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Module 14: IT Ethics, Privacy, and Sustainability No.1

Information Technology
for Management

On-Demand Strategies for Performance,
Growth and Sustainability

Eleventh Edition

Eleventh Edition

Information Technology
for Management

On-Demand Strategies for Performance,
Growth and Sustainability

E F R A I M T U R B A N

C A R O L P O L L A R D
Appalachian State University

G R E G O R Y W O O D
Canisius College

VP AND EDITORIAL DIRECTOR Mike McDonald
EXECUTIVE EDITOR Lise Johnson
EDITORIAL ASSISTANT Ethan Lipson
EDITORIAL MANAGER Judy Howarth
CONTENT MANAGEMENT DIRECTOR Lisa Wojcik
CONTENT MANAGER Nichole Urban
SENIOR CONTENT SPECIALIST Nicole Repasky
PRODUCTION EDITOR Loganathan Kandan
PHOTO RESEARCHER Billy Ray
COVER PHOTO CREDIT © Ditty_about_summer/Shutterstock

This book was set in 9.5/12.5 pt Source Sans Pro by SPi Global and printed and bound by Strategic
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ISBN: 978-1-118-89079-0 (PBK)
ISBN: 978-1-119-39783-0 (EVALC)

Library of Congress Cataloging in Publication Data:

Names: Turban, Efraim, author. | Pollard, Carol (Carol E.), author. | Wood,
Gregory R., author.
Title: Information technology for management : on-demand strategies for
performance, growth and sustainability / Efraim Turban, Carol Pollard,
Gregory R. Wood.
Description: 11th edition. | Hoboken, NJ : John Wiley & Sons, 2018. |
Includes bibliographical references and index. |
Identifiers: LCCN 2017037711 (print) | LCCN 2017046158 (ebook) | ISBN
9781118890868 (epub) | ISBN 9781119172390 (pdf) | ISBN 9781118890790 (pbk.)
Subjects: LCSH: Management information systems.
Classification: LCC T58.6 (ebook) | LCC T58.6 .T765 2017 (print) | DDC
658.4/038011—dc23
LC record available at https://lccn.loc.gov/2017037711

The inside back cover will contain printing identification and country of origin if omitted from this
page. In addition, if the ISBN on the back cover differs from the ISBN on this page, the one on the
back cover is correct.

v

Brief Contents

PREFACE xiii
ACKNOWLEDGMENTS xviii

PART 1 Reshaping Enterprises and Consumers
in the On-Demand Economy

1 Disruptive IT Impacts Companies,
Competition, and Careers 1

2 Information Systems, IT Architecture, Data
Governance, and Cloud Computing 25

3 Data Management, Data Analytics,
and Business Intelligence 65

4 Networks, Collaborative Technology,
and the Internet of Things 101

5 Cybersecurity and Risk Management
Technology 127

PART 2 Winning, Engaging, and Retaining
Consumers for Growth

6 Search, Semantic, and Recommendation
Technology 165

7 Web 2.0 and Social Technology 199

8 Retail, E-commerce, and Mobile Commerce
Technology 240

PART 3 Optimizing Performance, Processes,
and Productivity

9 Functional Business Systems 269

10 Enterprise Systems 300

11 Data Visualization and Geographic
Information Systems 331

PART 4 Managing Business Relationships,
Projects, and Ethical Responsibilities

12 IT Strategy, Sourcing, and Strategic
Technology Trends 354

13 Systems Development and Project
Management 385

14 IT Ethics, Privacy, and Sustainability 417

GLOSSARY 443
ORGANIZATION INDEX 448
NAME INDEX 450
SUBJECT INDEX 451

vi

PREFACE xiii
ACKNOWLEDGMENTS xviii

PART 1 Reshaping Enterprises
and Consumers in the On-Demand
Economy

1 Disruptive IT Impacts Companies,
Competition, and Careers 1

Case 1.1 Opening Case: Uber and Airbnb Revolutionize
Business Models in the On-Demand Economy 3

1.1 Doing Business in the On-Demand Economy 4
Growth of the On-Demand Economy 5
Digital Business Models 6
IT’s Role in the On-Demand Economy 7
IT Business Objectives 8

1.2 Business Process Improvement and Competitive
Advantage 8
What Is a Business Process? 9
Improving Business Processes 9
Don’t Automate, Obliterate! 10
Gaining a Competitive Advantage 11
Software Support for BPM 13

1.3 IT Innovation and Disruption 13
Social–Mobile–Analytics–Cloud (SMAC) Model 13
Technology Mega Trends 14
Lessons Learned from Companies Using Disruptive
Technologies 16

1.4 IT and You 17
On-Demand Workers 17
IT Adds Value to Your Performance and Career 19
Becoming an Informed IT User 21

Case 1.2 Business Case: The Internet of Things Comes
to the NFL 23

Case 1.3 Video Case: Knowing More and Doing More 24

2 Information Systems,
IT Architecture, Data Governance,
and Cloud Computing 25

Case 2.1 Opening Case: Detoxing Location-Based
Advertising Data at MEDIATA 27

2.1 IS Concepts and Classification 28

Components of an IS 29
Data, Information, Knowledge, and Wisdom 30
Types of ISs 31
Transaction Processing System (TPS) 32
Management Information System (MIS) 33
Decision Support System (DSS) 34
Executive Information System (EIS) 35
ISS Exist within Corporate Culture 36

2.2 IT Infrastructure, IT Architecture, and Enterprise
Architecture 37
EA Helps to Maintain Sustainability 38
Developing an Enterprise Architecture (EA) 41

2.3 Information Management and Data
Governance 42
Information Management Harnesses
Scattered Data 43
Reasons for Information Deficiencies 43
Factors Driving the Shift from Silos to Sharing
and Collaboration 45
Business Benefits of Information Management 45
Data Governance: Maintaining Data Quality
and Cost Control 46

2.4 Data Centers and Cloud Computing 48
Data Centers 48
Integrating Data to Combat Data Chaos 50
Cloud Computing 52
Selecting a Cloud Vendor 52
Cloud Infrastructure 54
Issues in Moving Workloads from the Enterprise
to the Cloud 54

2.5 Cloud Services and Virtualization 55
Anything as a Service (XAAS) Models 55
Going Cloud 58
Virtualization and Virtual Machines 58

Case 2.2 Business Case: Data Chaos Creates Risk 62
Case 2.3 Video Case: Cloud Computing at Coca-Cola Is

Changing Everything 63

3 Data Management, Data Analytics,
and Business Intelligence 65

Case 3.1 Opening Case: Coca-Cola Strategically Manages
Data to Retain Customers and Reduce Costs 66

3.1 Data Management and Database Technologies 69
Database Management Systems and SQL 69
DBMS and Data Warehousing Vendors
Respond to Latest Data Demands 72

Contents

C O N T E N T S v i i

3.2 Centralized and Distributed Database
Architectures 73
Garbage In, Garbage Out 75
Data Ownership and Organizational Politics 76
Data Life Cycle and Data Principles 77
Master Data and Master Data Management 78

3.3 Data Warehouses 79
Procedures to Prepare EDW Data for Analytics 80
Building a Data Warehouse 80
Real-Time Support from an Active Data
Warehouse 81

3.4 Big Data Analytics and Data Discovery 83
Human Expertise and Judgment are Needed 85
Data and Text Mining 88
Creating Business Value 88
Text Analytics Procedure 90
Analytics Vendor Rankings 90

3.5 Business Intelligence and
Electronic Records Management 91
Business Benefits of BI 92
Common Challenges: Data Selection
and Quality 92
Aligning BI Strategy with Business Strategy 92
BI Architecture and Analytics 93
Electronic Records Management 94
Legal Duty to Retain Business Records 94
ERM Best Practices 94
ERM Benefits 95
ERM for Disaster Recovery,
Business Continuity, and Compliance 95

Case 3.2 Business Case: Big Data Analytics is the “Secret
Sauce” for Revitalizing McDonald’s 98

Case 3.3 Video Case: Verizon Improves Its
Customer Experience with Data Driven
Decision-Making 99

4 Networks, Collaborative
Technology, and the Internet
of Things 101

Case 4.1 Opening Case: Sony Builds an IPv6 Network
to Fortify Competitive Edge 102

4.1 Network Fundamentals 104
Network Types 104
Intranets, Extranets, and Virtual Private
Networks 105
Network Terminology 105
Functions Supported by Business Networks 106
Quality of Service 107

4.2 Internet Protocols (IP), APIs, and Network
Capabilities 109

Comparing 3G, 4G, 4G LTE, and 5G Network
Standards 110
Circuit versus Packet Switching 111
Application Program Interfaces and Operating
Systems 111

4.3 Mobile Networks and Near-Field
Communication 113
Increase in Mobile Network Traffic and Users 114
Higher Demand for High-Capacity Mobile
Networks 115
Mobile Infrastructure 115
Two Components of Wireless Infrastructure 116
Business Use of Near-Field Communication 117
Choosing Mobile Network Solutions 118

4.4 Collaborative Technologies and the Internet
of Things 119
Virtual Collaboration 120
Group Work and Decision Processes 120
The Internet of Things (IoT) 121
IoT Sensors, Smart Meters, and the Smart Grid 121

Case 4.2 Business Case: Google Maps API for
Business 125

Case 4.3 Video Case: Small Island Telecom Company
Goes Global 126

5 Cybersecurity and Risk
Management Technology 127

Case 5.1 Opening Case: Yahoo Wins the Gold and Silver
Medal for the Worst Hacks in History! 129

5.1 The Face and Future of Cyberthreats 130
Intentional Threats 132
Unintentional Threats 132
Hacking 133
Cyber Social Engineering and Other Related
Web-Based Threats 134
Denial-of-Service 137
Insider and Privilege Misuse 137
Physical Theft or Loss 138
Miscellaneous Errors 138
New Attack Vectors 138

5.2 Cyberattack Targets and Consequences 139
“High-Profile” and “Under-the-Radar” Attacks 139
Critical Infrastructure Attacks 140
Theft of Intellectual Property 141
Identity Theft 142
Bring Your Own Device 142
Social Media Attacks 144

5.3 Cyber Risk Management 146
IT Defenses 146
Business Continuity Planning 149
Government Regulations 149

v i i i C O N T E N T S

5.4 Defending Against Fraud 150
Occupational Fraud Prevention
and Detection 151
General Controls 152
Internal Controls 153
Cyber Defense Strategies 153
Auditing Information Systems 155

5.5 Frameworks, Standards, and Models 155
Risk Management and IT Governance
Frameworks 155
Industry Standards 157
IT Security Defense-In-Depth Model 157

Case 5.2 Business Case: Lax Security at LinkedIn
Exposed 161

Case 5.3 Video Case: Botnets, Malware Security, and
Capturing Cybercriminals 163

PART 2 Winning, Engaging, and
Retaining Consumers for Growth

6 Search, Semantic, and
Recommendation Technology 165

Case 6.1 Opening Case: Mint.com Uses Search
Technology to Rank Above Established
Competitors 166

6.1 Using Search Technology for Business
Success 168
How Search Engines Work 168
Web Directories 168
How Crawler Search Engines Work 169
Why Search Is Important for Business 172

6.2 Organic Search and Search Engine
Optimization 178
Strategies for Search Engine Optimization 178
Content and Inbound Marketing 180
Black Hat versus White Hat SEO: Ethical Issues
in Search Engine Optimization 181

6.3 Pay-Per-Click and Paid Search Strategies 182
Creating a PPC Advertising Campaign 182
Metrics for Paid Search Advertising 184

6.4 A Search for Meaning—Semantic Technology 184
What Is the Semantic Web? 185
The Language(s) of Web 3.0 185
Semantic Web and Semantic Search 186
Semantic Web for Business 187

6.5 Recommendation Engines 188
Recommendation Filters 189

Case 6.2 Business Case: Deciding What to Watch—Video
Recommendations at Netflix 195

Case 6.3 Video Case: Power Searching with
Google 196

7 Web 2.0 and Social
Technology 199

Case 7.1 Opening Case: Social Customer Service Takes
Off at KLM 200

7.1 Web 2.0—The Social Web 201
The Constantly Changing Web 201
Invention of the World Wide Web 202
A Platform for Services and Social Interaction 202
Emergence of Social Applications, Networks,
and Services 203
Why Managers Should Understand Web
Technology 205
Communicating on the Web 206
Social Media Applications and Services 207
Social Media Is More than Facebook, YouTube, and
Twitter 207
With Web 2.0, Markets are Conversations 209

7.2 Social Networking Services and Communities 210
The Power of the Crowd 212
Crowdfunding 212
Social Networking Services 213
Facebook Dominates Social Networking 214
Google Takes on Facebook with G+ 216
Be in the Now with Snapchat 217
And Now for Something Different: Second Life 218
Private Social Networks 219
Future of Social Networking Systems 220

7.3 Engaging Consumers with Blogs and
Microblogs 220
What Is the Purpose of a Blog? 220
Blogging and Public Relations 222
Reading and Subscribing to Blogs 222
Blogging Platforms 222
Microblogs 223
Twitter 223
Tumblr Blogs 225

7.4 Mashups, Social Metrics, and
Monitoring Tools 226
What Makes a Mashup Social 226
RSS Technology 227
Social Monitoring Services 227

7.5 Enterprise 2.0: Workplace Collaboration and
Knowledge Sharing 229
Tools for Meetings and Discussions 230
Social Tools for Information Retrieval and
Knowledge Sharing 230
Social Bookmarking Tools 231
Content Creation and Sharing 232

Case 7.2 Business Case: Facebook Helps Songkick Rock
the Ticket Sales Industry 236

Case 7.3 Business Case: AT&T’s “It Can Wait” Campaign
against Distracted Driving 237

C O N T E N T S i x

8 Retail, E-commerce, and Mobile
Commerce Technology 240

Case 8.1 Opening Case: Macy’s Races Ahead with Mobile
Retail Strategies 241

8.1 Retailing Technology 243
Keeping Up with Consumer Demands and
Behavior 243
The Omni-Channel Retailing Concept 244

8.2 Business-to-Consumer (B2C) E-commerce 246
Online Banking 246
International and Multiple-Currency
Banking 246
Online Recruiting 246
Issues in Online Retailing 250
Online Business and Marketing Planning 250

8.3 Business-to-Business (B2B) E-commerce and
E-procurement 251
Sell-Side Marketplaces 251
E-Sourcing 252
E-Procurement 252
Electronic Data Interchange (EDI) Systems 253
Public and Private Exchanges 253

8.4 Mobile Commerce 253
Information: Competitive Advantage in Mobile
Commerce 255
Mobile Entertainment 258
Hotel Services and Travel Go Wireless 259
Mobile Social Networking 259

8.5 Mobile Transactions and Financial Services 260
Mobile Payment Systems 260
Mobile Banking and Financial Services 262
Short Codes 263
Security Issues 263

Case 8.2 Business Case: Chegg’s Mobile Strategy 266
Case 8.3 Video Case: Searching with Pictures

Using MVS 267

PART 3 Optimizing Performance,
Processes, and Productivity

9 Functional Business Systems 269
Case 9.1 Opening Case: Ducati Redesigns Its

Operations 271
9.1 Business Management Systems and Functional

Business Systems 272
Business Management Systems (BMSs) 273
Management Levels 273
Business Functions vs. Cross-Functional Business
Processes 274
Transaction Processing Systems 275

9.2 Production and Operations Management
Systems 277
Transportation Management Systems 278
Logistics Management 278
Inventory Control Systems 279
Computer-Integrated Manufacturing and
Manufacturing Execution Systems 281

9.3 Sales and Marketing Systems 282
Data-Driven Marketing 284
Sales and Distribution Channels 284
Social Media Customer Service 284
Marketing Management 285

9.4 Accounting, Finance, and Regulatory Systems 286
Financial Disclosure: Reporting and
Compliance 286
Fraud Prevention and Detection 289
Auditing Information Systems 291
Financial Planning and Budgeting 291

9.5 Human Resource Systems, Compliance, and
Ethics 293
HR Information Systems 293
Management and Employee Development 295
HR Planning, Control, and Management 295

Case 9.2 Business Case: HSBC Combats Fraud in Split-
second Decisions 297

Case 9.3 Video Case: United Rentals Optimizes Its
Workforce with Human Capital Management 298

10 Enterprise Systems 300
Case 10.1 Opening Case: 3D Printing Drives the “Always-

On” Supply Chain 301
10.1 Enterprise Systems 303

Implementation Challenges of Enterprise
Systems 305
Investing in Enterprise Systems 305
Implementation of Best Practices 306
Enterprise Systems Insights 307

10.2 Enterprise Resource Planning (ERP) 307
Brief History of ERP 308
Technology Perspective 308
Achieving ERP Success 311

10.3 Supply Chain Management Systems 313
Managing the Flow of Materials, Data,
and Money 315
Order Fulfillment and Logistics 315
Steps in the Order Fulfillment Process 315
Innovations Driving Supply Chain Strategic
Priorities 316

10.4 Customer Relationship Management Systems 319
How are CRM Apps Different from ERP? Why are they
Different? 319
CRM Technology Perspective 320

x C O N T E N T S

Customer Acquisition and Retention 320
CRM for a Competitive Edge 320
Common CRM Mistakes: How to Avoid
Them 321
Justifying CRM 322

10.5 Enterprise Social Platforms 323
Growth of Enterprise Social Investments
and Markets 323
Sharepoint 324
Oracle’s Social Network 326
Jive 326
Chatter 326

Case 10.2 Business Case: Lowe’s Fresh Approach to
Supply Chain Management 328

Case 10.3 Video Case: Procter & Gamble: Creating
Conversations in the Cloud with 4.8 Billion
Consumers 329

11 Data Visualization and Geographic
Information Systems 331

Case 11.1 Opening Case: Safeway and PepsiCo
Collaborate to Reduce Stock Outages using Data
Visualization 332

11.1 Data Visualization and Learning 334
Learning, Exploration, and Discovery with
Visualization 336
Data Discovery Market Separates from the
BI Market 336
How Is Data Visualization Used in Business? 340
Data Visualization Tools 341

11.2 Enterprise Data Mashups 342
Mashup Architecture 343
Why Do Business Users Need Data Mashup
Technology? 344
Enterprise Mashup Technology 344

11.3 Digital Dashboards 345
Dashboards are Real Time 347
How Operational and Strategic
Dashboards Work 348
Benefits of Digital Dashboards 348

11.4 Geographic Information Systems and
Geospatial Data 349
Geocoding 350
GIS Is Not Your Grandfather’s Map 350
Infrastructure and Location-Aware Collection
of Geospatial Data 350
Applying GIS in Business 351

Case 11.2 Visualization Case: Are You Ready for
Football? 353

Case 11.3 Video Case: The Beauty of Data
Visualization—Data Detective 353

PART 4 Managing Business
Relationships, Projects, and Ethical
Responsibilities

12 IT Strategy, Sourcing, and Strategic
Technology Trends 354

Case 12.1 Opening Case: Intel Reaps Rewards from
Sustainable IT Strategy 355

12.1 IT Strategic Planning 357
Value Drivers 358
IT Strategic Plan Objectives 358
IT and Business Disconnects 359
Corporate and IT Governance 359
Reactive Approach to IT Investments Will Fail 359
IT Strategic Planning Process 359

12.2 Aligning IT with Business Objectives 362
Achieving and Sustaining a Competitive
Advantage 364

12.3 IT Sourcing Strategies 367
Sourcing and Cloud Services 368
Factors Driving Outsourcing 369
Outsourcing Risks and Hidden Costs 370
Offshoring 370
Outsourcing Life Cycle 371
Managing IT Vendor Relationships 373
Contracts: Get Everything in Writing 373

12.4 Balanced Scorecard 374
The Balanced Scorecard 374
Using the Balance Scorecard 375
Applying the BSC 377

12.5 Strategic Technology Trends 378
Strategic Technology Scanning 380
Finding Strategic Technologies 380

Case 12.2 Business Case: Cisco IT Improves Strategic
Vendor Management 382

Case 12.3 Data Analysis: Third-Party versus Company-
Owned Offshoring 383

13 Systems Development and Project
Management 385

Case 13.1 Opening Case: Denver International Airport
Learns from Mistakes Made in Failed Baggage-
Handling System Project 386

13.1 System Development Life Cycle 388
Stages of the SDLC 388

13.2 Systems Development Methodologies 391
Waterfall Model 391
Object-Oriented Analysis and Design 392
Agile Methodology 392

C O N T E N T S x i

The DevOps Approach to Systems
Development 394

13.3 Project Management Fundamentals 395
What Is a Project? 396
Choosing Projects 396
The Triple Constraint 397
The Project Management Framework 397

13.4 Initiating, Planning, and Executing Projects 399
Project Initiation 400
Project Planning 400
Project Execution 403

13.5 Monitoring/Controlling and Closing
Projects 404
Project Monitoring and Controlling 404
Project Closing or Post Mortem 407
Why Projects Fail 408
IT Project Management Mistakes 410

Case 13.2 Business Case: Steve Jobs’ Shared Vision
Project Management Style 412

Case 13.3 Demo Case: Mavenlink Project Management
and Planning Software 413

14 IT Ethics, Privacy, and
Sustainability 417

Case 14.1 Opening Case: Lessons Learned: How Google
Glass Raised Risk and Privacy Challenges 418

14.1 IT Ethics 420
Ethical versus Unethical Behavior 420
Competing Responsibilities 423

14.2 Privacy and Civil Rights 424
Privacy and the New Privacy
Paradox 424
Social Media Recruiting 425
Legal Note: Civil Rights 426
Competing Legal Concerns 427
Financial Organizations Must Comply with Social
Media Guidelines 428

14.3 Technology Addictions and Focus
Management 430
Digital Distractions and Loss of Focus 430
Focus Management 430

14.4 ICT and Sustainable Development 432
Global Temperature Rising Too Much
Too Fast 432
IT and Global Warming 433
Technology to Transform Business and
Society 436
Next Wave of Disruption Will Be More
Disruptive 438

Case 14.2 Business Case: Android Auto and
CarPlay Keep Drivers Safe, Legal, and
Productive 439

Case 14.3 Video Case: IT Ethics in the
Workplace 440

GLOSSARY 443
ORGANIZATION INDEX 448
NAME INDEX 450
SUBJECT INDEX 451

xiii

Information Technology for Management discusses a variety of
business strategies and explains how they rely on data, digital
technology, and mobile devices to support them in the on-
demand economy. Our goal is to provide students from any
business discipline with a strong foundation for understand-
ing the critical role that digital technology plays in enhancing
business sustainability, profitability, and growth and excel in
their careers. Enabling technologies discussed in this textbook
include the following:

• Performance Combining the latest capabilities in big data
analytics, reporting, collaboration, search, and digital com-
munication helps enterprises be more agile and cuts costs to
optimize business performance and profitability.

• Growth Strategic technologies enable business to create
new core competencies, expand their markets, and move
into new markets to experience exponential growth in the
on-demand economy.

• Sustainability Cloud services are fundamental to sus-
taining business profitability and growth in today’s on-
demand economy. They play a critical role in managing
projects and sourcing agreements, respecting personal pri-
vacy, encouraging social responsibility, and attracting and
engaging customers across multimedia channels to promote
sustainable business performance and growth.

In this 11th edition, students learn, explore, and understand
the importance of IT’s role in supporting the three essential
components of business performance improvement: technology,
business processes, and people.

What’s New in the
11th Edition?
In the 11th edition of IT for Management, we present and dis-
cuss concepts in a comprehensive yet easy-to-understand for-
mat by actively engaging students through a wide selection of
case studies, interactive figures, video animations, tech notes,
concept check questions, online and interactive exercises, and
critical thinking questions. We have enhanced the 11th edition
in the following ways:

New Author Dr. Carol Pollard, Professor of Computer Infor-
mation Systems at the Walker College of Business and former
Executive Director of the Center for Applied Research in Emerg-
ing Technologies (CARET) at Appalachian State University in
North Carolina, has taken the helm for the 11th edition. Carol

has applied her innovative teaching and learning techniques to
create a stronger pedagogical focus and more engaging format
for the text.
Diverse Audience IT for Management is directed toward
undergraduate, introductory MBA courses, and Executive Educa-
tion courses in Management Information Systems and General
Business programs. Concepts are explained in a straightforward
way, and interactive elements, tools, and techniques provide
tangible resources that appeal to all levels of students.
Strong Pedagogical Approach To encourage improved learn-
ing outcomes, we employed a blended learning approach, in
which different types of delivery and learning methods, enabled
and supported by technology, are blended with traditional
learning methods. For example, case study and theoretical
content are presented visually, textually, and/or interactively
to enable different groups of students to use different learning
strategies in different combinations to fit their individual learn-
ing style and enhance their learning. Throughout the book,
content has been reorganized to improve development of the
topics and improve understanding and readability. A large
number of images that did not enhance understanding have
been removed and replaced with informative and interactive
figures and tables that better convey critical concepts.
Leading-Edge Content Prior to and during the writing pro-
cess, we consulted with a number of vendors, IT professionals,
and managers who are hands-on users of leading technologies,
to learn about their IT/business successes, challenges, experi-
ences, and recommendations. To integrate the feedback of
these business and IT professionals, new or updated chapter
opening and closing cases have been added to many of the
chapters along with the addition of relevant, leading-edge
content in the body of the chapters.
New Technologies and Expanded Topics New to this edition
are the IT framework, business process reengineering, geoco-
ding, systems developments methodologies, including Water-
fall, object-oriented analysis, Agile and DevOps, advances
in Search Technology, the growth of Mobile Commerce and
Mobile Payment Systems, the Always-On Supply Chain, and
the Project Management framework. In addition, with more
purchases and transactions starting online and attention being
a scarce resource, students learn how search, semantic, and
recommendation technologies function to improve revenue.
Table P-1 provides a detailed list of new and expanded topics.
Useful Tools and Techniques New to this edition is a feature
we call the “IT Toolbox.” This involves the provision of a set of
useful tools or techniques relevant to chapter content. Collec-
tively, these tools and techniques equip readers with a suite of
IT tools that will be useful in their university classes, workplace,
and personal life.

Preface

xiv P R E F A C E

Chapter New and Expanded IT and Business Topics Innovative Enterprises
1. Disruptive IT Impacts

Companies, Competition,
and Careers

• IT’s role in the on-demand economy
• Business process improvement
• Business process re-engineering
• SMAC model
• Nature of on-demand work
• Becoming an informed IT user
• Technology mega trends

• Uber
• Airbnb
• FitBit
• NFL
• Teradata

2. Information Systems, IT Archi-
tecture, Data Governance, and
Cloud Computing

• IS concepts and framework
• Information, knowledge, wisdom model
• Software-defined data center

• Mediata
• National Climatic Data center
• U.S. National Security Agency
• Apple
• Uber
• WhatsApp
• Slack
• Vanderbilt University Medical Center
• Coca-Cola

TA B L E P – 1 Overview of New and Expanded Topics and Innovative Enterprises Discussed in the Chapters

Engaging Students
to Assure Learning
The 11th edition of Information Technology for Management
engages students with up-to-date coverage of the most impor-
tant IT trends today. Over the years, this IT textbook has dis-
tinguished itself with an emphasis on illustrating the use of
cutting-edge business technologies for supporting and achiev-
ing managerial goals and objectives. The 11th edition contin-
ues this tradition with more interactive activities and analyses.

Real-World Case Studies Each chapter contains numerous
real-world examples illustrating how businesses use IT to increase
productivity, improve efficiency, enhance communication and
collaboration, and gain a competitive edge. Faculty will appreciate
a variety of options for reinforcing student learning that include
three different types of Case Studies (opening case, video case,
and business case), along with interactive figures and whiteboard
animations that provide a multimedia overview of each chapter.
Interactive Figures and Whiteboard Animations The unique
presentation of interactive figures and whiteboard anima-
tions facilitates reflection on the textual content of the book
and provides a clear path to understanding key concepts. The
whiteboard animations fit particularly well with the “flipping
the classroom” model and complement additional functional-
ity and assets offered throughout the 11th edition. The interac-
tive figures actively engage the students in their own learning
to effectively reinforce concepts.
Learning Aids Each chapter contains various learning aids,
which include the following:

• Learning Objectives are listed at the beginning of each
chapter to help students focus their efforts and alert
them to the important concepts that will be discussed.

• IT at Work boxes spotligh

Module 14: IT Ethics, Privacy, and Sustainability No.1


This Request will consist of three Important part that should be understanded before starting this Business:

1. The Paper should be paragraphed (one up to one and half page) introduction, body in details, conclusion.

1. One response to one pair that include one different reference of the actual paper and on the same subject (two up to three lines).

1. One response to one pair that include one different reference of the actual paper and on the same subject (two up to three lines).


Module 14: IT Ethics, Privacy, and Sustainability:

 

Ethical behavior is paramount to an organization’s short- and long-term success. For your final Discussion Board reply, read this source about common unethical IT behavior. Then, select an organization that has experienced one of the behaviors noted in the article (https://sites.google.com/site/cyberethics01/home/common-unethical-behavior-of-students-and-teachers).

Discuss the following organization-specific information in your response:

1. What unethical IT behavior was demonstrated by the selected organization or its employees?

2. What are the potential consequences for both the organization and the individuals involved?

3. How can the organization prevent such behavior occurring in the future?

4. Actively monitoring the behavior of employees who are using the various IT systems in the corporation would be one such approach. Would you be happy with your company adopting that approach? Explain your reasoning. but that could create new problems. Explain?

Support your initial discussion post with at least two scholarly references.

You are required to reply to at least two peer discussion question
‘’ Need to provide this Part from your Side through providing two to three lines of information of the subject with their reference of each peer respond’’.
post answers to this weekly discussion question and/or your instructor’s response to your posting. These post replies need to be substantial and constructive in nature. They should add to the content of the post and evaluate/analyze that post’s answer. Normal course dialogue does not fulfill these two peer replies but is expected throughout the course. Answering all course questions is also required.

Embed course material concepts, principles, and theories (including supporting citations) along with at
least two current, scholarly, peer-reviewed journal articles.

Keep in mind that current scholarly references can be found in the Saudi Digital Library by conducting an advanced search.
Current research means published in the last five years.

·
The reference Should be in Apa7th and add in-citation Text. And up to 3 or more references.

· Discussion Should include
Introduction, body or analysis, conclusion.

·
It should be paragraphed of one to one & half page.

· Need to provide this Part from your Side
through providing two up to three lines of information of the subject with their separated reference of each peer respond

·
‘’ need two peer responds – with different refrances’’

· I would like to see more depth for the question

· Plagiarism All work must be
free
of any form of plagiarism.

· Written answers into your own words. Do not simply cut and paste your answers from the Internet and do not copy your answers from the textbook


Required: 

Chapter 14 in Information Technology for Management: On-Demand Strategies for Performance, Growth, and Sustainability

Ocak, S., Köseoglu, M. A., & Yildiz, M. (2020). Business ethics research in healthcare management: A systematic reviewInternational Journal of Healthcare Management, 13(2), 170–176.

Wenhong, C., & Wuan-Haase, A. (2020). Big data ethics and politics: Toward new understandingsSocial Science Computer Review, 38(1), 3–9.


Recommended:

Chapter 14 PowerPoint slides

Module 14: IT Ethics, Privacy, and Sustainability No.1

IT for Management: On-Demand Strategies for Performance, Growth, and Sustainability

Eleventh Edition

Turban, Pollard, Wood

Chapter 14

Ethics, Privacy, and Sustainability

Learning Objectives (1 of 4)

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Copyright ©2018 John Wiley & Sons, Inc.

IT Ethics

Predicting People’s Behavior

Predicting people’s behavior is big business, but companies may face backlash from customers or be subject to investigations or fines.

Mobile Apps and Risky Behaviors

93% top 200 free iOS & Andriod apps exhibited at least one risky behavior.

Apple policy prohibits user information gathering without permission, but countless 3rd party apps are unregulated.

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Copyright ©2018 John Wiley & Sons, Inc.

Mobile Apps and Risky Behavior

Risky Behaviors

Location tracking

Accessing the device’s address book or contact list

Identifying user or phone unique identifier (UDID)

Recording in-app purchases

Sharing data with ad networks and analytics companies

Twitter, Foursquare, and Instagram routinely gather information from personal address books and other places on your phone.

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Google Street View

Risky Behavior

Wardriving

Driving around sniffing out and mapping the physical location of the world’s Wi-Fi routers (see Wi-Spy).

Open Wi-Fi Networks

Non-password protected routers that provide access over wireless networks.

The FCC posted, “…collecting information sent over Wi-Fi networks clearly infringes on consumer privacy.”

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Additive Manufacturing Dilemmas

3D Printing

Depositing tiny layers of material to create computer-assisted design and/or computer-assisted manufacturing blueprints.

Bioprinting

Using DNA to 3D print human body parts using bioprinting technology.

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Copyright ©2018 John Wiley & Sons, Inc.

IT Ethics

By avoiding illegal conduct, do companies also act responsibly? Explain your Answer

What types of companies can benefit from predicting people’s behavior?

When is predicting people’s behavior a violation of privacy? Give an example.

When is predicting people’s behavior not a violation of privacy? Give an example.

What are the ethical challenges attached to 3D printing and 3D bioprinting?

Research the current debate about 3D printing and bioprinting.

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Copyright ©2018 John Wiley & Sons, Inc.

Suggested Answers:

1. No. What is legal is not necessarily ethical or responsible. Laws lag behind what is possible to do because laws change slowly whereas technology changes rapidly.

 

2. Virtually any type. The most benefit is for those at the end of the supply chain (retailers, etc.)

 

3. Answers may vary. Certainly when personal data upon which the prediction relies are collected without consent, as appears with Target, especially for those underage.

 

4. Answers may vary. It depends on the level of intrusiveness, and that can be very subjective. One might argue that Canadian Tire’s credit card business inherently has purchase information and can analyze to determine risk of missed payments.

 

5. Answers may vary. There are many. They range from legal to illegal activities (e.g., theft of intellectual property.) When demand is high, will living and/or nonliving medical organs/devices go to the highest bidder? Who is legally responsible for ensuring the quality of the resulting organs and devices? In some cases, 3D printing may be the only mechanism to produce an item. 3D printing is costly. In cases where non-additive manufacturing can do the same at less cost, which will be used?

 

6. Answers will vary.

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Learning Objectives (2 of 4)

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Copyright ©2018 John Wiley & Sons, Inc.

Privacy and Civil Rights

Privacy

Right, or freedom of choice and control to self-determine what information about you is made accessible, to whom, when, and for what use or purpose.

Breach of Privacy

Unauthorized disclosure of personal information.

Privacy Paradox

Phenomenon where social users are concerned about privacy but their behaviors contradict these concerns to an extreme degree.

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Figure 14.2: Major Data Breaches Reported by 1,040 Adult Americans in 2016 Pew Research Privacy and Security Study

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Privacy Paradox: Social Recruitment

Social Recruitment

Use of social media to engage, share knowledge among, and recruit and hire employees.

Often involving information the candidate did not want considered (or is illegal) to use in the hiring process.

Typical recruitment includes all job levels:

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Copyright ©2018 John Wiley & Sons, Inc.

Social Recruitment: Best Practices

Best practice provisions for recruiters:

Have either a third party or a designated person within the company who does not make hiring decisions do the background check.

Use only publicly available information. Do not friend someone to get access to private information.

Do not request username or passwords for social media accounts.

Recruiters are also social stalkers!

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Civil Rights: Protected Classes

Civil Rights

Rights protected by federal law, such as freedom of speech, press, and assembly; the right to vote, etc.

EEOC (Equal Employment Opportunity Commission)

Enforces federal laws prohibiting discrimination in employment.

Protected classes

Characteristics identified by law that cannot be used in the hiring process.

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Copyright ©2018 John Wiley & Sons, Inc.

Civil Rights: Discrimination

Discrimination

Biased or prejudicial treatment in recruitment, hiring, or employment based on certain characteristics, such as age, gender, and genetic information, and is illegal in the United States.

Corporate Social Media Discrimination

The use of protected class information to weed out candidates.

Social Media Discrimination

Visiting a person’s social media sites, however, clearly creates the opportunity to view large amounts of information going against these nondiscriminatory practices.

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Copyright ©2018 John Wiley & Sons, Inc.

Civil Rights: Negligent Hiring

Competing Legal Concerns

Two competing legal concerns are discrimination & negligent hiring.

Negligent Hiring

If a workplace violence incident occurred and the attacker’s public social networking profile contained information that could have predicted that behavior, the employer may be held liable for negligence in not using readily available information during the hiring decision.

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Reducing Risk of Negligent Hiring

Ask candidates to sign a disclosure statement

Allow self-disclosure

Create a standard process and document it

Consistent well-documented processes

Avoid coercive practices

Eliminate recruiter pressure for applicant disclosure

Training

Emphasize related compliance

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Copyright ©2018 John Wiley & Sons, Inc.

16

Privacy Paradox, Privacy, and Civil Rights

Describe privacy.

What is the phenomenon where social users are concerned about privacy but their behaviors contradict these concerns?

What is the use of social media to find, screen, and select job candidates?

Rejecting a job candidate because of concerns about the person’s health from information on his or her Facebook page is an example of what?

Age, disability, gender, religion, and race are examples of what?

Why are the legal concepts of discrimination and negligent hiring competing demands on a business?

17

Copyright ©2018 John Wiley & Sons, Inc.

Suggested Answers:

1. Privacy is the right to self-determine what information about you is made accessible, to whom, when, and for what use or purpose. Privacy means we have freedom of choice and control over our personal information, including what we do not want shared with or used by others.

 

2. The privacy paradox refers to this phenomenon where social users are concerned about privacy but their behaviors contradict these concerns to an extreme degree. Users of social sites often claim that they are concerned about their privacy. At the same time, they disclose their highly personal lives, even content that is incriminating or illegal, in their profiles or posts.

 

3. Social recruitment refers to use of social media to find, screen, and select job candidates. Often it involves searching information the job candidate did not want considered or that is illegal to use in the hiring process.

 

4. This is an example of corporate social media discrimination.

 

5. Protected classes.

 

6. Two competing legal concerns are discrimination and negligent hiring. These put pressure on prospective employers to find out what they can about a potential employee, to avoid negligence in hiring, yet not cross the line into discrimination.

Discrimination. Most employers have stringent employment policies that prevent their recruiters and hiring managers from learning potentially discriminatory information about candidates. Visiting a person’s social media sites, however, clearly creates the opportunity to view large amounts of information going against these nondiscriminatory practices.

Negligent hiring. Employers must consider the potential risk of a negligent hiring or negligent retention lawsuit related to social networking profile information. It is possible that if a workplace violence incident occurred and the attacker’s public social networking profile contained information that could have predicted that behavior, the employer may be held liable for negligence in not using readily available information during the hiring decision.

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Learning Objectives (3 of 4)

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Copyright ©2018 John Wiley & Sons, Inc.

Technology Addictions: Cognitive Overload

Cognitive Overload

Interferes with our ability to focus and be productive.

Potential modern causes:

Mobile apps

Wearable technology

Constant updates

Desire to stay connected

50% of American teens suffer from Fear Of Missing Out (FOMO)

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Copyright ©2018 John Wiley & Sons, Inc.

Focus Management

Being Able to Focus Counts

An inability to concentrate for longer periods reduces an ability to distinguish important information from trivia.

Some researchers estimate that distraction costs hundreds of billions of dollars a year in lost productivity.

Heavy online users (media high multitaskers) scored poorly on cognitive tests.

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Copyright ©2018 John Wiley & Sons, Inc.

Focus Recovery

Lost focus can take about 25 minutes recovery time.

Noradrenaline, a chemical that helps us concentrate, is released by focusing.

The best strategy to improve focus: practice doing it.

There is disagreement if multitaskers are working as well as they could, or they could improve their focus.

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Copyright ©2018 John Wiley & Sons, Inc.

Technology Addictions and Focus Management

What are several potential causes of cognitive overload?

What are the consequences of constant distractions?

When a person is distracted, how long does it take to return to the task at hand and get focused again?

Why are senior managers interested in focus management?

What is the difference between the performance of high and low multitaskers on cognitive tests?

How can multitaskers improve their ability to focus?

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Copyright ©2018 John Wiley & Sons, Inc.

Suggested Answers:

1. Tweets, texts, e-mail, social media, and annoying electronic static are potential causes.

 

2. Distractions cause a loss of focus and a loss of productivity.

 

3. Gloria Mark, a professor of informatics at the University of California, Irvine, says a worker distracted by a Web search that goes rogue or a new text or tweet can take about 25 minutes to return to the task at hand and get focused again (Dumaine, 2014).

 

4. To improve creativity and productivity. If your mind is free of distraction, your mind is better able to absorb data, interactions, and trends and synthesize the new information with what you already know. As a result, you are more likely to come up with innovative ideas.

 

5. In contrast to widely held assumptions, subjects who were Media (high) multitaskers scored poorly on cognitive tests.

 

6. The best strategy to improve focus is to practice doing it.

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Learning Objectives (4 of 4)

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Copyright ©2018 John Wiley & Sons, Inc.

23

ICT and Sustainable Development

Being profit-motivated without concern for damage to the environment is unacceptable.

Companies should conduct themselves in an ethical, socially responsible, and environmentally sustainable manner.

The IT industry sector is called the Information and Communications Technology, or ICT, in emissions reports.

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Figure 14.1: The 4 R’s of environmental sustainability

24

IT and Global Warming

Global warming refers to the upward trend in Global Mean Temperature (GMT).

This is driven by the greenhouse effect, which is the holding of heat within the earth’s atmosphere.

Carbon emissions directly contribute to the greenhouse effect.

25

Copyright ©2018 John Wiley & Sons, Inc.

Figure 14.1: The 4 R’s of environmental sustainability

25

Global Warming IT Sector Actions

McKinsey & Company conclude the following:

IT sector’s own footprint of 2 percent of global emissions could double by 2020 because of increased use of tablets, smartphones, apps, and services.

IT sector must continue to reduce emissions from data centers, telecom networks, and the manufacture and use of its products.

IT has the unique ability to monitor and maximize energy efficiency both within and outside of its own industry sector to cut CO2 emissions by up to 5 times this amount.

26

Copyright ©2018 John Wiley & Sons, Inc.

Sustainability Through Climate Change Mitigation

Every IT user, enterprise, and nation plays a role in climate change mitigation.

Wired and mobile networks enable limitless data creation and consumption

Energy used to power data centers, cell towers, base stations, and recharge devices is damaging the environment and depleting natural resources.

Innovative sustainability initiatives hold the key to curbing these emissions and carbon footprint, thereby reducing environmental impact.

27

Copyright ©2018 John Wiley & Sons, Inc.

Technology to Transform Business and Society

People hold the power to shape and apply technology to create positive change, improve lives and transform business and society.

Accenture’s Technology Vision 2017 is an analysis of key IT trends that are expected to disrupt business and society over the next three years.

According to Vision 2017, taking a people first approach by empowering people with more human technology will allow organizations to improve performance by redefining their relationship with customers and employees from provider to partner.

28

Copyright ©2018 John Wiley & Sons, Inc.

Top Five Disruptive Technologies 2015-2017

Vision 2015 Vision 2016 Vision 2017
Internet of Me Intelligent Automation Artificial Intelligence as the new User Interface
Outcome Economy Liquid Workforce Design for Humans
Platform Evoluation Platform Economy Ecosystems as Macrocosms
Intelligent Enterprise Predictable Disruption Workforce Marketplace
Workplace Reimagined Digital Trust The Uncharted

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Top Five Disruptive Technologies (1 of 2)

AI is the new UI

AI is becoming the new user interface (UI), underpinning the way we transact and interact with systems.

AI will revolutionize the way businesses gain information from and interact with customers.

Design for Humans

Technology design decisions are being made by humans, for humans.

Organizations need to understand not only where people are today, but also where they want to be.

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Top Five Disruptive Technologies (2 of 2)

Ecosystems as Macrocosms.

Digital ecosystems are transforming the way organizations deliver value.

Workforce Marketplace.

Companies are dissolving traditional hierarchies and replacing them with talent marketplaces of independent freelance workers.

The Uncharted.

Businesses must delve into uncharted territory, seizing opportunities to establish rules and standards for entirely new industries.

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Copyright ©2018 John Wiley & Sons, Inc.

The Next Wave of Disruption

Next…More Disruptive Disruption

High-performing business leaders now accept that their organizations’ future success is tied to their ability to keep pace with technology.

Technology is more important than ever to their business success.

Biggest IT innovations will not be in the technology tools themselves, but in how they are designed with people in mind.

A people first approach is the key to any organization’s digital success.

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Copyright ©2018 John Wiley & Sons, Inc.

ICT and Sustainable Development

Why do some experts warn that carbon emission reductions between 50 percent and 85 percent are necessary by 2050?

What contributes to the rise of global mean temperature?

What is the greenhouse effect?

How does the use of mobile devices contribute to the level of greenhouse gases?

What is ICT’s role in global warming?

Why is global warming hotly debated?

What is the role of IT in sustainable development?

Why is it important for organizations to take a people first approach to IT?

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Copyright ©2018 John Wiley & Sons, Inc.

Suggested Answers:

Carbon emission reductions between 50 percent and 85 percent are necessary by 2050 to prevent the global temperature from rising too much too fast because of the greenhouse effect.

Increases in CO2 resulting from human activities that generate carbon emissions have thrown the earth’s natural carbon cycle off balance, increasing global temperatures and changing the planet’s climate. Climatologists estimated that countries must keep the global mean temperature (GMT) from rising by more than 2°C (3.6°F) above the preindustrial GMT in order to avoid profound damage to life on the earth. Damage includes water and food scarcity, rising sea levels, and greater incidence and severity of disease.

The greenhouse effect is the holding of heat within the earth’s atmosphere. CO2 and other greenhouse gases (GHGs) trap the sun’s heat with-in the earth’s atmosphere, warming it and keeping it at habitable temperatures.

The surge in energy used to power data centers, cell towers, base stations, and recharge devices, all of which support mobile devices, is damaging the environment and depleting natural resources.

ICT plays a key role in reducing global warming. Transforming the way people and businesses use IT could reduce annual human-generated global emissions by 15 percent by 2020 and deliver energy efficiency savings to global businesses of over 500 billion euros, or $800 billion U.S. And using social media, for example, to inform consumers of the grams (g) of carbon emissions associated with the products they buy could change buyer behavior and ultimately have a positive eco-effect.

Many scientists and experts are extremely alarmed by global warming and climate change, but other experts outright deny that they are occurring.

Every IT user, enterprise, and nation plays a role in climate change mitigation. Climate change mitigation is any action to limit the magnitude of long-term cli-mate change. Examples of mitigation include switching to low-carbon renewable energy sources and reducing the amount of energy consumed by power stations by increasing their efficiency.

According to Accenture’s Vision 2017, taking a people first approach by empowering people with more human technology will allow organizations to improve performance by redefining their relationship with customers and employees from provider to partner. This will require organizations to change the way they develop their business models and provide technology that support them to promote social responsibility.

33

Copyright

Copyright © 2018 John Wiley & Sons, Inc.

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34

Module 14: IT Ethics, Privacy, and Sustainability No.1

Information Technology
for Management

On-Demand Strategies for Performance,
Growth and Sustainability

Eleventh Edition

Eleventh Edition

Information Technology
for Management

On-Demand Strategies for Performance,
Growth and Sustainability

E F R A I M T U R B A N

C A R O L P O L L A R D
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G R E G O R Y W O O D
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ISBN: 978-1-118-89079-0 (PBK)
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Library of Congress Cataloging in Publication Data:

Names: Turban, Efraim, author. | Pollard, Carol (Carol E.), author. | Wood,
Gregory R., author.
Title: Information technology for management : on-demand strategies for
performance, growth and sustainability / Efraim Turban, Carol Pollard,
Gregory R. Wood.
Description: 11th edition. | Hoboken, NJ : John Wiley & Sons, 2018. |
Includes bibliographical references and index. |
Identifiers: LCCN 2017037711 (print) | LCCN 2017046158 (ebook) | ISBN
9781118890868 (epub) | ISBN 9781119172390 (pdf) | ISBN 9781118890790 (pbk.)
Subjects: LCSH: Management information systems.
Classification: LCC T58.6 (ebook) | LCC T58.6 .T765 2017 (print) | DDC
658.4/038011—dc23
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The inside back cover will contain printing identification and country of origin if omitted from this
page. In addition, if the ISBN on the back cover differs from the ISBN on this page, the one on the
back cover is correct.

v

Brief Contents

PREFACE xiii
ACKNOWLEDGMENTS xviii

PART 1 Reshaping Enterprises and Consumers
in the On-Demand Economy

1 Disruptive IT Impacts Companies,
Competition, and Careers 1

2 Information Systems, IT Architecture, Data
Governance, and Cloud Computing 25

3 Data Management, Data Analytics,
and Business Intelligence 65

4 Networks, Collaborative Technology,
and the Internet of Things 101

5 Cybersecurity and Risk Management
Technology 127

PART 2 Winning, Engaging, and Retaining
Consumers for Growth

6 Search, Semantic, and Recommendation
Technology 165

7 Web 2.0 and Social Technology 199

8 Retail, E-commerce, and Mobile Commerce
Technology 240

PART 3 Optimizing Performance, Processes,
and Productivity

9 Functional Business Systems 269

10 Enterprise Systems 300

11 Data Visualization and Geographic
Information Systems 331

PART 4 Managing Business Relationships,
Projects, and Ethical Responsibilities

12 IT Strategy, Sourcing, and Strategic
Technology Trends 354

13 Systems Development and Project
Management 385

14 IT Ethics, Privacy, and Sustainability 417

GLOSSARY 443
ORGANIZATION INDEX 448
NAME INDEX 450
SUBJECT INDEX 451

vi

PREFACE xiii
ACKNOWLEDGMENTS xviii

PART 1 Reshaping Enterprises
and Consumers in the On-Demand
Economy

1 Disruptive IT Impacts Companies,
Competition, and Careers 1

Case 1.1 Opening Case: Uber and Airbnb Revolutionize
Business Models in the On-Demand Economy 3

1.1 Doing Business in the On-Demand Economy 4
Growth of the On-Demand Economy 5
Digital Business Models 6
IT’s Role in the On-Demand Economy 7
IT Business Objectives 8

1.2 Business Process Improvement and Competitive
Advantage 8
What Is a Business Process? 9
Improving Business Processes 9
Don’t Automate, Obliterate! 10
Gaining a Competitive Advantage 11
Software Support for BPM 13

1.3 IT Innovation and Disruption 13
Social–Mobile–Analytics–Cloud (SMAC) Model 13
Technology Mega Trends 14
Lessons Learned from Companies Using Disruptive
Technologies 16

1.4 IT and You 17
On-Demand Workers 17
IT Adds Value to Your Performance and Career 19
Becoming an Informed IT User 21

Case 1.2 Business Case: The Internet of Things Comes
to the NFL 23

Case 1.3 Video Case: Knowing More and Doing More 24

2 Information Systems,
IT Architecture, Data Governance,
and Cloud Computing 25

Case 2.1 Opening Case: Detoxing Location-Based
Advertising Data at MEDIATA 27

2.1 IS Concepts and Classification 28

Components of an IS 29
Data, Information, Knowledge, and Wisdom 30
Types of ISs 31
Transaction Processing System (TPS) 32
Management Information System (MIS) 33
Decision Support System (DSS) 34
Executive Information System (EIS) 35
ISS Exist within Corporate Culture 36

2.2 IT Infrastructure, IT Architecture, and Enterprise
Architecture 37
EA Helps to Maintain Sustainability 38
Developing an Enterprise Architecture (EA) 41

2.3 Information Management and Data
Governance 42
Information Management Harnesses
Scattered Data 43
Reasons for Information Deficiencies 43
Factors Driving the Shift from Silos to Sharing
and Collaboration 45
Business Benefits of Information Management 45
Data Governance: Maintaining Data Quality
and Cost Control 46

2.4 Data Centers and Cloud Computing 48
Data Centers 48
Integrating Data to Combat Data Chaos 50
Cloud Computing 52
Selecting a Cloud Vendor 52
Cloud Infrastructure 54
Issues in Moving Workloads from the Enterprise
to the Cloud 54

2.5 Cloud Services and Virtualization 55
Anything as a Service (XAAS) Models 55
Going Cloud 58
Virtualization and Virtual Machines 58

Case 2.2 Business Case: Data Chaos Creates Risk 62
Case 2.3 Video Case: Cloud Computing at Coca-Cola Is

Changing Everything 63

3 Data Management, Data Analytics,
and Business Intelligence 65

Case 3.1 Opening Case: Coca-Cola Strategically Manages
Data to Retain Customers and Reduce Costs 66

3.1 Data Management and Database Technologies 69
Database Management Systems and SQL 69
DBMS and Data Warehousing Vendors
Respond to Latest Data Demands 72

Contents

C O N T E N T S v i i

3.2 Centralized and Distributed Database
Architectures 73
Garbage In, Garbage Out 75
Data Ownership and Organizational Politics 76
Data Life Cycle and Data Principles 77
Master Data and Master Data Management 78

3.3 Data Warehouses 79
Procedures to Prepare EDW Data for Analytics 80
Building a Data Warehouse 80
Real-Time Support from an Active Data
Warehouse 81

3.4 Big Data Analytics and Data Discovery 83
Human Expertise and Judgment are Needed 85
Data and Text Mining 88
Creating Business Value 88
Text Analytics Procedure 90
Analytics Vendor Rankings 90

3.5 Business Intelligence and
Electronic Records Management 91
Business Benefits of BI 92
Common Challenges: Data Selection
and Quality 92
Aligning BI Strategy with Business Strategy 92
BI Architecture and Analytics 93
Electronic Records Management 94
Legal Duty to Retain Business Records 94
ERM Best Practices 94
ERM Benefits 95
ERM for Disaster Recovery,
Business Continuity, and Compliance 95

Case 3.2 Business Case: Big Data Analytics is the “Secret
Sauce” for Revitalizing McDonald’s 98

Case 3.3 Video Case: Verizon Improves Its
Customer Experience with Data Driven
Decision-Making 99

4 Networks, Collaborative
Technology, and the Internet
of Things 101

Case 4.1 Opening Case: Sony Builds an IPv6 Network
to Fortify Competitive Edge 102

4.1 Network Fundamentals 104
Network Types 104
Intranets, Extranets, and Virtual Private
Networks 105
Network Terminology 105
Functions Supported by Business Networks 106
Quality of Service 107

4.2 Internet Protocols (IP), APIs, and Network
Capabilities 109

Comparing 3G, 4G, 4G LTE, and 5G Network
Standards 110
Circuit versus Packet Switching 111
Application Program Interfaces and Operating
Systems 111

4.3 Mobile Networks and Near-Field
Communication 113
Increase in Mobile Network Traffic and Users 114
Higher Demand for High-Capacity Mobile
Networks 115
Mobile Infrastructure 115
Two Components of Wireless Infrastructure 116
Business Use of Near-Field Communication 117
Choosing Mobile Network Solutions 118

4.4 Collaborative Technologies and the Internet
of Things 119
Virtual Collaboration 120
Group Work and Decision Processes 120
The Internet of Things (IoT) 121
IoT Sensors, Smart Meters, and the Smart Grid 121

Case 4.2 Business Case: Google Maps API for
Business 125

Case 4.3 Video Case: Small Island Telecom Company
Goes Global 126

5 Cybersecurity and Risk
Management Technology 127

Case 5.1 Opening Case: Yahoo Wins the Gold and Silver
Medal for the Worst Hacks in History! 129

5.1 The Face and Future of Cyberthreats 130
Intentional Threats 132
Unintentional Threats 132
Hacking 133
Cyber Social Engineering and Other Related
Web-Based Threats 134
Denial-of-Service 137
Insider and Privilege Misuse 137
Physical Theft or Loss 138
Miscellaneous Errors 138
New Attack Vectors 138

5.2 Cyberattack Targets and Consequences 139
“High-Profile” and “Under-the-Radar” Attacks 139
Critical Infrastructure Attacks 140
Theft of Intellectual Property 141
Identity Theft 142
Bring Your Own Device 142
Social Media Attacks 144

5.3 Cyber Risk Management 146
IT Defenses 146
Business Continuity Planning 149
Government Regulations 149

v i i i C O N T E N T S

5.4 Defending Against Fraud 150
Occupational Fraud Prevention
and Detection 151
General Controls 152
Internal Controls 153
Cyber Defense Strategies 153
Auditing Information Systems 155

5.5 Frameworks, Standards, and Models 155
Risk Management and IT Governance
Frameworks 155
Industry Standards 157
IT Security Defense-In-Depth Model 157

Case 5.2 Business Case: Lax Security at LinkedIn
Exposed 161

Case 5.3 Video Case: Botnets, Malware Security, and
Capturing Cybercriminals 163

PART 2 Winning, Engaging, and
Retaining Consumers for Growth

6 Search, Semantic, and
Recommendation Technology 165

Case 6.1 Opening Case: Mint.com Uses Search
Technology to Rank Above Established
Competitors 166

6.1 Using Search Technology for Business
Success 168
How Search Engines Work 168
Web Directories 168
How Crawler Search Engines Work 169
Why Search Is Important for Business 172

6.2 Organic Search and Search Engine
Optimization 178
Strategies for Search Engine Optimization 178
Content and Inbound Marketing 180
Black Hat versus White Hat SEO: Ethical Issues
in Search Engine Optimization 181

6.3 Pay-Per-Click and Paid Search Strategies 182
Creating a PPC Advertising Campaign 182
Metrics for Paid Search Advertising 184

6.4 A Search for Meaning—Semantic Technology 184
What Is the Semantic Web? 185
The Language(s) of Web 3.0 185
Semantic Web and Semantic Search 186
Semantic Web for Business 187

6.5 Recommendation Engines 188
Recommendation Filters 189

Case 6.2 Business Case: Deciding What to Watch—Video
Recommendations at Netflix 195

Case 6.3 Video Case: Power Searching with
Google 196

7 Web 2.0 and Social
Technology 199

Case 7.1 Opening Case: Social Customer Service Takes
Off at KLM 200

7.1 Web 2.0—The Social Web 201
The Constantly Changing Web 201
Invention of the World Wide Web 202
A Platform for Services and Social Interaction 202
Emergence of Social Applications, Networks,
and Services 203
Why Managers Should Understand Web
Technology 205
Communicating on the Web 206
Social Media Applications and Services 207
Social Media Is More than Facebook, YouTube, and
Twitter 207
With Web 2.0, Markets are Conversations 209

7.2 Social Networking Services and Communities 210
The Power of the Crowd 212
Crowdfunding 212
Social Networking Services 213
Facebook Dominates Social Networking 214
Google Takes on Facebook with G+ 216
Be in the Now with Snapchat 217
And Now for Something Different: Second Life 218
Private Social Networks 219
Future of Social Networking Systems 220

7.3 Engaging Consumers with Blogs and
Microblogs 220
What Is the Purpose of a Blog? 220
Blogging and Public Relations 222
Reading and Subscribing to Blogs 222
Blogging Platforms 222
Microblogs 223
Twitter 223
Tumblr Blogs 225

7.4 Mashups, Social Metrics, and
Monitoring Tools 226
What Makes a Mashup Social 226
RSS Technology 227
Social Monitoring Services 227

7.5 Enterprise 2.0: Workplace Collaboration and
Knowledge Sharing 229
Tools for Meetings and Discussions 230
Social Tools for Information Retrieval and
Knowledge Sharing 230
Social Bookmarking Tools 231
Content Creation and Sharing 232

Case 7.2 Business Case: Facebook Helps Songkick Rock
the Ticket Sales Industry 236

Case 7.3 Business Case: AT&T’s “It Can Wait” Campaign
against Distracted Driving 237

C O N T E N T S i x

8 Retail, E-commerce, and Mobile
Commerce Technology 240

Case 8.1 Opening Case: Macy’s Races Ahead with Mobile
Retail Strategies 241

8.1 Retailing Technology 243
Keeping Up with Consumer Demands and
Behavior 243
The Omni-Channel Retailing Concept 244

8.2 Business-to-Consumer (B2C) E-commerce 246
Online Banking 246
International and Multiple-Currency
Banking 246
Online Recruiting 246
Issues in Online Retailing 250
Online Business and Marketing Planning 250

8.3 Business-to-Business (B2B) E-commerce and
E-procurement 251
Sell-Side Marketplaces 251
E-Sourcing 252
E-Procurement 252
Electronic Data Interchange (EDI) Systems 253
Public and Private Exchanges 253

8.4 Mobile Commerce 253
Information: Competitive Advantage in Mobile
Commerce 255
Mobile Entertainment 258
Hotel Services and Travel Go Wireless 259
Mobile Social Networking 259

8.5 Mobile Transactions and Financial Services 260
Mobile Payment Systems 260
Mobile Banking and Financial Services 262
Short Codes 263
Security Issues 263

Case 8.2 Business Case: Chegg’s Mobile Strategy 266
Case 8.3 Video Case: Searching with Pictures

Using MVS 267

PART 3 Optimizing Performance,
Processes, and Productivity

9 Functional Business Systems 269
Case 9.1 Opening Case: Ducati Redesigns Its

Operations 271
9.1 Business Management Systems and Functional

Business Systems 272
Business Management Systems (BMSs) 273
Management Levels 273
Business Functions vs. Cross-Functional Business
Processes 274
Transaction Processing Systems 275

9.2 Production and Operations Management
Systems 277
Transportation Management Systems 278
Logistics Management 278
Inventory Control Systems 279
Computer-Integrated Manufacturing and
Manufacturing Execution Systems 281

9.3 Sales and Marketing Systems 282
Data-Driven Marketing 284
Sales and Distribution Channels 284
Social Media Customer Service 284
Marketing Management 285

9.4 Accounting, Finance, and Regulatory Systems 286
Financial Disclosure: Reporting and
Compliance 286
Fraud Prevention and Detection 289
Auditing Information Systems 291
Financial Planning and Budgeting 291

9.5 Human Resource Systems, Compliance, and
Ethics 293
HR Information Systems 293
Management and Employee Development 295
HR Planning, Control, and Management 295

Case 9.2 Business Case: HSBC Combats Fraud in Split-
second Decisions 297

Case 9.3 Video Case: United Rentals Optimizes Its
Workforce with Human Capital Management 298

10 Enterprise Systems 300
Case 10.1 Opening Case: 3D Printing Drives the “Always-

On” Supply Chain 301
10.1 Enterprise Systems 303

Implementation Challenges of Enterprise
Systems 305
Investing in Enterprise Systems 305
Implementation of Best Practices 306
Enterprise Systems Insights 307

10.2 Enterprise Resource Planning (ERP) 307
Brief History of ERP 308
Technology Perspective 308
Achieving ERP Success 311

10.3 Supply Chain Management Systems 313
Managing the Flow of Materials, Data,
and Money 315
Order Fulfillment and Logistics 315
Steps in the Order Fulfillment Process 315
Innovations Driving Supply Chain Strategic
Priorities 316

10.4 Customer Relationship Management Systems 319
How are CRM Apps Different from ERP? Why are they
Different? 319
CRM Technology Perspective 320

x C O N T E N T S

Customer Acquisition and Retention 320
CRM for a Competitive Edge 320
Common CRM Mistakes: How to Avoid
Them 321
Justifying CRM 322

10.5 Enterprise Social Platforms 323
Growth of Enterprise Social Investments
and Markets 323
Sharepoint 324
Oracle’s Social Network 326
Jive 326
Chatter 326

Case 10.2 Business Case: Lowe’s Fresh Approach to
Supply Chain Management 328

Case 10.3 Video Case: Procter & Gamble: Creating
Conversations in the Cloud with 4.8 Billion
Consumers 329

11 Data Visualization and Geographic
Information Systems 331

Case 11.1 Opening Case: Safeway and PepsiCo
Collaborate to Reduce Stock Outages using Data
Visualization 332

11.1 Data Visualization and Learning 334
Learning, Exploration, and Discovery with
Visualization 336
Data Discovery Market Separates from the
BI Market 336
How Is Data Visualization Used in Business? 340
Data Visualization Tools 341

11.2 Enterprise Data Mashups 342
Mashup Architecture 343
Why Do Business Users Need Data Mashup
Technology? 344
Enterprise Mashup Technology 344

11.3 Digital Dashboards 345
Dashboards are Real Time 347
How Operational and Strategic
Dashboards Work 348
Benefits of Digital Dashboards 348

11.4 Geographic Information Systems and
Geospatial Data 349
Geocoding 350
GIS Is Not Your Grandfather’s Map 350
Infrastructure and Location-Aware Collection
of Geospatial Data 350
Applying GIS in Business 351

Case 11.2 Visualization Case: Are You Ready for
Football? 353

Case 11.3 Video Case: The Beauty of Data
Visualization—Data Detective 353

PART 4 Managing Business
Relationships, Projects, and Ethical
Responsibilities

12 IT Strategy, Sourcing, and Strategic
Technology Trends 354

Case 12.1 Opening Case: Intel Reaps Rewards from
Sustainable IT Strategy 355

12.1 IT Strategic Planning 357
Value Drivers 358
IT Strategic Plan Objectives 358
IT and Business Disconnects 359
Corporate and IT Governance 359
Reactive Approach to IT Investments Will Fail 359
IT Strategic Planning Process 359

12.2 Aligning IT with Business Objectives 362
Achieving and Sustaining a Competitive
Advantage 364

12.3 IT Sourcing Strategies 367
Sourcing and Cloud Services 368
Factors Driving Outsourcing 369
Outsourcing Risks and Hidden Costs 370
Offshoring 370
Outsourcing Life Cycle 371
Managing IT Vendor Relationships 373
Contracts: Get Everything in Writing 373

12.4 Balanced Scorecard 374
The Balanced Scorecard 374
Using the Balance Scorecard 375
Applying the BSC 377

12.5 Strategic Technology Trends 378
Strategic Technology Scanning 380
Finding Strategic Technologies 380

Case 12.2 Business Case: Cisco IT Improves Strategic
Vendor Management 382

Case 12.3 Data Analysis: Third-Party versus Company-
Owned Offshoring 383

13 Systems Development and Project
Management 385

Case 13.1 Opening Case: Denver International Airport
Learns from Mistakes Made in Failed Baggage-
Handling System Project 386

13.1 System Development Life Cycle 388
Stages of the SDLC 388

13.2 Systems Development Methodologies 391
Waterfall Model 391
Object-Oriented Analysis and Design 392
Agile Methodology 392

C O N T E N T S x i

The DevOps Approach to Systems
Development 394

13.3 Project Management Fundamentals 395
What Is a Project? 396
Choosing Projects 396
The Triple Constraint 397
The Project Management Framework 397

13.4 Initiating, Planning, and Executing Projects 399
Project Initiation 400
Project Planning 400
Project Execution 403

13.5 Monitoring/Controlling and Closing
Projects 404
Project Monitoring and Controlling 404
Project Closing or Post Mortem 407
Why Projects Fail 408
IT Project Management Mistakes 410

Case 13.2 Business Case: Steve Jobs’ Shared Vision
Project Management Style 412

Case 13.3 Demo Case: Mavenlink Project Management
and Planning Software 413

14 IT Ethics, Privacy, and
Sustainability 417

Case 14.1 Opening Case: Lessons Learned: How Google
Glass Raised Risk and Privacy Challenges 418

14.1 IT Ethics 420
Ethical versus Unethical Behavior 420
Competing Responsibilities 423

14.2 Privacy and Civil Rights 424
Privacy and the New Privacy
Paradox 424
Social Media Recruiting 425
Legal Note: Civil Rights 426
Competing Legal Concerns 427
Financial Organizations Must Comply with Social
Media Guidelines 428

14.3 Technology Addictions and Focus
Management 430
Digital Distractions and Loss of Focus 430
Focus Management 430

14.4 ICT and Sustainable Development 432
Global Temperature Rising Too Much
Too Fast 432
IT and Global Warming 433
Technology to Transform Business and
Society 436
Next Wave of Disruption Will Be More
Disruptive 438

Case 14.2 Business Case: Android Auto and
CarPlay Keep Drivers Safe, Legal, and
Productive 439

Case 14.3 Video Case: IT Ethics in the
Workplace 440

GLOSSARY 443
ORGANIZATION INDEX 448
NAME INDEX 450
SUBJECT INDEX 451

xiii

Information Technology for Management discusses a variety of
business strategies and explains how they rely on data, digital
technology, and mobile devices to support them in the on-
demand economy. Our goal is to provide students from any
business discipline with a strong foundation for understand-
ing the critical role that digital technology plays in enhancing
business sustainability, profitability, and growth and excel in
their careers. Enabling technologies discussed in this textbook
include the following:

• Performance Combining the latest capabilities in big data
analytics, reporting, collaboration, search, and digital com-
munication helps enterprises be more agile and cuts costs to
optimize business performance and profitability.

• Growth Strategic technologies enable business to create
new core competencies, expand their markets, and move
into new markets to experience exponential growth in the
on-demand economy.

• Sustainability Cloud services are fundamental to sus-
taining business profitability and growth in today’s on-
demand economy. They play a critical role in managing
projects and sourcing agreements, respecting personal pri-
vacy, encouraging social responsibility, and attracting and
engaging customers across multimedia channels to promote
sustainable business performance and growth.

In this 11th edition, students learn, explore, and understand
the importance of IT’s role in supporting the three essential
components of business performance improvement: technology,
business processes, and people.

What’s New in the
11th Edition?
In the 11th edition of IT for Management, we present and dis-
cuss concepts in a comprehensive yet easy-to-understand for-
mat by actively engaging students through a wide selection of
case studies, interactive figures, video animations, tech notes,
concept check questions, online and interactive exercises, and
critical thinking questions. We have enhanced the 11th edition
in the following ways:

New Author Dr. Carol Pollard, Professor of Computer Infor-
mation Systems at the Walker College of Business and former
Executive Director of the Center for Applied Research in Emerg-
ing Technologies (CARET) at Appalachian State University in
North Carolina, has taken the helm for the 11th edition. Carol

has applied her innovative teaching and learning techniques to
create a stronger pedagogical focus and more engaging format
for the text.
Diverse Audience IT for Management is directed toward
undergraduate, introductory MBA courses, and Executive Educa-
tion courses in Management Information Systems and General
Business programs. Concepts are explained in a straightforward
way, and interactive elements, tools, and techniques provide
tangible resources that appeal to all levels of students.
Strong Pedagogical Approach To encourage improved learn-
ing outcomes, we employed a blended learning approach, in
which different types of delivery and learning methods, enabled
and supported by technology, are blended with traditional
learning methods. For example, case study and theoretical
content are presented visually, textually, and/or interactively
to enable different groups of students to use different learning
strategies in different combinations to fit their individual learn-
ing style and enhance their learning. Throughout the book,
content has been reorganized to improve development of the
topics and improve understanding and readability. A large
number of images that did not enhance understanding have
been removed and replaced with informative and interactive
figures and tables that better convey critical concepts.
Leading-Edge Content Prior to and during the writing pro-
cess, we consulted with a number of vendors, IT professionals,
and managers who are hands-on users of leading technologies,
to learn about their IT/business successes, challenges, experi-
ences, and recommendations. To integrate the feedback of
these business and IT professionals, new or updated chapter
opening and closing cases have been added to many of the
chapters along with the addition of relevant, leading-edge
content in the body of the chapters.
New Technologies and Expanded Topics New to this edition
are the IT framework, business process reengineering, geoco-
ding, systems developments methodologies, including Water-
fall, object-oriented analysis, Agile and DevOps, advances
in Search Technology, the growth of Mobile Commerce and
Mobile Payment Systems, the Always-On Supply Chain, and
the Project Management framework. In addition, with more
purchases and transactions starting online and attention being
a scarce resource, students learn how search, semantic, and
recommendation technologies function to improve revenue.
Table P-1 provides a detailed list of new and expanded topics.
Useful Tools and Techniques New to this edition is a feature
we call the “IT Toolbox.” This involves the provision of a set of
useful tools or techniques relevant to chapter content. Collec-
tively, these tools and techniques equip readers with a suite of
IT tools that will be useful in their university classes, workplace,
and personal life.

Preface

xiv P R E F A C E

Chapter New and Expanded IT and Business Topics Innovative Enterprises
1. Disruptive IT Impacts

Companies, Competition,
and Careers

• IT’s role in the on-demand economy
• Business process improvement
• Business process re-engineering
• SMAC model
• Nature of on-demand work
• Becoming an informed IT user
• Technology mega trends

• Uber
• Airbnb
• FitBit
• NFL
• Teradata

2. Information Systems, IT Archi-
tecture, Data Governance, and
Cloud Computing

• IS concepts and framework
• Information, knowledge, wisdom model
• Software-defined data center

• Mediata
• National Climatic Data center
• U.S. National Security Agency
• Apple
• Uber
• WhatsApp
• Slack
• Vanderbilt University Medical Center
• Coca-Cola

TA B L E P – 1 Overview of New and Expanded Topics and Innovative Enterprises Discussed in the Chapters

Engaging Students
to Assure Learning
The 11th edition of Information Technology for Management
engages students with up-to-date coverage of the most impor-
tant IT trends today. Over the years, this IT textbook has dis-
tinguished itself with an emphasis on illustrating the use of
cutting-edge business technologies for supporting and achiev-
ing managerial goals and objectives. The 11th edition contin-
ues this tradition with more interactive activities and analyses.

Real-World Case Studies Each chapter contains numerous
real-world examples illustrating how businesses use IT to increase
productivity, improve efficiency, enhance communication and
collaboration, and gain a competitive edge. Faculty will appreciate
a variety of options for reinforcing student learning that include
three different types of Case Studies (opening case, video case,
and business case), along with interactive figures and whiteboard
animations that provide a multimedia overview of each chapter.
Interactive Figures and Whiteboard Animations The unique
presentation of interactive figures and whiteboard anima-
tions facilitates reflection on the textual content of the book
and provides a clear path to understanding key concepts. The
whiteboard animations fit particularly well with the “flipping
the classroom” model and complement additional functional-
ity and assets offered throughout the 11th edition. The interac-
tive figures actively engage the students in their own learning
to effectively reinforce concepts.
Learning Aids Each chapter contains various learning aids,
which include the following:

• Learning Objectives are listed at the beginning of each
chapter to help students focus their efforts and alert
them to the important concepts that will be discussed.

• IT at Work boxes spotligh