115

Analyzing Com petitive Strategy: Dirt Bikes USA 115 • Im proving Decision

Making: Using a Database to Clarify Business Strategy 115 • Im proving

Decision Making: Using Web Tbols to Configure and Price an Autom obile

117

Learning Track Module: The Changing Business Environm ent for Inform ation

Technology 117

Summary 118 • Key Tferms 119 • Review Questions 119 • Discussion

Questions 120 • Video Case 120 • Tfeamwork: Identifying Opportunities for

Strategic Inform ation Systems 120

♦ Case Study: Blockbuster vs. Netflix: Which W ill W in Out? 121

Ethical and Social Issues in Information Systems 124

♦ Opening Case: Does Location Tracking Threaten Privacy? 125

4.1 Understanding Ethical and Social Issues Related to Systems 127

A Model for Thinking About Ethical, Social, and Political Issues 129 • Five

Moral Dim ensions o f the Inform ation Age 130 • Key Technology Trends

That Raise Ethical Issues 130

♦ In te ra c tiv e Session: M an ag em en t Data for Sale 133

4.2 Ethics in an Inform ation Society 135

Basic Concepts: Responsibility, Accountability, and Liability 135 • Ethical

Analysis 136 • Candidate Ethical Principles 137 • Professional Codes o f

Conduct 137 • Some Real-World Ethical Dilem m as 138

4.3 The Moral Dimensions o f Inform ation Systems 139

Inform ation Rights: Privacy and Freedom in the Internet Age 139 •

Property Rights: Intellectual Property 145 • Accountability, Liability, and

Control 148 • System Quality: Data Quality and System Errors 149»

Quality o f Life: Equity, Access, and Boundaries 149

♦ In te ra c tiv e Session: O rganizations The Internet: Friend or Foe to Children? 151

4.4 Hands-on MIS 157

Developing a Web Site Privacy Policy: Dirt Bikes USA 1 57 • Im proving

Operational Excellence: Creating a Simple Web Site Using Web Page

Developm ent Tools 158 • Im proving Decision Making: Using Internet

Newsgroups for Online Market Research 158

L e a rn in g TYack M o d u le : D eveloping a Corporate Code o f Ethics for Inform ation

Systems 159

Summary 159 »K e y Terms 160 • Review Questions 160 • Discussion

Questions 161 • Video Case 161 • Teamwork: D eveloping a Corporate Ethics

Code 161

♦ Case Study: Is the Telephone Com pany Violating Your Privacy? 162

♦ Part One P roject: Analyzing Business Processes for an Enterprise System 165

Part TWO Information Technology Infrastructure 167

Chapter 5

Chapter 6

IT Infrastructure and Emerging Technologies 168

Opening Case: DreamWorks Anim ation Hirns to "[technology for Production

Support 169

5.1 IT Infrastructure 171

D efining IT Infrastructure 171 • Evolution o f IT Infrastructure: 1950-

2007 173 • Technology Drivers o f Infrastructure Evolution 177

5.2 Infrastructure Com ponents 183

Com puter Hardware Platforms 184 • Com puter Software Platform s 186»

Data M anagem ent and Storage 187 • Networking/Ttelecom m unications

Platforms 188 • Internet Platform s 188 • Consulting and System

Integration Services 189

5.3 Hardware Platform Trends and Em erging Technologies 189

The Integration o f Com puting and Telecom m unications Platform s 189 •

Grid Com puting 190 • On-Dem and Com puting (U tility Com puting) 191 •

Autonom ic Com puting and Edge Com puting 191 • Virtualization and

Multicore Processors 193

5.4 Software Platform Trends and Em erging Technologies 194

The Rise o f Linux and Open-Source Software 195

♦ In te ra c tiv e Session: Technology Is It T im e for Open Source? 196

Java Is Everywhere 197 • Software for Enterprise Integration 198 • Ajax,

Mashups, Web 2.0, and Web-Based Software Applications 202 • Software

Outsourcing 204

♦ In te ra c tiv e Session: Technology Application Service Providers: T\vo Tales 207

5.5 M anagem ent Issues 208

Dealing with Infrastructure Change 208 • M anagem ent and

Governance 209 • Making Wise Infrastructure Investm ents 209

5.6 Hands-on MIS 212

Im proving Decision Making: Making the Rent vs. Buy Decision for

Hardware, and Software: Dirt Bikes USA 212 • Im proving Decision Making:

Using a Spreadsheet to Evaluate Hardware and Software Options 213 •

Im proving Decision Making: Using Web Research to Budget for a Sales

Conference 214

L e a r n in g T ra ck M o d u les: H ow Com puter Hardware and Software Work; The

Open Source Software Initiative 214

Summary 215 • Key Terms 216 • Review Questions 217 • Discussion

Questions 21 7 • V ideoC ase 217 »T eam w ork : Evaluating Server Operating

Systems 217

Case S tu dy: Merrill Lynch Connec ts Past and Future Technology 218

Foundations o f Business Intelligence: Databases and

Information Management 222

Opening Case: \.\S( \R Kai rs to Managc Its Data 22 i

(S. 1 ( )iLiam/in;.:, Data in a traditional I'iU’ Environm ent J25

File Organization Concepts 226 • Problems with the Traditional File

Environm ent 227

6.2 The Database Approach to Data Managem ent 229

Database M anagem ent Systems 229 • Capabilities o f Database M anagem ent

Systems 233 • Designing Databases 236

6.3 Using Databases to Im prove Business Perform ance and Decision

Making 238

Data Warehouses 239 • Business Intelligence, Multidim ensional Data

Analysis, and Data M ining 240

♦ In te ra c tiv e Session: O rganizations d n a Databases: Crim e-Fighting Weapon or

Threat to Privacy? 244

Databases and the Web 245

6.4 Managing Data Resources 247

Establishing an Inform ation Policy 247 • Ensuring Data Quality 247

♦ In te ra c tiv e Session: M an ag em en t What Can Be Done About Data Quality? 249

6.5 Hands-on MIS 250

Im proving Decision Making: Redesigning the Customer Database: Dirt Bikes

USA 250 • Achieving Operational Excellence: Building a Relational

Database for Inventory Managem ent 251 • Im proving Decision Making:

Searching Online Databases for Overseas Business Resources 252

L e a rn in g TYack M o d u les: Database Design, Normalization, and Entity￾Relationship Diagramming; Introduction to SQL; Hierarchical and Network Data

Models 253

Summary 254 • Key Terms 255 • Review Questions 255 • Discussion

Questions 256 • Video Case 256 • Tteamwork: Identifying Entities and Attributes in

an Online Database 256

♦ Case Study: Panasonic Creates a Single Version o f the Truth from Its Data 257

Telecommunications, the Internet, and Wireless

Technology 260

♦ O p en in g Case: Hyatt Regency Osaka Uses W ireless N etworking for High-Touch

Service 261

7.1 Telecom m unications and Networking in Today’s Business World 263

Networking and Com m unication Trends 263 • What Is a Com puter

Network? 264 • Key Digital Networking Technologies 266

7.2 Com munications Networks 269

Signals: Digital vs. Analog 269 • Types o f Networks 269 • Physical

Transmission Media 272 • Broadband N etw ork Services and

Technologies 274

7.3 The Internet 276

What Is the Internet? 277 • Internet Addressing and Architecture 277 •

Internet Services 280 • The World Wide Web 281 • Intranets and

Extranets 286 • Technologies and Tools for Com m unication and

E-Business 286

♦ Interactive Session: Management M onitoring Em ployees on Networks:

Unethical or Good Business.' 288

Part TWO Information Technology Infrastructure 167

Chapter 5

Chapter 6

IT Infrastructure and Emerging "technologies 168

Opening Case: DreamWorks Anim ation H im s to "[technology for Production

Support 169

5.1 IT Infrastructure 171

D efining IT Infrastructure 171 • Evolution o f IT Infrastructure: 1950-

2007 173 • Ttechnology Drivers o f Infrastructure Evolution 177

5.2 Infrastructure Com ponents 183

Com puter Hardware Platforms 184 • Com puter Software Platform s 186 •

Data Managem ent and Storage 1 8 7» Networking/'Itelecom munications

Platforms 188 • Internet Platform s 188 • Consulting and System

Integration Services 189

5.3 Hardware Platform Ttends and Em erging Technologies 189

The Integration o f Com puting and Telecom m unications Platform s 189 •

Grid Com puting 190 • On-Dem and Com puting (U tility Com puting) 191«

Autonom ic Com puting and Edge Com puting 191 • Virtualization and

Multicore Processors 193

5.4 Software Platform Trends and Em erging Technologies 194

The Rise o f Linux and Open-Source Software 195

♦ In te ra c tiv e Session: Technology is it T im e for Open Source? 196

Java Is Everywhere 197 • Software for Enterprise Integration 198 • Ajax,

Mashups, Web 2.0, and Web-Based Software Applications 202 • Software

Outsourcing 204

♦ In te ra c tiv e Session: Technology Application Servicc Providers: Two Tales 207

5.5 M anagem ent Issues 208

Dealing with Infrastructure Change 208 • M anagem ent and

Governance 209 • M aking Wise Infrastructure Investm ents 209

5.6 Hands-on MIS 212

Im proving Decision Making: M aking the Rent vs. Buy Decision for

Hardware and Software: Dirt Bikes USA 212 • Im proving Decision Makin;

Using a Spreadsheet to Evaluate Hardware and Software Options 213 •

Im proving Decision Making: Using Web Research to Budget for a Sales

Conference 214

L e a rn in g T ra ck M o d u les: H ow Com puter Hardware and Software Work; The

Open Source Software Initiative 214

Summary 21 5 • Key Terms 216 • Review Questions 21“ • Discussion

Questions 21" • Video Case 217 • Team work: Evaluating Server Operating

Systems 21“

C a s e S t u d y : M orrill Lyn< li C onne. is Past and Future Technology 21 8

Foundations o f Business Intelligence: Databases and

Information Management 222

O p e n i n g C a s e : ■ w w U ... »•> i ■ V. mage Its Data 223

v,::i.T.a: Pile r.nvim nm eni 225

File Organization Concepts 226 • Problem s with the Traditional File

Environm ent 227

6.2 The Database Approach to Data Managem ent 229

Database M anagem ent Systems 229 • Capabilities o f Database M anagem ent

Systems 233 • Designing Databases 236

6.3 Using Databases to Im prove Business Perform ance and Decision

Making 238

Data Warehouses 239 • Business Intelligence, M ultidim ensional Data

Analysis, and Data M ining 240

♦ In te ra c tiv e Session: O rganizations d n a Databases: Crim e-Fighting Weapon or

Threat to Privacy? 244

Databases and the Web 245

6.4 Managing Data Resources 247

Establishing an Inform ation Policy 247 • Ensuring Data Quality 247

♦ In te ra c tiv e Session: M anag em ent What Can Be Done About Data Quality? 249

6.5 Hands-on MIS 250

Im proving Decision Making: Redesigning the Customer Database: Dirt Bikes

USA 250 • Achieving Operational Excellence: Building a Relational

Database for Inventory Managem ent 251 • Im proving Decision Making:

Searching Online Databases for Overseas Business Resources 252

L e a rn in g T ra ck M o d u les: Database Design, Normalization, and Entitv￾Relationship Diagramming; Introduction to SQL; Hierarchical and Network Data

Models 253

Summary 254 • Key Terms 255 • Review Questions 255 • Discussion

Questions 256 • Video Case 256 • Teamwork: Identifying Entities and Attributes in

an Online Database 256

♦ Case Study: Panasonic Creates a Single Version o f the Truth from Its Data 257

Telecommunications, the Internet, and Wireless

Technology 260

Opening Case: Hyatt Regency Osaka Uses W ireless N etworking for High-Touch

Service 261

7.1 Telecom m unications and Networking in Today's Business World 263

Networking and Com m unication Trends 263 • What Is a Com puter

Network? 264 • Key Digital N etworking Technologies 266

7.2 Com munications Networks 269

Signals: Digital vs. Analog 269 • Types o f Networks 269 • Physical

Transmission Media 272 • Broadband Network Services and

Technologies 2“ 4

7.3 The Internet 2~6

What Is the Internet? 2 • Internet Addressing and Architecture 2 •

Internet Services 2S0 • The World Wide Web 281 • Intranets and

Extranets 286 • Technologies and Tools for Com m unication and

E-Business 286

♦Interactive Session: Management M onitoring Em ployees on Networks:

Unethical or Good Business.' 288

Part TWO Information Technology Infrastructure 167

Chapter 5

Chapter 6

IT Infrastructure and Emerging Technologies 168

Opening Case: DreamWorks Anim ation TUrns to Ttechnology for Production

Support 169

5.1 IT Infrastructure 171

Defining IT Infrastructure 171 • Evolution o f IT Infrastructure: 1950-

2007 173 • Ttechnology Drivers o f Infrastructure Evolution 177

5.2 Infrastructure Com ponents 183

Com puter Hardware Platform s 184 • Com puter Software Platform s 186«

Data M anagem ent and Storage 187 • Networking/Ttelecom m unications

Platforms 188 • Internet Platforms 188 • Consulting and System

Integration Services 189

5.3 Hardware Platform Trends and Em erging Tfechnologies 189

The Integration o f Com puting and Telecom m unications Platform s 189 •

Grid Com puting 190 • On-Dem and Com puting (U tility C om puting) 191 <

Autonom ic Com puting and Edge Com puting 191 • Virtualization and

Multicore Processors 193

5.4 Software Platform Trends and Em erging Technologies 194

The Rise o f Linux and Open-Source Software 195

♦ In te ra c tiv e Session: Technology is It T im e for O pen Source? 196

Java Is Everywhere 197 • Software for Enterprise Integration 198 • Ajax,

Mashups, Web 2.0, and Web-Based Software Applications 202 • Software

Outsourcing 204

♦ In te ra c tiv e Session: Technology Application Service Providers: Two Tales 207

5.5 M anagem ent Issues 208

Dealing with Infrastructure Change 208 • M anagem ent and

Governance 209 • M aking Wise Infrastructure Investm ents 209

5.6 Hands-on MIS 212

Im proving Decision Making: Making the Rent vs. B u y Decision for

Hardware and Software: Dirt Bikes USA 212 • Im proving Decision Makin

Using a Spreadsheet to Evaluate Hardware and Software Options 213 •

Im proving Decision Making: Using Web Research to Budget for a Sales

Conference 214

L e a r n in g Track M od u les: H ow Com puter Hardware and Software Work: The

Open Source Software Initiative 214

Summary 21 5 • Key Terms 2 1 6 « Review Questions 217 • Discussion

Questions 21“ • Video Case 217 • Team work: Evaluating Server Operating

Systems 21 7

Case S tu d y : Merrill Lynch Conne- > Past and Future Technology 218

Foundations o f Business Intelligence: Databases and

Information Management 222

Opening Case: NASCAR Races to Manage Its D _>J3

■: r _■ i )uta m a Iraditkmai Kiie Knvuorur.er,: 225

Chapter 7

File Organization Concepts 226 • Problem s with the Traditional File

Environm ent 227

6.2 The Database Approach to Data Managem ent 229

Database M anagem ent Systems 229 • Capabilities o f Database M anagem ent

Systems 233 • Designing Databases 236

6.3 Using Databases to Im prove Business Perform ance and Decision

Making 238

Data Warehouses 239 • Business Intelligence, M ultidim ensional Data

Analysis, and Data M ining 240

♦ In te ra c tiv e Session: O rganizations d n a Databases: Crim e-Fighting Weapon or

Threat to Privacy? 244

Databases and the Web 245

6.4 Managing Data Resources 247

Establishing an Inform ation Policy 247 • Ensuring Data Quality 247

♦ In te ra c tiv e Session: M an ag em en t What Can Be Done About Data Quality? 249

6.5 Hands-on MIS 250

Im proving Decision Making: Redesigning the Customer Database: Dirt Bikes

USA 250 • Achieving Operational Excellence: Building a Relational

Database for Inventory M anagem ent 251 • Im proving Decision Making:

Searching Online Databases for Overseas Business Resources 252

L e a r n in g Track M o d u les: Database Design, Normalization, and Entity￾Relationship Diagramming; Introduction to SQL; Hierarchical and Network Data

Models 253

Summary 254 • Key Tterms 255 • Review Questions 255 • Discussion

Questions 256 • Video Case 256 • Tteamwork: Identifying Entities and Attributes in

an Online Database 256

♦ Case Study: Panasonic Creates a Single Version o f the Triith from Its Data 257

Telecommunications, the Internet, and Wireless

Technology 260

♦ Opening Case: Hyatt Regency Osaka Uses W ireless Networking for High-Touch

Service 261

7.1 Telecom m unications and Networking in Today’s Business World 263

Networking and Com m unication TYends 263 • What Is a Com puter

Network? 264 • Key Digital Networking Technologies 266

7.2 Com munications Networks 269

Signals: Digital vs. Analog 269 • TYpes o f Networks 269 • Physical

Transmission Media 272 • Broadband Network Services and

Technologies 274

7.3 The Internet 276

What Is the Internet? 277 • Internet Addressing and Architecture 277 •

Internet Services 280 • The World W ide Web 281 • Intranets and

Extranets 286 • Technologies and Tools for Com m unication and

E-Business 286

♦Interactive Session: Management M onitoring Em ployees on Networks:

Unethical or Good Business? 288