Chapter 01 – Foundations of Information Systems in Business
Responsibility
At best, IT managers can only facilitate projects. In most cases, they do not have the all around expertise
necessary to manage a project entirely on their own. As a result, it’s important for IT managers to establish
ANSWERS TO ANALYSIS EXERCISES
1. Understanding the Information System
A library makes an excellent information systems model. It serves as a very large information storage facility
with text, audio, and video data archives. Look up the definitions for each term listed below and briefly
explain a library‘s equivalents.
Students will more easily grasp advanced concepts once they learn to think in terms of the basic information
a) Input
A library’s inputs consist of the items it receives for its collection. These items may consist of books,
periodicals, maps, microfiche, DVDs, CDs, and many others. Inputs also consist of creating and maintaining
patron’s accounts.
b) Processing
A library’s main processes revolve around checking out and checking in items from its collection. Additional
c) Output
A library’s outputs consist of any information that leaves the library. This may take the form of item loans,
photocopies, and even hand-written notes.
d) Storage
A library’s storage systems include shelves for books, stacks for periodicals, file drawers for microfiche, hard
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2. Career Research on the Web
Select a job title for a career you would like to pursue as a summer intern or new graduate. Use Figure 1.19.
Fill in your diagram with the information about people, hardware, software, and other resources from this
exercise.
Select a job title for a career you would like to pursue as a summer intern or new graduate. Provide a real–
Sample answer: “Professor”
Element
Example
People
Students, committee members, administration, peers
Software
Blackboard, WebCT, e-mail, grade book
Hardware
Desktop computer, various servers
Network
LAN, Wi-Fi
Data
Grades, rosters, assignments, meeting minutes, messages
Control
Systems administrators
Input
Grade entry, assignment submission, meeting request
Processing
Grade tabulation, message routing, file serving
Output
Report card, personal calendar, message
Storage
Local, online (sometimes replicated)
Alternatively, consider assigning one or more specific job titles. Examples might include:
• Sales representative
• Human resources manager
3. Skydive Chicago: Efficiency and Feedback
a) How can this information system benefit the skydiving student?
Benefits:
• Faster learning – students see what they are doing right and wrong
b) How can this information system benefit Skydive Chicago?
Benefits:
• Marketing – student videos make great promotional tools
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c) Draw the information systems model (Figure 1.19, the information system model). Fill in your diagram
with people, hardware, software, etc. information from this exercise.
Diagram Element
Detail
People resources
Student / jumpmaster
4. Are Textbooks History?
Many students are familiar with both Google and Wikipedia. This exercise will help bring the remaining
students up to speed and enable thoughtful classroom discussion. It will also increase student’s exposure to this
chapter’s vocabulary.
five search results useful with respect to this course?
At the time of this writing, Google returns Wikipedia links, dictionary definitions, a MySpace page, information
Wikipedia’s article to the information provided within this textbook. Which source did you find easiest to
use? What advantages did Wikipedia provide? What advantages did this textbook provide?
Ease of use:
The article was neatly laid out and easy to navigate. Links to related terms at the bottom of the article made
exploring the topic in further detail simple.
Wikipedia’s advantages:
• Free
Software resources
Record, play, and copy video.
Hardware resources
Video camera, VCR, VHS tape
Network resources
VCR and camera cables
Data resources
Video
Input
Video of jump
Process
View, copy video
Output
Copy to student, copy to library
Storage
VHS tape video library
Control
Management policy, training room library access
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c) Did Google, Wikipedia, or this textbook provide the most useful information about “Intranets”? Why?
Google:
Google provided Wikipedia’s link first, so it was useful in that way. It’s simpler to type in a one word query
Careers in IS
Note: the answers to these questions require a fair amount of commons sense. This exercise may make an
1) Failing to frequently save work in progress
2) Failing to make a backup-copy
3) Storing original and backup copies in the same location
a) How might this mistake result in data loss?
b) What procedures could you follow to minimize this risk?
Answers:
1 a. The user might forget to save his or her work before exiting the application. Power might go out.
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ANSWERS TO REAL WORLD CASES
RWC 1: eCourier, Cablecom, and Bryan Cave
Case Study Questions
1. How do information technologies contribute to the business success of the companies depicted in the
case? Provide an example from each company explaining how the technology implemented led to improved
performance.
These technologies enable fact based decision making.
2. In the case of law firm Bryan Cave discussed above, the use of BI technology to improve the availability,
access, and presentation of existing information allowed them to provide tailored and innovative services to
their customers. What other professions could benefit from a similar use of these technologies, and how?
Develop two different possibilities.
Students should consider other hourly billing based professional services industries. Examples include:
• consulting firms
3. Cablecom developed a prediction model to better identify those customers at risk of switching to other
company in the near future. In addition to those noted in the case, what other actions could be taken if that
information were available? Give some examples of these. Would you consider letting some customers leave
anyway? Why?
In addition to identifying at-risk customers, these tools might also help identify problem products, services,
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Real World Activities
1. Use the Internet to research the latest offerings in business intelligence technologies and their uses by
companies. What differences can you find with those reviewed in the case? Prepare a report to summarize
your findings and highlight new and innovative uses of these technologies.
2. Why do some companies in a given industry, like eCourier above, adopt and deploy innovative
technologies while others in the same line of business do not? Break into small groups with your classmates to
discuss what characteristics of companies could influence their decision to innovate with the use of
information technologies.
Characteristics:
• Technical resources
RWC 2: The New York Times and Boston Scientific
Case Study Questions
1. As stated in the case, the New York Times chose to deploy their innovation support group as a shared
service across business units. What do you think this means? What are the advantages of choosing this
approach? Are there any disadvantages?
Shared service
A shared service means that it’s a resource available to all the organization’s business units. Typically, shared
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2. Boston Scientific faced the challenge of balancing openness and sharing with security and the need for
restricting access to information. How did the use of technology allow the company to achieve both objectives
at the same time? What kind of cultural changes were required for this to be possible? Are these more
important than the technology-related issues? Develop a few examples to justify your answer.
Technology
Boston Scientific accomplished its objective by implementing an automated workflow application to help them
manage information access.
Cultural changes
3. The video rental map developed by the New York Times and Netflix graphically displays movie
popularity across neighborhoods from major US cities. How would Netflix use this information to improve
their business? Could other companies also take advantage of these data? How? Provide some examples.
Possible business improvements
Real World Activities
1. The newspaper industry has been facing serious challenges to its viability ever since the Internet made
news available online. In addition to those initiatives described in the case, how are the New York Times and
other leading newspapers coping with these challenges? What do you think the industry will look like 5 or 10
years from now? Go online to research these issues and prepare a report to share your findings.
Note 1: does the current generation even read traditional newspapers? 1
Chapter 01 – Foundations of Information Systems in Business
Search terms
“future of newspapers”
Future
Users will be able to indicate their current “state” or “mode” or “status” and receive news appropriate for the
moment. For example, the “newspaper” software would present top local, regional, national, and international
headlines before work. During working hours, the user might see only new stories in various industry or
technical journals. After hours, weekends, and holidays, the news stories would focus on leisure activities. The
2. Go online and search the Internet for other examples of companies using technology to help them
innovate and develop new products or services. Break into small groups with your classmates to share your
findings and discuss any trends or patterns you see in current uses of technology in this regard.
Examples abound within this text and online. One example worth following closely is Google’s Android
RWC 3: Sew What? Inc.: The Role of Information Technology in Small Business Success
Case Study Questions
1. How do information technologies contribute to the business success of Sew What? Inc.? Give several
examples from the case regarding the business value of information technology that demonstrate this
conclusion.
Examples:
• Expanded market – Duckett was able to grow her business from local to international clients using her
website.
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2. If you were a management consultant to Sew What? Inc., what would you advise Megan Duckett to do at
this point to be even more successful in her business? What role would information technology play in your
proposals? Provide several specific recommendations.
The article provides no information about Duckett’s current challenges, though recommendations should focus
3. How could the use of information technology help a small business you know be more successful? Provide
several examples to support your answer.
Organizations don’t want information systems, they are expensive and distracting. However, organizations
Real World Activities
1. Search the Internet to help you evaluate the business performance of Sew What? Inc. and its competitors
at the present time. What conclusions can you draw from your research about Sew What?’s prospects for the
future? Report your findings and recommendations for Sew What?’s continued business success to the class.
Marketplace:
Sew What? operates in a highly competitive market. Competitors include:
2. Small businesses have been slower to integrate information technology into their operations than larger
companies. Break into small groups with your classmates to discuss the reasons for this state of affairs, identifying
several possible IT solutions and their business benefits that could help small businesses be more successful.
Reasons:
• Most small companies are focused on their survival and don’t have time to plan for the long term.
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Solutions:
• ASP application suites reduce start-up costs because the software is leased rather than purchased.
RWC 4: JetBlue and the Veterans Administration
Case Study Questions
1. Eric Brinker of JetBlue noted that the database developed during the crisis had not been needed before because
the company had never experienced a meltdown. What are the risks and benefits associated with this approach to
IT planning? Provide some examples of each.
Risks:
The risks to this ad-hoc, as-needed planning approach include not being able to function during the middle of a
2. With hindsight, we now know that the decision made by Eric Raffin of the VA not to fail over to the Denver site
was the correct one. However, it involved failing to follow established backup procedures. With the information he
had at the time, what other alternatives could he have considered? Develop at least two of them.
Alternatives:
1) Continue operations using a paper based approach. This would require creating a phone system to
3. A small, undocumented change resulted in the collapse of the VA system, largely because of the high
interrelationship between its applications. What is the positive side of this high degree of interconnection, and how
does this benefit patients? Provide examples from the case to justify your answer.
Indirect patient benefits:
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Real World Activities
1. Go online and search for reports on the aftermath of these two incidents. What consequences, financial and
otherwise, did the two organizations face? What changes, if any, were implemented as a result of these problems?
Prepare a report and present your findings to the class.
JetBlue:
JetBlue apologized to its customers, promised to do better6, and created a passenger’s bill of rights. 7 JetBlue’s
2. Search the Internet for examples of problems that companies have had with their IT processes. Break into
small groups with your classmates to discuss your findings and what solutions you can propose to help
organizations avoid the problems you discovered.