Question: In 400 words use examples from the readings, or from your own research, to support your views.

Topic: Networking and Security

1. Discuss why it is your favorite topic (100 words)

2. How do the Internet and Internet technologies work, and how do they support communication and e-business? (100 words)

3. Why are information systems vulnerable to destruction, error and abuse? What is the business value of security and control? (100 words)

4. discuss how it can help build solutions to IT businesses. (100 words)

Could you increase your knowledge— and raise your grade—if you…

…used an online tutorial that assisted you with Access and Excel skills mapped to this book?

…learned to use Microsoft’s SharePoint, the number one organizational tool for file sharing and collaboration?

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Visit , a valuable tool for your student success and your

business career.

www.myMISlab.com

INTEGRATING BUSINESS WITH TECHNOLOGY

By completing the projects in this text, students will be able to demonstrate business knowledge, application software proficiency, and Internet skills.These projects can be used by instructors as learning assessment tools and by students as demonstrations of business, software, and problem-solving skills to future employers. Here are some of the skills and competencies students using this text will be able to demonstrate:

Business Application skills: Use of both business and software skills in real-world business applications. Demonstrates both business knowledge and proficiency in spreadsheet, database, and Web page/blog creation tools.

Internet skills: Ability to use Internet tools to access information, conduct research, or perform online calculations and analysis.

Analytical, writing and presentation skills: Ability to research a specific topic, analyze a problem, think creatively, suggest a solution, and prepare a clear written or oral presentation of the solution, working either individually or with others in a group.

Business Application Skills

BUSINESS SKILLS

Finance and Accounting

Financial statement analysis

Pricing hardware anrj software

Technology rent vs. buy decision Total Cost of Ownership (TCO) analysis

Analyzing telecommunications services anrj costs

Risk assessment

Retirement planning

Capital budgeting

Human Resources

Employee training and skills tracking

Job posting database and Web page

Manufacturing and Production

Analyzing supplier performance and pricing

Inventory management

Bill of materials cost sensitivity analysis

Sales and Marketing

Sales trend analysis

SOFTWARE SKILLS

Spreadsheet charts

Spreadsheet formulas

Spreadsheet downloading and formatting

Spreadsheet formulas

Spreadsheet formulas

Spreadsheet formulas

Spreadsheet charts and formulas

Spreadsheet formulas and logical functions

Spreadsheet formulas

Database design Database querying and reporting

Database design Web page design and creation

Spreadsheet date functions Database functions Data filtering

Importing data into a database Database querying and reporting

Spreadsheet data tables Spreadsheet formulas

Database querying and reporting

CHAPTER

Chapter 2*

Chapter 10

Chapter 5

Chapter 5*

Chapter 7

Chapter 8

Chapter 11

Chapter 14

Chapter 14*

Chapter 13*

Chapter 15

Chapter 2

Chapter 6

Chapter 12*

Chapter 1

Customer reservation system

Improving marketing decisions

Customer profiling

Customer service analysis

Sales lead and customer analysis

Blog creation and design

Database querying and reporting

Spreadsheet pivot tables

Database design Database querying and reporting

Database design Database querying and reporting

Database design Database querying and reporting

Blog creation tool

Chapter 3

Chapter 12

Chapter 6*

Chapter 9

Chapter 13

Chapter 4

1IIICI MCI <3IVMI»

Using online software tools to calculate shipping costs

Using online interactive mapping software to plan efficient transportation routes

Researching product information and evaluating Web sites for auto sales

Using Internet newsgroups for marketing

Researching travel costs using online travel sites

Searching online databases for products and services

Using Web search engines for business research

Researching and evaluating business outsourcing services

Researching and evaluating supply chain management services

Evaluating e-commerce hosting services

Using shopping bots to compare product price, features, and availability

Using online software tools for retirement planning

Redesigning business processes for Web procurement

Researching real estate prices

Researching international markets and pricing

A n?tlvtif*5il A/ pit inn a riH Pcocontatinn Qlf i 1 Ic"^MMcnyniiCH, w riniiy cti lu rrociiidiiuii OIM o

BUSINESS PROBLEM

Management analysis of a business

Value chain and competitive forces analysis Business strategy formulation

Formulating a corporate privacy policy

Employee productivity analysis

Disaster recovery planning

Locating and evaluating suppliers

Developing an e-commerce strategy

Identifying knowledge management opportunities

Identifying international markets

*Dirt Bikes Running Case on MyMISLab

Chapter 1

Chapter 2

Chapter 3

Chapter 4

Chapter 5

Chapter 6

Chapter 7

Chapter 8

Chapter 9

Chapter 10

Chapter 11

Chapter 12

Chapter 13

Chapter 14

Chapter 15

CHAPTER

Chapter 1

Chapter 3

Chapter 4

Chapter 7

Chapter 8

Chapter 9

Chapter 10

Chapter 11

Chapter 15

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Management Information

Systems MANAGING THE DIGITAL FIRM

TWELFTH EDITION

Kenneth C. Laudon New York University

Jane P. Laudon Azimuth Information Systems

Prentice Hall

Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto

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Library of Congress Cataloging-in-Publication Information is available.

Executive Editor: Bob Horan Editorial Director: Sally Yagan Editor in Chief: Eric Svendsen Product Development Manager: Ashley Santora Editorial Assistant: Jason Calcano Editorial Project Manager: Kelly Loftus Senior Marketing Manager: Anne Fahlgren Senior Managing Editor: Judy Leale Senior Production Project Manager: Karalyn Holland Senior Operations Specialist: Arnold Vila Operations Specialist: Cathleen Petersen Senior Art Director: Janet Slowik Cover Designer: Jill Lehan Cover Illustration/Photo: Merve Poray/Shutterstock Images Manager, Rights and Permissions: Hessa Albader Media Editor: Denise Vaughn Media Project Manager: Lisa Rinaldi Composition: Azimuth Interactive, Inc. Full-Service Project Management: Azimuth Interactive, Inc. Printer/Binder: Courier/Kendallville Typeface: 10.5/13 ITC Veljovic Std Book

Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on the appropriate page within the text (or on page P1).

Microsoft® and Windows® are registered trademarks of the Microsoft Corporation in the U.S.A. and other countries. Screen shots and icons reprinted with permission from the Microsoft Corporation. This book is not sponsored or endorsed by or affiliated with the Microsoft Corporation.

Copyright © 2012, 2010, 2007, 2006 by Pearson Education, Inc., Upper Saddle River, New Jersey, 07458. Pearson Prentice Hall. All rights reserved. Printed in the United States of America. This publication is protected by Copyright and permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likewise. For information regarding permis- sion(s), write to: Rights and Permissions Department.

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10 9 8 7 6 5 4 3 2 1 ISBN-13: 978-0-13-214285-4

ISBN-10: 0-13-214285-6

A b o u t t h e A u t h o r s

iii

Kenneth C. Laudon is a Professor of Information Systems at New York University’s Stern School of Business. He holds a B.A. in Economics from Stanford and a Ph.D. from Columbia University. He has authored twelve books dealing with electronic commerce, information systems, organizations, and society. Professor Laudon has also written over forty articles concerned with the social, organizational, and management impacts of information systems, privacy, ethics, and multimedia technology.

Professor Laudon’s current research is on the planning and management of large-scale information systems and multimedia information technology. He has received grants from the National Science Foundation to study the evolution of national information systems at the Social Security Administration, the IRS, and the FBI. Ken’s research focuses on enter- prise system implementation, computer-related organizational and occupational changes in large organizations, changes in management 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 Office of Technology Assessment (United States Congress), Department of Homeland Security, and to the Office of the President, several executive branch agencies, and Congressional Committees. Professor Laudon also acts as an in-house educator for several consulting firms and as a consultant on systems planning and strategy to several Fortune 500 firms.

At NYU’s Stern School of Business, Ken Laudon teaches courses on Managing the Digital Firm, Information Technology and Corporate Strategy, Professional Responsibility (Ethics), and Electronic Commerce and Digital Markets. Ken Laudon’s hobby is sailing.

Jane Price Laudon is a management consultant in the information systems area and the author of seven books. Her special interests include systems analysis, data management, MIS auditing, software evaluation, and teaching business professionals how to design and use information systems.

Jane received her Ph.D. from Columbia University, her M.A. from Harvard University, and her B.A. from Barnard College. She has taught at Columbia University and the New York University Graduate School of Business. She maintains a lifelong interest in Oriental lan- guages and civilizations.

The Laudons have two daughters, Erica and Elisabeth, to whom this book is dedicated.

B r i e f C o n t e n t s

Part One Organizations, Management, and the Networked Enterprise 1

Chapter 1 Information Systems in Global Business Today 2

Chapter 2 Global E-Business and Collaboration 40

Chapter 3 Information Systems, Organizations, and Strategy 78

Chapter 4 Ethical and Social Issues in Information Systems 120

Part Two Information Technology Infrastructure 161 Chapter 5 IT Infrastructure and Emerging Technologies 162

Chapter 6 Foundations of Business Intelligence: Databases and Information Management 206

Chapter 7 Telecommunications, the Internet, and Wireless Technology 244

Chapter 8 Securing Information Systems 290

Part Three Key System Applications for the Digital Age 333 Chapter 9 Achieving Operational Excellence and Customer Intimacy: Enterprise

Applications 334

Chapter 10 E-Commerce: Digital Markets, Digital Goods 370

Chapter 11 Managing Knowledge 414

Chapter 12 Enhancing Decision Making 452

Part Four Building and Managing Systems 485 Chapter 13 Building Information Systems 486

Chapter 14 Managing Projects 526

Chapter 15 Managing Global Systems 558

(available on the Web at www.pearsonhighered.com/laudon)

References R 1

Glossary G 1

Photo and Screen Shot Credits P 1

Indexes I 1

iv

v

C o m p l e t e C o n t e n t s

Part One Organizations, Management, and the Networked Enterprise 1

Chapter 1 Information Systems in Global Business Today 2 ◆Opening Case: The New Yankee Stadium Looks to the Future 3 1.1 The Role of Information Systems in Business Today 5

How Information Systems Are Transforming Business 5 • What’s New In Management Information Systems? 6 • Globalization Challenges and Opportunities: A Flattened World 8

◆Interactive Session: Management MIS in Your Pocket 10 The Emerging Digital Firm 11 • Strategic Business Objectives of Information Systems 12

1.2 Perspectives on Information Systems 15 What is an Information System? 15 • Dimensions of Information Systems 17

◆Interactive Session: Technology UPS Competes Globally with Information Technology 22

It Isn’t Just Technology: A Business Perspective on Information Systems 24 • Complementary Assets: Organizational Capital and the Right Business Model 26

1.3 Contemporary Approaches to Information Systems 28 Technical Approach 29 • Behavioral Approach 29 • Approach of This Text: Sociotechnical Systems 29

1.4 Hands-on MIS Projects 31 Management Decision Problems 31 • Improving Decision Making: Using Databases to Analyze Sales Trends 31 • Improving Decision Making: Using the Internet to Locate Jobs Requiring Information Systems Knowledge 32

Learning Track Modules: How Much Does IT Matter?; Information Systems and Your Career, The Emerging Mobile Digital Platform 32

Review Summary 33 • Key Terms 34 • Review Questions 34 • Discussion Questions 35 • Video Cases 35 • Collaboration and Teamwork: Creating a Web Site for Team Collaboration 35

◆Case Study: What’s the Buzz on Smart Grids? 36

Chapter 2 Global E-Business and Collaboration 40 ◆Opening Case: America’s Cup 2010: USA Wins with Information Technology 41 2.1 Business Processes and Information Systems 43

Business Processes 43 • How Information Technology Enhances Business Processes 44

2.2 Types of Business Information Systems 45 Systems for Different Management Groups 45 • Systems for Linking the Enterprise 51

◆Interactive Session: Organizations Domino’s Sizzles with Pizza Tracker 52 E-business, E-commerce, and E-government 55

2.3 Systems for Collaboration and Teamwork 55 What is Collaboration? 56 • Business Benefits of Collaboration and Teamwork 57 • Building a Collaborative Culture and Business Processes 58 • Tools and Technologies for Collaboration and Teamwork 59

◆Interactive Session: Management Virtual Meetings: Smart Management 62 2.4 The Information Systems Function in Business 68

The Information Systems Department 68 • Organizing the Information Systems Function 69

2.5 Hands-on MIS Projects 70 Management Decision Problems 70 • Improving Decision Making: Using a Spreadsheet to Select Suppliers 70 • Achieving Operational Excellence: Using Internet Software to Plan Efficient Transportation Routes 71

Learning Track Modules: Systems from a Functional Perspective; IT Enables Collaboration and Teamwork; Challenges of Using Business Information Systems; Organizing the Information Systems Function 72

Review Summary 72 • Key Terms 73 • Review Questions 73 • Discussion Questions 74 • Video Cases 74 • Collaboration and Teamwork: Describing Management Decisions and Systems 74

◆Case Study: Collaboration and Innovation at Procter & Gamble 75

Chapter 3 Information Systems, Organizations, and Strategy 78 ◆Opening Case: Verizon or AT&T—Which Company Has the Best Digital

Strategy? 79

3.1 Organizations and Information Systems 81 What Is an Organization? 82 • Features of Organizations 84

3.2 How Information Systems Impact Organizations and Business Firms 89 Economic Impacts 89 • Organizational and Behavioral Impacts 91 • The Internet and Organizations 93 • Implications for the Design and Understanding of Information Systems 94

3.3 Using Information Systems to Achieve Competitive Advantage 94 Porter’s Competitive Forces Model 95

Information System Strategies for Dealing with Competitive Forces 96 • The Internet’s Impact on Competitive Advantage 99

◆Interactive Session: Organizations How Much Do Credit Card Companies Know About You? 100

The Business Value Chain Model 102

◆Interactive Session: Management Is the iPad a Disruptive Technology? 103 Synergies, Core Competencies, and Network-Based Strategies 106

vi Contents

3.4 Using Systems for Competitive Advantage: Management Issues 111 Sustaining Competitive Advantage 111 • Aligning IT with Business Objectives 111 • Managing Strategic Transitions 112

3.5 Hands-on MIS Projects 113 Management Decision Problems 113 • Improving Decision Making: Using a Database to Clarify Business Strategy 113 • Improving Decision Making: Using Web Tools to Configure and Price an Automobile 114

Learning Track Module: The Changing Business Environment for Information Technology 115

Review Summary 115 • Key Terms 116 • Review Questions 116 • Discussion Questions 117 • Video Cases 117 • Collaboration and Teamwork: Identifying Opportunities for Strategic Information Systems 117

◆Case Study: Will TV Succumb to the Internet? 118

Chapter 4 Ethical and Social Issues in Information Systems 120 ◆Opening Case: Behavioral Targeting And Your Privacy: You’re the Target 121 4.1 Understanding Ethical and Social Issues Related to Systems 123

A Model for Thinking About Ethical, Social, and Political Issues 124 • Five Moral Dimensions of the Information Age 125 • Key Technology Trends That Raise Ethical Issues 126

4.2 Ethics in an Information Society 129 Basic Concepts: Responsibility, Accountability, and Liability 129 • Ethical Analysis 129 • Candidate Ethical Principles 130 • Professional Codes of Conduct 131 • Some Real-World Ethical Dilemmas 131

4.3 The Moral Dimensions of Information Systems 131 Information Rights: Privacy and Freedom in the Internet Age 131 • Property Rights: Intellectual Property 138 • Accountability, Liability, and Control 141 • System Quality: Data Quality and System Errors 143 • Quality of Life: Equity, Access, and Boundaries 143

◆Interactive Session: Organizations The Perils of Texting 147 ◆Interactive Session: Technology Too Much Technology 151 4.4 Hands-on MIS Projects 153

Management Decision Problems 153 • Achieving Operational Excellence: Creating a Simple Blog 154 • Improving Decision Making: Using Internet Newsgroups for Online Market Research 154

Learning Track Modules: Developing a Corporate Code of Ethics for Information Systems 155

Review Summary 155 • Key Terms 155• Review Questions 156 • Discussion Questions 156 • Video Cases 156 • Collaboration and Teamwork: Developing a Corporate Ethics Code 156

◆Case Study: When Radiation Therapy Kills 157

Contents vii

Part Two Information Technology Infrastructure 161

Chapter 5 IT Infrastructure and Emerging Technologies 162 ◆Opening Case: BART Speeds Up with a New IT Infrastructure 163 5.1 IT Infrastructure 165

Defining IT Infrastructure 165 • Evolution of IT Infrastructure 166 • Technology Drivers of Infrastructure Evolution 170

5.2 Infrastructure Components 175 Computer Hardware Platforms 175 • Operating System Platforms 177 • Enterprise Software Applications 177

◆Interactive Session: Technology New to the Touch 178 Data Management and Storage 179 • Networking/Telecommunications Platforms 180 • Internet Platforms 180 • Consulting and System Integration Services 181

5.3 Contemporary Hardware Platform Trends 181 The Emerging Mobile Digital Platform 181 • Grid Computing 182 • Virtualization 182 • Cloud Computing 183 • Green Computing 184 • Autonomic Computing 185 • High-performance and Power-saving Processors 185

◆Interactive Session: Organizations Is Green Computing Good for Business? 186 5.4 Contemporary Software Platform Trends 187

Linux and Open Source Software 187 • Software for the Web: Java and Ajax 188 • Web Services and Service-Oriented Architecture 189 • Software Outsourcing and Cloud Services 191

5.5 Management Issues 194 Dealing with Platform and Infrastructure Change 194 • Management and Governance 194 • Making Wise Infrastructure Investments 195

5.6 Hands-on MIS Projects 198 Management Decision Problems 198 • Improving Decision Making: Using a Spreadsheet to Evaluate Hardware and Software Options 198 • Improving Decision Making: Using Web Research to Budget for a Sales Conference 199

Learning Track Modules: How Computer Hardware and Software Work; Service Level Agreements; The Open Source Software Initiative; Comparing Stages in IT Infrastructure Evolution 200

Review Summary 200 • Key Terms 201 • Review Questions 202 • Discussion Questions 202 • Video Cases 202 • Collaboration and Teamwork: Evaluating Server Operating Systems 202

◆Case Study: Salesforce.com: Cloud Services Go Mainstream 203

Chapter 6 Foundations of Business Intelligence: Databases and Information Management 206 ◆Opening Case: RR Donnelley Tries to Master Its Data 207 6.1 Organizing Data in a Traditional File Environment 209

File Organization Concepts 209 • Problems with the Traditional File Environment 210

viii Contents

6.2 The Database Approach to Data Management 212 Database Management Systems 212 • Capabilities of Database Management Systems 217 • Designing Databases 219

6.3 Using Databases to Improve Business Performance and Decision Making 221 • Data Warehouses 222 • Tools for Business Intelligence: Multidimensional Data Analysis and Data Mining 224

◆Interactive Session: Technology What Can Businesses Learn from Text Mining? 227

Databases and the Web 228

6.4 Managing Data Resources 230 Establishing an Information Policy 230 • Ensuring Data Quality 230

◆Interactive Session: Organizations Credit Bureau Errors—Big People Problems 232

6.5 Hands-on MIS Projects 234 Management Decision Problems 234 • Achieving Operational Excellence: Building a Relational Database for Inventory Management 235 • Improving Decision Making: Searching Online Databases for Overseas Business Resources 236

Learning Track Modules: Database Design, Normalization, and Entity- Relationship Diagramming; Introduction to SQL; Hierarchical and Network Data Models 236

Review Summary 237 • Key Terms 238 • Review Questions 239 • Discussion Questions 239 • Video Cases 239 • Collaboration and Teamwork: Identifying Entities and Attributes in an Online Database 239

◆Case Study: The Terror Watch List Database’s Troubles Continue 240

Chapter 7 Telecommunications, the Internet, and Wireless Technology 244 ◆Opening Case: Hyundai Heavy Industries Creates a Wireless Shipyard 245 7.1 Telecommunications and Networking in Today’s Business World 247

Networking and Communication Trends 247 • What Is a Computer Network? 247 • Key Digital Networking Technologies 250

7.2 Communications Networks 252 Signals: Digital vs. Analog 252 • Types of Networks 253 • Physical Transmission Media 255

7.3 The Global Internet 257 What Is the Internet? 257 • Internet Addressing and Architecture 258 • Internet Services and Communication Tools 261

◆Interactive Session: Organizations The Battle Over Net Neutrality 262 ◆Interactive Session: Management Monitoring Employees on Networks:

Unethical or Good Business? 266

The Web 268

7.4 The Wireless Revolution 275 Cellular Systems 276 • Wireless Computer Networks and Internet Access 276 • RFID and Wireless Sensor Networks 279

Contents ix

7.5 Hands-on MIS Projects 282 Management Decision Problems 282 • Improving Decision Making: Using Spreadsheet Software to Evaluate Wireless Services 282 • Achieving Operational Excellence: Using Web Search Engines for Business Research 282

Learning Track Modules: Computing and Communications Services Provided by Commercial Communications Vendors; Broadband Network Services and Technologies; Cellular System Generations; Wireless Applications for CRM, SCM, and Healthcare; Web 2.0 283

Review Summary 284 • Key Terms 285 • Review Questions 286 • Discussion Questions 286 • Video Cases 286 • Collaboration and Teamwork: Evaluating Smartphones 286

◆Case Study: Google, Apple, and Microsoft Struggle for Your Internet Experience 287

Chapter 8 Securing Information Systems 290 ◆Opening Case: You’re On Facebook? Watch Out! 291 8.1 System Vulnerability and Abuse 293

Why Systems Are Vulnerable 293 • Malicious Software: Viruses, Worms, Trojan Horses, and Spyware 296 • Hackers and Computer Crime 298 • Internal Threats: Employees 302 • Software Vulnerability 303

◆Interactive Session: Management When Antivirus Software Cripples Your Computers 304

8.2 Business Value of Security and Control 305 Legal and Regulatory Requirements for Electronic Records Management 306 • Electronic Evidence and Computer Forensics 307

8.3 Establishing a Framework for Security and Control 308 Information Systems Controls 308 • Risk Assessment 309 • Security Policy 310 • Disaster Recovery Planning and Business Continuity Planning 310 • The Role of Auditing 312

8.4 Technologies and Tools for Protecting Information Resources 312 Identity Management and Authentication 312 • Firewalls, Intrusion Detection Systems, and Antivirus Software 314 • Securing Wireless Networks 316 • Encryption and Public Key Infrastructure 317 • Ensuring System Availability 318 • Security Issues for Cloud Computing and the Mobile Digital Platform 320 • Ensuring Software Quality 320

◆Interactive Session: Technology How Secure Is the Cloud? 321 8.5 Hands-on MIS Projects 323

Management Decision Problems 323 • Improving Decision Making: Using Spreadsheet Software to Perform a Security Risk Assessment 324 • Improving Decision Making: Evaluating Security Outsourcing Services 325

Learning Track Modules: The Booming Job Market in IT Security; The Sarbanes- Oxley Act; Computer Forensics; General and Application Controls for Information Systems; Management Challenges of Security and Control 325

Review Summary 326 • Key Terms 326 • Review Questions 327 • Discussion Questions 328 • Video Cases 328 • Collaboration and Teamwork: Evaluating Security Software Tools 328

◆Case Study: Are We Ready for Cyberwarfare? 329

x Contents

Part Three Key System Applications for the Digital Age 333

Chapter 9 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications 334 ◆Opening Case: Cannondale Learns to Manage a Global Supply Chain 335 9.1 Enterprise Systems 337

What Are Enterprise Systems? 337 • Enterprise Software 338 • Business Value of Enterprise Systems 339

9.2 Supply Chain Management Systems 340 The Supply Chain 340 • Information and Supply Chain Management 342 • Supply Chain Management Software 344

◆Interactive Session: Organizations Southwest Airlines Takes Off with Better Supply Chain Management 345

Global Supply Chains and the Internet 346 • Business Value of Supply Chain Management Systems 348

9.3 Customer Relationship Management Systems 349 What Is Customer Relationship Management? 349 • Customer Relationship Management Software 351 • Operational and Analytical CRM 354 • Business Value of Customer Relationship Management Systems 355

9.4 Enterprise Applications: New Opportunities and Challenges 355 Enterprise Application Challenges 355 • Next Generation Enterprise Applications 356

◆Interactive Session: Technology Enterprise Applications Move to the Cloud 358 9.5 Hands-on MIS Projects 361

Management Decision Problems 361 • Improving Decision Making: Using Database Software to Manage Customer Service Requests 361 • Achieving Operational Excellence: Evaluating Supply Chain Management Services 362

Learning Track Modules: SAP Business Process Map; Business Processes in Supply Chain Management and Supply Chain Metrics; Best Practice Business Processes in CRM Software 363

Review Summary 363 • Key Terms 364 • Review Questions 364 • Discussion Questions 365 • Video Cases 365 • Collaboration and Teamwork: Analyzing Enterprise Application Vendors 365

◆Case Study: Border States Industries Fuels Rapid Growth with ERP 366

Chapter 10 E-Commerce: Digital Markets, Digital Goods 370 ◆Opening Case: 4Food: Burgers Go Social 371 10.1 E-commerce and the Internet 373

E-Commerce Today 373 • Why E-Commerce Is Different 374 • Key Concepts in E-Commerce: Digital Markets and Digital Goods in a Global Marketplace 378

10.2 E-commerce: Business and Technology 381 Types of E-commerce 381 • E-commerce Business Models 382

Contents xi

◆Interactive Session: Organizations Twitter …

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