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Discussion Question – Module 13: Systems Development and Project Management and IT Ethics, Privacy, and Sustainability

Description

Module 13: Systems Development and Project Management and IT Ethics, Privacy, and Sustainability

Discussion Question

Question Requirements:

Project Management

You are the project manager and need to compose an SOW for clients who want you to develop a Kickstarter.com site for their project, as discussed in the chapter.

Start off by composing an SOW using a standard SOW template that you found and downloaded from the Internet. Use Tom’s Planner (https://www.tomsplanner.com) or other free Gantt chart software to create a Gantt chart for your project. Share your Gantt chart for the project as an attachment and as an image – discuss how a Gantt chart can improve projects that you work on.

Assume that after your clients review your SOW and Gantt chart, they request that you discount the price 20%. Based on the triple constraints, discuss how you would respond?

Directions:

Discuss the concepts, principles, and theories from your textbook. Cite your textbooks and cite any other sources.
Write a discussion that includes an introduction paragraph, the body, and a conclusion paragraph to address the assignment’s guide questions.
Your initial post should address all components of the question with a 600-word limit.

Learning Outcomes

Examine the importance of the Systems Development Life Cycle (SDLC) to the organization.
Compare and contrast different systems development methodologies.
Identify the tools utilized in project management.

Readings

Required:

Chapter 13 in Information Technology for Management: On-Demand Strategies for Performance, Growth, and Sustainability
Syed, R., Bandara, W., & Eden, R. (2023). Public sector digital transformation barriers: A developing country experience. Information Polity: The International Journal of Government & Democracy in the Information Age, 28(1), 5–27.
View the following videos:

Chapter 13 Whiteboard Animation Videos, part 1

Chapter 13 Whiteboard Animation Videos, part 2

Chapter 13 Whiteboard Animation Videos, part 3

Recommended:

Chapter 13 PowerPoint Presentation

IT for Management: On-Demand Strategies for
Performance, Growth, and Sustainability
Twelfth Edition
Turban, Pollard, Wood

Chapter 13
Systems Development and Project, Program
and Portfolio Management

Learning Objectives (1 of 5)
Systems
Development

Monitoring/
Controlling
and Closing
Projects

Software
Development
Methodologies

Initiating,
Planning, and
Executing
Projects

Project,
Program and
Portfolio
Management

Systems Development
All systems development projects are prompted by a business
need.
Systems development is a set of activities, methods, best
practices, deliverables, and automated tools to creating and
maintaining IT architecture and software.
Business need is a gap between the current state of a business
and its goals.

A business driver is a condition, process, resource, or rationale
that is vital for an organization to thrive.
Copyright ©2021 John Wiley & Sons, Inc.

Business Drivers
Typical business drivers for systems
development include the following:
• Globalization of the economy
• E-commerce, mobile commerce
• Security and privacy issues
• Communication, collaboration, and partnerships
• Knowledge management
• Continuous improvement and total quality
management
• Business process redesign
Copyright ©2021 John Wiley & Sons, Inc.

System
Development
Life Cycle

• System Development Life Cycle
(SDLC) is a multiple stage
approach used by IT professionals
to develop high-quality
information systems from
planning and analysis through
support and maintenance.
• The SDLC provides a framework
for a number of different
systems development
methodologies.
• The activities performed during
systems development vary
depending on the size and
complexity of the system.
Copyright ©2021 John Wiley & Sons, Inc.

Systems Planning

Systems Analysis

Stages of
the SDLC

Systems Design

Implementation and Testing

Support and Maintenance

The SDLC is an iterative process, not a
linear one.
Copyright ©2021 John Wiley & Sons, Inc.

Stage 1: Systems Planning
During Systems Planning:
1. Planning begins when a business need is identified.
2. Problem or desired change is described.
3. Planning stage objective is to determine feasibility of the
request.
4. The deliverable from the planning stage is the Project Plan.
A feasibility study in this stage determines the probability of
success of a proposed system and provides a rough assessment of
its technical, economic, organizational, and behavioral feasibility.
Copyright ©2021 John Wiley & Sons, Inc.

Feasibility Analyses
Technical feasibility determines if the required technology, IT
infrastructure, data structures, analytics, and resources can be
developed and/or acquired to solve the business problem.
Economic feasibility determines if the project is an acceptable
financial risk and if the company can afford the expense and time
needed to complete the project.
Legal and organizational feasibility Are there legal, regulatory, or
environmental reasons why the project cannot or should not be
implemented?

Behavioral feasibility considers human issues.
Copyright ©2021 John Wiley & Son, Inc.

Stage 2: Systems Analysis
During Systems Analysis:
1. User requirements are gathered to better
understand the problem
2. Process models are created to determine the logical
design of the system
3. The deliverable from the systems analysis stage is
the Systems Proposal.
• More time invested in analysis mean a greater
probability of IS success.
Copyright ©2021 John Wiley & Sons, Inc.

Stage 3: Systems Design
• System developers utilize the design specifications to create the
user interface and establish data requirements
• Physical design of the system is designed by determining and
acquiring the hardware and software needed to carry out the
logical design of the system
• User and system documentation are created
• Management and user involvement are critical to ensure that
business requirements are being met
• The deliverable from the design stage is the System Design
Specification

Stage 4: Implementation and Testing
• Implementation
o Conversion of the old system to the new system
• Plunge: cut off and migration at a specific time
• Parallel: simultaneous transfer
• Pilot: limited test of new, then roll out
• Phased: specific components in stages

• Testing
o Testing verifies that apps, interfaces, data transfers, and so
on, work correctly under all possible conditions.
o Users are trained in the use of the new system.
Copyright ©2021 John Wiley & Sons, Inc.

Stage 5: Support and Maintenance
• Occurs once new system’s operations are stabilized.
Audits are performed to assess capabilities and determine
operational correctness.
o Maintenance must be kept up to date at all times.
o Users kept up to date on latest modifications and procedures.
o

• Systems development is a repetitive process as
maintenance turns into the development of a new
system.
Copyright ©2021 John Wiley & Sons, Inc.

System Development: Questions
1. What are the five stages of the SDLC?
2. Name the deliverables from three of the five SDLC
stages.
3. Explain the purpose of feasibility tests and why they
are important in developing ISs.
4. Is the systems development process a linear or a
cyclical process? Explain.
5. Name the four system conversion methods.

Learning Objectives (2 of 5)
Systems
Development

Monitoring/
Controlling
and Closing
Projects

Software
Development
Methodologies

Initiating,
Planning, and
Executing
Projects

Project,
Program and
Portfolio
Management

Comparing Systems Development
Methodologies

Software
Development
Methodologies:
Waterfall
•Waterfall Method
• Sequential
• Predictive
• Inflexible
• No going back
• Recordkeeping essential
• Small, short-term
projects

Software Development Methodologies:
Object-Oriented
• Object-Oriented (O-O) Analysis and Design
Iterative, Adaptive
o Emphasizes modularity and reusability
o Views a system as a collection of modular objects that
encapsulate data and processes.
o Objects = people, things, transactions and events
o A use case has two parts: use-case diagram, which is a visual
summary of several related use cases within a system; and a
use-case description, which is a text-based description of the
business event and how users will interact with the system to
accomplish the task.
o

Figure 13.3: An Object-Oriented Use Case Model has two parts, the use case
diagram and the use case description. Here’s a simple example of an account
holder interacting with a Banking ATM.
Copyright ©2021 John Wiley & Sons, Inc.

Software Development Methodologies: Agile
• Agile Methodology
Most flexible of all development methodologies
o Software components delivered early and often
o Iterative, incremental approach
o Variations: Scrum, Kanban, Scrumban, and extreme
programming
o

Figure 13.4 Stages in the Agile Methodology
Copyright ©2021 John Wiley & Sons, Inc.

Agile software development methods
Scrum is a framework that consists of small self-organizing, cross-functional
Scrum Teams who work together to produce small pieces of a system iteratively
and incrementally in sprints to maximize opportunities for feedback.
Kanban is Japanese for a signboard. It is a visual process and project
management methodology used in systems development projects.
Scrumban combines certain aspects of Scrum and Kanban originally designed as
a way to transition from Scrum to Kanban.
Extreme programming emphasizes business results first and takes an
incremental approach to building software, using continual testing and revision.

Software Development Methodologies:
DevOps
• DevOps: DEVelopment and IT OPerations
Emphasizes collaboration between software developers,
operators and testers involved in the development and
operations of information systems
o Developed to address gap in communication and
collaboration
o Creates culture where building, testing and delivery of a
system can happen quickly, frequently and reliably
o Lowers failure rate of new releases
o Shortens time to market
o

Systems Development Tools and
Techniques: JAD, RAD, and Prototyping
• Joint Application Development (JAD) is a team-oriented
technique used in the planning and analysis stages of the SDLC
to collect business requirements.
• Rapid Application Development (RAD) is an interactive process
used throughout the SDLC continuing until the system is
completely developed and all users are satisfied with the
outcome.
• Rapid Prototyping is an iterative process used to quickly create
an early sample, model or release of a system to test a concept
or process.
• A prototype is a working model of a system or part of a system
usually built to demonstrate it to users, who can test it, and request
rework as necessary.
Copyright ©2021 John Wiley & Sons, Inc.

Systems Development Tools and
Techniques: CASE Tools
• CASE tools refer to software used to automate systems
development. There are three classes of CASE tools that
automate many of the SDLC activities:
• Upper CASE tools: Used in the planning and analysis stages
of the SDLC to perform repetitive activities such as gathering
requirements, diagramming processes, and presenting them
in an organized way.
• Lower CASE tools: Used in the design,
implementation/testing, and support/maintenance stages of
the SDLC to automatically generate code, test for functionality
and defects, monitor implementation, and perform software
maintenance activities.
• Integrated CASE tools: Used in all the stages of the SDLC
from requirements gathering to testing and documentation.
Copyright ©2021 John Wiley & Sons, Inc.

Systems Development Tools and
Techniques: Code Generators
• A source code generator automatically generates common
application source code in any computer programming language,
for example, BASIC, VB, PHP, ASP, NET, SQL, C#, Java Script.
• A low-code development platform is software that provides
developers and nondevelopers with an intuitive graphical user
interface instead of a traditional computer programming
environment to create apps.

Software Development Methodologies:
Questions
1. Name the different types of systems development
methodologies.
2. What the is the main difference between the waterfall method
and the Agile method?
3. Why is it important for an organization to be flexible when
developing ISs?
4. Why is the concept of DevOps appealing to organizations?
5. How is RAD different from JAD?
6. What are the three classes of CASE tools?
7. What is a low-code development platform? What are its
advantages and disadvantages?
Copyright ©2021 John Wiley & Sons, Inc.

Learning Objectives (3 of 5)
Systems
Development

Monitoring/
Controlling
and Closing
Projects

Software
Development
Methodologies

Initiating,
Planning, and
Executing
Projects

Project,
Program and
Portfolio
Management

Project, Program and Portfolio Management
(PPPM)
• Project is a temporary endeavor undertaken to create a
unique product, service, or result.
• Program is a group of similar or related projects that
are managed and coordinated as a group.
• Portfolio is group of unrelated programs within an
organization that are managed holistically to achieve
strategic goals.

• Project, program and portfolio management occurs at different levels of
an organization’s hierarchy.
• Management of individual projects occurs at the operational level of an
organization.
• Programs are managed at the tactical level, and portfolio management is
an integral part of business strategy.

Project Management
• The discipline of using established principles,
procedures, and policies to successfully guide a project
from start to finish.
• A project is the lowest component in the hierarchy of
project, program and portfolio management (PPPM).
• Each project has a set time to start and a deadline for
completion.
• Project sponsor is a person or organization that
approves and/or supports the allocation of resources
for a project, defines its goals, and evaluates the
success of the project at completion.
Copyright ©2021 John Wiley & Sons, Inc.

Project success
Project success is becoming increasingly reliant on four
things:
• Engaged executive sponsors
• Projects aligned with organizational strategy
• Control over scope creep
• High project management technology quotient
(PMTQ): PMTQ is a person’s ability to adapt, manage,
and integrate technology based on the needs of the
project or the organization.

The Role of the Project Manager
• The project manager is the central point of contact in a
project.
• The project manager’s main responsibility is to manage
the triple constraint—scope, time, and cost—to meet
project objectives while ensuring project quality.
• Successful project management is not only built on
creating and managing systems and processes, but also
requires developing and maintaining strong
relationships with all project stakeholders.

Program Management
• Occurs at the tactical level of an organization
• A program is a group of related projects
• A program doesn’t always have a single, clearly defined
deliverable or timeline
• Managing related projects as a group in an overarching program
results in much better utilization of resources than a single
project.
• Benefits that an organization can realize from using a structured
approach to program management include increased synergy
between projects, optimal use of resources, less resource
constraints, improved communication through better
coordination among projects, and ultimately better business
performance.
Copyright ©2021 John Wiley & Sons, Inc.

The Role of Program Manager
• They provide oversight to ensure that each project in the
program is completed effectively and efficiently to produce
quality deliverables that meet stakeholder requirements.
• Their focus is on overseeing project work and resources in
projects that are currently in their program.
• This focus on current projects ensures work and resources are
moving between projects at the right time and that resource
needs of all projects are met.
• A project manager creates a master schedule to manage the
dependencies between project, a risk manager plan, and a
communication strategy to ensure that any changes that are
necessary.
Copyright ©2021 John Wiley & Sons, Inc.

Portfolio Management
• Occurs at the strategic level of the organization
• Is the centralized management of all projects currently
proposed, in progress, or planned for the future to
identify investment synergies, resource and budget
considerations between projects
• Looking at projects holistically enables executive
management to review portfolios and programs, to
determine which projects are or are not necessary, and
in what order they should be completed

The Role of the Portfolio Manager
Some of the responsibilities of the portfolio manager are
as follows:
• Map proposed projects to overall organization
objectives and strategies.
• Assess the value that a proposed project brings to the
company.
• Assess the complexity of proposed projects.
• Prioritize project proposals for project selection.
• Prioritize programs to keep up with changing business
strategies.
Copyright ©2021 John Wiley & Sons, Inc.

PPPM Frameworks
The two most widely used PPPM frameworks are:
• PMI® Project Management Body of Knowledge (PMBOK
6e):
• currently the definitive guide for managing projects of all
types.
• Developed in the United States by the PMI.

• PRINCE2 (PRojects IN a Controlled Environment):
• a project management methodology developed by the
Cabinet Office in the United Kingdom and currently
managed and developed by AXELOS

The Project
Triple Constraint
• Scope: The project scope is
the specification of what
the project is supposed to
accomplish—
• Time: A project is made up
of tasks. Each task has a
start date and an end date.
• Cost: This is the estimation
of the amount of money
that will be required to
complete the project.
Copyright ©2021 John Wiley & Sons, Inc.

Project, Program and Portfolio
Management: Questions
1. What distinguishes a project from day-to-day operations?
2. What are the differences between PPPM?
3. In what ways are the roles of project, program and portfolio
managers different?
4. What are the three components of the triple constraint?
5. What are the five phases in the project management life cycle?
6. Why is it important to use a structured project management
approach?

Learning Objectives (4 of 5)
Systems
Development

Monitoring/
Controlling
and Closing
Projects

Software
Development
Methodologies

Initiating,
Planning, and
Executing
Projects

Project,
Program and
Portfolio
Management

Project Initiation
• Business Case – Presentation or document that
outlines the justification for the start-up and funding of
a project
• Statement of Work (SOW) – Definitive statement that
defines the project plan, but does not offer any options
or alternatives in the scope
• Project Charter – Specifies scope, authority,
milestones, budget, source of funding for project
• Templates are often used to create many of the
project management documents, including the
business case, the SOW, and the project charter.
Copyright ©2021 John Wiley & Sons, Inc.

Project Planning
• Work Breakdown Structure (WBS)
Identifies all work or activities that need to be performed, the
schedule of work, and who will perform the work.
o Milestones are used to manage the project work effort,
monitor results, and report meaningful status to project
stakeholders.
o

• Risk Register
Lists all known risks and an estimation of risks that could
occur.
o Also lists the source of each risk, how you will respond to each
risk and the name of the person responsible for addressing
the risk.
o

Project Execution
• Gantt Chart
o

A horizontal bar chart that shows the timeline of the project
schedule showing start and finish dates of all milestones.

• Cost Estimation
o

Costs are not technically part of the WBS, but projects’
estimated cost can be calculated from the WBS using start
date and duration.

• Responsibility Matrix
o

Shows who has primary responsibility and who has support
responsibility for the activities listed in the WBS.

Learning Objectives (5 of 5)
Systems
Development

Monitoring/
Controlling
and Closing
Projects

Software
Development
Methodologies

Initiating,
Planning, and
Executing
Projects

Project,
Program and
Portfolio
Management

Project Monitoring: Status Report
• Prepared and reviewed to check on the progress of the
project
• Typically prepared once a week
• Can include a summary of the project status, work planned,
work completed, open issues, open risks, status of project
milestones and deliverables, open change requests, project
KPIs, schedule status and cost status

Project Controlling: Scope Creep
• Is the piling up of small changes that by themselves are
manageable but in aggregate are significant
• Contributes to overages in budget, deadline, and/or
resources
• Standard project management approaches reduce
scope creep

Project Monitoring: Integrated Change
Control
Process helps to manage the disruption resulting from
requested changes and corrective actions across the project
life cycle.
o Required to defend:
o

• Approved/rejected change requests
• Updates to the project plan/scope
• Approved corrective and preventive actions
• Approved/validated defect repair

Project Control: Critical Path Analysis
All projects have a critical path that extends the length of the project
and determines the shortest path along which all projects tasks must
be completed in order to finish the project.

Project
Monitoring
: Project
Baseline
Plan

When the project plan is finalized
and accepted, the accepted plan
becomes the baseline or master
plan.

The baseline is used for
monitoring and controlling.

Any change to the baseline is a
deviation, or variance, to the
plan—and it needs to be
documented.
Copyright ©2021 John Wiley & Sons, Inc.

Phase Five: Project Closing
• Project Closing or Postmortem
The enterprise and people who worked on the project benefit
from lessons learned.
o Post-project reviews, or post mortems, identify the reasons
the project was successful or not, strengths and weaknesses
of the project plan, how problems were detected and
resolved, and how the project was successful in spite of them.
o

Project Closing: Lessons Learned
1. Communication is King
2. Set Realistic and Detailed Project Plans with Adequate
Time and Resources
3. Encourage Timely Feedback and Be Willing to Listen
4. Manage Risk with Regular Project Status Reviews

Project Monitoring, Control, and Closing:
Questions
1. What processes help ensure that the impacts resulting from requested
changes and corrective actions are managed across the project life
cycle?
2. What happens when a task on the critical path is delayed?
3. What are the three attributes that must be managed effectively for
successful completion and closure of any project?
4. Why are lessons learned from a completed project identified?
5. Why is the evaluation of a project’s success or failure somewhat
subjective?
6. What are three best practices to keep projects on track?
7. Why are IT projects high susceptible to scope creep?
8. Why is it important for an organization to have a high PMTQ? And, how
can they maintain it?
Copyright ©2021 John Wiley & Sons, Inc.

Copyright
Copyright © 2021 John Wiley & Sons, Inc.
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or from the use of the information contained herein.

IT for Management: On-Demand Strategies for
Performance, Growth, and Sustainability
Twelfth Edition
Turban, Pollard, Wood

Chapter 14
IT Ethics and Local and Global
Sustainability

Learning Objectives (1 of 3)
An Introduction to
Ethics

ICT and Global
Sustainability

ICT and Local
Sustainability

An
Introduction
to Ethics

Ethics are the values and
customs of a particular
group that identify what is
considered right and what
is considered wrong.
Ethical behavior is acting
in ways consistent with the
accepted values of society
and individuals.
Copyright ©2021 John Wiley & Sons, Inc.

Code of Ethics
• Code of ethics is a set of principles and rules used by individual
and organizations to govern their decision-making process, as
well as to distinguish right from wrong.
• It has two main purposes:
1.
2.

serves as an internal guide and
as an external statement of an organization’s values and
commitments.

• A company’s code of ethics should:
• Show employees the company operates in a responsible way
• Show customers that the company values integrity
• Prevent unintentional violations of ethical behavior
• Provide a clear point of reference if enforcement of corrective action
is necessary
Copyright ©2021 John Wiley & Sons, Inc.

IT Professionals’ Code of Ethics
Examples of IT-related professional associations:
• Association of IT Professionals (AITP) Code of Ethics and
Standards of Conduct
• Project Management Institute (PMI) Code of Ethics and
Professional Conduct
• Society of Information Management (SIM) Code of Conduct
• American Medical Informatics Association (AMIA) Code of
Professional Ethical Conduct
• Australian Computer Society Code of Ethics
• British Computer Society Code of Conduct and Practice
• Computer Society of South Africa Code of Ethics
Copyright ©2021 John Wiley & Sons, Inc.

Developing
an Ethics
and
Compliance
Program

• To formalize the process,
every organization should
have an ethics and
compliance program that
ensures:
1. Comprehensive
reporting,
2. Clear accountability,
and
3. Full and effective
oversight by top
management
Copyright ©2021 John Wiley & Sons, Inc.

Comprehensive Reporting
• Sarbanes–Oxley Act (SOX) mandates more accurate business
reporting and disclosure of violations and advocates “an
organizational culture that encourages ethical conduct and a
commitment to compliance with the law” as a precondition to
the establishment of “effective compliance and ethics”
programs.
• Section 302 of the SOX requires that the CEO and CFO verify that
they have reviewed the financial report, and, to the best of their
knowledge, the report does not contain an untrue statement or
omit any material fact.
• Executive management faces criminal penalties including long jail
terms for false reports.

• SOX requires companies to set up comprehensive internal
controls.
Copyright ©2021 John Wiley & Sons, Inc.

Accountability
• Employees must be aware of what is expected of them
with respect to their interactions with corporate
computer resources and of the enforcement and
consequences they will face if they engage in unethical
behavior.
• Every individual who works with an information system
should be assigned specific roles and responsibilities.
• Once implemented, it is imperative that a company
strictly applies with its provisions.

An enterprise-wide approach that combines
risk, security, compliance, and IT specialists
greatly increases the prevention and detection
of ethical infringements.

Full and
Effective
Oversight

It starts with corporate governance, culture,
and ethics at the top levels of the organization.

IT can play an important role in a company’s
efforts to ensure full and effective oversight.

A strong board of directors is another effective
tool for governance of an organization’s ethics
and compliance and program.

Ethics Training in the Workplace
• Workplace ethics training helps build strong teams, foster
professionalism, and increase productivity at work.
• Ethics training can range from a simple conversation with an HR
professional or a full-blown training program that discusses
potential ethical dilemmas that an employee may encounter in
the workplace such as customer privacy, employee and
customer data protection, fraud, customer relations, and general
employee behavior and presents the best course of action in
each situation.
• Reporting of unethical behavior:
• Whistleblower is an employee, supplier, contractor,
client, or any other individual who has and reports
insider knowledge of illegal activities occurring in an
organization.
Copyright ©2021 John Wiley & Sons, Inc.

IT-Related Unethical Behavior
• Unethical behavior is an action that is not considered
morally right or proper carried out by a person, a
profession, or an industry.
• Unethical behavior can lead to very serious
consequences that can cost a company time and
money in trying to repair their reputation, cost millions
of dollars and even prison time, and adversely affect its
sustainability.

Whitelisted
Apps vs
Blacklisted
Apps

Whitelisted apps is an
approved app or executable
file that is permitted to be
present and active on a
computer system.
Blacklisted apps is a
malicious app that mimics a
reputable, highly
downloaded app.

Tech-Savvy
Individuals
and
Scalpers
Exploit
Artificial
Intelligence

• Artificial intelligence (AI) was designed to
make our lives better and more efficient,
but that is not always the case.
• Tech-savvy individuals create macros,
which are computing apps that allow
users to input one instruction that
coincides with a long list of instructions
to be completed automatically by the
program, to instantly and automatically
buy as many tickets to popular events
and shows as possible.
• Acting alone or in collaboration with
“scalpers,” they resell the tickets at
immensely inflated prices since the
original tickets are sold out.

Distracted Driving
• At any given time, approximately 660,000 Americans
are using or manipulating an electronic device while
driving.
• The delay in a driver’s reaction time when using a
hand-held or hands-free cell phone is equivalent to
that of a person with a 0.08% blood alcohol
concentration.
• In 2019, the Department of Transportation reported
that texting while driving is a primary or contributing
factor in as many as 16% of all police-reported traffic
accidents, 58% of crashes involving teen drivers, and
14% of fatal crashes.
Copyright ©2021 John Wiley & Sons, Inc.

Additive
Manufacturing
Dilemmas (3D
Printing and
Bioprinting)

• Despite benefits, the medical
application of bioprinting to
produce living tissue and organs is
expected to spark major ethical
debates about whether lives are
being saved or redefined.
• Unfortunately, 3D printers can
exert impacts on the environment
worse than those of standard
manufacturing.
• Despite the ethical challenges it
poses, the use of 3D printing is
growing.
Copyright ©2021 John Wiley & Sons, Inc.

Insider
Fraud

• Insider fraud is a term that refers
to a variety of criminal behaviors
perpetrated by an organization’s
employees or contractors against
an employer.
• Fraud is a nonviolent crime using
deception, confidence, and
trickery to secure resources for
personal gain.
• Computer-related fraud is the use
of computers, the Internet, and
other IT devices to defraud people
or organizations of resources.
Copyright ©2021 John Wiley & Sons, Inc.

Why
Fraud
Occurs

• Fraud occurs because internal
controls to prevent insider fraud—
no matter how strong—will fail on
occasion.
• Fraud risk management is a
system of policies and procedures
to prevent and detect illegal acts
committed by managers,
employees, customers, or business
partners against a company’s
interests.
• Analyzing why and how fraud
could occur is as important as
detecting and stopping it.
Copyright ©2021 John Wiley & Sons, Inc.

Fraud Prevention and Detection
• Designing effective fraud response and litigation-readiness
strategies (post-incident strategies) is crucial to be able to do the
following:
• Recover financial losses.
• Punish perpetrators through lawsuits, criminal charges, and/or
forfeited gains.

• Stop fraudsters from victimizing other organizations.

• Trying to keep fraud hidden can mean either doing nothing or
simply firing the employee.
• These approaches to dealing with fraud are not sustainable
because they erode the effectiveness of fraud prevention
measures and produce a moral hazard, that is, they take the risk
out of insider fraud.
Copyright ©2021 John Wiley & Sons, Inc.

Internal Controls
Strong internal controls, which depend on IT for their
effectiveness, consist of the following:
• Segregation of duties
• Job rotation
• Oversight Management
• Safeguarding of assets
• IT policies—understand your IS

Regulatory Controls
Foreign Corrupt
Practices Act (FCPA)

Consumer Protection
Act

Federal Sentencing
Guidelines

Dodd-Frank Wall Street
Reform and Consumer
Protection Act

UK Bribery Act of 2010

Federal Trade
Commission (FTC) Social
Media Guidelines for
Financial Institutions

Federal Financial
Institutions Examination
Council (FFIEC)

• Employers use social media for multiple
reasons: to engage employees, to share
knowledge among employees, and for
recruitment and hiring of new employees.

Discrimination
in Social Media
Recruiting

• Engaging in unethical and illegal social media
snooping that results in bias when recruiting
new hires is known as social media
discrimination.
• There is a fine line between ethical
microtargeting, a marketing strategy that
uses consumer data and demographics to
create targeted subsets or market segments,
and unethical social media discrimination
that uses protected class information to vet
individual candidates and puts employers in
jeopardy of breaking the law.

Unethical and Illegal Practices in Social
Media Recruiting
• Career Builder reports that 70% of employers are using
social media to vet their recruiting prospects
• Some of these result in bias and social media
discrimination making social media a hotbed for
recruiting discrimination
• Negligent hiring is the hiring of an employee when the
employer knew or should have known about the
employee’s background which, if known, indicates a
dangerous or untrustworthy character.

Civil
Rights
and
Protected
Classes

Civil rights are the rights of citizens
to political and social freedom and
equality.

Protected class is a group of people
with characteristics that cannot be
targeted for discrimination and
harassment such as age, race,
disability, gender, marital status,
national origin, genetic
information, and religion.
Copyright ©2021 John Wiley & Sons, Inc.

Proving Social Media Discrimination
• Unlike data privacy cases, social media discrimination is
not always obvious, and it is much more difficult to
prove.
• When companies violate privacy regulations that their
customers rely upon, these are clear-cut cases that are
relatively easy to detect and prosecute.
• If a company uses social media photos and postings to
piece together a profile of a person’s age, religion, or
genetic condition and rejects them based on what they
found, the company has committed social media
discrimination and is very likely in violation of other
laws.
Copyright ©2021 John Wiley & Sons, Inc.

Providing a Secure and Respectful
Workplace: Company Responsibilities
• Being intolerant of disrespectful, untrustworthy,
hostile, or bullying behavior
• Setting clear expectations of respectful behavior
• Responding to ideas, concerns, complaints, and
feedback with empathy, fairness, dignity, and respect
• Offering an ethics training program
• Offering a formal conflict resolution process
• Setting up ethics, fraud, and whistleblower hotlines for
anonymous reporting of unethical behavior
Copyright ©2021 John Wiley & Sons, Inc.

Providing a Secure and Respectful
Workplace: Employee Responsibilities
• Treat each other with respect and consideration
• Act inclusively
• Value others
• Accept differences in other people
• Recognize the efforts and achievements of others
• Consider impact of their behavior on others
• Report unethical behavior

An Introduction to Ethics: Questions
1.

What are the three tenets of ethical behavior?

Why is it important for a company to have a code of ethics?

What are three ways in which the production, development, and use of IT is
causing unethical behavior?

Name three protected classes.

How is social media depriving protected classes of their civil rights?

Why is it important that a company provide its employees with a secure and
respectful workplace?

What types of behavior can a secure and respectful workplace help deter?

What is insider fraud? What are some other terms for insider fraud?

What four factors increase the risk of fraud?

10. What is the difference between social media discrimination and negligent
hiring?
Copyright ©2021 John Wiley & Sons, Inc.

Learning Objectives (2 of 3)
An Introduction to
Ethics

ICT and Global
Sustainability

ICT and Local
Sustainability

ICT and Local Sustainability
Sustainability is the ability to create and maintain conditions that
enable humans and nature to exist in productive harmony to support
present and future generations.

Three Facets
of
Sustainability
Interactions

• Fair trade means pricing products and
services in an affordable and equitable
manner, providing employees with
decent working conditions in all
locations, and offering fair terms of trade
to farmers and workers in developing
countries.

• Eco-efficiency involves the creation of
more and better goods and services
while using fewer resources and creating
less waste and pollution.
• Environmental justice focuses on the fair
treatment and meaningful involvement
of all people regardless of race, color,
national origin, or income with respect to
the development, implementation, and
enforcement of environmental laws,
regulations, and policies.
Copyright ©2021 John Wiley & Sons, Inc.

The Triple Bottom Line and Sustainable
Development
• Triple bottom line is a process by which companies
manage their financial, social, and environmental risks,
obligations, and opportunities.
• Sustainable development is an initiative to create longterm stakeholder value through implementing a
business strategy focused on doing business in an
ethical, social, environmental, cultural, and
economically responsible way.

Sustainable Development Programs
Benefits
Acquisition and retention of sustainability-conscious customers
Attraction and retention of socially responsible investors
More dedicated sustainability-conscious employees

Attraction and retention of sustainability-conscious talent
Short-term and long-term cost savings
Increase in market share through building a brand image based on
sustainability
Copyright ©2021 John Wiley & Sons, Inc.

Profits: “Green IT” Trumps Greenbacks
• Sustainable profitability for a business means that an
organization provides a service or product that is both
profitable and environmentally friendly.
• There is a common misconception that focusing on
expensive “green” initiatives means that profits must
suffer.
• Researchers at the Massachusetts Institute of
Technology refute this claim.
• Efficient use of IT and more specifically information
communications technology (ICT) can be an important
enabler in ensuring sustainable profits.
Copyright ©2021 John Wiley & Sons, Inc.

People:
Preservin
g Quality
of Life

• Quality of life is the general wellbeing of individuals and societies,
including physical health, family,
education, employment, wealth,
safety, religious beliefs, and the
environment.
• The six elements of quality of life that
information technology impacts in
positive and negative ways are:
• communications
• relationships
• work–life balance
• healthcare
• education, and
• travel
Copyright ©2021 John Wiley & Sons, Inc.

ICT and Local Sustainability: Questions
1. What is the triple bottom line?
2. How does ICT affect the profits of a company?
3. Why would a company want to become sustainable?
4. What are the six aspects of quality of life?
5. How does the use of ICT impact communications?
6. Why would you purchase an electric vehicle?

Learning Objectives (3 of 3)
An Introduction to
Ethics

ICT and Global
Sustainability

ICT and Local
Sustainability

ICT and
Global
Sustainability
• Being profitmotivated without
concern for damage
to the planet is
unacceptable.
• To protect the
planet, the four “Rs”
of environmental
sustainability must
be judiciously
applied to air,
energy, waste,
water, and
biodiversity around
the globe.

Climate Change (Global Warming)
• Global warming is the upward
trend in the global mean
temperature (GMT).
• Greenhouse gas (GHG) emissions
are carbon dioxide, methane,
nitrous oxide, and other chemical
compounds that trap and hold
heat in the atmosphere by
absorbing infrared radiation.
• Greenhouse effect is the holding
of the heat of the sun within the
earth’s atmosphere.

ICT and Climate Change
• Analysis conducted at McMaster University:
At the current rate, the IT sector’s carbon footprint of roughly
1.5% in 2007 could grow to more than 14% by 2040 because
of increased use of tablets, smartphones, apps, and services
and the exponential growth of the IT industry.
o Among all devices, trends suggest that by 2020, smartphones
will be the most damaging devices to the environment.
o The IT infrastructure accounts for most of the IT industry
impact growing from 61% in 2010 to 79% in 2020.
o

Climate Change Mitigation
• Carbon footprint is the amount of carbon dioxide and other
carbon compounds emitted due to the burning of fossil
fuels by a person, group, organization, or country.
• Climate change mitigation is any action to limit the
magnitude of long-term climate change.
• Network service providers also must reduce energy use to
decrease their carbon footprint.
• The Internet is the largest network in the world. It produces
a huge amount of GHGs required for the manufacture and
shipping of servers, computers and smartphones and in
powering and cooling them throughout their useful life and
in transmitting the data they carry.
Copyright ©2021 John Wiley & Sons, Inc.

Formal Climate Change Initiatives and
Agreements
• Along with tax incentives and subsidies to targeted
industry sectors, several local and international groups
have developed initiatives to guide the use of
technology to achieve sustainability goals:
a. The Global e-Sustainability Initiative (GeSI)
b. The Climate Group’s SMART 2020 Report
c. The Paris Climate Pact

ICT and Sustainability in Developing
Countries
• Developing countries are faced with several unique and
particularly disturbing health, social, and economic
sustainability issues impacted by climate change and
can benefit from the use of ICT solutions.
• These include:
• access to clean water and sanitary conditions
• food security, and
• unsustainable agriculture

Access to Clean Water and Sanitary
Conditions
• The United Nations estimate that by 2030 the global population will
suffer from a 40% shortage in water resources needed for drinking,
washing, cooking, and maintain sanitation systems.
• The lack of clean drinking water is of particular concern in Africa
• Clean water and personal hygiene go hand in hand. It’s hard to believe
that more people have a smartphone than have toilets!
• Sustainability Goal 6 of the UN Development Program is “Clean Water
and Sanitation” and commits to ensuring the availability and
sustainable management of water and sanitation worldwide, including
an end to open defecation by 2030.
• ICT is playing a pivotal role in reaching this goal by combining physical
infrastructure, data management, and communication technologies in
new and innovative ways.
Copyright ©2021 John Wiley & Sons, Inc.

The Current State of Food Security

Examples of ICT-supported Food Security
Initiatives
• Sugar cane farmers in Kenya increased their average yield by almost 12% as a
result of receiving personalized SMS on their smartphones advising them to
complete certain tasks in the fields.
• Farmers in Uganda increased their crop revenues by as much as 55% when
they received price information via radio.
• Food was made more affordable for consumers in Niger when grain prices
were reduced by 10–16% after grain traders started to use smartphones to
call them to search for price information over larger areas and see their
grains in more markets.
• In Africa, to increase human and animal welfare, provide regional and local
food security and conserve the environment, the Infonet-Biovision
Information Platform provides farmers and rural communities with validated
information and knowledge from local experts and international scientists on
crop, animal, human, and environmental health.
Copyright ©2021 John Wiley & Sons, Inc.

Lack of Technical
Infrastructures
Barriers to ICT
Acquisition,
Implementation,
and Use in
Developing
Countries

Inadequate STEM (Science,
Technology, Engineering,
and Math) Education
Scarcity of ICT Policies and
Regulations
Copyright ©2021 John Wiley & Sons, Inc.

Taking a
PeopleFirst
Approach
to
Technology

People-first approach ensures
that technology meets the
needs of users by involving the
users at every stage of systems
development.
Tech-clash is the love/hate
relationship technology users
experience when they perceive
the business value of technology
is not aligned with their personal
values, expectations, and needs.
Copyright ©2021 John Wiley & Sons, Inc.

Sustaining Business in a Post-COVID-19
World
• The COVID-19 pandemic has made ICT more relevant
than ever before.
• The use of digital payments, telehealth, AI, and
robotics, for example, has accelerated sharply during
2020 to help businesses stay open and reduce the
spread of the virus.
• To sustain business during and after the COVID-19
pandemic, companies will have to embrace more and
more of these disruptive technologies.

Top Five Disruptive Technologies: 1 to 3
• TREND 1: The I in Experience
o

To be successful in the future, companies will have to build
personalized, interactive, and shared virtual communities to allow
customers to create their own meaningful digital experience.

• TREND 2: AI and Me
o

Investing in AI and other tools that enable a true partnership between
humans and AI will allow business to reimagine their work and workforce
in the future.

• TREND 3: The Dilemma of Smart Things
o
o

Companies must consider how they can introduce new features and
repurpose smart devices to fight the COVID-19 pandemic.
They must also consider privacy issues related to data collection, storage,
and use, and companies and governments will need to ensure they
operate within strict privacy guidelines to maintain customer confidence.
Copyright ©2021 John Wiley & Sons, Inc.

Top Five Disruptive Technologies: 4 and 5
• TREND 4: Robots in the Wild
o

As more people stay home and distancing becomes the new
normal, robots are more critical in business and society than
ever.
This “contact-less” solution is already helping frontline
workers fight the virus, and anti-virus robots that can
sanitize surfaces and scan for fevers among patients and the
public are being enabled by ultraviolet bars and infrared
cameras.

• TREND 5: Innovation DNA
o

Innovation DNA trend includes three different areas: mature
digital technologies, scientific advancements, and emerging
technologies.
Copyright ©2021 John Wiley & Sons, Inc.

ICT and Global Sustainability: Questions
1.

What is the greenhouse effect?

Why do some experts warn that carbon emission reductions of 45% are necessary by
2030? How does the use of mobile devices contribute to the level of GHGs?

What is ICT’s role in global warming?

What are the three major sustainability issues in developing countries?

How can developing countries benefit from being sustainable?

What are the three major categories of barriers to ICT adoption in developing
countries?

Which continents are most at risk from lack of food security?

How is blockchain technology being used to reduce poverty and help clean up our
oceans?

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

10. What is the next biggest challenge companies currently face with respect to ICT and
sustainability amid the COVID-19 pandemic?
11. What disruptive technologies could our company use to address the challenges of the
COVD-19 pandemic?
Copyright ©2021 John Wiley & Sons, Inc.

Module 13: Systems Development and Project Management and
IT Ethics, Privacy, and Sustainability
Discussion Question
Question Requirements:
Project Management
You are the project manager and need to compose an SOW for clients who want you to develop a
Kickstarter.com site for their project, as discussed in the chapter.
1. Start off by composing an SOW using a standard SOW template that you found and
downloaded from the Internet. Use Tom’s Planner ( or other
free Gantt chart software to create a Gantt chart for your project. Share your Gantt chart for
the project as an attachment and as an image – discuss how a Gantt chart can improve
projects that you work on.
2. Assume that after your clients review your SOW and Gantt chart, they request that you
discount the price 20%. Based on the triple constraints, discuss how you would respond?
Directions:
• Discuss the concepts, principles, and theories from your textbook. Cite your textbooks and
cite any other sources.
• Write a discussion that includes an introduction paragraph, the body, and a conclusion
paragraph to address the assignment’s guide questions.
• Your initial post should address all components of the question with a 600-word limit.

Learning Outcomes
1. Examine the importance of the Systems Development Life Cycle (SDLC) to the
organization.
2. Compare and contrast different systems development methodologies.
3. Identify the tools utilized in project management.
Readings
Required:
• Chapter 13 in Information Technology for Management: On-Demand Strategies for
Performance, Growth, and Sustainability
• Syed, R., Bandara, W., & Eden, R. (2023). Public sector digital transformation
barriers: A developing country experience. Information Polity: The International
Journal of Government & Democracy in the Information Age, 28(1), 5–
27.
• View the following videos:
• Chapter 13 Whiteboard Animation Videos, part 1
• Chapter 13 Whiteboard Animation Videos, part 2
• Chapter 13 Whiteboard Animation Videos, part 3
Recommended:
• Chapter 13 PowerPoint Presentation

Information Technology
for Management
On-Demand Strategies for Performance,
Growth and Sustainability

Eleventh Edition

Information Technology
for Management
On-Demand Strategies for Performance,
Growth and Sustainability

Eleventh Edition

EFRA IM T U RB AN
C A ROL P OLLAR D
Appalachian State University

GREGORY W OOD
Canisius College

VP AND EDITORIAL DIRECTOR
EXECUTIVE EDITOR
EDITORIAL ASSISTANT
EDITORIAL MANAGER
CONTENT MANAGEMENT DIRECTOR
CONTENT MANAGER
SENIOR CONTENT SPECIALIST
PRODUCTION EDITOR
PHOTO RESEARCHER
COVER PHOTO CREDIT

Mike McDonald
Lise Johnson
Ethan Lipson
Judy Howarth
Lisa Wojcik
Nichole Urban
Nicole Repasky
Loganathan Kandan
Billy Ray
© 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)
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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.
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back cover is correct.

Brief Contents
PREFACE

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

xiii

ACKNOWLEDGMENTS

xviii

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

Disruptive IT Impacts Companies,
Competition, and Careers 1

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

Data Management, Data Analytics,
and Business Intelligence 65

4
5

Networks, Collaborative Technology,
and the Internet of Things 101
Cybersecurity and Risk Management
Technology 127

PART 2 Winning, Engaging, and Retaining
Consumers for Growth
6
7

Search, Semantic, and Recommendation
Technology 165
Web 2.0 and Social Technology

199

PART 3 Optimizing Performance, Processes,
and Productivity
9 Functional Business Systems 269
10

Enterprise Systems 300

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

Systems Development and Project
Management 385

IT Ethics, Privacy, and Sustainability 417

GLOSSARY 443
ORGANIZATION INDEX
NAME INDEX 450
SUBJECT INDEX 451

448

Contents
PREFACE

xiii

ACKNOWLEDGMENTS

xviii

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

1 Disruptive IT Impacts Companies,
Competition, and Careers

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

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
vi

IS Concepts and Classification

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

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

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

CONT E N TS

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

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

5.1

4 Networks, Collaborative

Technology, and the Internet
of Things 101

4.1

4.2

Network Fundamentals 104
Network Types 104
Intranets, Extranets, and Virtual Private
Networks 105
Network Terminology 105
Functions Supported by Business Networks
Quality of Service 107
Internet Protocols (IP), APIs, and Network
Capabilities 109

106

127

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

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

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

vi i

5.2

5.3

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

viii

CO NT EN TS

7 Web 2.0 and Social

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

Technology

199

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

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

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 6.3 Video Case: Power Searching with
Google 196

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

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

CONT E N TS

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 Splitsecond Decisions 297
Case 9.3 Video Case: United Rentals Optimizes Its
Workforce with Human Capital Management

10 Enterprise Systems

298

300

Case 10.1 Opening Case: 3D Printing Drives the “AlwaysOn” 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

CONT ENTS

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 CompanyOwned Offshoring 383

13 Systems Development and Project
Management

385

Case 13.1 Opening Case: Denver International Airport
Learns from Mistakes Made in Failed BaggageHandling 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

CONT E N TS

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
NAME INDEX 450
SUBJECT INDEX 451

448

Preface
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 ondemand economy. Our goal is to provide students from any
business discipline with a strong foundation for understanding 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:

has applied her innovative teaching and learning techniques to
create a stronger pedagogical focus and more engaging format
for the text.

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

Strong Pedagogical Approach To encourage improved learning 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 learning 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.

• 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 sustaining business profitability and growth in today’s ondemand economy. They play a critical role in managing
projects and sourcing agreements, respecting personal privacy, 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 discuss concepts in a comprehensive yet easy-to-understand format 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 Information Systems at the Walker College of Business and former
Executive Director of the Center for Applied Research in Emerging Technologies (CARET) at Appalachian State University in
North Carolina, has taken the helm for the 11th edition. Carol

Diverse Audience IT for Management is directed toward
undergraduate, introductory MBA courses, and Executive Education 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.

Leading-Edge Content Prior to and during the writing process, 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, experiences, 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, geocoding, systems developments methodologies, including Waterfall, 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. Collectively, these tools and techniques equip readers with a suite of
IT tools that will be useful in their university classes, workplace,
and personal life.
xiii

xiv

PR EFAC E

Engaging Students
to Assure Learning

• IT at Work boxes spotlight real-world cases and innovative uses of IT.

The 11th edition of Information Technology for Management
engages students with up-to-date coverage of the most important IT trends today. Over the years, this IT textbook has distinguished itself with an emphasis on illustrating the use of
cutting-edge business technologies for supporting and achieving managerial goals and objectives. The 11th edition continues this tradition with more interactive activities and analyses.

• Tech Note boxes explore topics such as “Key
Performance Indicators” and “Six Basic Systems
Development Guidelines.”

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 animations 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 functionality and assets offered throughout the 11th edition. The interactive figures actively engage the students in their own learning
to effectively reinforce concepts.

• Definitions of Key Terms appear in the margins
throughout the book.

• Career Insight boxes highlight different jobs in the IT
for management field.
End-of-Chapter Activities At the end of each chapter,
features designed to assure student learning include the
following:
• Critical Thinking Questions are designed to facilitate
student discussion.
• Online and Interactive Exercises encourage students
to explore additional topics.
• Analyze and Decide questions help students apply IT
concepts to business decisions.
• Concept Questions test students’ comprehension of
each learning objective at the end of each chapter to
ensure that the students are clear on the concepts.
Students are provided with immediate feedback on
their performance.

Learning Aids Each chapter contains various learning aids,
which include the following:

Details of New and Enhanced
Features of the 11th Edition

• 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.

The textbook consists of 14 chapters organized into four modules. All chapters have new or updated sections, as shown in
Table P-1.

TA BL E P- 1

Overview of New and Expanded Topics and Innovative Enterprises Discussed in the Chapters

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 Architecture, 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

PRE FAC E

TA BLE P- 1

Overview of New and Expanded Topics and Innovative Enterprises Discussed in the Chapters (continued)

Chapter

New and Expanded IT and Business Topics

Innovative Enterprises

3. Data Management, Data
Analytics, and Business
Intelligence

• Dirty data costs and consequences

• Coca-Cola

• Data life cycle

• Capitol One

• Genomics and big data

• Travelocity

• Aligning business intelligence with business strategy

• First Wind
• Argo Corporation
• Walmart
• Infinity Insurance
• DoD and Homeland Security
• CarMax
• McDonald’s
• Verizon

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

• IPv6 protocol

• Sony

• Types of networks

• AT & T

• Network terminology

• Time-Warner

• Quality of service

• Amazon

• Net neutrality

• Warner Music

• Mobile networks and near-field communication

• Proctor & Gamble

• Internet of Things

• Walmart
• Ford
• Asda
• Unilever
• Caterpillar
• Santander
• Google
• Isle of Man

5. Cybersecurity and Risk
Management Technology

6. Search, Semantic, and Recommendation Technology

• Data breaches

• Yahoo

• Major sources of cyberthreats

• Global Payments, Inc.

• Classes of hackers

• Government of China

• Spear phishing

• Google

• Crimeware categories

• U.S. Chamber of Commerce

• Denial of service

• Brookings Institution

• KPMG data loss barometer

• LinkedIn

• Enterprise risk management framework

• Damballa

• Social search technologies

• Mint.com

• Personal assistant and voice search

• Google

• Mobile search and mobile SEO

• Microsoft

• On-page and off-page SEO factors

• Yahoo

• Updates to Google’s ranking algorithm

• Netflix

• Semantic search technologies

• Apple
• Amazon
• Diigo
• World Wide Web Consortium (W3C)

(continued)

xvi

PR EFAC E

TA BL E P- 1

Overview of New and Expanded Topics and Innovative Enterprises Discussed in the Chapters (continued)

Chapter

New and Expanded IT and Business Topics

Innovative Enterprises

7. Web 2.0 and Social Technology

• Snapchat, the #2 social platform

• KLM Royal Dutch Airlines

• Social bookmarking

• Facebook, Inc.

• Social customer service moves from optional
to essential

• Myntra

• Role of APIs in development of new Web applications
and functionality

• Kickstarter.com

• The dominance of Facebook and the demise
of Google+
• Emerging virtual-world technology

• Snap, Inc.
• GoFundMe.com
• Oculus VR
• High Fidelity
• Twitter
• Social Mention
• Diigo
• Clipix
• Dropbox

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

• Direct and marketplace B2B ecommerce

• Macys Department Stores

• In-store retail technology

• Amazon.com

• Omni-channel retailing

• Ally Bank

• Growth of mobile commerce

• LinkedIn.com

• Growth of the mobile gaming market

• Alibaba.com

• Mobile payment methods

• Dell, Inc.

• Mobile visual search

• The Walt Disney Company
• PayPal, Inc.
• Chegg.com

9. Functional Business Systems

• Business management systems

• Ducati Motor Holding S.p.A.

• Cross-functional coordination and integration
of systems

• Office Depot

• Systems that support supply-chain management

• BAE Systems

• Social customer service
• eXtensible Business Reporting Language (XBRL)

• Schurman Fine Papers
• Adweek
• Salesforce.com
• LinkedIn
• HSBC Bank
• United Rentals

10. Enterprise Systems

• 3D printing impact on supply chain

• Organovo

• Selecting an ERP vendor

• Ferrari

• Factors for ERP success

• GE

• Order fulfillment

• Siemens

• Always-on supply chain

• Organic Valley Family of Farms

• Enterprise social platforms

• Boers & Co.
• Peters Ice Cream
• ScanSource
• Avanade
• Dillards
• FoxMeyer Drugs
• Joint Munitions Command
• Flower.com
• Red Robin
• Lowe’s
• Procter & Gamble

PR E FACE

TA BLE P- 1

xvii

Overview of New and Expanded Topics and Innovative Enterprises Discussed in the Chapters (continued)

Chapter

New and Expanded IT and Business Topics

Innovative Enterprises

11. Data Visualization and
Geographic Information
Systems

• Increasing reliance on data discovery

• Safeway

• Data visualization tools

• PepsiCo

• Enterprise data mashups

• IBM

• Geocoding

• ADP Corp.
• Department of Veterans Affairs
• General Motors

12. IT Strategy, Sourcing, and
Strategic Technology Trends

• Business–IT alignment

• Intel

• IT strategic planning

• Nestle Nespresso

• Porter’s competitive forces model

• LinkedIn

• Porter’s value chain model

• ESSA Academy

• Five-phase outsourcing life cycle

• Cisco

• IT sourcing strategies

• Citigroup

• Strategic technology trends
• Technology scanning

13. Systems Development and
Project Management

• SDLC stages

• Denver International Airport

• Systems development methodologies

• U.S. Census Bureau

• DevOps

• Apple

• Project management framework

• Mavenlink

• PM core and support knowledge areas
• Responsibility matrix

14. IT Ethics, Privacy, and
Sustainability

• Ethical vs. unethical behavior

• Google

• Privacy paradox

• Target

• Climate change

• Facebook

• Technology addiction

• SnapChat

• “People-first” approach to technology

• NASA

• Disruptive technologies

• Apple

Supplemental Materials
An extensive package of instructional materials is available
to support this 11th edition. These materials are accessible
from the book companion website at www.wiley.com/college/
turban.
• Instructor’s Manual The Instructor’s Manual presents
objectives from the text with additional information to make
them more appropriate and useful for the instructor. The
manual also includes practical applications of concepts,
case-study elaboration, answers to end-of-chapter questions, questions for review, questions for discussion, and
Internet exercises.

• Test Bank The test bank contains over 1,000 questions and problems (about 75 per chapter) consisting of
multiple-choice, short answer, fill-ins, and critical thinking/
essay questions.
• PowerPoint Presentation A series of slides designed
around the content of the text incorporates key points from
the text and illustrations where appropriate.
• Chapter Summary Whiteboard Animations A series of
video animations that summarize the content of each chapter
in an entertaining way to engage the students in grasping the
subject matter.

xviii

PR EFAC E

Acknowledgments
No book is produced through the sole efforts of its authors, and
this book is no exception. Many people contributed to its creation, both directly and indirectly, and we wish to acknowledge
their contributions.
Special thanks go to the team at John Wiley, particularly
Darren Lalonde, Emma Townsend-Merino, Ethan Lipson, and
Loganathan Kandan for their ongoing and encouraging editorial expertise and leadership. Their guidance, patience, humor,
and support during the development and production of this
most recent version of the textbook made the process much
easier. We couldn’t have done it without you!
Our sincere thanks also go to the following reviewers of the
11th edition. Their feedback, insights, and suggestions were
invaluable in ensuring the accuracy and readability of the book:
Joni Adkins, Northwest Missouri State University
Ahmad Al-Omari, Dakota State University
Rigoberto Chinchilla, Eastern Illinois University
Michael Donahue, Towson University
Samuel Elko, Seton Hill University
Robert Goble, Dallas Baptist University
Eileen Griffin, Canisius College
Binshan Lin, Louisiana State University in Shreveport
Thomas MacMullen, Eastern Illinois University
James Moore, Canisius College
Beverly S. Motich, Messiah College
Barin Nag, Towson University

Luis A. Otero, Inter-American University of Puerto Rico,
Metropolitan Campus
John Pearson, Southern Illinois University
Daniel Riding, Florida Institute of Technology
Josie Schneider, Columbia Southern University
Derek Sedlack, South University
Eric Weinstein, The University of La Verne
Patricia White, Columbia Southern University
Gene A. Wright, University of Wisconsin–Milwaukee
Many thanks also go to our dedicated graphic designers,
Kevin Hawley and Nathan Sherrill, without whose help we
would not have been able to create the innovative Whiteboard
Animations, and to Senior Photo Editor, Billy Ray, whose extensive and expert research into the images used in the textbook
greatly enhanced the overall “look” of this 11th edition.
Extra special thanks go to our families, friends, and colleagues for the enormous encouragement, support, and understanding they provided as we dedicated time and effort to
creating this new edition.
Finally, we dedicate the 11th edition of Information
Technology for Management to the Memory of Dr. Linda
Volonino, the driving force behind editions 7 through 10 of IT
for Management. Thank you Linda, for all your hard work in
providing the foundation for this latest edition of the textbook.
CAROL POLLARD
GREGORY WOOD

CHAPTER 1
Disruptive IT Impacts Companies,
Competition, and Careers
CHAPTE R O UT L INE

L E A R N I NG O BJE CTI VE S

Case 1.1 Opening Case: Uber, Airbnb, and the
On-Demand Economy
1.1 Doing Business in the On-Demand Economy

1.1 Describe how the on-demand economy is changing the way
that business is conducted.

1.2 Business Process Improvement and
Competitive Advantage

1.2 Explain the role of IT in business process improvement.
Understand the concepts of business process reengineering
and competitive advantage.

1.3 IT Innovation and Disruption

1.3 Describe innovating technologies and explain how they are
disrupting enterprises.

1.4 IT and You

1.4 Understand the value of being an “informed user” of IT and
the ways in which IT can add value to your career path and
performance in the on-demand economy.

Case 1.2 Business Case: The Internet of Things
Comes to the NFL
Case 1.3 Video Case: What Is the Value of Knowing
More and Doing More?

Introduction
The more digital technology advances, the more it is almost instantly integrated into our daily
lives. Many managers and entrepreneurs recognize the need to integrate digital technology
into their products and services. For example, it has been estimated that 78% of business

CH A PT ER 1

Disruptive IT Impacts Companies, Competition, and Careers

leaders expect their organizations to be a digital business by 2020. Outdated and complex
application architectures with a mix of interfaces can delay or prevent the release of new
products and services, and maintaining these obsolete systems absorbs large portions of the
information technology (IT) budget.
Companies such as Uber, Airbnb, Shyp, TaskRabbit, and other participants in the ondemand economy are leveraging IT to create exciting new business models and revolutionize the way workers, businesses, and customers interact and compete. Peter Hinssen, a
well-known business author, university lecturer, and digital consultant, described the change
in digital technology as follows:
Technology used to be nice. It used to be about making things a little bit better, a little
bit more efficient. But, technology stopped being nice: it’s disruptive. It’s changing our
business models, our consumer markets, our organizations. (MacIver, 2015)
As businesses continue to join the on-demand economy, IT professionals must constantly
scan for innovative new technologies to provide business value and help shape the future of
the business. For example, smart devices, mobile apps, sensors, and technology platforms—
along with increased customer demand for digital interactions and on-demand services—have
moved commerce in fresh new directions. We’ve all heard the phrase “there’s an app for that”
and that kind of consumer thinking is what drives the on-demand economy.
Business leaders today need to know what steps to take to get the most out of mobile,
social, cloud, big data, analytics, visualization technologies, and the Internet of Things (IoT) to
move their business forward and enable new on-demand business models. Faced with opportunities and challenges, managers need to know how to leverage IT earlier and more efficiently
than their competitors.
A goal of this book is to empower you to improve your use and management of IT at
work by raising your understanding of IT terminology, practices, and tools and developing
your IT skills to transform you into an informed IT user. Throughout this book, you will learn
how digital technology is transforming business and society in the on-demand economy as
the IT function takes on key strategic and operational roles that determine an enterprise’s
success or failure. You will also be provided with an in-depth look at IT trends that have
immediate and future capacity to influence products, services competition, and business
relationships. Along the way, we’ll describe many different ways in which IT is being used
and can be used in business and provide you with the some of the terminology, techniques
and tools that enable organizations to leverage IT to improve growth, performance, and
sustainability.
In this opening chapter, you will learn about the powerful impacts of digital technology
on people, business, government, entertainment, and society that are occurring in today’s ondemand economy. You will also discover how leading companies are deploying digital technology and changing their business models, business processes, customer experiences, and
ways of working. We will present examples of innovative products, services, and distribution
channels to help you understand the digital revolution that is currently shaping the future of
business, the economy and society and changing management careers. And, we’ll explain why
IT is important to you and how becoming an “informed user” of IT will add significant value to
your career and overall quality of life.

Introduction 3

Case 1.1 Opening Case
NICOLAS MAETERLINCK / Stringer /
Getty Images

THE ON-DEMAND BUSINESS FRAMEWORK

CORE ON-DEMAND
SERVICES

CONSUMER
TECHNOLOGY

Logistics Management
Offline Services Move Online
Vendor Management
Interface Layer

Ubiquitous Connectivity
Mobile Adoption
App Marketplace

COMPLIMENTARY
RESOURCES

CONSUMER
BEHAVIOR

Payment Systems
Cloud Services
CRM Platforms
1099 Community

Convenience
Efficiency
Simplicity
Instant Gratification

THE
ON-DEMAND
ECONOMY

Uber and Airbnb Revolutionize Business Models
in the On-Demand Economy

categories in the on-demand world. Forward-thinking companies are
reshaping these industri…
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